By: Lindsay S.B. No. 1415
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the issuance of anticipation notes by certain flood
1-3 control districts and hospital districts in highly populated
1-4 counties and refunding of anticipation notes.
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 further amended to read as
1-9 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,
1-25 eligible school district, or eligible countywide district issuing
2-1 an anticipation note.
2-2 SECTION 2. Section 1431.002, Government Code, is amended to
2-3 conform to Sections 4 and 6, Chapter 984, Acts of the 76th
2-4 Legislature, Regular Session, 1999, and further amended to read as
2-5 follows:
2-6 Sec. 1431.002. Authority to Issue Anticipation Notes.
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 (b) The governing body of a municipality by ordinance may
2-12 authorize the issuance of an anticipation note.
2-13 (c) The governing body of an eligible school district by
2-14 order may authorize the issuance of an anticipation note.
2-15 SECTION 3. Subsection (a), Section 1431.003, Government
2-16 Code, is amended to conform to Section 5, Chapter 984, Acts of the
2-17 76th Legislature, Regular Session, 1999, and further amended to
2-18 read as follows:
2-19 (a) This section applies only to an issuer that is:
2-20 (1) a county; [or]
2-21 (2) a municipality with a population of 80,000 or
2-22 more;
2-23 (3) an eligible school district; or
2-24 (4) an eligible countywide district.
2-25 SECTION 4. Section 1431.004, Government Code, is amended to
2-26 conform to Section 4, Chapter 984, Acts of the 76th Legislature,
3-1 Regular Session, 1999, and further amended to read as follows:
3-2 Sec. 1431.004. Uses of Anticipation Note Proceeds. (a) An
3-3 issuer, other than an eligible school district, may use the
3-4 proceeds of an anticipation note to pay:
3-5 (1) a contractual obligation incurred or to be
3-6 incurred for:
3-7 (A) the construction of a public work;
3-8 (B) the purchase of materials, supplies,
3-9 equipment, machinery, buildings, lands, and rights-of-way for the
3-10 issuer's authorized needs and purposes; or
3-11 (C) a professional service, including a service
3-12 by a tax appraisal engineer, engineer, architect, attorney,
3-13 mapmaker, auditor, financial advisor, or fiscal agent;
3-14 (2) operating or current expenses; or
3-15 (3) the issuer's cumulative cash flow deficit.
3-16 (b) The governing body of an eligible school district may
3-17 use the proceeds of an anticipation note to pay an obligation
3-18 incurred or to be incurred for:
3-19 (1) the purpose described by Subsection (a)(1)(C),
3-20 (2), or (3); or
3-21 (2) the purchase of materials, supplies, equipment,
3-22 and machinery for an issuer's authorized needs and purposes.
3-23 (c) For the purposes of this section, the cumulative cash
3-24 flow deficit is the amount by which the sum of an issuer's
3-25 anticipated expenditures and cash reserve reasonably required to
3-26 pay unanticipated expenditures exceeds the amount of the issuer's
4-1 cash, marketable securities, and money in an account that may be
4-2 used to pay an issuer's anticipated expenditures, other than:
4-3 (1) money in an account the use of which is subject to
4-4 legislative or judicial action or that is subject to a legislative,
4-5 judicial, or contractual requirement that the account be
4-6 reimbursed; or
4-7 (2) the proceeds of an anticipation note.
4-8 (d) [(c)] For the purposes of Subsection (c) [(b)], an
4-9 amount equal to one month's anticipated expenditures is presumed to
4-10 be reasonably required as a cash reserve.
4-11 SECTION 5. Section 1431.006, Government Code, is amended to
4-12 conform to Section 7, Chapter 984, Acts of the 76th Legislature,
4-13 Regular Session, 1999, and further amended to read as follows:
4-14 Sec. 1431.006. Limitation on Notes to Pay Expenses.
4-15 Anticipation notes issued for the purposes described by [under]
4-16 Section 1431.004(a)(2) may not, in the fiscal year in which the
4-17 attorney general approves the notes:
4-18 (1) for a municipality, exceed 75 percent of the
4-19 revenue or taxes anticipated to be collected in that year; [or]
4-20 (2) for a county or an eligible countywide district,
4-21 exceed 50 percent of the revenue or taxes anticipated to be
4-22 collected in that year; or
4-23 (3) for an eligible school district, exceed 75 percent
4-24 of the income of the district for the fiscal year preceding that
4-25 year.
