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A BILL TO BE ENTITLED
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AN ACT
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relating to requiring a municipality or county to publish a notice |
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of intent before issuing anticipation notes. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 1431, Government Code, is amended by |
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adding Section 1431.0031 to read as follows: |
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Sec. 1431.0031. NOTICE OF INTENTION TO ISSUE ANTICIPATION |
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NOTES; PETITION AND ELECTION. (a) Regardless of the sources of |
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payment of anticipation notes, anticipation notes may not be issued |
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unless the issuer publishes notice of its intention to issue the |
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anticipation notes. The notice must be published once a week for |
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two consecutive weeks in a newspaper, as defined by Subchapter C, |
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Chapter 2051, that is of general circulation in the area of the |
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issuer, with the date of the first publication to be before the 30th |
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day before the date tentatively set for the passage of the order or |
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ordinance authorizing the issuance of the anticipation notes. |
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(b) The notice must state: |
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(1) the time and place tentatively set for the passage |
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of the order or ordinance authorizing the issuance of the |
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anticipation notes; |
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(2) the maximum amount and purpose of the anticipation |
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notes to be authorized; and |
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(3) the manner in which the anticipation notes will be |
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paid for, whether by taxes, revenues, a combination of taxes and |
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revenues, or the proceeds of bonds to be issued by the issuer. |
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(c) If before the date tentatively set for the authorization |
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of the issuance of the anticipation notes or if before the |
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authorization, the municipal secretary or clerk if the issuer is a |
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municipality, or the county clerk if the issuer is a county, |
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receives a petition signed by at least five percent of the qualified |
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voters of the issuer protesting the issuance of the anticipation |
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notes, the issuer may not authorize the issuance of the |
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anticipation notes unless the issuance is approved at an election |
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ordered, held, and conducted in the manner provided for bond |
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elections under Chapter 1251. |
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(d) This section does not apply to anticipation notes issued |
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for the following purposes: |
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(1) a case of public calamity if it is necessary to act |
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promptly to relieve the necessity of the residents or to preserve |
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the property of the issuer; |
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(2) a case in which it is necessary to preserve or |
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protect the public health of the residents of the issuer; |
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(3) a case of unforeseen damage to public machinery, |
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equipment, or other property; or |
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(4) a contract for personal or professional services. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |