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.