The bill amends various sections of the Government Code and Local Government Code regarding the issuance of anticipation notes and certificates of obligation by local governments, particularly focusing on flood control districts and municipalities. It redefines "eligible countywide district" to exclude hospital districts and introduces new restrictions on the authorization of anticipation notes. Specifically, it prohibits the governing body of an issuer from authorizing an anticipation note to pay a contractual obligation if a bond proposition for the same purpose was submitted to voters in the past five years and failed. Additionally, it allows for exceptions in certain cases related to public health emergencies or natural disasters.

The bill also modifies the conditions under which certificates of obligation can be issued, emphasizing that they may only be authorized for specific purposes, such as compliance with laws, public health emergencies, or natural disaster remediation. It introduces new requirements for the governing body to enter into contracts for public works within a specified timeframe after authorization and mandates that any certificates issued must be for necessary contractual obligations. Furthermore, it reduces the maximum maturity period for certificates from 40 years to 30 years and adjusts the percentage of registered voters required to protest the issuance of certificates. The changes will take effect on September 1, 2025, and will apply only to notes or certificates issued after that date.

Statutes affected:
Introduced: Government Code 1431.001, Government Code 1431.002, Local Government Code 271.045, Local Government Code 271.0461, Local Government Code 271.047, Local Government Code 271.049, Local Government Code 271.0525, Local Government Code 271.057, Local Government Code 271.059, Local Government Code 271.046 (Local Government Code 271, Government Code 1431)