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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 Subsection (d) 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 an anticipation note 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 years and failed to be |
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approved. 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 this subsection: |
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(1) in a case described by Section 271.056(1), (2), or |
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(3), Local Government Code; |
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(2) to finance the cleanup, mitigation, or remediation |
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of a natural disaster; |
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(3) to comply with a federal court order; and |
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(4) 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. |