Texas 2025 - 89th Regular

Texas Senate Bill SB1024 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Bettencourt, Sparks S.B. No. 1024
2		-
3		-
	1	+	By: Bettencourt S.B. No. 1024
	2	+	(In the Senate - Filed January 30, 2025; February 24, 2025,
	3	+	read first time and referred to Committee on Local Government;
	4	+	March 17, 2025, reported favorably by the following vote: Yeas 6,
	5	+	Nays 0; March 17, 2025, sent to printer.)
	6	+	Click here to see the committee vote
4	7
5	8
6	9		A BILL TO BE ENTITLED
7	10		AN ACT
8	11		relating to the issuance of certain anticipation notes and
9	12		certificates of obligation.
10	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	14		SECTION 1. Section 1431.002, Government Code, is amended by
12		-	adding Subsections (d) and (e) to read as follows:
13		-	(d) Except as provided by Subsection (e), the governing body
14		-	of an issuer may not authorize an anticipation note to pay a
15		-	contractual obligation to be incurred if:
16		-	(1) a bond proposition to authorize the issuance of
17		-	bonds for the same purpose was submitted to the voters during the
18		-	preceding five years and failed to be approved; or
19		-	(2) the amount of the anticipation note is greater
20		-	than five percent of the issuer's total outstanding bonded
21		-	indebtedness as of the date of issuance, including the amount of the
22		-	principal and interest to be paid on the outstanding bonds until
23		-	maturity.
24		-	(e) The governing body of an issuer may authorize an
	15	+	adding Subsection (d) to read as follows:
	16	+	(d) Except as provided by this subsection, the governing
	17	+	body of an issuer may not authorize an anticipation note to pay a
	18	+	contractual obligation to be incurred if a bond proposition to
	19	+	authorize the issuance of bonds for the same purpose was submitted
	20	+	to the voters during the preceding five years and failed to be
	21	+	approved. The governing body of an issuer may authorize an
25	22		anticipation note that the governing body is otherwise prohibited
26		-	from authorizing under Subsection ~~(d)~~:
	23	+	from authorizing under this subsection:
27	24		(1) in a case described by Section 271.056(1), (2), or
28	25		(3), Local Government Code;
29	26		(2) to finance the cleanup, mitigation, or remediation
30	27		of a natural disaster;
31	28		(3) to comply with a federal court order; and
32	29		(4) to comply with a state or federal law, rule, or
33	30		regulation if the issuer has been officially notified of
34	31		noncompliance with the law, rule, or regulation.
35	32		SECTION 2. Section 1431.003(b), Government Code, is amended
36	33		to read as follows:
37	34		(b) Notwithstanding anything in this chapter to the
38	35		contrary and except as provided by Section 1431.002(d), the
39	36		governing body may exercise the authority granted to the governing
40	37		body of an issuer with regard to issuance of obligations under
41	38		Chapter 1371, except that the prohibition in that chapter on the
42	39		repayment of an obligation with ad valorem taxes does not apply to
43	40		an issuer exercising the authority granted by this section.
44	41		SECTION 3. Section 271.047(d), Local Government Code, is
45	42		amended to read as follows:
46	43		(d) Except as provided by this subsection, the governing
47	44		body of an issuer may not authorize a certificate to pay a
48	45		contractual obligation to be incurred if a bond proposition to
49	46		authorize the issuance of bonds for the same purpose was submitted
50	47		to the voters during the preceding five [three] years and failed to
51	48		be approved. A governing body may authorize a certificate that the
52	49		governing body is otherwise prohibited from authorizing under this
53	50		subsection:
54	51		(1) in a case described by Section 271.056(1), (2), or
55	52		(3) [Sections 271.056(1)-(3)]; and
56	53		(2) to comply with a state or federal law, rule, or
57	54		regulation if the political subdivision has been officially
58	55		notified of noncompliance with the law, rule, or regulation.
59	56		SECTION 4. The changes in law made by this Act apply only to
60	57		an anticipation note or certificate of obligation authorized to be
61	58		issued on or after the effective date of this Act. An anticipation
62	59		note or certificate of obligation authorized to be issued before
63	60		the effective date of this Act is governed by the law in effect
64	61		immediately before the effective date of this Act, and the former
65	62		law is continued in effect for that purpose.
66	63		SECTION 5. This Act takes effect September 1, 2025.
	64	+	* * * * *