BILL ANALYSIS S.B. 1421 By: Truan (Van de Putte) 05-16-95 Committee Report (Unamended) BACKGROUND According to the U.S. Council of the Mexico/U.S. Business Committee, almost $3 billion is needed to bring potable water and wastewater treatment plants to Texas colonias, Texas cities and towns, and to Juarez, Reynosa, and Matamoros. The council indicated current revenue sources available in Texas and Mexico will leave the border region $1.9 billion short of fulfilling its water needs. With the passage of NAFTA and the advent of the Border Environmental Cooperation Commission and the North American Development Bank, local communities have a mechanism through which they can use international cooperation agreements with Mexico to finance infrastructure development. PURPOSE S.B. 1421 authorizes a political subdivision or a state agency to enter into agreements with the United Mexican States. 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 Title 7, Government Code, by adding Chapter 792, as follows: CHAPTER 792. INTERNATIONAL COOPERATION AGREEMENTS Sec. 792.001. DEFINITIONS. Defines "political subdivision" and "state agency." Sec. 792.002. AGREEMENTS WITH MEXICO. Authorizes a state agency or a political subdivision to enter into an agreement with the United Mexican States or a political subdivision of the United Mexican States, an agency of the U.S., or an agency or entity that is created under a treaty between the U.S. and the United Mexican States. Sec. 792.003. SCOPE OF AGREEMENT. Authorizes a state agency or a political subdivision to enter into an agreement under this chapter only if the agreement is for the accomplishment of a function that the agency or political subdivision is authorized to perform under other law. Sec. 792.004. TERMS. (a) Authorizes a political subdivision or a state agency to take certain actions under an agreement authorized by this chapter. (b) Prohibits an agreement made under this chapter from providing for the liability of this state or a political subdivision on a bond or other obligation issued by the United Mexican States or a political subdivision of the United Mexican States. Sec. 792.005. BONDS. (a) Authorizes a state agency described by Subsection (b) or a political subdivision to issue bonds or other evidence of indebtedness to provide financing for an agreement under this chapter to the same extent and in the same manner that the agency or political subdivision is authorized to issue the bonds or other evidence of indebtedness to perform the activity on its own behalf. (b) Sets forth the state agencies which are authorized to issue bonds under this section. Sec. 792.006. APPROVAL OF THE GOVERNOR AND LEGISLATIVE BUDGET BOARD. Provides that an agreement made by a state agency under this chapter that involves the use of money appropriated from the state treasury is not valid unless it is approved by the governor and the Legislative Budget Board. SECTION 2. Emergency clause. Effective date: upon passage. SUMMARY OF COMMITTEE ACTION SB 1421 was considered by the House Committee on State Affairs on May 16, 1995. The chair laid out the bill and recognized Rep. Van de Putte to explain the bill. The bill was reported favorably with the recommendation that it do pass and be printed by a record vote of 10 aye, 0 nay, 0 PNV, and 5 absent.