By: Ellis S.B. No. 1532
A BILL TO BE ENTITLED
AN ACT
1-1 relating to short term obligations for a unit of government.
1-2 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-3 SECTION 1. Section 1, Article 717q, Vernon's Texas Civil
1-4 Statutes, is amended to read as follows:
1-5 Sec. 1. As used in this Act, the following terms shall mean:
1-6 (1) "Issuer" means (A) any incorporated city operating
1-7 under a home-rule charter adopted pursuant to Article XI, Section
1-8 5, of the Constitution of Texas having a population according to
1-9 the latest federal decennial census of 90,000 or more and having
1-10 outstanding long-term debt secured by the revenues of the public
1-11 utility for which the obligations are being issued which is rated
1-12 by a nationally recognized rating agency for municipal securities
1-13 in one of the four highest rating categories for long-term
1-14 obligations; (B) any conservation and reclamation district created
1-15 and organized as a river authority under and pursuant to Article
1-16 III, Section 52, or Article XVI, Section 59, of the Constitution of
1-17 Texas and by an act of the legislature of the State of Texas;
1-18 (C) any joint powers agency organized and operating pursuant to
1-19 Chapter 166, Acts of the 63rd Legislature, Regular Session, 1973
1-20 (Article 1435a, Revised Statutes); (D) any metropolitan rapid
1-21 transit authority or regional transportation authority created,
1-22 organized, and operating pursuant to Chapter 141, Acts of the 63rd
1-23 Legislature, Regular Session, 1973 (Article 1118x, Revised
2-1 Statutes) or Chapter 683, Acts of the 66th Legislature, Regular
2-2 Session, 1979 (Article 1118y, Revised Statutes); (E) any
2-3 conservation and reclamation district organized or operating as a
2-4 navigation district under and pursuant to Article III, Section 52,
2-5 or Article XVI, Section 59, of the Constitution of Texas; (F) any
2-6 district organized or operating under and pursuant to Article XVI,
2-7 Section 59, of the Constitution of Texas which has all or part of
2-8 two or more incorporated cities within its boundaries; (G) agencies
2-9 of the State of Texas (including the governing boards of the state
2-10 institutions of higher education); (H) any hospital authority in a
2-11 county with a population of more than 2 million, according to the
2-12 most recent federal census, that was created or is operating under
2-13 Chapter 262, Health and Safety Code, or Chapter 264, Health and
2-14 Safety Code; <and> (I) any nonprofit corporation organized to
2-15 exercise the powers of a higher education authority under
2-16 Subsection (e), Section 53.47, Education Code; and (J) a county
2-17 having a population of 2,000,000 or more according to the most
2-18 recent federal census.
2-19 (2) "Public utility" means properties and facilities
2-20 for (A) the conservation, storage, supply, treatment, or
2-21 transmission of water; (B) the treatment, collection, or disposal
2-22 of water-carried wastes or solid wastes; (C) the generation,
2-23 transmission, or distribution of electric power and energy; (D) the
2-24 acquisition, distribution, or storage of gas; (E) a "public
2-25 transportation system" as defined in Chapter 683, Acts of the 66th
3-1 Legislature, 1979 (Article 1118y, Revised Statutes); (F) an
3-2 "airport" as defined in the Municipal Airports Act (Article 46d-1
3-3 et seq., Revised Statutes); <or> (G) a port facility, including
3-4 facilities for the operation or development of ports and waterways
3-5 or in aid of navigation and navigation-related commerce in the
3-6 ports and on the waterways; or (H) a "project" as defined in
3-7 Chapter 304, Acts of the 50th Legislature, 1947 (Article 6795b-1,
3-8 Revised Statutes; and (I) <(H)> the carrying out of any purpose or
3-9 function for which the issuer may issue bonds.
