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                               * * * * *