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.