Honorable Giovanni Capriglione, Chair, House Committee on Pensions, Investments & Financial Services
FROM:
Jerry McGinty, Director, Legislative Budget Board
IN RE:
HB3670 by Plesa (Relating to the definition of "closing" for purposes of certain private activity bonds.), As Introduced
The fiscal implications of the bill cannot be determined at this time. The bill does not specify how long an issuer may take to draw-down proceeds and the likely loss of Private Activity Bond authority in the possible scenario of the total drawn-down proceeds being less than the authority allocated.
The bill would amend the Government Code relating to the definition of "closing" for purposes of certain private activity bonds.
The term would include a delivery of a bond in exchange for a partial payment of the incremental funding of the bond in accordance with the terms of the bond, provided that the partial payment is not less than 10 percent of the required payment for the bond. The term does not include a delivery of a bond if expenditure of the proceeds of the bond is conditioned on obtaining credit enhancement in support of the bond.
According to the Bond Review Board, there is insufficient information to determine total fiscal impact.
Local Government Impact
The fiscal implications of the bill cannot be determined at this time.