TX SB1037

Prohibits local government governing bodies from issuing anticipation notes if voters rejected a bond proposition for the same purpose within the preceding five years, if the note exceeds 5% of total outstanding bonded indebtedness, or if a petition signed by at least 5% of registered voters protests the issuance

Extends the waiting period for issuing certificates of obligation after a failed bond election from three years to five years

Creates exceptions allowing issuance of otherwise prohibited anticipation notes and certificates in cases of emergency, unforeseen damage to public property, contractual obligations for professional services, or compliance with state or federal law when officially notified of noncompliance

Applies only to anticipation notes and certificates of obligation authorized on or after September 1, 2025