Texas 2025 - 89th Regular

Texas House Bill HB1453 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R6 ATP-F
2	2	By: Tepper H.B. No. 1453
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the issuance of anticipation notes and certificates of
10	10	obligation by certain local governments.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 1431.001(2), Government Code, is amended
13	13	to read as follows:
14	14	(2) "Eligible countywide district" means a flood
15	15	control district [or a hospital district] the boundaries of which
16	16	are substantially coterminous with the boundaries of a county with
17	17	a population of three million or more [or a hospital district
18	18	created in a county with a population of more than 1.2 million that
19	19	was not included in the boundaries of a hospital district before
20	20	September 1, 2003].
21	21	SECTION 2. Section 1431.002, Government Code, is amended by
22	22	adding Subsection (d) to read as follows:
23	23	(d) Except as provided by this subsection, the governing
24	24	body of an issuer may not authorize an anticipation note to pay a
25	25	contractual obligation to be incurred if a bond proposition to
26	26	authorize the issuance of bonds for the same purpose was submitted
27	27	to the voters during the preceding five years and failed to be
28	28	approved. The governing body of an issuer may authorize an
29	29	anticipation note that the governing body is otherwise prohibited
30	30	from authorizing under this subsection in a case described by
31	31	Section 271.045(a)(1)(B) or (C), Local Government Code.
32	32	SECTION 3. Sections 271.043(7) and (7-a), Local Government
33	33	Code, are amended to read as follows:
34	34	(7) "Issuer" means a municipality or[,] county[, or
35	35	hospital district established under Chapter 281, Health and Safety
36	36	Code].
37	37	(7-a) "Public work" [for an issuer that is a
38	38	municipality or county:
39	39	[(A)] means any of the following public
40	40	improvements as authorized by law:
41	41	(A) [(i)] a street, road, highway, bridge,
42	42	sidewalk, or parking structure;
43	43	(B) [(ii)] a landfill;
44	44	(C) [(iii)] an airport;
45	45	(D) [(iv)] a utility system, water supply
46	46	project, water treatment plant, wastewater treatment plant, or
47	47	water or wastewater conveyance facility;
48	48	(E) [(v)] a wharf or dock; or
49	49	(F) [(vi)] a flood control and drainage
50	50	project[;
51	51	[(vii) a public safety facility, including
52	52	a police station, fire station, emergency shelter, jail, or
53	53	juvenile detention facility;
54	54	[(viii) a judicial facility;
55	55	[(ix) an administrative office building
56	56	housing the governmental functions of the municipality or county;
57	57	[(x) an animal shelter;
58	58	[(xi) a library; or
59	59	[(xii) a park or recreation facility that
60	60	is generally accessible to the public and is part of the municipal
61	61	or county park system;
62	62	[(B) means the rehabilitation, expansion,
63	63	reconstruction, or maintenance of an existing stadium, arena, civic
64	64	center, convention center, or coliseum that is owned and operated
65	65	by the municipality or county or by an entity created to act on
66	66	behalf of the municipality or county; and
67	67	[(C) does not include:
68	68	[(i) a facility for which more than 50
69	69	percent of the average annual usage is or is intended to be for
70	70	professional or semi-professional sports;
71	71	[(ii) a new stadium, arena, civic center,
72	72	convention center, or coliseum that is or is intended to be leased
73	73	by a single for-profit tenant for more than 180 days in a single
74	74	calendar year; or
75	75	[(iii) a hotel].
76	76	SECTION 4. Section 271.045, Local Government Code, is
77	77	amended by amending Subsections (a) and (b) and adding Subsections
78	78	(f) and (g) to read as follows:
79	79	(a) The governing body of an issuer may authorize
80	80	certificates only as necessary to pay a contractual obligation:
81	81	(1) to be incurred for the construction, renovation,
82	82	repair, or improvement of a public work that the governing body
83	83	determines is necessary:
84	84	(A) to comply with a state or federal law or rule,
85	85	but only if the issuer has been officially notified of
86	86	noncompliance with the law or rule [(1) construction of any public
87	87	work];
88	88	(B) to mitigate the impact of a public health
89	89	emergency in the jurisdiction of the issuer that poses an imminent
90	90	danger to the physical health or safety of the residents of the
91	91	issuer;
92	92	(C) to finance the cleanup, mitigation, or
93	93	remediation of a natural disaster in the jurisdiction of the issuer
94	94	subject to a state of disaster declared by:
95	95	(i) the governor under Section 418.014,
96	96	Government Code, in the fiscal year that the certificates are
97	97	authorized; or
98	98	(ii) the presiding officer of the governing
99	99	body of the issuer under Section 418.108, Government Code, in the
100	100	fiscal year that the certificates are authorized; or
101	101	(D) to comply with a court order [(2) purchase
102	102	of materials, supplies, equipment, machinery, buildings, land, and
103	103	rights-of-way for authorized needs and purposes]; or
104	104	(2) for professional services necessary for a public
105	105	work described by Subdivision (1) [(3) payment of contractual
106	106	obligations for professional services, including services provided
107	107	by tax appraisers, engineers, architects, attorneys, map makers,
108	108	auditors, financial advisors, and fiscal agents].
109	109	(b) If necessary because of a change order for a contractual
110	110	obligation incurred for the construction, renovation, repair, or
111	111	improvement of a public work [orders], the governing body of an
112	112	issuer may authorize the issuance of certificates [may be
113	113	authorized] in an amount not to exceed 15 [25] percent of the [a]
114	114	contractual obligation [incurred for the construction of public
115	115	works], but certificates may be delivered only in the amount
116	116	necessary to discharge the contractual obligation [obligations].
