By:  Ellis                                            S.B. No. 1549
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to revenue obligations of junior college districts or
    1-2  regional college districts.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Subdivision (5), Subsection (a), Section 130.125,
    1-5  Education Code, is amended to read as follows:
    1-6              (5)  "Obligations" means notes, warrants, or other
    1-7  special obligations authorized to be issued by an issuer under the
    1-8  provisions of this section and all "bonds" as defined in the Bond
    1-9  Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil
   1-10  Statutes), which prior to the delivery thereof, have been rated by
   1-11  a nationally recognized rating agency for municipal securities in
   1-12  either one of the three highest ranking categories for short-term
   1-13  obligations or one of the four highest ranking categories for
   1-14  long-term obligations.  It is provided, however, that the term
   1-15  "obligations" does not mean or include any obligations payable from
   1-16  ad valorem taxes.
   1-17        SECTION 2.  Section 130.125, Education Code, is amended by
   1-18  adding Subsection (f-1) to read as follows:
   1-19        (f-1)  The governing body of an "eligible issuer" may enter
   1-20  into credit agreements as described in Subsection (d).  As used in
   1-21  this subsection, "eligible issuer" means an issuer that prior to
   1-22  the effective date of this subsection (i) issued bonds which, prior
   1-23  to or simultaneously with the delivery thereof, were rated by a
    2-1  nationally recognized rating agency for municipal securities in one
    2-2  of the four highest ranking categories for long-term obligations,
    2-3  and (ii) reserved in the resolution or order authorizing issuance
    2-4  of the bonds the right, in the event of a change in state law, to
    2-5  substitute a credit agreement in lieu of cash and investments in a
    2-6  reserve fund established pursuant to the resolution or order.
    2-7        SECTION 3.  The importance of this legislation and the
    2-8  crowded condition of the calendars in both houses create an
    2-9  emergency and an imperative public necessity that the
   2-10  constitutional rule requiring bills to be read on three several
   2-11  days in each house be suspended, and this rule is hereby suspended,
   2-12  and that this Act take effect and be in force from and after its
   2-13  passage, and it is so enacted.