4-26 SECTION 6. Section 1431.007, Government Code, is amended to
5-1 read as follows:
5-2 Sec. 1431.007. General Sources of Payment. (a) Except as
5-3 provided by Subsection (b), a [A] governing body may:
5-4 (1) provide that anticipation notes be paid from and
5-5 secured by revenue, taxes, or the proceeds of bonds to be issued by
5-6 the issuer; and
5-7 (2) pledge to the payment of anticipation notes
5-8 revenue, taxes, or the proceeds of bonds to be issued by the
5-9 issuer.
5-10 (b) The governing body of a flood control district operating
5-11 as a conservation and reclamation district that issues anticipation
5-12 notes for one or more purposes described in Section 1431.004(a)(1)
5-13 may:
5-14 (1) provide that the anticipation notes be paid from
5-15 and secured by revenue or the proceeds of bonds to be issued by the
5-16 issuer; and
5-17 (2) pledge to the payment of the anticipation notes
5-18 revenues or the proceeds of bonds to be issued by the issuer.
5-19 SECTION 7. Section 1431.009, Government Code, is amended to
5-20 conform to Section 7, Chapter 984, Acts of the 76th Legislature,
5-21 Regular Session, 1999, and further amended to read as follows:
5-22 Sec. 1431.009. Maturity. (a) Except as provided by
5-23 Subsection (b), an [An] anticipation note issued for a purpose
5-24 described by Section 1431.004(a)(1) or (b)(2) must mature before
5-25 the seventh anniversary of the date that the attorney general
5-26 approves the note.
6-1 (b) An anticipation note issued by a county with a
6-2 population of three million or more, an eligible countywide
6-3 district, or an eligible school district for a purpose described by
6-4 Section 1431.004(a)(1) or (b)(2) must mature before the 15th
6-5 anniversary of the date that the attorney general approves the
6-6 note.
6-7 (c) An anticipation note issued for a purpose described by
6-8 Section 1431.004(a)(2) or (3) must mature before the first
6-9 anniversary of the date that the attorney general approves the
6-10 note.
6-11 (d) A bond issued under Chapter 1207 to refund an
6-12 anticipation note issued by a county, municipality, or eligible
6-13 countywide district for a purpose described by Section
6-14 1431.004(a)(1) or by an eligible school district for a purpose
6-15 described by Section 1431.004(a)(1)(C) or (b)(2) is subject to the
6-16 limitation on maturity provided by Section 1207.006 and not the
6-17 limitation provided by Subsection (a).
6-18 SECTION 8. Subsection (a), Section 411.003, Local Government
6-19 Code, is amended to read as follows:
6-20 (a) The commissioners court of a county may contract with
6-21 the federal soil conservation service, a state soil conservation
6-22 district, the state extension service, a conservation and
6-23 reclamation district, a drainage district, a water control and
6-24 improvement district, a navigation district, a flood control
6-25 district, a levee improvement district, or a municipality as
6-26 provided by Section 256.006, Transportation Code, for the purpose
7-1 of carrying out plans and programs for flood control and soil
7-2 conservation. The contract may provide that payments due under the
7-3 contract are payable from and secured by a pledge of any revenue of
7-4 the county or the county's ad valorem taxes or a combination of
7-5 such revenues and taxes.
7-6 SECTION 9. Subsection (d), Section 1431.009, Government
7-7 Code, as added by this Act, applies to bonds issued to refund
7-8 anticipation notes, regardless of whether the anticipation notes
7-9 were issued before, on, or after the effective date of this Act.
7-10 SECTION 10. (a) In accordance with Subsection (c), Section
7-11 311.031, Government Code, giving effect to a substantive amendment
7-12 enacted by the same legislature that codifies the amended statute,
7-13 the text of Sections 1431.001 through 1431.004, 1431.006, and
7-14 1431.009, Government Code, as set out in this Act, give effect to
7-15 changes made by Sections 3 through 7, Chapter 984, Acts of the 76th
7-16 Legislature, Regular Session, 1999.
7-17 (b) To the extent of any conflict, this Act prevails over
7-18 another Act of the 77th Legislature, Regular Session, 2001,
7-19 relating to nonsubstantive additions and corrections in enacted
7-20 codes.
7-21 SECTION 11. This Act takes effect September 1, 2001.