H.B. No. 2839
    1-1                                AN ACT
    1-2  relating to the borrowing powers of drainage districts.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  The heading to Subchapter F, Chapter 56, Water
    1-5  Code, is amended to read as follows:
    1-6              SUBCHAPTER F.  ISSUANCE OF BONDS AND NOTES
    1-7        SECTION 2.  Subchapter F, Chapter 56, Water Code, is amended
    1-8  by adding Section 56.213 to read as follows:
    1-9        Sec. 56.213.  TAX ANTICIPATION NOTES; BOND ANTICIPATION
   1-10  NOTES.  (a)  A district may borrow money by issuing negotiable tax
   1-11  anticipation notes or bond anticipation notes if the board finds
   1-12  that the district has an insufficient amount of money available to:
   1-13              (1)  pay the principal of or interest on any district
   1-14  bond payable in whole or in part by taxes; or
   1-15              (2)  meet any other need of the district.
   1-16        (b)  The district may issue tax anticipation notes or bond
   1-17  anticipation notes without giving notice or otherwise advertising
   1-18  the issuance of the notes.
   1-19        (c)  A tax anticipation note or bond anticipation note must
   1-20  mature not later than one year after the date the note is issued.
   1-21        (d)  The district may issue tax anticipation notes for any
   1-22  purpose for which the district is authorized to levy taxes.  The
   1-23  notes must be secured with the proceeds of taxes to be levied by
   1-24  the district in the 12-month period following issuance of the note.
    2-1  The district may covenant with purchasers of the notes that the
    2-2  district will levy a tax sufficient to pay the principal of and
    2-3  interest on the notes and to pay the costs of collecting the tax.
    2-4        (e)  The district may issue bond anticipation notes for any
    2-5  purpose for which bonds of the district have been approved by
    2-6  voters or to refund previously issued bond anticipation notes.  A
    2-7  district may covenant with purchasers of the notes that the
    2-8  district will use the proceeds of the sale of any district bonds in
    2-9  the process of issuance to refund the notes.  A district that
   2-10  covenants under this subsection shall use the bond proceeds to pay
   2-11  the principal, interest, or redemption price on the notes.
   2-12        (f)  A district required to seek commission approval of bonds
   2-13  must have an application for approval of a bond on file with the
   2-14  commission before issuing bond anticipation notes secured by the
   2-15  bond.
   2-16        SECTION 3.  The importance of this legislation and the
   2-17  crowded condition of the calendars in both houses create an
   2-18  emergency and an imperative public necessity that the
   2-19  constitutional rule requiring bills to be read on three several
   2-20  days in each house be suspended, and this rule is hereby suspended,
   2-21  and that this Act take effect and be in force from and after its
   2-22  passage, and it is so enacted.