79R4081 ATP-D

By:  Gattis                                                       H.B. No. 1211



A BILL TO BE ENTITLED

AN ACT

relating to the use of proceeds of political subdivision bonds 
approved at an election.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Sections 1251.001-1251.006, Government Code, 
are designated as Subchapter A, Chapter 1251, Government Code, and 
a heading for Subchapter A is added to read as follows:

SUBCHAPTER A.  BOND ELECTION REQUIREMENTS
	SECTION 2.  Chapter 1251, Government Code, is amended by 
adding Subchapter B to read as follows:

SUBCHAPTER B.  CONSEQUENCES OF BOND ELECTION
	Sec. 1251.051.  USE OF PROCEEDS.  A county, municipality, or 
other political subdivision of this state may use the proceeds of 
bonds, the issuance of which is approved at an election, only for 
the purpose or purposes stated in the proposition approved at the 
election.
	SECTION 3.  Section 1251.051, Government Code, as added by 
this Act, applies only to the proceeds of bonds obligated and used 
on or after September 1, 2005.  Bond proceeds obligated or used 
before September 1, 2005, are governed by the law in effect at the 
time the proceeds were obligated or used, and the former law is 
continued in effect for that purpose.
	SECTION 4.  This Act takes effect September 1, 2005.