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.