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

HB 3688 restricts how Texas local governments (like cities and counties) can issue anticipation notes and certificates of obligation to fund projects. It generally prohibits these instruments if a similar bond measure was rejected by voters within the past five years (for notes) or three years (for certificates), if the note exceeds 5% of the government’s total bonded debt, or if 5% of registered voters protest. Exceptions are allowed for specific cases under existing law or to comply with state/federal requirements after being officially notified of noncompliance. The bill applies to notes and certificates authorized on or after its effective date.