74R11286 KKA-D By Stiles H.B. No. 2839 Substitute the following for H.B. No. 2839: By Yost C.S.H.B. No. 2839 A BILL TO BE ENTITLED 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.