Texas 2023 - 88th Regular

Texas Senate Bill SB1810 Compare Versions

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1	1	2023S0235-1 03/01/23
2	2	By: Sparks S.B. No. 1810
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the issuance of certain anticipation notes and
8	8	certificates of obligation.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 1431.002, Government Code, is amended by
11	11	adding Subsections (d) and (e) to read as follows:
12	12	(d) Except as provided by Subsection (e), the governing body
13	13	of an issuer may not authorize an anticipation note to pay a
14	14	contractual obligation to be incurred if:
15	15	(1) a bond proposition to authorize the issuance of
16	16	bonds for the same purpose was submitted to the voters during the
17	17	preceding five years and failed to be approved;
18	18	(2) the total amount of the anticipation note exceeds
19	19	five percent of the governing body's total outstanding bonded
20	20	indebtedness at the time of the issuance, including the amount of
21	21	principal and interest to be paid on the outstanding bonds until
22	22	maturity; or
23	23	(3) the municipal secretary or clerk or person with
24	24	similar authority receives a petition signed by at least five
25	25	percent of the registered voters of the issuer that protests the
26	26	issuance of the anticipation note before the later of the date
27	27	tentatively set for the adoption of the order or ordinance to
28	28	authorize the anticipation note or the date the order or ordinance
29	29	is adopted.
30	30	(e) The governing body of an issuer may authorize an
31	31	anticipation note that the governing body is otherwise prohibited
32	32	from authorizing under Subsection (d):
33	33	(1) in a case described by Section 271.056(1), (2), or
34	34	(3), Local Government Code; and
35	35	(2) to comply with a state or federal law, rule, or
36	36	regulation if the issuer has been officially notified of
37	37	noncompliance with the law, rule, or regulation.
38	38	SECTION 2. Section 1431.003(b), Government Code, is amended
39	39	to read as follows:
40	40	(b) Notwithstanding anything in this chapter to the
41	41	contrary and except as provided by Section 1431.002(d), the
42	42	governing body may exercise the authority granted to the governing
43	43	body of an issuer with regard to issuance of obligations under
44	44	Chapter 1371, except that the prohibition in that chapter on the
45	45	repayment of an obligation with ad valorem taxes does not apply to
46	46	an issuer exercising the authority granted by this section.
47	47	SECTION 3. Section 271.047(d), Local Government Code, is
48	48	amended to read as follows:
49	49	(d) Except as provided by this subsection, the governing
50	50	body of an issuer may not authorize a certificate to pay a
51	51	contractual obligation to be incurred if a bond proposition to
52	52	authorize the issuance of bonds for the same purpose was submitted
53	53	to the voters during the preceding five [three] years and failed to
54	54	be approved. A governing body may authorize a certificate that the
55	55	governing body is otherwise prohibited from authorizing under this
56	56	subsection:
57	57	(1) in a case described by Section 271.056(1), (2), or
58	58	(3) [Sections 271.056(1)-(3)]; and
59	59	(2) to comply with a state or federal law, rule, or
60	60	regulation if the political subdivision has been officially
61	61	notified of noncompliance with the law, rule, or regulation.
62	62	SECTION 4. The changes in law made by this Act apply only to
63	63	an anticipation note or certificate of obligation authorized to be
64	64	issued on or after the effective date of this Act. An anticipation
65	65	note or certificate of obligation authorized to be issued before
66	66	the effective date of this Act is governed by the law in effect
67	67	immediately before the effective date of this Act, and the former
68	68	law is continued in effect for that purpose.
69	69	SECTION 5. This Act takes effect September 1, 2023.