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.