SB1024 - Relating to the issuance of certain anticipation notes and certificates of obligation.

  89R31610 JBD-D     By: Bettencourt, et al. S.B. No. 1024     (Capriglione)     Substitute the following for S.B. No. 1024:  No.       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; or                 (2)     the total debt service of all outstanding and   proposed anticipation notes, including principal and accrued or   projected interest, is greater than five percent of the issuer's   most recently adopted or amended annual budget.           (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;                 (2)     to finance the cleanup, mitigation, or remediation   of a natural disaster;                 (3)  to comply with a federal court order;                 (4)     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; and                 (5)     if the total debt service of the proposed   anticipation note, including principal and projected interest, is   less than $5 million.          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.