By:  Junell                                           H.B. No. 1367
       73R5918 LJR-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to agreements and provisions contained in resolutions and
    1-3  mortgages for the issuance of bonds for certain industrial
    1-4  development corporations and to demonstrations of financial
    1-5  assurance for those projects.
    1-7        SECTION 1.  Section 25(e), Development Corporation Act of
    1-8  1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
    1-9  read as follows:
   1-10        (e)  The principal of and interest on any bonds issued by the
   1-11  corporation shall be secured by a pledge of the revenues and
   1-12  receipts derived by the corporation from the lease or sale of the
   1-13  project so financed or from the loan made by the corporation with
   1-14  respect to the project so financed or refinanced and may be secured
   1-15  by a mortgage covering all or any part of such project, including
   1-16  any enlargements of and additions to such project thereafter made.
   1-17  The resolution under which the bonds are authorized to be issued
   1-18  and any such mortgage may contain any agreements and provisions
   1-19  respecting the maintenance of the project covered thereby, the
   1-20  fixing and collection of rents, purchase price payments or loan
   1-21  payments, the creation and maintenance of special funds from such
   1-22  revenues and the rights and remedies available in the event of
   1-23  default, all as the board of directors shall deem advisable and not
   1-24  in conflict with the provisions hereof.  The resolution under which
    2-1  the bonds are authorized to be issued and the mortgage may contain
    2-2  any agreements and provisions for satisfying the financial
    2-3  assurance requirements applicable to a project for which a permit
    2-4  is required under Chapter 361, Health and Safety Code, or Chapter
    2-5  27, Water Code, including those relating to construction, proper
    2-6  operation, liability coverage, emergency response capability, well
    2-7  plugging, closure, and postclosure care.  Evidence of the passage
    2-8  of a resolution by a governing body approving or agreeing to
    2-9  approve the issuance of bonds for the purpose of satisfying the
   2-10  financial assurance requirements applicable to such a project is an
   2-11  adequate demonstration that sufficient financial resources will be
   2-12  available to comply with all existing financial assurance
   2-13  requirements.  Each pledge, agreement, and mortgage made for the
   2-14  benefit or security of any of the bonds of the corporation shall
   2-15  continue effective until the principal of and interest on the bonds
   2-16  for the benefit for which the same were made have been fully paid.
   2-17        SECTION 2.  The importance of this legislation and the
   2-18  crowded condition of the calendars in both houses create an
   2-19  emergency and an imperative public necessity that the
   2-20  constitutional rule requiring bills to be read on three several
   2-21  days in each house be suspended, and this rule is hereby suspended,
   2-22  and that this Act take effect and be in force from and after its
   2-23  passage, and it is so enacted.