BILL ANALYSIS


                                                        H.B. 2936
                                             By: Hochberg (Ellis)
                                             Economic Development
                                                         05-21-95
                                Senate Committee Report (Amended)
BACKGROUND

Article 717q, V.T.C.S., authorizes the issuance of short-term
obligations by a variety of quasi-governmental entities.  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 debts in conjunction with these projects.

PURPOSE

As proposed, H.B. 2936 redefines terms under Article 717q,
V.T.C.S., in order to grant the Harris County commissioners' court
authority 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 grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 1, Article 717q, V.T.C.S., to redefine
"issuer," "public utility," "eligible project," and "governing
body," to grant the Harris County commissioners' court authority to
sell short-term obligations only for projects specifically related
to transportation infrastructure or enhancement of the county's
tourism industry.

SECTION 2. Emergency clause.
           Effective date: 90 days after adjournment.