S.B. No. 1549
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.