3-10 (3) "Eligible project" means:
3-11 (A) the acquisition or construction of and
3-12 improvements, additions, or extensions to a public utility, one or
3-13 more, including capital assets and facilities incident and related
3-14 to the operation, maintenance, and administration thereof, and,
3-15 with respect to properties and facilities for (1) the generation of
3-16 electric power and energy, fuel acquisition, or development or
3-17 facilities for the transportation thereof; (2) a public
3-18 transportation system, buildings, structures, terminals, rolling
3-19 stock, garages, shops, equipment, and other facilities (including
3-20 vehicle parking areas and facilities necessary or convenient for
3-21 the beneficial use and access of persons and vehicles to stations,
3-22 terminals, yards, cars, and buses or for the protection and
3-23 environmental enhancement of such facilities) for mass public
3-24 transportation; (3) a port facility, wharves, docks, warehouses,
3-25 grain elevators, other storage facilities, bunkering facilities,
4-1 port-related railroads and bridges, floating plants and facilities,
4-2 lightering facilities, cargo handling facilities, towing
4-3 facilities, and all other facilities or aids incident to or useful
4-4 in the operation of a port facility; (4) a causeway, bridge,
4-5 tunnel, turnpike, highway, or a combination of such facilities,
4-6 including all necessary overpasses, underpasses, interchanges,
4-7 entrance plazas, toll houses, service stations, approaches,
4-8 fixtures, accessories, equipment, storage, administration, and
4-9 other necessary buildings, together with all property rights,
4-10 easements, and other interests acquired in connection therewith;
4-11 (5) any public improvements that serve the purpose of attracting
4-12 visitors and tourists to a county, including civic centers,
4-13 auditoriums, exhibition halls, coliseums, stadiums, and parking
4-14 areas; and (6) <(4)> a project for which there exist authorized but
4-15 unissued obligations approved by a majority of the voters of the
4-16 issuer, including obligations payable from ad valorem taxes; and
4-17 (B) a project for which an issuer is authorized
4-18 to issue revenue bonds secured, in whole or in part, by revenues
4-19 derived from or related to student loans.
4-20 (4) "Project costs" means all costs and expenses
4-21 incurred in relation to an eligible project, one or more, including
4-22 without limitation design, planning, engineering and legal costs,
4-23 acquisition costs of land, interests in land, right-of-way and
4-24 easements, construction costs, costs of machinery, equipment, and
4-25 other capital assets incident and related to the operation,
5-1 maintenance, and administration of an eligible project, and
5-2 financing costs, including interest during construction and
5-3 thereafter, underwriter's discount and/or fees, legal, financial,
5-4 and other professional services. Project costs attributable to an
5-5 eligible project and incurred prior to the issuance of any
5-6 obligations issued to finance an eligible project may be reimbursed
5-7 from the proceeds of sale of obligations.
5-8 (5) "Obligations" means notes, warrants, or other
5-9 special obligations authorized to be issued by an issuer under the
5-10 provisions of this Act and all "bonds" as defined in the Bond
5-11 Procedures Act of 1981 (Article 717k-6, Revised Statutes), which,
5-12 prior to the delivery thereof, have been rated by a nationally
5-13 recognized rating agency for municipal securities in either one of
5-14 the three highest rating categories for short term obligations or
5-15 one of the four highest rating categories for long term
5-16 obligations. It is provided, however, that the term "obligations"
5-17 does not mean or include any obligations payable from ad valorem
5-18 taxes, except as specifically permitted by this Act.
5-19 (6) "Credit agreement" means loan agreement, revolving
5-20 credit agreement, agreement establishing a line of credit, letter
5-21 of credit, reimbursement agreement, insurance contract, commitments
5-22 to purchase obligations, purchase or sale agreements, interest rate
5-23 swap agreement, or commitments or other contracts or agreements
5-24 authorized and approved by the governing body of an issuer either
5-25 in connection with the authorization, issuance, security, exchange,
6-1 payment, purchase, or redemption of obligations and/or interest
6-2 thereon, or as otherwise authorized by this Act.
6-3 (7) "Governing body" means the board, council,
6-4 commission, commissioners court, or other designated body (acting
6-5 either individually or jointly, when authorized by law) authorized
6-6 by law to issue bonds for or on behalf of an issuer.
6-7 SECTION 2. The importance of this legislation and the
6-8 crowded condition of the calendars in both houses create an
6-9 emergency and an imperative public necessity that the
6-10 constitutional rule requiring bills to be read on three several
6-11 days in each house be suspended, and this rule is hereby suspended.