BILL ANALYSIS


Financial Institutions Committee
C.S.H.B. 1564
By: Chisum
03-16-95
Committee Report (Substituted)


BACKGROUND

According to the Texas Bond Review Board, there is no mechanism
currently in place to collect data or numbers of total outstanding
debt incurred by units of local government. While it is generally
acknowledged that outstanding state debt is low in comparison to
other states, it is also generally acknowledged that the combined
state and local debt in Texas is high. At present, however, there
is not a reliable estimate of total outstanding local debt, and no
public entity has the express legal authority to collect the
information needed for such an estimate. A comprehensive picture of
combined state and local debt would be helpful to create an overall
debt management policy for the state. 

PURPOSE

Because the Attorney General must already approve all bonds for
local governmental entities prior to issuance, H.B. 1564 would
require the Attorney General to collect information on bonds issued
by a municipal corporation or other political subdivision of the
state. The information collected would be included in the Texas
Bond Review Board's report of debt statistics under Section 7A,
Chapter 1078, Act of the 70th Legislature. 

RULEMAKING AUTHORITY

Although additional rulemaking authority is not expressly granted
to a state officer, department, agency or institution, HB 1564 does
imply in Section 1 that the Attorney General will have new
rulemaking authority to collect the debt information, and the Bond
Review Board will have new rulemaking authority to report debt
information.

SECTION BY SECTION ANALYSIS


SECTION 1. Amends Section 3.002, Article 3, Chapter 53, Acts of the
70th Legislature, 2nd Called Session, 1987 (Article 717k-8,
Vernon's Texas Civil Statutes by adding subsection (h).

     Subsection (h) requires the Attorney General to collect
information on bonds issued by     a municipal corporation or other
political subdivision. The Attorney General is to provide   the
information to the Bond Review Board for inclusion in the board's
report of debt           statistics under Section 7A, Chapter 1078,
Acts of the 70th Legislature, Regular Session,    1987 (Article
717k-7, Vernon's Texas Civil Statutes). 

SECTION 2. Section 7A(c), Chapter 1078, Acts of the 70th
Legislature, Regular Session, 1987 (Article 717k-7, Vernon's Texas
Civil Statutes), is amended to require the Attorney General to
provide, in a timely manner, the information reasonably believed by
the Bond Review Board to be necessary to prepare the board's report
to the legislature.

SECTION 3. Provides that the Act take effect September 1, 1995, and
that the Act applies only to bonds submitted to the Attorney
General for approval on or after that date.

SECTION 4. Emergency Clause



COMPARISON OF ORIGINAL TO SUBSTITUTE

The original bill stated that the AG "shall collect" information.

The substitute clarifies the language which grants the Attorney
General power to collect information on bonds issued by a municipal
corporation or a political subdivision of this state, by expressly
authorizing the AG to collect this information.  

SUMMARY OF COMMITTEE ACTION

The committee convened in a public hearing on March 13, 1995 to
consider HB 1564.  Rep.  Gutierrez offered a committee substitute
for the bill which was adopted without objection.  

The following person testified in favor of the bill:  Rep. Chisum.

The motion to report HB 1564 favorably as substituted, with the
recommendation that it do pass and be printed and be sent to the
Committee on Local and Consent Calendars, prevailed by the
following record vote:  8 Ayes, 0 Nays, 0 PNV, 1 Absent.