Texas 2025 - 89th Regular

Texas Senate Bill SB1037 Compare Versions

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

Old	New	Differences
1	1	2025S0047-1 01/29/25
2	2	By: Sparks S.B. No. 1037
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the issuance of certain anticipation notes and
10	10	certificates of obligation.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 1431.002, Government Code, is amended by
13	13	adding Subsections (d) and (e) to read as follows:
14	14	(d) Except as provided by Subsection (e), the governing body
15	15	of an issuer may not authorize an anticipation note to pay a
16	16	contractual obligation to be incurred if:
17	17	(1) a bond proposition to authorize the issuance of
18	18	bonds for the same purpose was submitted to the voters during the
19	19	preceding five years and failed to be approved;
20	20	(2) the total amount of the anticipation note exceeds
21	21	five percent of the governing body's total outstanding bonded
22	22	indebtedness at the time of the issuance, including the amount of
23	23	principal and interest to be paid on the outstanding bonds until
24	24	maturity; or
25	25	(3) the municipal secretary or clerk or person with
26	26	similar authority receives a petition signed by at least five
27	27	percent of the registered voters of the issuer that protests the
28	28	issuance of the anticipation note before the later of the date
29	29	tentatively set for the adoption of the order or ordinance to
30	30	authorize the anticipation note or the date the order or ordinance
31	31	is adopted.
32	32	(e) The governing body of an issuer may authorize an
33	33	anticipation note that the governing body is otherwise prohibited
34	34	from authorizing under Subsection (d):
35	35	(1) in a case described by Section 271.056(1), (2), or
36	36	(3), Local Government Code; and
37	37	(2) to comply with a state or federal law, rule, or
38	38	regulation if the issuer has been officially notified of
39	39	noncompliance with the law, rule, or regulation.
40	40	SECTION 2. Section 1431.003(b), Government Code, is amended
41	41	to read as follows:
42	42	(b) Notwithstanding anything in this chapter to the
43	43	contrary and except as provided by Section 1431.002(d), the
44	44	governing body may exercise the authority granted to the governing
45	45	body of an issuer with regard to issuance of obligations under
46	46	Chapter 1371, except that the prohibition in that chapter on the
47	47	repayment of an obligation with ad valorem taxes does not apply to
48	48	an issuer exercising the authority granted by this section.
49	49	SECTION 3. Section 271.047(d), Local Government Code, is
50	50	amended to read as follows:
51	51	(d) Except as provided by this subsection, the governing
52	52	body of an issuer may not authorize a certificate to pay a
53	53	contractual obligation to be incurred if a bond proposition to
54	54	authorize the issuance of bonds for the same purpose was submitted
55	55	to the voters during the preceding five [three] years and failed to
56	56	be approved. A governing body may authorize a certificate that the
57	57	governing body is otherwise prohibited from authorizing under this
58	58	subsection:
59	59	(1) in a case described by Section 271.056(1), (2), or
60	60	(3) [Sections 271.056(1)-(3)]; and
61	61	(2) to comply with a state or federal law, rule, or
62	62	regulation if the political subdivision has been officially
63	63	notified of noncompliance with the law, rule, or regulation.
64	64	SECTION 4. The changes in law made by this Act apply only to
65	65	an anticipation note or certificate of obligation authorized to be
66	66	issued on or after the effective date of this Act. An anticipation
67	67	note or certificate of obligation authorized to be issued before
68	68	the effective date of this Act is governed by the law in effect
69	69	immediately before the effective date of this Act, and the former
70	70	law is continued in effect for that purpose.
71	71	SECTION 5. This Act takes effect September 1, 2025.