TX HB4986

Restricts local governments to issuing certificates of obligation only for construction, renovation, repair, or improvement of public works that are necessary to comply with state/federal law (after official noncompliance notification), mitigate public health emergencies or natural disasters under declared states of disaster, or respond to court decisions

Narrows the definition of "public work" to transportation infrastructure (streets, roads, bridges, sidewalks, parking structures), landfills, airports, parks, utility systems, water/wastewater facilities, wharfs, docks, flood control projects, telecommunications systems, IT systems, and cybersecurity systems—removing public safety facilities, judicial facilities, administrative buildings, animal shelters, libraries, and stadiums

Reduces the maximum maturity period for certificates from 40 years to 30 years, and lowers the allowable change order certificate amount from 25% to 15% of the original contractual obligation

Lowers the petition threshold to force a voter election on proposed certificates from 5% to 2% of registered voters, and extends the prohibition on issuing certificates after a failed bond election for the same purpose from 3 years to 5 years

Requires governing bodies to enter into contracts for authorized public works within 90 days of authorizing certificate issuance, and removes the ability to issue certificates for restoring historic structures