By: Bettencourt S.B. No. 2035
 
 
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 Subsection (d) to read as follows:
         (d)  Except as provided by this subsection, the governing
  body of an issuer may not authorize an anticipation note 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 years and failed to be
  approved.  The governing body of an issuer may authorize an
  anticipation note 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), Local Government Code;
               (2)  to finance the cleanup, mitigation, or remediation
  of a natural disaster;
               (3)  to comply with a federal court order; and
               (4)  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.