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


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

Spectrum: Partisan Bill (Republican 4-0)

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

Download: Texas-2019-SB652-Engrossed.html
 
 
  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.
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