1. The Legislature finds that: (a) Public securities have traditionally been issued in bearer form, with attached coupons evidencing the installments of interest becoming due on fixed maturity dates, rather than in only full registered form. (b) The Federal Government, by subsection (j) of section 103, Tax Code, as amended by subsection (b) of section 310 of the Tax Equity and Fiscal Responsibility Act of 1982 (P.L. 97-248, signed by the President on September 3, 1982), provides in effect that, among other securities, public securities, subject to minor exceptions stated in that federal act, must be in full registered form for the interest on the public securities to be exempt from federal income taxation, but that an obligation of a public body shall be treated as in full registered form if the right to the principal of, any prior redemption premium due in connection with, and stated interest on that obligation may be transferred only through a book entry consistent with regulations prescribed by the Secretary of the Treasury, and, as the federal act was further amended on January 12, 1983, this requirement for the issuance of public securities in full registered form becomes effective on July 1, 1983. (c) The effect of the requirements stated in paragraph (b) will affect the various public bodies and varieties of public securities differently depending on their legal and financial characteristics, their markets and their adaptability to recent and prospective technological and organizational developments. 2. It is hereby declared as a matter of legislative determination that: (a) It is a matter of state concern that public bodies be provided flexibility in the development of systems for such registration of public securities, including systems of book entry and their incidents, to accommodate these different effects. (b) It is the purpose of this chapter to enable the establishment, maintenance and amendment from time to time of differing systems of registration of public securities, to accommodate the differing effects upon public bodies and varieties of public securities. (c) To accomplish the purposes stated in this section and the issuance of public securities the interest on which is exempt from federal income taxation, the provisions of this chapter must be broadly and liberally construed.
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