Relating to the issuance of certain anticipation notes and certificates of obligation.

SB 1024 restricts local governments from using temporary borrowing (anticipation notes or certificates of obligation) to cover costs if a similar bond proposal was recently rejected by voters. Specifically, it generally prohibits such borrowing for five years after a bond vote fails, with exceptions for natural disaster cleanup, federal court orders, or compliance with state/federal laws after official notice. The bill amends Texas Government Code and Local Government Code sections to clarify these rules and applies only to obligations issued on or after September 1, 2025. It directly affects cities, counties, and other local entities that issue these financial instruments to manage short-term cash flow. The law aims to prevent repeated voter rejection of bond measures while allowing flexibility for urgent or legally required spending.