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 * * * * *