By:  Averitt                                           H.B. No. 358
       73R197 SHS-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the use of certificates of obligation issued by a
    1-3  municipality for purposes related to a public calamity.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 271.050(b), Local Government Code, is
    1-6  amended to read as follows:
    1-7        (b)  The proceeds may be used only for the purposes for which
    1-8  the certificates were authorized, except as provided by Section
    1-9  271.0501.  The proceeds may not be used to pay for work done by
   1-10  employees of the issuer and paid for as work progresses.  Any
   1-11  accrued interest received must be deposited in the interest and
   1-12  sinking fund established for the payment of the certificates.
   1-13        SECTION 2.  Subchapter C, Chapter 271, Local Government Code,
   1-14  is amended by adding Section 271.0501 to read as follows:
   1-15        Sec. 271.0501.  USE OF UNEXPENDED PROCEEDS; ELECTION.  If a
   1-16  municipality issues certificates for a purpose described by Section
   1-17  271.056(1) and subsequently the governing body of the municipality
   1-18  determines that it is not in the best interest of the municipality
   1-19  to use the entire amount issued for that purpose, the municipality
   1-20  may use the certificates or the proceeds of the certificates for
   1-21  any other purpose for which the municipality may issue certificates
   1-22  or bonds if the use is authorized by a majority of the voters of
   1-23  the municipality voting at an election called for that purpose by
   1-24  the governing body of the municipality.
    2-1        SECTION 3.  The importance of this legislation and the
    2-2  crowded condition of the calendars in both houses create an
    2-3  emergency and an imperative public necessity that the
    2-4  constitutional rule requiring bills to be read on three several
    2-5  days in each house be suspended, and this rule is hereby suspended,
    2-6  and that this Act take effect and be in force from and after its
    2-7  passage, and it is so enacted.