Texas 2015 - 84th Regular

Texas Senate Bill SB310 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New	Differences
1	1	84R18422 TJB-D
2	2	By: Campbell, et al. S.B. No. 310
3	3	(Goldman)
4	4	Substitute the following for S.B. No. 310: No.
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to procedures and requirements for the issuance of
10	10	certificates of obligation.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 271.047, Local Government Code, is
13	13	amended by adding Subsection (d) to read as follows:
14	14	(d) The governing body of an issuer may not authorize a
15	15	certificate to pay a contractual obligation to be incurred if a bond
16	16	proposition to authorize the issuance of bonds for the same purpose
17	17	was submitted to the voters during the preceding three years and
18	18	failed to be approved except:
19	19	(1) in a case of grave public necessity to meet an
20	20	unusual and unforeseen condition; or
21	21	(2) if necessary to comply with:
22	22	(A) an order of a state or federal court; or
23	23	(B) a final decision or order of a state or
24	24	federal administrative body.
25	25	SECTION 2. Section 271.049, Local Government Code, is
26	26	amended to read as follows:
27	27	Sec. 271.049. NOTICE OF INTENTION TO ISSUE CERTIFICATES;
28	28	PETITION AND ELECTION. (a) Regardless of the sources of payment of
29	29	certificates, certificates may not be issued unless the issuer
30	30	publishes notice of its intention to issue the certificates. The
31	31	notice must be published:
32	32	(1) once a week for two consecutive weeks in a
33	33	newspaper, as defined by Subchapter C, Chapter 2051, Government
34	34	Code, that is of general circulation in the area of the issuer, with
35	35	the date of the first publication to be before the 45th [30th] day
36	36	before the date tentatively set for the passage of the order or
37	37	ordinance authorizing the issuance of the certificates; and
38	38	(2) continuously on the issuer's Internet website for
39	39	at least 45 days before the date tentatively set for the passage of
40	40	the order or ordinance authorizing the issuance of the
41	41	certificates.
42	42	(b) The notice must state:
43	43	(1) the time and place tentatively set for the passage
44	44	of the order or ordinance authorizing the issuance of the
45	45	certificates;
46	46	(2) the [maximum amount and] purpose of the
47	47	certificates to be authorized; [and]
48	48	(3) the manner in which the certificates will be paid
49	49	for, whether by taxes, revenues, or a combination of the two;
50	50	(4) the following, stated as a total amount and as a
51	51	per capita amount:
52	52	(A) the then-current principal of all
53	53	outstanding debt obligations of the issuer;
54	54	(B) the then-current combined principal and
55	55	interest required to pay all outstanding debt obligations of the
56	56	issuer on time and in full;
57	57	(C) the principal of the certificates to be
58	58	authorized; and
59	59	(D) the estimated combined principal and
60	60	interest required to pay the certificates to be authorized on time
61	61	and in full;
62	62	(5) the estimated rate of interest for the
63	63	certificates to be authorized;
64	64	(6) the maturity date of the certificates to be
65	65	authorized; and
66	66	(7) the process by which a petition may be submitted
67	67	requesting an election on the issuance of the certificates, in the
68	68	following form:
69	69	"Five percent of the registered voters of (name of issuer)
70	70	may petition to require an election to be held authorizing the
71	71	issuance of certificates of obligation by delivering a signed
72	72	petition to the (insert "secretary or clerk" if the issuer is a
73	73	municipality, or "county clerk" if the issuer is a county) of (name
74	74	of issuer) before the date the governing body has set for the
75	75	authorization of the certificates of obligation. Information about
76	76	the requirements of the petition may be obtained from the (insert
77	77	"secretary or clerk" if the issuer is a municipality, or "county
78	78	clerk" if the issuer is a county) of (name of issuer)."[.]
79	79	(c) If before the date tentatively set for the authorization
80	80	of the issuance of the certificates or if before the authorization,
81	81	the municipal secretary or clerk if the issuer is a municipality, or
82	82	the county clerk if the issuer is a county, receives a petition
83	83	signed by at least five percent of the registered [qualified]
84	84	voters of the issuer protesting the issuance of the certificates,
85	85	the issuer may not authorize the issuance of the certificates
86	86	unless the issuance is approved at an election ordered, held, and
87	87	conducted in the manner provided for bond elections under Chapter
88	88	1251, Government Code.
89	89	(d) This section does not apply to certificates issued for
90	90	the purposes described by Sections 271.056(1)-(3)
91	91	[271.056(1)-(4)].
92	92	(e) An issuer shall maintain an Internet website to comply
93	93	with this section.
94	94	(f) In this section, "debt obligation" means an issued
95	95	public security, as defined by Section 1201.002, Government Code.
96	96	SECTION 3. The changes in law made by this Act to Section
97	97	271.049, Local Government Code, apply only to a certificate of
98	98	obligation for which the first notice of intention to issue the
99	99	certificate is made on or after the effective date of this Act. A
100	100	certificate of obligation for which the first notice of intention
101	101	to issue the certificate is made before the effective date of this
102	102	Act is governed by the law in effect when the notice of intention is
103	103	made, and the former law is continued in effect for that purpose.
104	104	SECTION 4. This Act takes effect September 1, 2015.