SB 1037 imposes restrictions on the issuance of anticipation notes and certificates of obligation by local governments. It prohibits a governing body from issuing an anticipation note to fund a contractual obligation if a bond proposition for the same purpose was rejected by voters in the preceding five years. Additionally, the bill limits the total amount of anticipation notes to no more than 5% of a governing body’s outstanding bonded indebtedness and allows registered voters to protest issuance through a petition. Exceptions exist for emergencies, legal compliance, and federally mandated projects. The bill also extends the waiting period for issuing certificates of obligation from three years to five years following voter rejection of a bond measure​.