Tepper Bill Makes No-Vote Local Debt Easier To Petition

The text as introduced · 767 words

90R581 DNC-D

By: Tepper
H.B. No. 412

A BILL TO BE ENTITLED

AN ACT

relating to the issuance of certificates of obligation by certain

local governments.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Sections 271.043(7) and (7-a), Local Government

Code, are amended to read as follows:

(7) "Issuer" means a municipality or [ , ] county[ , or

hospital district established under Chapter 281, Health and Safety

Code ].

(7-a) "Public work" [ for an issuer that is a

municipality or county:

[ (A) ] means any of the following public

improvements as authorized by law:

(A) [ (i) a street, road, highway, bridge,

sidewalk, or parking structure;

[ (ii) ] a landfill;

(B) [ (iii) an airport;

[ (iv) ] a utility system, water supply

project, water treatment plant, wastewater treatment plant, or

water or wastewater conveyance facility;

(C) [ (v) a wharf or dock;

[ (vi) ] a flood control and drainage

project; or

(D) [ (vii) a public safety facility, including ]

a police station, fire station, first responder training facility

[ emergency shelter ], jail, or juvenile detention facility[ ;

[ (viii) a judicial facility;

[ (ix) an administrative office building

housing the governmental functions of the municipality or county;

[ (x) an animal shelter;

[ (xi) a library; or

[ (xii) a park or recreation facility that

is generally accessible to the public and is part of the municipal

or county park system;

[ (B) means the rehabilitation, expansion,

reconstruction, or maintenance of an existing stadium, arena, civic

center, convention center, or coliseum that is owned and operated

by the municipality or county or by an entity created to act on

behalf of the municipality or county; and

[ (C) does not include:

[ (i) a facility for which more than 50

percent of the average annual usage is or is intended to be for

professional or semi-professional sports;

[ (ii) a new stadium, arena, civic center,

convention center, or coliseum that is or is intended to be leased

by a single for-profit tenant for more than 180 days in a single

calendar year; or

[ (iii) a hotel ].

SECTION 2. Section 271.0461, Local Government Code, is

amended to read as follows:

Sec. 271.0461. ADDITIONAL PURPOSE FOR CERTIFICATES:

DEMOLITION OF DANGEROUS STRUCTURES [ OR RESTORATION OF HISTORIC

STRUCTURES ]. Certificates may be issued by any municipality for

the payment of contractual obligations to be incurred in

demolishing dangerous structures [ or restoring historic

structures ] and may be sold for cash, subject to the restrictions

and other conditions of Section 271.050.

SECTION 3. Section 271.047(c), Local Government Code, is

amended to read as follows:

(c) A certificate may not mature over a period greater than

30 [ 40 ] years from the date of the certificate and may not bear

interest at a rate greater than that allowed by Chapter 1204,

Government Code.

SECTION 4. Section 271.049(c), Local Government Code, is

amended to read as follows:

(c) If before the date tentatively set for the authorization

of the issuance of the certificates or if before the authorization,

the municipal secretary or clerk if the issuer is a municipality,

or the county clerk if the issuer is a county, receives a petition

signed by at least two [ five ] percent of the registered [ qualified ]

voters of the issuer protesting the issuance of the certificates,

the issuer may not authorize the issuance of the certificates

unless the issuance is approved at an election ordered, held, and

conducted in the manner provided for bond elections under Chapter

1251, Government Code.

SECTION 5. Section 271.0525(c), Local Government Code, is

amended to read as follows:

(c) A petition to protest the issuance of refinancing

certificates under this section must be signed by at least two

percent of the registered [ a number of qualified ] voters of the

county [ , residing in the county, equal to at least five percent of

the number of votes cast in that county for governor in the most

recent general election at which that office was filled ].

SECTION 6. Section 271.046, Local Government Code, is

repealed.

SECTION 7. The changes in law made by this Act apply only to

a certificate of obligation issued on or after the effective date of

this Act. A certificate of obligation issued before the effective

date of this Act is governed by the law in effect on the date the

certificate was issued, and the former law is continued in effect

for that purpose.

SECTION 8. This Act takes effect September 1, 2027.