Bill Text: TX SB652 | 2019-2020 | 86th Legislature | Engrossed

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Bill Title: Relating to procedures and requirements for the issuance of certificates of obligation.

Sponsorship: Partisan Bill (Republican 4)

Status: (Engrossed - Dead) 2019-05-17 - Reported favorably w/o amendment(s) [SB652 Detail]

Download: Texas-2019-SB652-Engrossed.html

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By: Campbell, et al. S.B. No. 652

A BILL TO BE ENTITLED
AN ACT
relating to procedures and requirements for the issuance of
certificates of obligation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 six [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 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 2. Section 271.049, Local Government Code, is
amended by amending Subsection (a) and adding Subsection (e) to
read as follows:
(a) Regardless of the sources of payment of certificates,
certificates may not be issued unless the issuer publishes notice
of its intention to issue the certificates. The notice must be
published:
(1) once a week for two consecutive weeks in a
newspaper, as defined by Subchapter C, Chapter 2051, Government
Code, that is of general circulation in the area of the issuer, with
the date of the first publication to be before the 30th day before
the date tentatively set for the passage of the order or ordinance
authorizing the issuance of the certificates; and
(2) continuously on the issuer's Internet website for
at least 30 days before the date tentatively set for the passage of
the order or ordinance authorizing the issuance of the
certificates.
(e) An issuer shall maintain an Internet website to comply
with this section.
SECTION 3. Section 271.049, Local Government Code, as
amended by this Act, applies only to a certificate of obligation for
which the first notice of intention to issue the certificate is made
on or after the effective date of this Act. A certificate of
obligation for which the first notice of intention to issue the
certificate is made before the effective date of this Act is
governed by the law in effect on the date the notice of intention is
made, and the former law is continued in effect for that purpose.
SECTION 4. This Act takes effect September 1, 2019.