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.