H.B. No. 3270
 
 
 
 
AN ACT
  relating to authorizing the issuance of anticipation notes or other
  obligations by issuers located along the Gulf Coast in the event of
  an emergency.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 1431.004, Government Code, is amended by
  adding Subsection (e) to read as follows:
         (e)  An issuer, other than an eligible school district, may
  use the proceeds of an anticipation note or other obligation issued
  under Section 1431.015:
               (1)  for purposes described by Subsection (a); or
               (2)  to pay for:
                     (A)  employee salaries;
                     (B)  the lease of materials, supplies, equipment,
  machinery, buildings, lands, and rights-of-way for the issuer's
  authorized needs and purposes;
                     (C)  the demolition of dangerous structures or the
  restoration of historic structures;
                     (D)  economic development grants made under
  Chapter 380, Local Government Code; or
                     (E)  the accomplishment of any other purpose the
  issuer considers necessary in relation to preserving or protecting
  the public health and safety.
         SECTION 2.  Section 1431.006, Government Code, is amended to
  read as follows:
         Sec. 1431.006.  LIMITATION ON NOTES TO PAY EXPENSES.  
  (a)  Anticipation notes issued for the purposes described by
  Section 1431.004(a)(2) may not, in the fiscal year in which the
  attorney general approves the notes:
               (1)  for a municipality, exceed 75 percent of the
  revenue or taxes anticipated to be collected in that year;
               (2)  for a county or an eligible countywide district,
  exceed 50 percent of the revenue or taxes anticipated to be
  collected in that year; or
               (3)  for an eligible school district, exceed 75 percent
  of the income of the district for the fiscal year preceding that
  year.
         (b)  This section does not apply to an anticipation note or
  other obligation issued under Section 1431.015.
         SECTION 3.  Section 1431.007, Government Code, is amended by
  adding Subsection (c) to read as follows:
         (c)  A governing body issuing an anticipation note or other
  obligation under Section 1431.015 may:
               (1)  provide that the anticipation note or other
  obligation be paid from and secured by any revenue, including sales
  taxes, other taxes, a combination of nontax and tax revenue, the
  proceeds of bonds to be issued by the issuer, and reimbursements or
  other funds to be received from the Federal Emergency Management
  Agency or any other state or federal agency reimbursing or
  providing funds to the issuer for costs incurred as a result of the
  emergency; and
               (2)  pledge to the payment of the anticipation note or
  other obligation any revenue, including sales taxes, other taxes, a
  combination of nontax and tax revenue, the proceeds of bonds to be
  issued by the issuer, and reimbursements or other funds to be
  received from the Federal Emergency Management Agency or any other
  state or federal agency reimbursing or providing funds to the
  issuer for costs incurred as a result of the emergency.
         SECTION 4.  Section 1431.009, Government Code, is amended by
  amending Subsections (a) and (c) and adding Subsection (e) to read
  as follows:
         (a)  Except as provided by Subsection (b) or (e), an
  anticipation note issued for a purpose described by Section
  1431.004(a)(1) or (b)(2) must mature before the seventh anniversary
  of the date that the attorney general approves the note.
         (c)  Except as provided by Subsection (e), an [An]
  anticipation note issued for a purpose described by Section
  1431.004(a)(2) or (3) must mature before the first anniversary of
  the date that the attorney general approves the note.
         (e)  An anticipation note or other obligation issued under
  Section 1431.015 for any authorized purpose must mature before the
  10th anniversary of the date the attorney general approves the note
  or other obligation.
         SECTION 5.  Section 1431.012, Government Code, is amended
  to read as follows:
         Sec. 1431.012.  RESTRICTION ON CERTAIN CONTRACTS PAYABLE
  FROM PROCEEDS OF NOTES. (a)  Except as provided by Subsection (b),
  a [A] county must comply with the competitive bidding requirements
  of Subchapter C, Chapter 271, Local Government Code, in connection
  with a contract to be paid from the proceeds of anticipation notes
  issued for a purpose described by Section 1431.004(a)(1)(A).
         (b)  Competitive bidding requirements do not apply to an
  anticipation note or other obligation issued under Section 1431.015
  for any authorized purpose.
         SECTION 6.  Chapter 1431, Government Code, is amended by
  adding Sections 1431.015, 1431.016, and 1431.017 to read as
  follows:
         Sec. 1431.015.  CERTAIN NOTES OR OTHER OBLIGATIONS FOR
  EMERGENCY FINANCING. (a) In this section, "emergency" means the
  occurrence of widespread or severe damage, injury, or loss of life
  or property affecting an area in the jurisdiction of an issuer and
  resulting from a hurricane or tropical storm, including wind
  damage, fire damage, damage from wave action, or flood damage
  resulting from the hurricane or tropical storm.
         (b)  Notwithstanding any other provision of this chapter, an
  issuer located within 70 miles of the Gulf of Mexico or of a bay or
  inlet of the gulf may authorize the issuance of an anticipation note
  or other obligation in the event of an emergency.
         (c)  The issuer shall deliver to the attorney general, in
  accordance with Section 1431.017, a transcript of proceedings
  related to the issuance of an anticipation note or other obligation
  issued under this section. However, before delivery of an
  anticipation note or other obligation issued under this section:
               (1)  the governor must have issued an executive order
  or proclamation under Chapter 418 declaring a state of disaster and
  designating the area affected by the emergency;
               (2)  the governing body acting through its presiding
  officer under Chapter 418 must have declared a local state of
  disaster designating the area affected by the emergency; or
               (3)  the governor must have proclaimed under Chapter
  433 a state of emergency designating the area affected by the
  emergency.
         Sec. 1431.016.  CONFLICTS WITH MUNICIPAL CHARTER. To the
  extent of a conflict between a municipal charter and any provision
  of this chapter relating to an anticipation note or other
  obligation issued under Section 1431.015, this chapter controls.
         Sec. 1431.017.  ATTORNEY GENERAL REVIEW. Following
  authorization of an anticipation note or other obligation under
  Section 1431.015, the issuer shall submit to the attorney general a
  transcript of proceedings related to issuance of the anticipation
  note or other obligation and provide preliminary approval and
  fulfill other requirements relating to the issuance of the
  anticipation note or other obligation. On the occurrence of an
  emergency affecting the issuer, the attorney general shall
  expeditiously review and approve delivery of the anticipation note
  or other obligation subject to the issuer's compliance with
  preliminary approval requirements.
         SECTION 7.  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, 2007.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 3270 was passed by the House on May 8,
  2007, by the following vote:  Yeas 146, Nays 0, 2 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 3270 was passed by the Senate on May
  23, 2007, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor