S.B. No. 1272
                                        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.