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.