BILL ANALYSIS


                                                    C.S.S.B. 1421
                                                        By: Truan
                                 Int'l Relations, Trade and Tech.
                                                         04-18-95
                                   Committee Report (Substituted)
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

As proposed, C.S.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 grant any
additional rulemaking authority to a state officer, institution, or
agency.

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.