79R2526 ATP-D

By:  Castro                                                       H.B. No. 1232



A BILL TO BE ENTITLED

AN ACT

relating to the payment of certain expenses of a public project 
financed by certificates of obligation.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 271.045, Local Government Code, is 
amended by adding Subsection (e) to read as follows:
	(e)  Work done by employees of the issuer and paid for as work 
progresses may be allocated or attributed, under generally accepted 
accounting principles, to the capital costs of the project.
	SECTION 2.  Section 271.050(b), Local Government Code, is 
amended to read as follows:
	(b)  The proceeds may be used only for the purposes for which 
the certificates were authorized.  [The proceeds may not be used to 
pay for work done by employees of the issuer and paid for as work 
progresses.]  Any accrued interest received must be deposited in 
the interest and sinking fund established for the payment of the 
certificates.
	SECTION 3.  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, 2005.