1-1  By:  Stiles (Senate Sponsor - Lucio)                  H.B. No. 2839
    1-2        (In the Senate - Received from the House May 4, 1995;
    1-3  May 5, 1995, read first time and referred to Committee on Natural
    1-4  Resources; May 19, 1995, reported favorably by the following vote:
    1-5  Yeas 10, Nays 0; May 19, 1995, sent to printer.)
    1-6                         A BILL TO BE ENTITLED
    1-7                                AN ACT
    1-8  relating to the borrowing powers of drainage districts.
    1-9        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-10        SECTION 1.  The heading to Subchapter F, Chapter 56, Water
   1-11  Code, is amended to read as follows:
   1-12              SUBCHAPTER F.  ISSUANCE OF BONDS AND NOTES
   1-13        SECTION 2.  Subchapter F, Chapter 56, Water Code, is amended
   1-14  by adding Section 56.213 to read as follows:
   1-15        Sec. 56.213.  TAX ANTICIPATION NOTES; BOND ANTICIPATION
   1-16  NOTES.  (a)  A district may borrow money by issuing negotiable tax
   1-17  anticipation notes or bond anticipation notes if the board finds
   1-18  that the district has an insufficient amount of money available to:
   1-19              (1)  pay the principal of or interest on any district
   1-20  bond payable in whole or in part by taxes; or
   1-21              (2)  meet any other need of the district.
   1-22        (b)  The district may issue tax anticipation notes or bond
   1-23  anticipation notes without giving notice or otherwise advertising
   1-24  the issuance of the notes.
   1-25        (c)  A tax anticipation note or bond anticipation note must
   1-26  mature not later than one year after the date the note is issued.
   1-27        (d)  The district may issue tax anticipation notes for any
   1-28  purpose for which the district is authorized to levy taxes.  The
   1-29  notes must be secured with the proceeds of taxes to be levied by
   1-30  the district in the 12-month period following issuance of the note.
   1-31  The district may covenant with purchasers of the notes that the
   1-32  district will levy a tax sufficient to pay the principal of and
   1-33  interest on the notes and to pay the costs of collecting the tax.
   1-34        (e)  The district may issue bond anticipation notes for any
   1-35  purpose for which bonds of the district have been approved by
   1-36  voters or to refund previously issued bond anticipation notes.  A
   1-37  district may covenant with purchasers of the notes that the
   1-38  district will use the proceeds of the sale of any district bonds in
   1-39  the process of issuance to refund the notes.  A district that
   1-40  covenants under this subsection shall use the bond proceeds to pay
   1-41  the principal, interest, or redemption price on the notes.
   1-42        (f)  A district required to seek commission approval of bonds
   1-43  must have an application for approval of a bond on file with the
   1-44  commission before issuing bond anticipation notes secured by the
   1-45  bond.
   1-46        SECTION 3.  The importance of this legislation and the
   1-47  crowded condition of the calendars in both houses create an
   1-48  emergency and an imperative public necessity that the
   1-49  constitutional rule requiring bills to be read on three several
   1-50  days in each house be suspended, and this rule is hereby suspended,
   1-51  and that this Act take effect and be in force from and after its
   1-52  passage, and it is so enacted.
   1-53                               * * * * *