BILL ANALYSIS



H.B. 1361
By: Alexander
5-3-95
Committee Report (Unamended)


BACKGROUND

Current law, (Health and Safety Code, Chapter 794) does not allow
rural fire prevention districts to borrow funds in excess of funds
they have on hand or anticipated revenues in order to purchase
equipment.  Many rural districts need equipment for fire fighting,
including fire trucks, water tank vehicles and other equipment. 
However, many districts on-hand funds and anticipated revenues are
not enough to purchase this equipment.  Nor can districts borrow
against any future revenues which they may anticipate.

PURPOSE

House Bill 1361 allows rural fire prevention districts to borrow
funds in excess of those available or anticipated revenues in a
given year for the purpose of purchasing fire-fighting equipment. 
Future annual revenues, available cash, or the equipment itself may
be used as collateral for a loan.

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: Amends Health and Safety Code, Section 794.071, to add
section 794.083 as exceptions under which a fire prevention
district may borrow more than they have on hand or will receive in
current revenues during a year.

SECTION 2: Amends Health and Safety Code, Chapter 794, Subchapter
E by adding Section 794.083 which indicates that (a)the board of a
fire prevention district may borrow money and make other financial
arrangements in order to purchase equipment as they consider
advisable.
(b)In order to secure a loan, the board may pledge as collateral:
(1)tax revenues or funds not otherwise earmarked to pay another
loan; or (2)the equipment acquired with the borrowed funds.
(c)If the district uses tax revenues as collateral, the loan must
mature no later than five years after the date the loan is made.

SECTION 3: Emergency Clause and Effective Date as upon passage.

SUMMARY OF COMMITTEE ACTION

HB 1361 was considered by the County Affairs Committee in a public
hearing on 5/3/95. HB 1361 was reported favorably with the
recommendation that it do pass and be printed and be sent to the
Committee on Local and Consent Calendars, by the record vote of 5
ayes, 0 nays, 0 pnv, 0 absent.