BILL ANALYSIS



H.B. 1851
By: Marchant
03-23-95
Committee Report (Amended)


BACKGROUND

Sections 404.21, 404.123, 404.125, and 404.126 of the Government
Code set out the provisions for the issuance, sale, and delivery of
Tax and Revenue Anticipation Notes (the "Notes") on behalf of the
state of Texas to coordinate the state's cash flow within each
fiscal year of a fiscal biennium.  This enhances the state's
ability to make timely payments of its General Revenue Fund
obligations.  The Notes are issued pursuant to a general revenue
cash flow shortfall forecast, based upon the most recent revenue
estimates of the Comptroller, in order to meet the temporary cash
shortfalls in the state's General Revenue Fund during the fiscal
year.

PURPOSE

HB 1851 provides that the Texas Public Finance Authority would
become the issuer of the Notes instead of the Treasurer.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly
grant any additional rulemaking authority to a state officer,
department, agency or institution.

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 404.21 by defining the "Authority" as
the Texas Public Finance Authority and substituting "Authority" for
the "Treasurer" thereafter.

SECTION 2. Amends the Texas Public Finance Authority Act (Article
601d, V.T.C.S.) by adding Section 9D to authorize the issuance of
the Notes by the Authority.

SECTION 3. Provides that this Act will not effect the validity of
the Notes issued by the Treasurer prior to the enactment.

SECTION 4. Effective Date:      September 1, 1995.

SECTION 5. Emergency Clause.

EXPLANATION OF AMENDMENTS

The amendment strikes language from the bill to make it less
burdensome for the Public Finance Authority to issue cash
management notes.

SUMMARY OF COMMITTEE ACTION

The committee considered HB 1851 in a public hearing on March 27,
1995.

The following person testified neutrally on the bill:
Anne L. Schwartz.

The bill was left pending.

The committee considered HB 1851 in a public hearing on April 3,
1995.

The committee considered an amendment to the bill which was adopted
without objection.

The bill was reported favorably as amended with the recommendation
that it do pass and be printed and be sent to the Committee on
Local and Consent Calendars by a record vote of:  9 Ayes, 0 Nays,
0 PNV, 0 Absent.