1-1     By:  Nixon                                             S.B. No. 835

 1-2           (In the Senate - Filed February 27, 1997; March 4, 1997, read

 1-3     first time and referred to Committee on State Affairs;

 1-4     April 22, 1997, reported favorably, as amended, by the following

 1-5     vote:  Yeas 13, Nays 0; April 22, 1997, sent to printer.)

 1-6     COMMITTEE AMENDMENT NO. 1                                By:  Nixon

 1-7     Amend S.B. No. 835 as follows:

 1-8           (1)  On page 1, line 48, insert the following after "person"

 1-9     and before "who":

1-10           ", other than a state agency,"

1-11           (2)  On page 1, line 52, insert the following after "grant.":

1-12           "A state agency shall give notice through publication in the

1-13     Texas Register."

1-14           (3)  On page 1, line 54, delete "person applies for the loan

1-15     or grant." and insert the following after "the":

1-16           "state agency takes action on the loan or grant application."

1-17           (4)  On page 2, line 3, delete "person applies for the loan

1-18     or grant." and insert the following after "the":

1-19           "state agency takes action on the loan or grant application."

1-20                            A BILL TO BE ENTITLED

1-21                                   AN ACT

1-22     relating to public notice of intent to apply for certain loans or

1-23     grants from a state agency.

1-24           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-25           SECTION 1.  Subtitle F, Title 10, Government Code, is amended

1-26     by adding Chapter 2259 to read as follows:

1-27                   CHAPTER 2259.  PUBLIC NOTICE OF INTENT

1-28                TO APPLY FOR LOAN OR GRANT FROM STATE AGENCY

1-29           Sec. 2259.001.  NOTICE REQUIRED.  (a)  A person who intends

1-30     to apply for a loan or grant described by Subsection (b) from a

1-31     state agency must give notice of that intention as prescribed by

1-32     this chapter.

1-33           (b)  This chapter applies only to:

1-34                 (1)  a loan that will be repaid from revenues, other

1-35     than ad valorem taxes, to be received by the person obtaining the

1-36     loan for services the person offers; or

1-37                 (2)  a grant that, if the person fails to comply with

1-38     all conditions of the grant, may be repaid from revenues, other

1-39     than ad valorem taxes, to be received by the person obtaining the

1-40     grant for services the person offers.

1-41           (c)  A state agency may not make a loan or grant to which

1-42     this chapter applies unless the person applying for the loan or

1-43     grant files proof of publication or posting with the agency.

1-44           (d)  For purposes of this chapter, services are affected by a

1-45     loan or grant if revenues from the services may be used to repay

1-46     the loan or grant.

1-47           Sec. 2259.002.  PUBLICATION OF NOTICE.  (a)  A person who

1-48     intends to apply for a loan or grant to which this chapter applies

1-49     must publish notice of that intention in a newspaper published in

1-50     each county in which the person offers  services that will be

1-51     affected by the loan or grant.

1-52           (b)  The notice must be published once not later than the

1-53     30th day before the date on which the person applies for the loan

1-54     or grant.

1-55           (c)  If the person offers services that will be affected by

1-56     the loan or grant in more than one county, the person applying for

1-57     the loan or grant must publish notice in each county in which the

1-58     person offers services that will be affected by the loan or grant.

1-59           Sec. 2259.003.  POSTING OF NOTICE.  (a)  If a newspaper is

1-60     not published in the county, the person applying for the loan or

1-61     grant must post the notice at the courthouse door and at five other

1-62     public places in the immediate locality in the county in which the

1-63     person offers services that will be affected by the loan or grant.

1-64           (b)  The notice must be posted for at least 30 days before

 2-1     the date on which the person applies for the loan or grant.

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

 2-3     the state agency with which the person will apply for the loan or

 2-4     grant and must contain a statement of the general purpose of and

 2-5     the amount of the loan or grant for which the person will apply.

 2-6           Sec. 2259.005.  COST OF PUBLICATION OR POSTING.  The person

 2-7     who intends to apply for a loan or grant shall pay the cost of

 2-8     publication or posting the notice.

 2-9           Sec. 2259.006.  PROOF OF PUBLICATION OR POSTING.  (a)  Proof

2-10     of publication shall be made by the affidavit of the publisher

2-11     accompanied by a printed copy of the notice as published.

2-12           (b)  Proof of posting may be made by the return of the

2-13     sheriff or constable or by the affidavit of a credible person made

2-14     on a copy of the posted notice showing the fact of the posting.

2-15           SECTION 2.  This Act takes effect September 1, 1997.

2-16           SECTION 3.  Chapter 2259, Government Code, as added by this

2-17     Act, applies only to an application for a loan or grant from a

2-18     state agency that is filed on or after September 1, 1997.

2-19           SECTION 4.  The importance of this legislation and the

2-20     crowded condition of the calendars in both houses create an

2-21     emergency and an imperative public necessity that the

2-22     constitutional rule requiring bills to be read on three several

2-23     days in each house be suspended, and this rule is hereby suspended.

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