BILL ANALYSIS H.B. 1320 By: Romo (Moncrief) Finance 05-16-95 Senate Committee Report (Unamended) BACKGROUND There are two authorized but unissued bond issues that could be removed from the state's bond authorization. The National Research Laboratory Commission has authorized but not issued debt for the superconducting super collider: $250 million of general obligation bonds and $250 million of revenue bonds. There is no need for this debt, given the decision by Congress to end the project's federal funding. General revenue bonds can be revoked by the Texas Legislature while general obligation bonds must be revoked by the voters of Texas. PURPOSE As proposed, H.B. 1320 authorizes the Texas Legislature to reduce the amount of revenue bonds issued for the superconducting super collider from $500 million to $250 million. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Repealer: Chapter 626, Article 601d-2, V.T.C.S. (Capitol renovation bonds; lease agreements). SECTION 2. Amends Section 465.022(a), Government Code, to prohibit the principal amount of general obligation bonds authorized by this section from exceeding $500 million and the principal amount of revenue bonds authorized by this section, which are payable from money appropriated to the Texas National Research Laboratory Commission (commission) by the legislature or which are payable from or secured by rents, installment payments, or other payments or revenues appropriated from time to time by the legislature for the payment of lease, contract, or other obligations of the commission, from exceeding $250, rather than $500, million. SECTION 3. Amends Section 465.022(a), Government Code, as follows: (a) Prohibits the principal amount of general obligation bonds authorized by this section from exceeding $250 million, rather than $500 million, and the principal amount of revenue bonds authorized by this section, which are payable from money appropriated to the commission by the legislature for that purpose or which are payable from or secured by rents, installment payments, or other payments or revenues appropriated from time to time by the legislature for the payment of lease, contract, or other obligations of the commission, from exceeding $250 million, rather than $500 million. (b) Provides that this section takes effect on the date on which the constitutional amendment proposed by the 74th Legislature, Regular Session, 1995, reducing the amount of authorized general obligation bonds for the superconducting super collider research facility takes effect. Provides that this section has no effect if that amendment is not approved by the voters. SECTION 4. Amends Chapter 1078, Article 717k-7, V.T.C.S., by adding Section 7C, as follows: Sec. 7C. REVIEW OF UNISSUED STATE BONDS; REPORT. (a) Requires the bond review board (board) to review authorized but unissued state general obligation and revenue bonds. (b) Requires the board to submit a report, by October 31 of each even-numbered year, to the legislature that recommends whether any general obligation or revenue bond authorization should be revoked. SECTION 5. Effective date: September 1, 1995, except as provided by Section 3(b). SECTION 6. Emergency clause.