Texas House Bill HB1399

Texas 2015 - 84th Regular

Caption

Relating to procedures and requirements for the issuance of certificates of obligation.

Impact

The proposed changes in HB1399 explicitly require that if a bond proposition to fund the same purpose of issuing certificates has failed within the last three years, the governing body cannot authorize the certificate unless there is a grave public necessity. This measure aims to protect local taxpayers from potential fiscal irresponsibility by ensuring that local authorities do not repeatedly request funding for the same project without voter approval if prior proposals have been rejected.

Summary

House Bill 1399 establishes new requirements and procedures for the issuance of certificates of obligation by local governmental entities in Texas. Certificates of obligation are a form of public financing that allows municipalities and counties to incur debt without a public election. The bill aims to enhance transparency and accountability regarding how these certificates are authorized and issued. Key provisions include a mandate that local governments must publish a notice of intention to issue certificates, specifying details such as the purpose of the debt and the payment methods involved.

Conclusion

In summary, HB1399 seeks to enhance the responsible issuance of certificates of obligation while ensuring that local governments remain answerable to their constituencies. The bill reflects an increasing emphasis on fiscal responsibility in public finance and aims to bolster community trust in governmental financial decision-making.

Contention

Some stakeholders may argue against HB1399 fearing that it might limit local governments' ability to promptly respond to urgent financial needs due to the additional procedural requirements. Additionally, the requirement for more robust voter engagement and approval processes could be seen as an impediment by those advocating for faster and less bureaucratic means of securing funding for critical projects. This concern is particularly relevant in times of emergencies or natural disasters when swift financial responses are necessary to address public needs.