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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of certain political subdivisions to |
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issue anticipation notes and other obligations in the event of |
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certain emergencies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1431.015, Government Code, is amended by |
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amending Subsections (a) and (b) and adding Subsections (d), (e), |
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and (f) to read as follows: |
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(a) In this section, "emergency" means the occurrence of: |
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(1) widespread or severe damage, injury, or loss of |
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life or property affecting an area in the jurisdiction of an issuer |
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and resulting from a hurricane or tropical storm, including wind |
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damage, fire damage, damage from wave action, or flood damage |
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resulting from the hurricane or tropical storm; |
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(2) a severe weather-related event other than a |
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hurricane or tropical storm; or |
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(3) an epidemic or pandemic. |
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(b) Notwithstanding any other provision of this chapter, an |
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issuer [located within 70 miles of the Gulf of Mexico or of a bay or |
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inlet of the gulf] may authorize the issuance of an anticipation |
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note or other obligation in the event of an emergency. |
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(d) If the authorization of an anticipation note or other |
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obligation issued under this section provides that the issuer |
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intends to refinance the note or other obligation with refunding |
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bonds, the note or obligation shall be treated as having the |
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intended term and payment schedule of the refunding bonds for |
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purposes of attorney general review and approval. |
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(e) Notwithstanding any other provision of law, a |
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determination by the governing body that the expenses incurred in |
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connection with the issuance of anticipation notes or other |
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obligations under this section are necessary to address the |
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emergency is not subject to review by the attorney general. |
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(f) Anticipation notes or other obligations to address the |
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emergencies described by Subsection (a)(2) or (3) may only be |
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delivered if the governor has: |
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(1) issued the order or proclamation described by |
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Subsection (c)(1); or |
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(2) made the proclamation described by Subsection |
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(c)(3). |
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SECTION 2. The changes in law made by this Act apply only to |
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anticipation notes or other debt obligations issued on or after the |
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effective date of this Act. Anticipation notes or other debt |
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obligations issued before the effective date of this Act are |
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governed by the law in effect at the time the anticipation notes or |
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other debt obligations were issued, and that law is continued in |
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effect for that purpose. |
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SECTION 3. The changes in law made by this Act apply to the |
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issuance of anticipation notes or other debt obligations in |
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response to a disaster declared or renewed before, on, or after the |
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effective date of this Act. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2021. |