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 * * * * *