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                                                                  S.B. No. 876




AN ACT

relating to commissions on certain negotiated bond sales.                     
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter B, Chapter 1201, Government Code, is 
amended by adding Section 1201.029 to read as follows:
	Sec. 1201.029.  COMMISSIONS NOT TO BE PAID FROM PRINCIPAL.  
In a public or private sale of public securities the principal 
amount of which is limited by law, by voted authorization, or by 
other means, for purposes of determining whether the principal 
amount of the public securities that are issued exceeds the 
limitation, amounts produced by the initial purchaser through 
market pricing of the public securities when the public securities 
are resold by the initial purchaser are not considered proceeds of 
the issuer if the amounts constitute all or part of the compensation 
of the initial purchaser.
	SECTION 2.  (a)  This Act takes effect immediately if it 
receives a vote of two-thirds of all the members elected to each 
house, as provided by Section 39, Article III, Texas Constitution.  
If this Act does not receive the vote necessary for immediate 
effect, this Act takes effect September 1, 2003.
	(b)  Section 1201.029, Government Code, as added by this Act, 
applies to bonds approved by voters before the effective date of 
this Act if the bonds are issued on or after the effective date of 
this Act.





______________________________    ______________________________
President of the Senate             Speaker of the House
	I hereby certify that S.B. No. 876 passed the Senate on 
April 22, 2003, by a viva-voce vote; and that the Senate concurred 
in House amendment on May 29, 2003, by the following vote:  
Yeas 31, Nays 0.




______________________________ 
   Secretary of the Senate             
	I hereby certify that S.B. No. 876 passed the House, with 
amendment, on May 24, 2003, by the following vote:  Yeas 115, 
Nays 0, one present not voting.




______________________________ 
   Chief Clerk of the House            



Approved:


______________________________ 
            Date



______________________________ 
          Governor