By Averitt H.B. No. 347
76R2067 PEP-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the financing of certain eligible projects for criminal
1-3 justice purposes.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 361.051(4) and (5), Local Government
1-6 Code, are amended to read as follows:
1-7 (4) "Lease obligation" means an obligation incurred by
1-8 the Texas Board [Department] of Criminal Justice under Section
1-9 495.021, Government Code [Corrections of the nature contemplated by
1-10 Article 6166g-4, Revised Statutes].
1-11 (5) "Obligations" means:
1-12 (A) certificates of obligation of an entity
1-13 issued pursuant to this subchapter in the manner prescribed by the
1-14 Certificate of Obligation Act of 1971 (Subchapter C, Chapter 271[,
1-15 Local Government Code]);
1-16 (B) certificates of participation representing
1-17 an undivided interest in a lease obligation; [or]
1-18 (C) revenue bonds of an entity issued pursuant
1-19 to this subchapter; or
1-20 (D) contractual obligations incurred by an
1-21 entity under a lease agreement, lease-purchase agreement, purchase
1-22 on an installment contract, or other agreement providing for the
1-23 lease, lease-purchase, installment purchase, or other acquisition
1-24 of title to an eligible project.
2-1 SECTION 2. Section 361.052, Local Government Code, is
2-2 amended to read as follows:
2-3 Sec. 361.052. FINANCING ELIGIBLE PROJECTS. (a) The
2-4 governing body of an entity is empowered and authorized to issue,
2-5 or to provide for the issuance of, obligations and to execute
2-6 credit agreements in relation thereto in order to finance project
2-7 costs of an eligible project, or to refund obligations issued or
2-8 incurred in connection with an eligible project. This subsection
2-9 applies regardless of when:
2-10 (1) the obligation is due; or
2-11 (2) title to the project is transferred to the entity.
2-12 (b) Money [It is specifically provided that money] to be
2-13 paid pursuant to a lease obligation and revenues derived by an
2-14 entity from the operation of an eligible project constitute
2-15 [constitutes] revenues to an entity that [which] may be pledged to
2-16 secure or pay any obligations, and the entity's [such] obligations
2-17 may be made payable from and secured by, in whole or in part, those
2-18 [such] revenues. An entity may apply the provisions of (i)
2-19 Sections 2 through 11 of Chapter 656, Acts of the 68th Legislature,
2-20 Regular Session, 1983 (Article 717q, Vernon's Texas Civil
2-21 Statutes), (ii) Section 271.052, [Local Government Code,] (iii)
2-22 Section 361.053 [of this subchapter], or (iv) any combination of
2-23 the foregoing to the issuance of obligations and the execution of
2-24 credit agreements to satisfy the purposes of this subchapter.
2-25 SECTION 3. Section 361.053(d), Local Government Code, is
2-26 amended to read as follows:
2-27 (d) The bonds may be secured additionally by a trust
3-1 indenture or a deed of trust granting a security interest in an
3-2 eligible project, under which the trustee may be a financial
3-3 institution, domiciled inside or outside the state, which has
3-4 trust power.
3-5 SECTION 4. The importance of this legislation and the
3-6 crowded condition of the calendars in both houses create an
3-7 emergency and an imperative public necessity that the
3-8 constitutional rule requiring bills to be read on three several
3-9 days in each house be suspended, and this rule is hereby suspended,
3-10 and that this Act take effect and be in force from and after its
3-11 passage, and it is so enacted.