| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the issuance of certain anticipation notes and |
|
|
certificates of obligation. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 1431.002, Government Code, is amended by |
|
|
adding Subsections (d) and (e) to read as follows: |
|
|
(d) Except as provided by Subsection (e), the governing body |
|
|
of an issuer may not authorize an anticipation note to pay a |
|
|
contractual obligation to be incurred if: |
|
|
(1) a bond proposition to authorize the issuance of |
|
|
bonds for the same purpose was submitted to the voters during the |
|
|
preceding five years and failed to be approved; |
|
|
(2) the total amount of the anticipation note exceeds |
|
|
five percent of the governing body's total outstanding bonded |
|
|
indebtedness at the time of the issuance, including the amount of |
|
|
principal and interest to be paid on the outstanding bonds until |
|
|
maturity; or |
|
|
(3) the municipal secretary or clerk or person with |
|
|
similar authority receives a petition signed by at least five |
|
|
percent of the registered voters of the issuer that protests the |
|
|
issuance of the anticipation note before the later of the date |
|
|
tentatively set for the adoption of the order or ordinance to |
|
|
authorize the anticipation note or the date the order or ordinance |
|
|
is adopted. |
|
|
(e) The governing body of an issuer may authorize an |
|
|
anticipation note that the governing body is otherwise prohibited |
|
|
from authorizing under Subsection (d): |
|
|
(1) in a case described by Section 271.056(1), (2), or |
|
|
(3), Local Government Code; and |
|
|
(2) to comply with a state or federal law, rule, or |
|
|
regulation if the issuer has been officially notified of |
|
|
noncompliance with the law, rule, or regulation. |
|
|
SECTION 2. Section 1431.003(b), Government Code, is amended |
|
|
to read as follows: |
|
|
(b) Notwithstanding anything in this chapter to the |
|
|
contrary and except as provided by Section 1431.002(d), the |
|
|
governing body may exercise the authority granted to the governing |
|
|
body of an issuer with regard to issuance of obligations under |
|
|
Chapter 1371, except that the prohibition in that chapter on the |
|
|
repayment of an obligation with ad valorem taxes does not apply to |
|
|
an issuer exercising the authority granted by this section. |
|
|
SECTION 3. Section 271.047(d), Local Government Code, is |
|
|
amended to read as follows: |
|
|
(d) Except as provided by this subsection, the governing |
|
|
body of an issuer may not authorize a certificate to pay a |
|
|
contractual obligation to be incurred if a bond proposition to |
|
|
authorize the issuance of bonds for the same purpose was submitted |
|
|
to the voters during the preceding five [three] years and failed to |
|
|
be approved. A governing body may authorize a certificate that the |
|
|
governing body is otherwise prohibited from authorizing under this |
|
|
subsection: |
|
|
(1) in a case described by Section 271.056(1), (2), or |
|
|
(3) [Sections 271.056(1)-(3)]; and |
|
|
(2) to comply with a state or federal law, rule, or |
|
|
regulation if the political subdivision has been officially |
|
|
notified of noncompliance with the law, rule, or regulation. |
|
|
SECTION 4. The changes in law made by this Act apply only to |
|
|
an anticipation note or certificate of obligation authorized to be |
|
|
issued on or after the effective date of this Act. An anticipation |
|
|
note or certificate of obligation authorized to be issued before |
|
|
the effective date of this Act is governed by the law in effect |
|
|
immediately before the effective date of this Act, and the former |
|
|
law is continued in effect for that purpose. |
|
|
SECTION 5. This Act takes effect September 1, 2023. |