By: Montford S.B. No. 1272
A BILL TO BE ENTITLED
AN ACT
1-1 relating to the allocation and reservation system for private
1-2 activity bonds and to the definition of certain bonds.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Subsection (e), Section 2, Chapter 1092, Acts of
1-5 the 70th Legislature, Regular Session, 1987 (Article 5190.9a,
1-6 Vernon's Texas Civil Statutes), is amended to read as follows:
1-7 (e) Notwithstanding the provisions of Subsection (f) of this
1-8 section, if qualified mortgage bonds or qualified small issue bonds
1-9 do not <no longer> qualify on January 2 of any year for treatment
1-10 as tax-exempt obligations under the provisions of the code, then
1-11 the provisions of Subsection (b)(1) or (3) of this section, or
1-12 both, as applicable, shall be of no effect for such year <null and
1-13 void>, and the portion of the state ceiling that is available
1-14 exclusively for reservations by issuers of qualified mortgage bonds
1-15 or qualified small issue bonds, or both, as applicable, shall be
1-16 reallocated proportionately by March 1 for reservations by each
1-17 other category of issuers under Subsection (b) of this section.
1-18 SECTION 2. Subdivision (14), Section 1, Chapter 1092, Acts
1-19 of the 70th Legislature, Regular Session, 1987 (Article 5190.9a,
1-20 Vernon's Texas Civil Statutes), is amended to read as follows:
1-21 (14) "Qualified small issue bond" has the meaning
1-22 given that term under Section 144(a) of the code, and,
1-23 additionally, shall mean any bond authorized under the code
2-1 subsequent to March 1, 1993, for economic development purposes,
2-2 which requires an allocation of state ceiling.
2-3 SECTION 3. The importance of this legislation and the
2-4 crowded condition of the calendars in both houses create an
2-5 emergency and an imperative public necessity that the
2-6 constitutional rule requiring bills to be read on three several
2-7 days in each house be suspended, and this rule is hereby suspended,
2-8 and that this Act take effect and be in force from and after its
2-9 passage, and it is so enacted.