Bill > SB1024

This bill modifies regulations for local government entities in Texas regarding the issuance of anticipation notes (short-term loans) and certificates of obligation (a type of municipal debt instrument). The bill establishes new restrictions and exceptions for issuing these financial instruments, including prohibiting their authorization if a similar bond proposition failed voter approval in the past five years or if the total debt service exceeds five percent of the issuer's annual budget. However, the bill creates exceptions to these restrictions, such as allowing notes to be issued to finance natural disaster cleanup, comply with court orders or legal requirements, or if the total debt service is less than $5 million. The bill also extends the waiting period from three to five years after a failed bond proposition before a certificate of obligation can be authorized and makes technical changes to referencing specific legal provisions. These changes will apply only to anticipation notes and certificates of obligation authorized on or after the bill's effective date of September 1, 2025, with previous authorizations continuing to be governed by prior law.

Government Affairs, Labor and Employment

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1024