1-1 By: Alexander (Senate Sponsor - Nixon) H.B. No. 1361
1-2 (In the Senate - Received from the House May 15, 1995;
1-3 May 16, 1995, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 19, 1995, reported favorably by
1-5 the following vote: Yeas 8, Nays 0; May 19, 1995, sent to
1-6 printer.)
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to the authority of a rural fire prevention district to
1-10 borrow money.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 794.071, Health and Safety Code, is
1-13 amended to read as follows:
1-14 Sec. 794.071. LIMITATION ON INDEBTEDNESS. Except as
1-15 provided by Sections <Section> 794.072, <and Sections>
1-16 794.076-794.081, and 794.083, a district may not contract for an
1-17 amount of indebtedness in any one year that is in excess of the
1-18 funds then on hand or that may be paid from current revenues for
1-19 the year.
1-20 SECTION 2. Subchapter E, Chapter 794, Health and Safety
1-21 Code, is amended by adding Section 794.083 to read as follows:
1-22 Sec. 794.083. LOAN FOR FIRE-FIGHTING EQUIPMENT. (a) The
1-23 board, on the behalf of the district, may borrow money and make
1-24 other financial arrangements to purchase a fire engine or similar
1-25 heavy fire-fighting equipment in the amount and subject to a rate
1-26 of interest or other conditions the board considers advisable.
1-27 (b) To secure a loan under this section, the board may
1-28 pledge:
1-29 (1) tax revenues or funds on hand that are not
1-30 otherwise pledged to pay a debt of the district; or
1-31 (2) the equipment acquired with the borrowed money.
1-32 (c) If tax revenues are pledged to pay a loan, the loan must
1-33 mature not later than the fifth anniversary of the date the loan is
1-34 made.
1-35 SECTION 3. The importance of this legislation and the
1-36 crowded condition of the calendars in both houses create an
1-37 emergency and an imperative public necessity that the
1-38 constitutional rule requiring bills to be read on three several
1-39 days in each house be suspended, and this rule is hereby suspended,
1-40 and that this Act take effect and be in force from and after its
1-41 passage, and it is so enacted.
1-42 * * * * *