BILL ANALYSIS


                                                        H.B. 1361
                                            By: Alexander (Nixon)
                                      Intergovernmental Relations
                                                          5-22-95
                              Senate Committee Report (Unamended)
BACKGROUND

Currently, the law does not allow rural fire prevention districts
to borrow funds in excess of funds the district has on hand or
anticipate revenues in order to purchase equipment.  Many rural
districts need equipment for fire fighting; however, many
districts' on-hands funds and anticipated revenues are not enough
to purchase this equipment.  Districts cannot borrow against future
anticipated revenues.

PURPOSE

As proposed, H.B. 1361 authorizes a rural fire prevention district
to borrow money.

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 Section 794.071, Health and Safety Code, to make
conforming changes.

SECTION 2. Amends Chapter 794E, Health and Safety Code, by adding
Section 794.083, as follows:

     Sec. 794.083.  LOAN FOR FIRE-FIGHTING EQUIPMENT.  (a) 
     Authorizes the board of fire commissioners (board), on behalf
     of the rural fire prevention district, to borrow money and
     make other financial arrangements to purchase a fire engine or
     similar heavy fire-fighting equipment in the amount and
     subject to a rate of interest or other conditions the board
     considers advisable.
     
     (b)  Authorizes the board to pledge tax revenues or funds on
       hand that are not otherwise pledged to pay a debt of the
       district or the equipment acquired with the borrowed money
       in order to secure a loan under this section.
       
       (c)  Requires a loan to mature not later than the fifth
       anniversary of the date the loan is made, if tax revenues
       are pledged to pay a loan.
       
       SECTION 3.   Emergency clause.
           Effective date: upon passage.