HB3688 - Relating to the issuance of certain anticipation notes and certificates of obligation.

  2025S0047-1 01/29/25     By: Smithee H.B. No. 3688     A BILL TO BE ENTITLED   AN ACT   relating to the issuance of certain anticipation notes and   certificates of obligation.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 1431.002, Government Code, is amended by   adding Subsections (d) and (e) to read as follows:           (d)     Except as provided by Subsection (e), the governing body   of an issuer may not authorize an anticipation note to pay a   contractual obligation to be incurred if:                 (1)     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;                 (2)     the total amount of the anticipation note exceeds   five percent of the governing body's total outstanding bonded   indebtedness at the time of the issuance, including the amount of   principal and interest to be paid on the outstanding bonds until   maturity; or                 (3)     the municipal secretary or clerk or person with   similar authority receives a petition signed by at least five   percent of the registered voters of the issuer that protests the   issuance of the anticipation note before the later of the date   tentatively set for the adoption of the order or ordinance to   authorize the anticipation note or the date the order or ordinance   is adopted.           (e)     The governing body of an issuer may authorize an   anticipation note that the governing body is otherwise prohibited   from authorizing under Subsection (d):                 (1)     in a case described by Section 271.056(1), (2), or   (3), Local Government Code; and                 (2)     to comply with a state or federal law, rule, or   regulation if the issuer has been officially notified of   noncompliance with the law, rule, or regulation.          SECTION 2.  Section 1431.003(b), Government Code, is amended   to read as follows:          (b)  Notwithstanding anything in this chapter to the   contrary and except as provided by Section 1431.002(d) , the   governing body may exercise the authority granted to the governing   body of an issuer with regard to issuance of obligations under   Chapter 1371, except that the prohibition in that chapter on the   repayment of an obligation with ad valorem taxes does not apply to   an issuer exercising the authority granted by this section.          SECTION 3.  Section 271.047(d), Local Government Code, is   amended to read as follows:          (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 271.056(1), (2), or   (3) [ 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 4.  The changes in law made by this Act apply only to   an anticipation note or certificate of obligation authorized to be   issued on or after the effective date of this Act. An anticipation   note or certificate of obligation authorized to be issued before   the effective date of this Act is governed by the law in effect   immediately before the effective date of this Act, and the former   law is continued in effect for that purpose.          SECTION 5.  This Act takes effect September 1, 2025.