By: Duncan S.B. No. 988 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to commissions on certain negotiated bond sales. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter B, Chapter 1201, Government Code, is 1-5 amended by adding Section 1201.028 to read as follows: 1-6 Sec. 1201.028. COMMISSIONS NOT TO BE PAID FROM PRINCIPAL. 1-7 In a public or private sale of public securities the principal 1-8 amount of which is limited by law, by voted authorization, or 1-9 otherwise, for purposes of determining whether the principal amount 1-10 of public securities that are issued exceed the limit, amounts 1-11 produced by the initial purchaser through market pricing of the 1-12 public securities when the public securities are resold by the 1-13 initial purchaser are not to be regarded as proceeds of the issuer 1-14 if such amounts constitute all or part of the compensation of the 1-15 initial purchaser. 1-16 SECTION 2. (a) This Act takes effect September 1, 2001. 1-17 (b) The change in law made by this Act to Section 1201.028, 1-18 Government Code, applies to bonds approved by voters before the 1-19 effective date of this Act if the bonds are issued on or after the 1-20 effective date of this Act.