77R11844 JMG-D
By Farrar H.B. No. 3285
Substitute the following for H.B. No. 3285:
By Averitt C.S.H.B. No. 3285
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the issuance and refunding of anticipation notes and
1-3 the financing of certain contracts by certain political
1-4 subdivisions.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Section 1431.001, Government Code, is amended to
1-7 conform to Sections 3 and 4, Chapter 984, Acts of the 76th
1-8 Legislature, Regular Session, 1999, and is further amended to read
1-9 as follows:
1-10 Sec. 1431.001. DEFINITIONS. In this chapter:
1-11 (1) "Anticipation note" means a note issued under this
1-12 chapter.
1-13 (2) "Eligible countywide district" means a flood
1-14 control district or a hospital district the boundaries of which are
1-15 substantially coterminous with the boundaries of a county with a
1-16 population of three million or more.
1-17 (3) "Eligible school district" means an independent
1-18 school district that has an average daily attendance of 190,000 or
1-19 more as determined under Section 42.005, Education Code.
1-20 (4) "Governing body" means the commissioners court of
1-21 a county or the governing body of a municipality, eligible school
1-22 district, or eligible countywide district authorized to issue
1-23 anticipation notes on behalf of an issuer.
1-24 (5) [(3)] "Issuer" means a county, [or] municipality,
2-1 eligible school district, or eligible countywide district issuing
2-2 an anticipation note.
2-3 SECTION 2. Section 1431.002, Government Code, is amended to
2-4 conform to Sections 4 and 6, Chapter 984, Acts of the 76th
2-5 Legislature, Regular Session, 1999, by adding Subsection (c) and is
2-6 further amended by amending Subsection (a) to read as follows:
2-7 (a) The commissioners court of a county by order, on the
2-8 recommendation of the county auditor or the county budget officer,
2-9 as applicable, or the governing body of an eligible countywide
2-10 district may authorize the issuance of an anticipation note.
2-11 (c) The governing body of an eligible school district by
2-12 order may authorize the issuance of an anticipation note.
2-13 SECTION 3. Section 1431.003(a), Government Code, is amended
2-14 to conform to Section 5, Chapter 984, Acts of the 76th Legislature,
2-15 Regular Session, 1999, and is further amended to read as follows:
2-16 (a) This section applies only to an issuer that is:
2-17 (1) a county; [or]
2-18 (2) a municipality with a population of 80,000 or
2-19 more;
2-20 (3) an eligible school district; or
2-21 (4) an eligible countywide district.
2-22 SECTION 4. Section 1431.004, Government Code, is amended to
2-23 conform to Section 4, Chapter 984, Acts of the 76th Legislature,
2-24 Regular Session, 1999, and is further amended to read as follows:
2-25 Sec. 1431.004. USES OF ANTICIPATION NOTE PROCEEDS. (a) An
2-26 issuer, other than an eligible school district, may use the
2-27 proceeds of an anticipation note to pay:
3-1 (1) a contractual obligation incurred or to be
3-2 incurred for:
3-3 (A) the construction of a public work;
3-4 (B) the purchase of materials, supplies,
3-5 equipment, machinery, buildings, lands, and rights-of-way for the
3-6 issuer's authorized needs and purposes; or
3-7 (C) a professional service, including a service
3-8 by a tax appraisal engineer, engineer, architect, attorney,
3-9 mapmaker, auditor, financial advisor, or fiscal agent;
3-10 (2) operating or current expenses; or
3-11 (3) the issuer's cumulative cash flow deficit.
3-12 (b) The governing body of an eligible school district may
3-13 use the proceeds of an anticipation note to pay an obligation
3-14 incurred or to be incurred for:
3-15 (1) a purpose described by Subsection(a)(1)(C), (2),
3-16 or (3); or
3-17 (2) the purchase of materials, supplies, equipment, or
3-18 machinery for an issuer's authorized needs and purposes.
3-19 (c) For the purposes of this section, the cumulative cash
3-20 flow deficit is the amount by which the sum of an issuer's
3-21 anticipated expenditures and cash reserve reasonably required to
3-22 pay unanticipated expenditures exceeds the amount of the issuer's
3-23 cash, marketable securities, and money in an account that may be
3-24 used to pay an issuer's anticipated expenditures, other than:
3-25 (1) money in an account the use of which is subject to
3-26 legislative or judicial action or that is subject to a legislative,
3-27 judicial, or contractual requirement that the account be
4-1 reimbursed; or
4-2 (2) the proceeds of an anticipation note.
4-3 (d) [(c)] For the purposes of Subsection (c) [(b)], an
4-4 amount equal to one month's anticipated expenditures is presumed to
4-5 be reasonably required as a cash reserve.
4-6 SECTION 5. Section 1431.006, Government Code, is amended to
4-7 conform to Section 7, Chapter 984, Acts of the 76th Legislature,
4-8 Regular Session, 1999, and is further amended to read as follows:
4-9 Sec. 1431.006. LIMITATION ON NOTES TO PAY EXPENSES.
