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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of issuers to enter into contracts for |
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services in connection with the issuance of public securities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1201.027, Government Code, is amended to |
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read as follows: |
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Sec. 1201.027. AUTHORITY OF ISSUER TO CONTRACT FOR |
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SERVICES. (a) An issuer has exclusive authority to select, |
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contract with, and determine the basis for compensation of a person |
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to provide legal, financial advisory, and other services as may be |
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determined by the issuer to be necessary in connection with the |
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issuer's issuance of public securities or administration of its |
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affairs that pertain to the issuance of public securities. The |
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selection of legal counsel and financial advisors shall be made in |
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accordance with the provisions of Subchapter A, Chapter 2254, |
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applicable to the selection by a governmental entity of a provider |
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of professional engineering services. |
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(b) Subsection (a) does not impair the authority of the |
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attorney general under Section 402.0212 to approve a contract for |
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legal services entered into by a state agency. |
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(c) An issuer shall select a financial advisor to advise it |
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in connection with every sale of public securities under this |
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chapter and the execution and delivery of any credit agreement |
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under Chapter 1371. Any such financial advisor shall be a dealer or |
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an investment advisor registered pursuant to Article 581-12 or |
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Article 581-12-1, Tex. Rev. Civ. Stat., in either case that is |
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subject to the rules of the Municipal Securities Rulemaking Board, |
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and that has experience in providing advice to issuers in |
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connection with the issuance of municipal securities, and the |
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execution and valuation of credit agreements respectively, and |
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shall acknowledge in writing to the issuer that it is acting as |
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agent of the issuer in connection with the transaction, and has |
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complied with the rules of the Municipal Securities Rulemaking |
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Board in connection with its engagement by the issuer, and will |
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comply with those rules in connection with the transaction for |
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which it is engaged. |
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(d) Except as provided by Subsection (b), to the extent of a |
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conflict between this section and another law or a municipal |
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charter, this section controls. |
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SECTION 2. This Act takes effect September 1, 2007. |