SRC-JRN H.B. 2982 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 2982
By: Junell (Duncan)
Intergovernmental Relations
5-12-97
Engrossed


DIGEST 

Currently, Texas law outlines provision for counties making loans, based
on certain population requirements.  Current statutes allow counties with
populations between 8,300 and 8,600 to obligate the county to no more than
$165,000, at an annual percentage rate of 10 percent for a maximum loan
limit of 10 years.  This bill expands the borrowing potential of counties
by increasing the percentage rate at which the commissioners court of a
county with a population between 8,300 and 8,600 is allowed to obligate
the county. 

PURPOSE

As proposed, H.B. 2982 expands the borrowing potential of counties by
increasing the percentage rate at which the commissioners court of a
county with a population between 8,300 and 8,600 is allowed to obligate
the county. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Sections 1, 2, and 3, Article 1644c-1, V.T.C.S., to
provide that all counties of this state having a population of less than
8,600, rather than a population of more than 8,300, according to the last
preceding United States Census, are hereby expressly authorized and
empowered to borrow money from any source, public or private, in any
amount not to exceed the aggregate principal amount of $200,000, rather
than $165,000.  Authorizes such counties to issue obligations in evidence
of money borrowed that may draw interest at any rate the commissioners
court determines is appropriate.  Deletes the requirement that interest on
obligations is not to exceed four percent per annum.  Provides that the
commissioners court of any county qualifying under Section 1 is empowered
to approve the issuance of warrants or obligations in any amounts,
providing that the total of such warrants or obligations does not exceed
$200,000, rather than $165,000. Deletes a provision providing that no such
warrants or obligations shall be issued, sold or delivered after five
years from the effective date of this Act. 

SECTION 2. Emergency clause.
  Effective date: upon passage.