HB1453 - Relating to the issuance of anticipation notes and certificates of obligation by certain local governments.

  89R6 ATP-F     By: Tepper H.B. No. 1453       A BILL TO BE ENTITLED   AN ACT   relating to the issuance of anticipation notes and certificates of   obligation by certain local governments.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 1431.001(2), Government Code, is amended   to read as follows:                (2)  "Eligible countywide district" means a flood   control district [ or a hospital district ] the boundaries of which   are substantially coterminous with the boundaries of a county with   a population of three million or more [ or a hospital district   created in a county with a population of more than 1.2 million that   was not included in the boundaries of a hospital district before   September 1, 2003 ].          SECTION 2.  Section 1431.002, Government Code, is amended by   adding Subsection (d) to read as follows:           (d)     Except as provided by this subsection, the governing   body of an issuer may not authorize an anticipation note to pay a   contractual obligation to be incurred if a bond proposition to   authorize the issuance of bonds for the same purpose was submitted   to the voters during the preceding five years and failed to be   approved.   The governing body of an issuer may authorize an   anticipation note that the governing body is otherwise prohibited   from authorizing under this subsection in a case described by   Section 271.045(a)(1)(B) or (C), Local Government Code.          SECTION 3.  Sections 271.043(7) and (7-a), Local Government   Code, are amended to read as follows:                (7)  "Issuer" means a municipality or [ , ] county[ , or   hospital district established under Chapter 281, Health and Safety   Code ].                (7-a)  "Public work" [ for an issuer that is a   municipality or county:                      [ (A) ]  means any of the following public   improvements as authorized by law:                       (A)  [ (i) ]  a street, road, highway, bridge,   sidewalk, or parking structure;                       (B)  [ (ii) ]  a landfill;                       (C)  [ (iii) ]  an airport;                       (D)  [ (iv) ]  a utility system, water supply   project, water treatment plant, wastewater treatment plant, or   water or wastewater conveyance facility;                       (E)  [ (v) ]  a wharf or dock; or                       (F)  [ (vi) ]  a flood control and drainage   project[ ;                            [ (vii)     a public safety facility, including   a police station, fire station, emergency shelter, jail, or   juvenile detention facility;                            [ (viii)  a judicial facility;                            [ (ix)     an administrative office building   housing the governmental functions of the municipality or county;                            [ (x)  an animal shelter;                            [ (xi)  a library; or                            [ (xii)     a park or recreation facility that   is generally accessible to the public and is part of the municipal   or county park system;                      [ (B)     means the rehabilitation, expansion,   reconstruction, or maintenance of an existing stadium, arena, civic   center, convention center, or coliseum that is owned and operated   by the municipality or county or by an entity created to act on   behalf of the municipality or county; and                      [ (C)  does not include:                            [ (i)     a facility for which more than 50   percent of the average annual usage is or is intended to be for   professional or semi-professional sports;                            [ (ii)     a new stadium, arena, civic center,   convention center, or coliseum that is or is intended to be leased   by a single for-profit tenant for more than 180 days in a single   calendar year; or                            [ (iii)  a hotel ].          SECTION 4.  Section 271.045, Local Government Code, is   amended by amending Subsections (a) and (b) and adding Subsections   (f) and (g) to read as follows:          (a)  The governing body of an issuer may authorize   certificates only as necessary to pay a contractual obligation :                 (1)   to be incurred for the construction, renovation,   repair, or improvement of a public work that the governing body   determines is necessary :                       (A)     to comply with a state or federal law or rule,   but only if the issuer has been officially notified of   noncompliance with the law or rule [ (1)     construction of any public   work ];                       (B)     to mitigate the impact of a public health   emergency in the jurisdiction of the issuer that poses an imminent   danger to the physical health or safety of the residents of the   issuer;                       (C)     to finance the cleanup, mitigation, or   