BILL ANALYSIS H.B. 2936 By: Hochberg 03-23-95 Committee Report (Unamended) BACKGROUND Article 717q, Vernon's Texas Civil Statutes, authorizes the issuance of short-term obligations by a variety of quasi-governmental entities, including river authorities, transit authorities, hospital authorities, and navigation districts. The statute also applies to home rule cities with populations greater than 90,000 having long term debt secured by public utility revenue. In general, the statute provides that the debt be payable by fiscal sources not related to ad valorem tax revenue. Authority to issue short term debt is a financially attractive proposition because it typically offers access to better interest rates than long term debt. Harris County has developed a number of revenue generating projects, including the Astrodome and the Harris County Toll Road, that involve substantial capital investments. It would be financially advantageous to the county to have authority to issue short term debt in conjunction with these projects. PURPOSE The purpose of this bill is to give the Harris County Commissioner's Court authority under Article 717q to sell short-term obligations only for projects specifically related to transportation infrastructure or enhancement of the county's tourism industry. 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 Article 717q, Vernon's Texas Civil Statutes, by adding Harris County to the list of governmental units that fall under the act's provisions, limiting the county's authority to issue short-term debt only to the projects enumerated under Subdivisions (3)(A)(4), and (3)(A)(5), and adding the commissioners court to the definition of "governing body". SECTION 2. Emergency clause. SUMMARY OF COMMITTEE ACTION The committee considered HB 2936 in a public hearing on March 27, 1995. The following people testified in favor of the bill: Rep. Hochberg; Randy Fritz representing Harris County Judge Eckels; Leonard Spearman, Jr. representing Harris County Judge Eckels and the Harris County Commissioner's Court. The bill was left pending. The committee considered HB 2936 in a formal meeting on May 4, 1995. The bill was reported favorably without amendments, 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: 6 Ayes, 0 Nays, 0 PNV, 3 Absent.