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