By Solis H.B. No. 2329
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the use of local counsel in connection with public
1-3 securities issued by a governmental entity.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 1201.027, Government Code, is amended to
1-6 read as follows:
1-7 Sec. 1201.027. AUTHORITY OF ISSUER TO CONTRACT FOR SERVICES.
1-8 (a) Except as otherwise provided by this section, an [
1-9 has exclusive authority to select, contract with, and determine the
1-10 basis for compensation of a person to provide legal and other
1-11 services as may be determined by the issuer to be necessary in
1-12 connection with the issuer's issuance of public securities or
1-13 administration of its affairs that pertain to the issuance of
1-14 public securities. The selection of legal counsel shall be made in
1-15 accordance with the provisions of Subchapter A, Chapter 2254,
1-16 applicable to the selection by a governmental entity of a provider
1-17 of professional engineering services.
1-18 (b) For legal services needed in connection with public
1-19 securities after the public securities have been issued, an issuer
1-20 shall select legal counsel located in the area in which the issuer
1-21 is located.
1-22 (c) Subsections [ Subsection] (a) and (b) do [ does] not
1-23 impair the authority of the attorney general under Section 402.0212
1-24 to approve a contract for legal services entered into by a state
2-2 (d) [ (c)] Except as provided by Subsection (c) [ (b)], to the
2-3 extent of a conflict between this section and another law or a
2-4 municipal charter, this section controls.
2-5 SECTION 2. Section 1201.027, Government Code, as amended by
2-6 this Act, applies only to a contract for legal services in
2-7 connection with public securities that is entered into on or after
2-8 September 1, 2001. A contract for legal services in connection
2-9 with public securities that is entered into before September 1,
2-10 2001, is governed by the law in effect on the date the contract was
2-11 entered into, and the former law is continued in effect for that
2-13 SECTION 3. This Act takes effect September 1, 2001.