BWH H.B. 2982 75(R) BILL ANALYSIS COUNTY AFFAIRS H.B. 2982 By: Junell 4-16-97 Committee Report (Unamended) BACKGROUND Historically, one county commissioners court cannot bind another court to a financial obligation. Therefore, any loans or notes taken by a court must be repaid within that court's one-year term. This created several problems. In response, the legislature enacted Article 1644c-1, V.T.C.S., which specifies that if the circumstances qualify under the population, amount and duration limits, the commissioners' courts may obligate the county for more than one year. The current statute outlines parameters for the counties. The populations requirement is for counties between 8,300 and 8,600 and the obligation limit is $165,000. The statute also includes a 4% APR ceiling and a 10 year limit. These parameters are very restrictive. Most notable is the population requirement. Very few counties can take advantage of the freedom it could provide for a commissioners' court to manage the county's affairs. PURPOSE To broaden the scope of this county borrowing statute so that more counties may take advantage of the provisions. 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 Section 1, Chapter 218, Acts of the 57th Legislature, Regular Session, 1961, by deleting "more than eight thousand, three hundred (8,300) but" and "One Hundred and Sixty-five Thousand Dollars ($165,000) and replacing the $165,000 parameter with $200,000. Amends Section 2, Chapter 218, Acts of the 57th Legislature, Regular Session, 1961, by replacing "not to exceed four percent (4%) per annum" with "the commissioners court determines is appropriate." Amends Section 3, Chapter 218, Acts of the 57th Legislature, Regular Session, 1961, by replacing "One Hundred and Sixty-five Thousand Dollars ($165,000). No such warrants or obligations shall be issued, sold or delivered after five years from the effective date of this Act." with "$200,000." SECTION 2. Emergency clause.