By:  Nixon                                             S.B. No. 835

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to public notice of intent to apply for certain loans or

 1-2     grants from a state agency.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subtitle F, Title 10, Government Code, is amended

 1-5     by adding Chapter 2259 to read as follows:

 1-6                   CHAPTER 2259.  PUBLIC NOTICE OF INTENT

 1-7                TO APPLY FOR LOAN OR GRANT FROM STATE AGENCY

 1-8           Sec. 2259.001.  NOTICE REQUIRED.  (a)  A person who intends

 1-9     to apply for a loan or grant described by Subsection (b) from a

1-10     state agency must give notice of that intention as prescribed by

1-11     this chapter.

1-12           (b)  This chapter applies only to:

1-13                 (1)  a loan that will be repaid from revenues, other

1-14     than ad valorem taxes, to be received by the person obtaining the

1-15     loan for services the person offers; or

1-16                 (2)  a grant that, if the person fails to comply with

1-17     all conditions of the grant, may be repaid from revenues, other

1-18     than ad valorem taxes, to be received by the person obtaining the

1-19     grant for services the person offers.

1-20           (c)  A state agency may not make a loan or grant to which

1-21     this chapter applies unless the person applying for the loan or

1-22     grant files proof of publication or posting with the agency.

1-23           (d)  For purposes of this chapter, services are affected by a

 2-1     loan or grant if revenues from the services may be used to repay

 2-2     the loan or grant.

 2-3           Sec. 2259.002.  PUBLICATION OF NOTICE.  (a)  A person, other

 2-4     than a state agency, who intends to apply for a loan or grant to

 2-5     which this chapter applies must publish notice of that intention in

 2-6     a newspaper published in each county in which the person offers

 2-7     services that will be affected by the loan or grant.  A state

 2-8     agency shall give notice through publication in the Texas Register.

 2-9           (b)  The notice must be published once not later than the

2-10     30th day before the date on which the state agency takes action on

2-11     the loan or grant application.

2-12           (c)  If the person offers services that will be affected by

2-13     the loan or grant in more than one county, the person applying for

2-14     the loan or grant must publish notice in each county in which the

2-15     person offers services that will be affected by the loan or grant.

2-16           Sec. 2259.003.  POSTING OF NOTICE.  (a)  If a newspaper is

2-17     not published in the county, the person applying for the loan or

2-18     grant must post the notice at the courthouse door and at five other

2-19     public places in the immediate locality in the county in which the

2-20     person offers services that will be affected by the loan or grant.

2-21           (b)  The notice must be posted for at least 30 days before

2-22     the date on which the state agency takes action on the loan or

2-23     grant application.

2-24           Sec. 2259.004.  CONTENTS OF NOTICE.  The notice must identify

2-25     the state agency with which the person will apply for the loan or

 3-1     grant and must contain a statement of the general purpose of and

 3-2     the amount of the loan or grant for which the person will apply.

 3-3           Sec. 2259.005.  COST OF PUBLICATION OR POSTING.  The person

 3-4     who intends to apply for a loan or grant shall pay the cost of

 3-5     publication or posting the notice.

 3-6           Sec. 2259.006.  PROOF OF PUBLICATION OR POSTING.  (a)  Proof

 3-7     of publication shall be made by the affidavit of the publisher

 3-8     accompanied by a printed copy of the notice as published.

 3-9           (b)  Proof of posting may be made by the return of the

3-10     sheriff or constable or by the affidavit of a credible person made

3-11     on a copy of the posted notice showing the fact of the posting.

3-12           SECTION 2.  This Act takes effect September 1, 1997.

3-13           SECTION 3.  Chapter 2259, Government Code, as added by this

3-14     Act, applies only to an application for a loan or grant from a

3-15     state agency that is filed on or after September 1, 1997.

3-16           SECTION 4.  The importance of this legislation and the

3-17     crowded condition of the calendars in both houses create an

3-18     emergency and an imperative public necessity that the

3-19     constitutional rule requiring bills to be read on three several

3-20     days in each house be suspended, and this rule is hereby suspended.