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.