Enrolled Bill Summary

            House Bill 1934 amends the Government Code to allow the issuer of a public security to use the proceeds of a security issued to finance the acquisition, construction, or improvement of a project or facility to pay the interest on that security or any costs for its issuance, to finance other funds relating to the security, or to operate and maintain the financed project or facility. The bill removes a provision that requires such funds to be secured by revenue derived from the project or facility, and allows the funds to be used for improvements to the project or facility rather than only its acquisition or construction, as provided by prior law. The bill also allows the issuer to use any premium received as part of the purchase price of a public security sold at a public or private sale to pay for debt service on that security; to contribute to an escrow account established for payment of debt service on obligations being refunded through the sale of the security; to pay the cost of issuing the security; or to pay other costs relating to the purpose for which the security was issued. The bill specifies that the change does not authorize an issuer to spend funds in an amount that exceeds the limitations provided by law or by the public security authorization. The bill authorizes a county commissioners court or the governing body of a municipality to allow an anticipation note to be secured by a combination of revenue and taxes, rather than by either revenue or taxes as provided under prior law