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