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