This website will be unavailable from Friday, April 26, 2024 at 6:00 p.m. through Monday, April 29, 2024 at 7:00 a.m. due to data center maintenance.
H.B. No. 1232
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 that is directly attributable under generally
accepted accounting principles to the costs of the project and that
is performed by employees of the issuer may be allocated or
attributed 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 and issued. The proceeds may be
used to pay for work done by employees of the issuer that are hired
for the specific purpose of performing work on the project. The
proceeds may be used to pay for work done by other employees of the
issuer only if the issuer incurs equivalent or greater costs to
replace the normal work that would have otherwise been performed by
the employees. The proceeds may not be used to reimburse the issuer
for costs that are determined to be indirect costs under generally
accepted accounting principles. [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.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1232 was passed by the House on May
12, 2005, by the following vote: Yeas 141, Nays 0, 1 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1232 was passed by the Senate on May
23, 2005, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor