1-1     By:  Duncan                                            S.B. No. 988
 1-2           (In the Senate - Filed February 28, 2001; March 1, 2001, read
 1-3     first time and referred to Committee on State Affairs;
 1-4     April 11, 2001, reported favorably by the following vote:  Yeas 7,
 1-5     Nays 0; April 11, 2001, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to commissions on certain negotiated bond sales.
 1-9           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1.  Subchapter B, Chapter 1201, Government Code, is
1-11     amended by adding Section 1201.028 to read as follows:
1-12           Sec. 1201.028.  COMMISSIONS NOT TO BE PAID FROM PRINCIPAL.
1-13     In a public or private sale of public securities the principal
1-14     amount of which is limited by law, by voted authorization, or
1-15     otherwise, for purposes of determining whether the principal amount
1-16     of public securities that are issued exceed the limit, amounts
1-17     produced by the initial purchaser through market pricing of the
1-18     public securities when the public securities are resold by the
1-19     initial purchaser are not to be regarded as proceeds of the issuer
1-20     if such amounts constitute all or part of the compensation of the
1-21     initial purchaser.
1-22           SECTION 2.  (a)  This Act takes effect September 1, 2001.
1-23           (b)  The change in law made by this Act to Section 1201.028,
1-24     Government Code, applies to bonds approved by voters before the
1-25     effective date of this Act if the bonds are issued on or after the
1-26     effective date of this Act.
1-27                                  * * * * *