87R11187 SMT-F
By: Johnson S.B. No. 2090
A BILL TO BE ENTITLED
AN ACT
relating to the authority of certain political subdivisions to
issue anticipation notes and other obligations in the event of
certain emergencies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1431.015, Government Code, is amended by
amending Subsections (a) and (b) and adding Subsections (d), (e),
and (f) to read as follows:
(a) In this section, "emergency" means the occurrence of:
(1) widespread or severe damage, injury, or loss of
life or property affecting an area in the jurisdiction of an issuer
and resulting from a hurricane or tropical storm, including wind
damage, fire damage, damage from wave action, or flood damage
resulting from the hurricane or tropical storm;
(2) a severe weather-related event other than a
hurricane or tropical storm; or
(3) an epidemic or pandemic.
(b) Notwithstanding any other provision of this chapter, an
issuer [located within 70 miles of the Gulf of Mexico or of a bay or
inlet of the gulf] may authorize the issuance of an anticipation
note or other obligation in the event of an emergency.
(d) If the authorization of an anticipation note or other
obligation issued under this section provides that the issuer
intends to refinance the note or other obligation with refunding
bonds, the note or obligation shall be treated as having the
intended term and payment schedule of the refunding bonds for
purposes of attorney general review and approval.
(e) Notwithstanding any other provision of law, a
determination by the governing body that the expenses incurred in
connection with the issuance of anticipation notes or other
obligations under this section are necessary to address the
emergency is not subject to review by the attorney general.
(f) Anticipation notes or other obligations to address the
emergencies described by Subsection (a)(2) or (3) may only be
delivered if the governor has:
(1) issued the order or proclamation described by
Subsection (c)(1); or
(2) made the proclamation described by Subsection
(c)(3).
SECTION 2. The changes in law made by this Act apply only to
anticipation notes or other debt obligations issued on or after the
effective date of this Act. Anticipation notes or other debt
obligations issued before the effective date of this Act are
governed by the law in effect at the time the anticipation notes or
other debt obligations were issued, and that law is continued in
effect for that purpose.
SECTION 3. The changes in law made by this Act apply to the
issuance of anticipation notes or other debt obligations in
response to a disaster declared or renewed before, on, or after the
effective date of this Act.
SECTION 4. 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, 2021.