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.