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A BILL TO BE ENTITLED
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AN ACT
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relating to authorizing the issuance of anticipation notes or other |
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obligations by issuers located along the Gulf Coast in the event of |
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an emergency. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1431.004, Government Code, is amended by |
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adding Subsection (e) to read as follows: |
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(e) An issuer, other than an eligible school district, may |
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use the proceeds of an anticipation note or other obligation issued |
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under Section 1431.015: |
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(1) for purposes described by Subsection (a); or |
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(2) to pay for: |
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(A) employee salaries; |
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(B) the lease of materials, supplies, equipment, |
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machinery, buildings, lands, and rights-of-way for the issuer's |
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authorized needs and purposes; |
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(C) the demolition of dangerous structures or the |
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restoration of historic structures; |
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(D) economic development grants made under |
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Chapter 380, Local Government Code; or |
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(E) the accomplishment of any other purpose the |
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issuer considers necessary in relation to preserving or protecting |
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the public health and safety. |
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SECTION 2. Section 1431.006, Government Code, is amended to |
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read as follows: |
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Sec. 1431.006. LIMITATION ON NOTES TO PAY EXPENSES. |
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(a) Anticipation notes issued for the purposes described by |
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Section 1431.004(a)(2) may not, in the fiscal year in which the |
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attorney general approves the notes: |
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(1) for a municipality, exceed 75 percent of the |
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revenue or taxes anticipated to be collected in that year; |
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(2) for a county or an eligible countywide district, |
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exceed 50 percent of the revenue or taxes anticipated to be |
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collected in that year; or |
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(3) for an eligible school district, exceed 75 percent |
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of the income of the district for the fiscal year preceding that |
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year. |
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(b) This section does not apply to an anticipation note or |
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other obligation issued under Section 1431.015. |
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SECTION 3. Section 1431.007, Government Code, is amended by |
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adding Subsection (c) to read as follows: |
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(c) A governing body issuing an anticipation note or other |
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obligation under Section 1431.015 may: |
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(1) provide that the anticipation note or other |
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obligation be paid from and secured by any revenue, including sales |
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taxes, other taxes, a combination of nontax and tax revenue, the |
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proceeds of bonds to be issued by the issuer, and reimbursements or |
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other funds to be received from the Federal Emergency Management |
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Agency or any other state or federal agency reimbursing or |
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providing funds to the issuer for costs incurred as a result of the |
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emergency; and |
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(2) pledge to the payment of the anticipation note or |
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other obligation any revenue, including sales taxes, other taxes, a |
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combination of nontax and tax revenue, the proceeds of bonds to be |
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issued by the issuer, and reimbursements or other funds to be |
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received from the Federal Emergency Management Agency or any other |
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state or federal agency reimbursing or providing funds to the |
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issuer for costs incurred as a result of the emergency. |
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SECTION 4. Section 1431.009, Government Code, is amended by |
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amending Subsections (a) and (c) and adding Subsection (e) to read |
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as follows: |
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(a) Except as provided by Subsection (b) or (e), an |
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anticipation note issued for a purpose described by Section |
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1431.004(a)(1) or (b)(2) must mature before the seventh anniversary |
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of the date that the attorney general approves the note. |
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(c) Except as provided by Subsection (e), an [An] |
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anticipation note issued for a purpose described by Section |
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1431.004(a)(2) or (3) must mature before the first anniversary of |
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the date that the attorney general approves the note. |
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(e) An anticipation note or other obligation issued under |
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Section 1431.015 for any authorized purpose must mature before the |
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10th anniversary of the date the attorney general approves the note |
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or other obligation. |
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SECTION 5. Section 1431.012, Government Code, is amended |
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to read as follows: |
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Sec. 1431.012. RESTRICTION ON CERTAIN CONTRACTS PAYABLE |
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FROM PROCEEDS OF NOTES. (a) Except as provided by Subsection (b), |
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a [A] county must comply with the competitive bidding requirements |
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of Subchapter C, Chapter 271, Local Government Code, in connection |
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with a contract to be paid from the proceeds of anticipation notes |
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issued for a purpose described by Section 1431.004(a)(1)(A). |
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(b) Competitive bidding requirements do not apply to an |
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anticipation note or other obligation issued under Section 1431.015 |
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for any authorized purpose. |
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SECTION 6. Chapter 1431, Government Code, is amended by |
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adding Sections 1431.015, 1431.016, and 1431.017 to read as |
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follows: |
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Sec. 1431.015. CERTAIN NOTES OR OTHER OBLIGATIONS FOR |
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EMERGENCY FINANCING. (a) In this section, "emergency" means the |
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occurrence of widespread or severe damage, injury, or loss of life |
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or property affecting an area in the jurisdiction of an issuer and |
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resulting from a hurricane or tropical storm, including wind |
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damage, fire damage, damage from wave action, or flood damage |
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resulting from the hurricane or tropical storm. |
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(b) Notwithstanding any other provision of this chapter, an |
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issuer located within 70 miles of the Gulf of Mexico or of a bay or |
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inlet of the gulf may authorize the issuance of an anticipation note |
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or other obligation in the event of an emergency. |
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(c) The issuer shall deliver to the attorney general, in |
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accordance with Section 1431.017, a transcript of proceedings |
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related to the issuance of an anticipation note or other obligation |
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issued under this section. However, before delivery of an |
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anticipation note or other obligation issued under this section: |
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(1) the governor must have issued an executive order |
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or proclamation under Chapter 418 declaring a state of disaster and |
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designating the area affected by the emergency; |
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(2) the governing body acting through its presiding |
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officer under Chapter 418 must have declared a local state of |
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disaster designating the area affected by the emergency; or |
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(3) the governor must have proclaimed under Chapter |
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433 a state of emergency designating the area affected by the |
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emergency. |
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Sec. 1431.016. CONFLICTS WITH MUNICIPAL CHARTER. To the |
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extent of a conflict between a municipal charter and any provision |
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of this chapter relating to an anticipation note or other |
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obligation issued under Section 1431.015, this chapter controls. |
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Sec. 1431.017. ATTORNEY GENERAL REVIEW. Following |
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authorization of an anticipation note or other obligation under |
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Section 1431.015, the issuer shall submit to the attorney general a |
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transcript of proceedings related to issuance of the anticipation |
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note or other obligation and provide preliminary approval and |
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fulfill other requirements relating to the issuance of the |
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anticipation note or other obligation. On the occurrence of an |
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emergency affecting the issuer, the attorney general shall |
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expeditiously review and approve delivery of the anticipation note |
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or other obligation subject to the issuer's compliance with |
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preliminary approval requirements. |
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SECTION 7. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |
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