1-1 By: Lindsay S.B. No. 1415
1-2 (In the Senate - Filed March 8, 2001; March 13, 2001, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; April 9, 2001, reported adversely, with favorable
1-5 Committee Substitute by the following vote: Yeas 6, Nays 0;
1-6 April 9, 2001, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1415 By: Lindsay
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the issuance of anticipation notes by certain flood
1-11 control districts and hospital districts in highly populated
1-12 counties and refunding of anticipation notes.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. Section 1431.001, Government Code, is amended to
1-15 conform to Sections 3 and 4, Chapter 984, Acts of the 76th
1-16 Legislature, Regular Session, 1999, and further amended to read as
1-17 follows:
1-18 Sec. 1431.001. Definitions. In this chapter:
1-19 (1) "Anticipation note" means a note issued under this
1-20 chapter.
1-21 (2) "Eligible countywide district" means a flood
1-22 control district or a hospital district the boundaries of which are
1-23 substantially coterminous with the boundaries of a county with a
1-24 population of three million or more.
1-25 (3) "Eligible school district" means an independent
1-26 school district that has an average daily attendance of 190,000 or
1-27 more as determined under Section 42.005, Education Code.
1-28 (4) "Governing body" means the commissioners court of
1-29 a county or the governing body of a municipality, eligible school
1-30 district, or eligible countywide district authorized to issue
1-31 anticipation notes on behalf of an issuer.
1-32 (5) [(3)] "Issuer" means a county, [or] municipality,
1-33 eligible school district, or eligible countywide district issuing
1-34 an anticipation note.
1-35 SECTION 2. Section 1431.002, Government Code, is amended to
1-36 conform to Sections 4 and 6, Chapter 984, Acts of the 76th
1-37 Legislature, Regular Session, 1999, and further amended to read as
1-38 follows:
1-39 Sec. 1431.002. Authority to Issue Anticipation Notes.
1-40 (a) The commissioners court of a county by order, on the
1-41 recommendation of the county auditor or the county budget officer,
1-42 as applicable, or the governing body of an eligible countywide
1-43 district may authorize the issuance of an anticipation note.
1-44 (b) The governing body of a municipality by ordinance may
1-45 authorize the issuance of an anticipation note.
1-46 (c) The governing body of an eligible school district by
1-47 order may authorize the issuance of an anticipation note.
1-48 SECTION 3. Subsection (a), Section 1431.003, Government
1-49 Code, is amended to conform to Section 5, Chapter 984, Acts of the
1-50 76th Legislature, Regular Session, 1999, and further amended to
1-51 read as follows:
1-52 (a) This section applies only to an issuer that is:
1-53 (1) a county; [or]
1-54 (2) a municipality with a population of 80,000 or
1-55 more;
1-56 (3) an eligible school district; or
1-57 (4) an eligible countywide district.
1-58 SECTION 4. Section 1431.004, Government Code, is amended to
1-59 conform to Section 4, Chapter 984, Acts of the 76th Legislature,
1-60 Regular Session, 1999, and further amended to read as follows:
1-61 Sec. 1431.004. Uses of Anticipation Note Proceeds. (a) An
1-62 issuer, other than an eligible school district, may use the
1-63 proceeds of an anticipation note to pay:
1-64 (1) a contractual obligation incurred or to be
2-1 incurred for:
2-2 (A) the construction of a public work;
2-3 (B) the purchase of materials, supplies,
2-4 equipment, machinery, buildings, lands, and rights-of-way for the
2-5 issuer's authorized needs and purposes; or
2-6 (C) a professional service, including a service
2-7 by a tax appraisal engineer, engineer, architect, attorney,
2-8 mapmaker, auditor, financial advisor, or fiscal agent;
2-9 (2) operating or current expenses; or
2-10 (3) the issuer's cumulative cash flow deficit.
2-11 (b) The governing body of an eligible school district may
2-12 use the proceeds of an anticipation note to pay an obligation
2-13 incurred or to be incurred for:
2-14 (1) the purpose described by Subsection (a)(1)(C),
2-15 (2), or (3); or
2-16 (2) the purchase of materials, supplies, equipment,
2-17 and machinery for an issuer's authorized needs and purposes.
2-18 (c) For the purposes of this section, the cumulative cash
2-19 flow deficit is the amount by which the sum of an issuer's
2-20 anticipated expenditures and cash reserve reasonably required to
2-21 pay unanticipated expenditures exceeds the amount of the issuer's
2-22 cash, marketable securities, and money in an account that may be
2-23 used to pay an issuer's anticipated expenditures, other than:
2-24 (1) money in an account the use of which is subject to
2-25 legislative or judicial action or that is subject to a legislative,
2-26 judicial, or contractual requirement that the account be
2-27 reimbursed; or
2-28 (2) the proceeds of an anticipation note.
2-29 (d) [(c)] For the purposes of Subsection (c) [(b)], an
2-30 amount equal to one month's anticipated expenditures is presumed to
2-31 be reasonably required as a cash reserve.
