HB 4986 — Relating to the issuance of certificates of obligation by local governments.

Summary

Relating to the issuance of certificates of obligation by local governments.

Bill Text

Compared against the Texas statutes as published AI-generated reading aid — verify against the official bill.

This bill amends 6 section(s) of the Texas statutes: Section 271.043(7-a), Local Government Code, Section 271.045, Local Government Code, Section 271.0461, Local Government Code, Section 271.049(c), Local Government Code, Section 271.057(a), Local Government Code, Section 271.059, Local Government Code.

• Section 271.043(7-a), Local Government Code

  for an issuer that is a municipality or county: (A) any of the following public improvements as authorized by law: (i) or ; (ii) a ; (iii) an (iv) or ; (v) a or ; (vi) a (vii) a public safety facility, including a police station, fire station, 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 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 → : (A) , , , or park (B) part of a , , , or a telecommunications, wireless communications, or information technology system and any computer application hardware or software; or (D) a cybersecurity system

  amended

• Section 271.045, Local Government Code

  construction of any public work purchase of materials, supplies, equipment, machinery, buildings, land, and rights-of-way for authorized needs and purposes payment of contractual obligations for professional services, including services provided by tax appraisers, engineers, architects, attorneys, map makers, auditors, financial advisors, and fiscal agents orders may be authorized 25 a incurred for the construction of public works obligations → only as necessary construction, creation, renovation, repair, or improvement of a public work that is necessary to comply with a state or federal law or rule, but only if the issuer has been officially notified of noncompliance with the law or rule to mitigate the impact of the following, as determined by the governing body: (A) a public health emergency in the jurisdiction of the issuer that poses an imminent danger to the physical health or safety of the residents of the issuer; or (B) a natural disaster in the jurisdiction of the issuer subject to a state of disaster declared or renewed by: (i) the governor under Section 418.014, Government Code, in the fiscal year that the certificates are authorized; or (ii) the presiding officer of the governing body of the issuer under Section 418.108, Government Code, in the fiscal year that the certificates are authorized to respond to a court decision that requires the issuer to construct, create, renovate, repair, or improve a public work a order for a contractual obligation incurred for the construction, creation, renovation, repair, or improvement of a public work the governing body of an issuer may authorize the issuance of 15 the the obligation (f) The governing body of an issuer that authorizes the issuance of a certificate shall enter into a contract for the construction, creation, renovation, repair, or improvement of the public work for which the issuance is authorized not later than the 90th day after the date the governing body authorizes the issuance. (g) The governing body of an issuer that authorizes a certificate to pay a contractual obligation under Subsection (a)(2)(A) shall adopt a resolution describing the conditions and circumstances of the public health emergency.

  amended

• Section 271.0461, Local Government Code

  OR RESTORATION OF HISTORIC STRUCTURES or restoring historic structures

  amended

• 40 three → 30 five

  amended

• Section 271.049(c), Local Government Code

  five qualified → two registered

  amended

• Section 271.057(a), Local Government Code

  works → , creation, renovation, repair, or improvement a work

  amended

• Section 271.059, Local Government Code

  works → , creation, renovation, repair, or improvement a work

  amended

Action History

1. April 03, 2025

   Referred to Pensions, Investments & Financial Services

2. April 03, 2025

   Read first time

3. March 13, 2025

   Filed

Sponsors

• Janis Holt · Primary

Subjects