4-10 Anticipation notes issued for the purposes described by [under]
4-11 Section 1431.004(a)(2) may not, in the fiscal year in which the
4-12 attorney general approves the notes:
4-13 (1) for a municipality, exceed 75 percent of the
4-14 revenue or taxes anticipated to be collected in that year; [or]
4-15 (2) for a county or an eligible countywide district,
4-16 exceed 50 percent of the revenue or taxes anticipated to be
4-17 collected in that year; or
4-18 (3) for an eligible school district, exceed 75 percent
4-19 of the income of the district for the fiscal year preceding that
4-20 year.
4-21 SECTION 6. Section 1431.007, Government Code, is amended to
4-22 read as follows:
4-23 Sec. 1431.007. GENERAL SOURCES OF PAYMENT. (a) Except as
4-24 provided by Subsection (b), a [A] governing body may:
4-25 (1) provide that anticipation notes be paid from and
4-26 secured by revenue, taxes, or the proceeds of bonds to be issued by
4-27 the issuer; and
5-1 (2) pledge to the payment of anticipation notes
5-2 revenue, taxes, or the proceeds of bonds to be issued by the
5-3 issuer.
5-4 (b) The governing body of a flood control district operating
5-5 as a conservation and reclamation district that issues anticipation
5-6 notes for one or more purposes described in Section 1431.004(a)(1)
5-7 may:
5-8 (1) provide that the anticipation notes be paid from
5-9 and secured by revenue or the proceeds of bonds to be issued by the
5-10 issuer; and
5-11 (2) pledge to the payment of the anticipation notes
5-12 revenues or the proceeds of bonds to be issued by the issuer.
5-13 SECTION 7. Section 1431.009, Government Code, is amended to
5-14 conform to Section 7, Chapter 984, Acts of the 76th Legislature,
5-15 Regular Session, 1999, and is further amended to read as follows:
5-16 Sec. 1431.009. MATURITY. (a) Except as provided by
5-17 Subsection (b), an [An] anticipation note issued for a purpose
5-18 described by Section 1431.004(a)(1) or (b)(2) must mature before
5-19 the seventh anniversary of the date that the attorney general
5-20 approves the note.
5-21 (b) An anticipation note issued by a county with a
5-22 population of three million or more, an eligible countywide
5-23 district, or an eligible school district for a purpose described by
5-24 Section 1431.004(a)(1) or (b)(2) must mature before the 15th
5-25 anniversary of the date that the attorney general approves the
5-26 note.
5-27 (c) An anticipation note issued for a purpose described by
6-1 Section 1431.004(a)(2) or (3) must mature before the first
6-2 anniversary of the date that the attorney general approves the
6-3 note.
6-4 (d) A bond issued under Chapter 1207 to refund an
6-5 anticipation note issued by a county, municipality, or eligible
6-6 countywide district for a purpose described by Section
6-7 1431.004(a)(1) or by an eligible school district for a purpose
6-8 described by Section 1431.004(a)(1)(C) or (b)(2) is subject to the
6-9 limitation on maturity provided by Section 1207.006 and not the
6-10 limitation provided by Subsection (a).
6-11 SECTION 8. Section 411.003(a), Local Government Code, is
6-12 amended to read as follows:
6-13 (a) The commissioners court of a county may contract with
6-14 the federal soil conservation service, a state soil conservation
6-15 district, the state extension service, a conservation and
6-16 reclamation district, a drainage district, a water control and
6-17 improvement district, a navigation district, a flood control
6-18 district, a levee improvement district, or a municipality as
6-19 provided by Section 256.006, Transportation Code, for the purpose
6-20 of carrying out plans and programs for flood control and soil
6-21 conservation. The contract may provide that payments due under the
6-22 contract are payable from and secured by a pledge of any revenue of
6-23 the county or the county's ad valorem taxes or a combination of
6-24 those revenues and taxes.
6-25 SECTION 9. Section 1431.009(d), Government Code, as added by
6-26 this Act, applies to bonds issued to refund anticipation notes,
6-27 regardless of whether the anticipation notes were issued before,
7-1 on, or after the effective date of this Act.
7-2 SECTION 10. (a) In accordance with Section 311.031(c),
7-3 Government Code, giving effect to a substantive amendment enacted
7-4 by the same legislature that codifies the amended statute, the text
7-5 of Sections 1431.001 through 1431.004, 1431.006, and 1431.009,
7-6 Government Code, as set out in this Act, gives effect to changes
7-7 made by Sections 3 through 7, Chapter 984, Acts of the 76th
7-8 Legislature, Regular Session, 1999.
7-9 (b) To the extent of any conflict, this Act prevails over
7-10 another Act of the 77th Legislature, Regular Session, 2001,
7-11 relating to nonsubstantive additions and corrections in enacted
7-12 codes.
7-13 SECTION 11. Sections 3 through 7, Chapter 984, Acts of the
7-14 76th Legislature, Regular Session, 1999, are repealed.
7-15 SECTION 12. This Act takes effect September 1, 2001.