2-32 SECTION 5. Section 1431.006, Government Code, is amended to
2-33 conform to Section 7, Chapter 984, Acts of the 76th Legislature,
2-34 Regular Session, 1999, and further amended to read as follows:
2-35 Sec. 1431.006. Limitation on Notes to Pay Expenses.
2-36 Anticipation notes issued for the purposes described by [under]
2-37 Section 1431.004(a)(2) may not, in the fiscal year in which the
2-38 attorney general approves the notes:
2-39 (1) for a municipality, exceed 75 percent of the
2-40 revenue or taxes anticipated to be collected in that year; [or]
2-41 (2) for a county or an eligible countywide district,
2-42 exceed 50 percent of the revenue or taxes anticipated to be
2-43 collected in that year; or
2-44 (3) for an eligible school district, exceed 75 percent
2-45 of the income of the district for the fiscal year preceding that
2-46 year.
2-47 SECTION 6. Section 1431.007, Government Code, is amended to
2-48 read as follows:
2-49 Sec. 1431.007. General Sources of Payment. (a) Except as
2-50 provided by Subsection (b), a [A] governing body may:
2-51 (1) provide that anticipation notes be paid from and
2-52 secured by revenue, taxes, or the proceeds of bonds to be issued by
2-53 the issuer; and
2-54 (2) pledge to the payment of anticipation notes
2-55 revenue, taxes, or the proceeds of bonds to be issued by the
2-56 issuer.
2-57 (b) The governing body of a flood control district operating
2-58 as a conservation and reclamation district that issues anticipation
2-59 notes for one or more purposes described in Section 1431.004(a)(1)
2-60 may:
2-61 (1) provide that the anticipation notes be paid from
2-62 and secured by revenue or the proceeds of bonds to be issued by the
2-63 issuer; and
2-64 (2) pledge to the payment of the anticipation notes
2-65 revenues or the proceeds of bonds to be issued by the issuer.
2-66 SECTION 7. Section 1431.009, Government Code, is amended to
2-67 conform to Section 7, Chapter 984, Acts of the 76th Legislature,
2-68 Regular Session, 1999, and further amended to read as follows:
2-69 Sec. 1431.009. Maturity. (a) Except as provided by
3-1 Subsection (b), an [An] anticipation note issued for a purpose
3-2 described by Section 1431.004(a)(1) or (b)(2) must mature before
3-3 the seventh anniversary of the date that the attorney general
3-4 approves the note.
3-5 (b) An anticipation note issued by a county with a
3-6 population of three million or more, an eligible countywide
3-7 district, or an eligible school district for a purpose described by
3-8 Section 1431.004(a)(1) or (b)(2) must mature before the 15th
3-9 anniversary of the date that the attorney general approves the
3-10 note.
3-11 (c) An anticipation note issued for a purpose described by
3-12 Section 1431.004(a)(2) or (3) must mature before the first
3-13 anniversary of the date that the attorney general approves the
3-14 note.
3-15 (d) A bond issued under Chapter 1207 to refund an
3-16 anticipation note issued by a county, municipality, or eligible
3-17 countywide district for a purpose described by Section
3-18 1431.004(a)(1) or by an eligible school district for a purpose
3-19 described by Section 1431.004(a)(1)(C) or (b)(2) is subject to the
3-20 limitation on maturity provided by Section 1207.006 and not the
3-21 limitation provided by Subsection (a).
3-22 SECTION 8. Subsection (a), Section 411.003, Local Government
3-23 Code, is amended to read as follows:
3-24 (a) The commissioners court of a county may contract with
3-25 the federal soil conservation service, a state soil conservation
3-26 district, the state extension service, a conservation and
3-27 reclamation district, a drainage district, a water control and
3-28 improvement district, a navigation district, a flood control
3-29 district, a levee improvement district, or a municipality as
3-30 provided by Section 256.006, Transportation Code, for the purpose
3-31 of carrying out plans and programs for flood control and soil
3-32 conservation. The contract may provide that payments due under the
3-33 contract are payable from and secured by a pledge of any revenue of
3-34 the county or the county's ad valorem taxes or a combination of
3-35 such revenues and taxes.
3-36 SECTION 9. Subsection (d), Section 1431.009, Government
3-37 Code, as added by this Act, applies to bonds issued to refund
3-38 anticipation notes, regardless of whether the anticipation notes
3-39 were issued before, on, or after the effective date of this Act.
3-40 SECTION 10. (a) In accordance with Subsection (c), Section
3-41 311.031, Government Code, giving effect to a substantive amendment
3-42 enacted by the same legislature that codifies the amended statute,
3-43 the text of Sections 1431.001 through 1431.004, 1431.006, and
3-44 1431.009, Government Code, as set out in this Act, give effect to
3-45 changes made by Sections 3 through 7, Chapter 984, Acts of the 76th
3-46 Legislature, Regular Session, 1999.
3-47 (b) To the extent of any conflict, this Act prevails over
3-48 another Act of the 77th Legislature, Regular Session, 2001,
3-49 relating to nonsubstantive additions and corrections in enacted
3-50 codes.
3-51 SECTION 11. This Act takes effect September 1, 2001.
3-52 * * * * *