By Alexander                                          H.B. No. 1361
       74R615 JJT-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the authority of a rural fire prevention district to
    1-3  borrow money.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 794.071, Health and Safety Code, is
    1-6  amended to read as follows:
    1-7        Sec. 794.071.  LIMITATION ON INDEBTEDNESS.  Except as
    1-8  provided by Sections <Section> 794.072, <and Sections>
    1-9  794.076-794.081, and 794.083, a district may not contract for an
   1-10  amount of indebtedness in any one year that is in excess of the
   1-11  funds then on hand or that may be paid from current revenues for
   1-12  the year.
   1-13        SECTION 2.  Subchapter E, Chapter 794, Health and Safety
   1-14  Code, is amended by adding Section 794.083 to read as follows:
   1-15        Sec. 794.083.  LOAN FOR FIRE-FIGHTING EQUIPMENT.  (a)  The
   1-16  board, on the behalf of the district, may borrow money and make
   1-17  other financial arrangements to purchase a fire engine or similar
   1-18  heavy fire-fighting equipment in the amount and subject to a rate
   1-19  of interest or other conditions the board considers advisable.
   1-20        (b)  To secure a loan under this section, the board may
   1-21  pledge:
   1-22              (1)  tax revenues or funds on hand that are not
   1-23  otherwise pledged to pay a debt of the district; or
   1-24              (2)  the equipment acquired with the borrowed money.
    2-1        (c)  If tax revenues are pledged to pay a loan, the loan must
    2-2  mature not later than the fifth anniversary of the date the loan is
    2-3  made.
    2-4        SECTION 3.  The importance of this legislation and the
    2-5  crowded condition of the calendars in both houses create an
    2-6  emergency and an imperative public necessity that the
    2-7  constitutional rule requiring bills to be read on three several
    2-8  days in each house be suspended, and this rule is hereby suspended,
    2-9  and that this Act take effect and be in force from and after its
   2-10  passage, and it is so enacted.