BILL ANALYSIS


                                                    C.S.H.B. 1013
                                            By: Romo (Barrientos)
                                                          Finance
                                                          5-19-95
                            Senate Committee Report (Substituted)
BACKGROUND

Under current law, the Texas Department of Commerce, the Texas
Higher Education Coordinating Board, and the Texas Agricultural
Finance Authority may issue bonds in their own behalf, although
they infrequently do so.  

The Texas Public Finance Authority centralizes the issuance of
bonds for a number of state agencies, resulting in potentially
higher bond ratings for Texas and lower overall costs.

PURPOSE

As proposed, C.S.H.B. 1013 places the authority to issue bonds on
behalf of the Texas Department of Commerce, the Texas Higher
Education Coordinating Board, and the Texas Agricultural Fiance
Authority in the hands of the Texas Public Finance Authority.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, agency or
institution.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 9B, Article 601d, V.T.C.S. (Texas Public
Finance Authority Act), as follows:

     Sec. 9B.  AUTHORITY TO ACT AS ISSUER.  (a) Provides that the
     Texas Public Finance Authority (authority) has the exclusive
     authority to act on behalf of the Texas Department of
     Commerce, Texas Higher Education Coordinating Board, and the
     Texas Agricultural Finance Authority, among others, in issuing
     bonds on their behalf.    
     
     (b) Provides that this section does not apply to the
       University of Houston System, the Texas State University
       System, and Texas Tech University or Texas Tech University
       Health Sciences Center.
       
       SECTION 2.   Amends Article 601d, V.T.C.S., by adding Section 9D, as
follows:

     Sec. 9D.  PARTICIPATION OF CERTAIN BUSINESSES IN ISSUANCE OF
     OBLIGATIONS.  (a) Requires the authority to make an effort to
     overcome the underuse of historically underutilized businesses
     as businesses receiving contracts for the purchase of services
     and supplies used in connection with the issuance of
     obligations issued by the authority.
     
     (b) Requires the authority to submit a comprehensive annual
       report to the governor detailing its use of historically
       underutilized businesses.
       
       (c) Defines "historically underutilized business."
       
       (d) Prohibits rules adopted under this section from being
       used to discriminate against any citizen on the basis of
       sex, race, color, creed, or national origin.
       
       (e) Provides that this section does not create a new cause
       of action, either public or private.
       
       SECTION 3.   Amends Chapter 58D, Agriculture Code, by adding Section
58.041, as follows:

     Sec. 58.041.  BOND ISSUANCE BY TEXAS PUBLIC FINANCE AUTHORITY. 
     Requires the authority to exercise the authority of the board
     of directors of the Texas Agricultural Finance Authority
     (board) to issue bonds and refunding bonds.  Subjects the
     authority to all rights, duties, and conditions with respect
     to issuance of bonds by the board.
SECTION 4. Amends Chapter 61C, Education Code, by adding Section
61.084, as follows:

     Sec. 61.084.  BOND ISSUANCE BY TEXAS PUBLIC FINANCE AUTHORITY.
     (a) Requires the authority to exercise the authority of the
     Texas Higher Education Coordinating Board (coordinating board)
     to issue bonds and refunding bonds.  Subjects the authority to
     all rights, duties, and conditions with respect to issuance of
     bonds by the coordinating board.
     
     (b) Provides that for purposes of Sections 50b, 50b-1, 50b-2, and 50b-3, Article III, Texas Constitution, the authority
       is the successor to the coordinating board.
       
       SECTION 5.   Amends Chapter 481A, Government Code, by adding Section
481.0091, as follows:

     Sec. 481.0091.  BOND ISSUANCE BY TEXAS PUBLIC FINANCE
     AUTHORITY.  Requires the authority to exercise the authority
     of the Texas Department of Commerce (department) to issue
     bonds and refunding bonds.  Subjects the authority to all
     rights, duties, and conditions with respect to issuance of
     bonds by the department.
SECTION 6. Emergency clause.
           Effective date: 90 days after adjournment.