1-1 By: Averitt (Senate Sponsor - Ogden) H.B. No. 347
1-2 (In the Senate - Received from the House March 18, 1999;
1-3 March 22, 1999, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 7, 1999, reported favorably, as
1-5 amended, by the following vote: Yeas 5, Nays 0; May 7, 1999, sent
1-6 to printer.)
1-7 COMMITTEE AMENDMENT NO. 1 By: Nixon
1-8 Amend H.B. 347, in SECTION 2 of the bill, in proposed Section
1-9 361.052(b), Local Government Code, between "subchapter" and the
1-10 period at the end of the section (page 2, line 3, house
1-11 engrossment), by inserting ", except that an entity's obligations
1-12 may be refunded by the issuance of bonds, as defined by the Bond
1-13 Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil
1-14 Statutes), that are payable from a pledge of ad valorem tax
1-15 receipts only if the issuance of the bonds is approved by a
1-16 majority of votes cast at an election conducted as provided by the
1-17 Election Code".
1-18 A BILL TO BE ENTITLED
1-19 AN ACT
1-20 relating to the financing of certain eligible projects for criminal
1-21 justice purposes.
1-22 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-23 SECTION 1. Sections 361.051(4) and (5), Local Government
1-24 Code, are amended to read as follows:
1-25 (4) "Lease obligation" means an obligation incurred by
1-26 the Texas Board [Department] of Criminal Justice under Section
1-27 495.021, Government Code [Corrections of the nature contemplated by
1-28 Article 6166g-4, Revised Statutes].
1-29 (5) "Obligations" means:
1-30 (A) certificates of obligation of an entity
1-31 issued pursuant to this subchapter in the manner prescribed by the
1-32 Certificate of Obligation Act of 1971 (Subchapter C, Chapter 271[,
1-33 Local Government Code]);
1-34 (B) certificates of participation representing
1-35 an undivided interest in a lease obligation; [or]
1-36 (C) revenue bonds of an entity issued pursuant
1-37 to this subchapter; or
1-38 (D) contractual obligations incurred by an
1-39 entity under a lease agreement, lease-purchase agreement, purchase
1-40 on an installment contract, or other agreement providing for the
1-41 lease, lease-purchase, installment purchase, or other acquisition
1-42 of title to an eligible project.
1-43 SECTION 2. Section 361.052, Local Government Code, is
1-44 amended to read as follows:
1-45 Sec. 361.052. FINANCING ELIGIBLE PROJECTS. (a) The
1-46 governing body of an entity is empowered and authorized to issue,
1-47 or to provide for the issuance of, obligations and to execute
1-48 credit agreements in relation thereto in order to finance project
1-49 costs of an eligible project, or to refund obligations issued or
1-50 incurred in connection with an eligible project. This subsection
1-51 applies regardless of when:
1-52 (1) the obligation is due; or
1-53 (2) title to the project is transferred to the entity.
1-54 (b) Money [It is specifically provided that money] to be
1-55 paid pursuant to a lease obligation and revenues derived by an
1-56 entity from the operation of an eligible project constitute
1-57 [constitutes] revenues to an entity that [which] may be pledged to
1-58 secure or pay any obligations, and the entity's [such] obligations
1-59 may be made payable from and secured by, in whole or in part, those
1-60 [such] revenues. An entity may apply the provisions of (i)
1-61 Sections 2 through 11 of Chapter 656, Acts of the 68th Legislature,
1-62 Regular Session, 1983 (Article 717q, Vernon's Texas Civil
1-63 Statutes), (ii) Section 271.052, [Local Government Code,] (iii)
2-1 Section 361.053 [of this subchapter], or (iv) any combination of
2-2 the foregoing to the issuance of obligations and the execution of
2-3 credit agreements to satisfy the purposes of this subchapter.
2-4 SECTION 3. Section 361.053(d), Local Government Code, is
2-5 amended to read as follows:
2-6 (d) The bonds may be secured additionally by a trust
2-7 indenture or a deed of trust granting a security interest in an
2-8 eligible project, under which the trustee may be a financial
2-9 institution, domiciled inside or outside the state, which has
2-10 trust power.
2-11 SECTION 4. The importance of this legislation and the
2-12 crowded condition of the calendars in both houses create an
2-13 emergency and an imperative public necessity that the
2-14 constitutional rule requiring bills to be read on three several
2-15 days in each house be suspended, and this rule is hereby suspended,
2-16 and that this Act take effect and be in force from and after its
2-17 passage, and it is so enacted.
2-18 * * * * *