78R4232 JJT-F
By: Duncan S.B. No. 876
A BILL TO BE ENTITLED
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 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.