| 1 | 1 | | 81R10997 JTS-D |
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| 2 | 2 | | By: Zaffirini S.B. No. 1874 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to requiring a municipality or county to publish a notice |
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| 8 | 8 | | of intent before issuing anticipation notes. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 1431, Government Code, is amended by |
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| 11 | 11 | | adding Section 1431.0031 to read as follows: |
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| 12 | 12 | | Sec. 1431.0031. NOTICE OF INTENTION TO ISSUE ANTICIPATION |
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| 13 | 13 | | NOTES; PETITION AND ELECTION. (a) Regardless of the sources of |
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| 14 | 14 | | payment of anticipation notes, anticipation notes may not be issued |
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| 15 | 15 | | unless the issuer publishes notice of its intention to issue the |
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| 16 | 16 | | anticipation notes. The notice must be published once a week for |
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| 17 | 17 | | two consecutive weeks in a newspaper, as defined by Subchapter C, |
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| 18 | 18 | | Chapter 2051, that is of general circulation in the area of the |
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| 19 | 19 | | issuer, with the date of the first publication to be before the 30th |
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| 20 | 20 | | day before the date tentatively set for the passage of the order or |
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| 21 | 21 | | ordinance authorizing the issuance of the anticipation notes. |
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| 22 | 22 | | (b) The notice must state: |
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| 23 | 23 | | (1) the time and place tentatively set for the passage |
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| 24 | 24 | | of the order or ordinance authorizing the issuance of the |
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| 25 | 25 | | anticipation notes; |
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| 26 | 26 | | (2) the maximum amount and purpose of the anticipation |
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| 27 | 27 | | notes to be authorized; and |
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| 28 | 28 | | (3) the manner in which the anticipation notes will be |
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| 29 | 29 | | paid for, whether by taxes, revenues, a combination of taxes and |
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| 30 | 30 | | revenues, or the proceeds of bonds to be issued by the issuer. |
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| 31 | 31 | | (c) If before the date tentatively set for the authorization |
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| 32 | 32 | | of the issuance of the anticipation notes or if before the |
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| 33 | 33 | | authorization, the municipal secretary or clerk if the issuer is a |
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| 34 | 34 | | municipality, or the county clerk if the issuer is a county, |
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| 35 | 35 | | receives a petition signed by at least five percent of the qualified |
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| 36 | 36 | | voters of the issuer protesting the issuance of the anticipation |
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| 37 | 37 | | notes, the issuer may not authorize the issuance of the |
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| 38 | 38 | | anticipation notes unless the issuance is approved at an election |
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| 39 | 39 | | ordered, held, and conducted in the manner provided for bond |
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| 40 | 40 | | elections under Chapter 1251. |
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| 41 | 41 | | (d) This section does not apply to anticipation notes issued |
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| 42 | 42 | | for the following purposes: |
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| 43 | 43 | | (1) a case of public calamity if it is necessary to act |
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| 44 | 44 | | promptly to relieve the necessity of the residents or to preserve |
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| 45 | 45 | | the property of the issuer; |
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| 46 | 46 | | (2) a case in which it is necessary to preserve or |
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| 47 | 47 | | protect the public health of the residents of the issuer; |
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| 48 | 48 | | (3) a case of unforeseen damage to public machinery, |
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| 49 | 49 | | equipment, or other property; or |
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| 50 | 50 | | (4) a contract for personal or professional services. |
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| 51 | 51 | | SECTION 2. This Act takes effect immediately if it receives |
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| 52 | 52 | | a vote of two-thirds of all the members elected to each house, as |
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| 53 | 53 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 54 | 54 | | Act does not receive the vote necessary for immediate effect, this |
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| 55 | 55 | | Act takes effect September 1, 2009. |
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