117	117	(f) The governing body of an issuer that authorizes the
118	118	issuance of a certificate shall enter into a contract for the
119	119	construction, renovation, repair, or improvement of the public work
120	120	for which the issuance is authorized not later than the 180th day
121	121	after the date the governing body authorizes the issuance.
122	122	(g) The governing body of an issuer that authorizes a
123	123	certificate to pay a contractual obligation under Subsection
124	124	(a)(1)(B) shall adopt a resolution describing the conditions and
125	125	circumstances of the public health emergency and making a
126	126	determination that the emergency exists.
127	127	SECTION 5. Section 271.0461, Local Government Code, is
128	128	amended to read as follows:
129	129	Sec. 271.0461. ADDITIONAL PURPOSE FOR CERTIFICATES:
130	130	DEMOLITION OF DANGEROUS STRUCTURES [OR RESTORATION OF HISTORIC
131	131	STRUCTURES]. Certificates may be issued by any municipality for
132	132	the payment of contractual obligations to be incurred in
133	133	demolishing dangerous structures [or restoring historic
134	134	structures] and may be sold for cash, subject to the restrictions
135	135	and other conditions of Section 271.050.
136	136	SECTION 6. Sections 271.047(c) and (d), Local Government
137	137	Code, are amended to read as follows:
138	138	(c) A certificate may not mature over a period greater than
139	139	30 [40] years from the date of the certificate and may not bear
140	140	interest at a rate greater than that allowed by Chapter 1204,
141	141	Government Code.
142	142	(d) Except as provided by this subsection, the governing
143	143	body of an issuer may not authorize a certificate to pay a
144	144	contractual obligation to be incurred if a bond proposition to
145	145	authorize the issuance of bonds for the same purpose was submitted
146	146	to the voters during the preceding five [three] years and failed to
147	147	be approved. A governing body may authorize a certificate that the
148	148	governing body is otherwise prohibited from authorizing under this
149	149	subsection[:
150	150	[(1)] in a case described by Section 271.045(a)(1)(B)
151	151	or (C) [Sections 271.056(1)-(3); and
152	152	[(2) to comply with a state or federal law, rule, or
153	153	regulation if the political subdivision has been officially
154	154	notified of noncompliance with the law, rule, or regulation].
155	155	SECTION 7. Sections 271.049(c) and (d), Local Government
156	156	Code, are amended to read as follows:
157	157	(c) If before the date tentatively set for the authorization
158	158	of the issuance of the certificates or if before the authorization,
159	159	the municipal secretary or clerk if the issuer is a municipality,
160	160	or the county clerk if the issuer is a county, receives a petition
161	161	signed by at least two [five] percent of the registered [qualified]
162	162	voters of the issuer protesting the issuance of the certificates,
163	163	the issuer may not authorize the issuance of the certificates
164	164	unless the issuance is approved at an election ordered, held, and
165	165	conducted in the manner provided for bond elections under Chapter
166	166	1251, Government Code.
167	167	(d) This section does not apply to certificates issued for
168	168	the purposes described by Section 271.045(a)(1)(B) or (C) [Sections
169	169	271.056(1)-(4)].
170	170	SECTION 8. Section 271.0525(c), Local Government Code, is
171	171	amended to read as follows:
172	172	(c) A petition to protest the issuance of refinancing
173	173	certificates under this section must be signed by at least two
174	174	percent of the registered [a number of qualified] voters of the
175	175	county [, residing in the county, equal to at least five percent of
176	176	the number of votes cast in that county for governor in the most
177	177	recent general election at which that office was filled].
178	178	SECTION 9. Section 271.057(a), Local Government Code, is
179	179	amended to read as follows:
180	180	(a) Except as provided by Subsection (b), a contract let
181	181	under this subchapter for the construction, renovation, repair, or
182	182	improvement of public works or the purchase of materials,
183	183	equipment, supplies, or machinery and for which competitive bidding
184	184	is required by this subchapter must be let to the lowest responsible
185	185	bidder and, as the governing body determines, may be let on a
186	186	lump-sum basis or unit price basis.
187	187	SECTION 10. Section 271.059, Local Government Code, is
188	188	amended to read as follows:
189	189	Sec. 271.059. CONTRACTOR'S BONDS. If a contract is for the
190	190	construction, renovation, repair, or improvement of public works
191	191	and is required by this subchapter to be submitted to competitive
192	192	bidding, the successful bidder must execute a good and sufficient
193	193	payment bond and performance bond. The bonds must each be:
194	194	(1) in the full amount of the contract price; and
195	195	(2) executed, in accordance with Chapter 2253,
196	196	Government Code, with a surety company authorized to do business in
197	197	this state.
198	198	SECTION 11. Section 271.046, Local Government Code, is
199	199	repealed.
200	200	SECTION 12. The changes in law made by this Act apply only
201	201	to an anticipation note or certificate of obligation issued on or
202	202	after the effective date of this Act. An anticipation note or
203	203	certificate of obligation issued before the effective date of this
204	204	Act is governed by the law in effect on the date the anticipation
205	205	note or certificate was issued, and the former law is continued in
206	206	effect for that purpose.
207	207	SECTION 13. This Act takes effect September 1, 2025.