remediation of a natural disaster in the jurisdiction of the issuer   subject to a state of disaster declared by:                             (i)     the governor under Section 418.014,   Government Code, in the fiscal year that the certificates are   authorized; or                             (ii)     the presiding officer of the governing   body of the issuer under Section 418.108, Government Code, in the   fiscal year that the certificates are authorized; or                       (D)  to comply with a court order  [ (2)     purchase   of materials, supplies, equipment, machinery, buildings, land, and   rights-of-way for authorized needs and purposes ]; or                 (2)     for professional services necessary for a public   work described by Subdivision (1)  [ (3)     payment of contractual   obligations for professional services, including services provided   by tax appraisers, engineers, architects, attorneys, map makers,   auditors, financial advisors, and fiscal agents ].          (b)  If necessary because of a change order for a contractual   obligation incurred for the construction, renovation, repair, or   improvement of a public work [ orders ], the governing body of an   issuer may authorize the issuance of certificates [ may be   authorized ] in an amount not to exceed 15 [ 25 ] percent of the [ a ]   contractual obligation [ incurred for the construction of public   works ], but certificates may be delivered only in the amount   necessary to discharge the contractual obligation [ obligations ].           (f)     The governing body of an issuer that authorizes the   issuance of a certificate shall enter into a contract for the   construction, renovation, repair, or improvement of the public work   for which the issuance is authorized not later than the 180th day   after the date the governing body authorizes the issuance.           (g)     The governing body of an issuer that authorizes a   certificate to pay a contractual obligation under Subsection   (a)(1)(B) shall adopt a resolution describing the conditions and   circumstances of the public health emergency and making a   determination that the emergency exists.          SECTION 5.  Section 271.0461, Local Government Code, is   amended to read as follows:          Sec. 271.0461.  ADDITIONAL PURPOSE FOR CERTIFICATES:   DEMOLITION OF DANGEROUS STRUCTURES [ OR RESTORATION OF HISTORIC   STRUCTURES ].  Certificates may be issued by any municipality for   the payment of contractual obligations to be incurred in   demolishing dangerous structures [ or restoring historic   structures ] and may be sold for cash, subject to the restrictions   and other conditions of Section 271.050.          SECTION 6.  Sections 271.047(c) and (d), Local Government   Code, are amended to read as follows:          (c)  A certificate may not mature over a period greater than   30 [ 40 ] years from the date of the certificate and may not bear   interest at a rate greater than that allowed by Chapter 1204,   Government Code.          (d)  Except as provided by this subsection, the governing   body of an issuer may not authorize a certificate to pay a   contractual obligation to be incurred if a bond proposition to   authorize the issuance of bonds for the same purpose was submitted   to the voters during the preceding five [ three ] years and failed to   be approved.  A governing body may authorize a certificate that the   governing body is otherwise prohibited from authorizing under this   subsection[ :                [ (1) ]  in a case described by Section 271.045(a)(1)(B)   or (C)  [ Sections 271.056(1)-(3); and                [ (2)     to comply with a state or federal law, rule, or   regulation if the political subdivision has been officially   notified of noncompliance with the law, rule, or regulation ].          SECTION 7.  Sections 271.049(c) and (d), Local Government   Code, are amended to read as follows:          (c)  If before the date tentatively set for the authorization   of the issuance of the certificates or if before the authorization,   the municipal secretary or clerk if the issuer is a municipality,     or the county clerk if the issuer is a county, receives a petition   signed by at least two [ five ] percent of the registered  [ qualified ]   voters of the issuer protesting the issuance of the certificates,   the issuer may not authorize the issuance of the certificates   unless the issuance is approved at an election ordered, held, and   conducted in the manner provided for bond elections under Chapter   1251, Government Code.          (d)  This section does not apply to certificates issued for   the purposes described by Section 271.045(a)(1)(B) or (C)  [ Sections   271.056(1)-(4) ].          SECTION 8.  Section 271.0525(c), Local Government Code, is   amended to read as follows:          (c)&#xA0 [Text truncated for display. 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