SRC-HRD H.B. 3189 75(R) BILL ANALYSIS Senate Research Center H.B. 3189 By: Kuempel (Armbrister) Finance 5-9-97 Engrossed DIGEST The Texas Parks and Wildlife Department (department) receives dedicated revenue from tax on certain sporting goods. The amount is capped at $27 million for fiscal years 1994 and 1995, and $32 million for fiscal years 1996 and 1997. Of the first $27 million of dedicated sporting goods sales tax received by the department, 50 percent goes to the state parks (state parks account) and 50 percent goes to the local parks (Texas recreation and parks account). The additional $5 million received from the sporting goods sales tax in the current biennium is allocated as follows: 40 percent to state parks, 40 percent to local parks, and 20 percent to the Texas parks and wildlife capital account. The capital account is authorized for use to pay debt service on department bonds, as well as for use on parks, fisheries, and wildlife projects. The Committee on State Recreational Resources conducted an interim study on the deferred maintenance needs of our state parks and reviewed several of the critical infrastructure needs. In addition, the department established an Infrastructure Task Force to assess the current infrastructure situation, and provided recommendations to reduce the backlog. The task force identified a total infrastructure need of $161 million. Of this amount, $75 million was determined to be critical. Critical needs are those considered imminently necessary for the health and safety of the public, to bring facilities into compliance with regulatory requirements, or necessary to avoid serious facility/resource damage. This bill authorizes the department to request the Texas Public Finance Authority to issue up to $60 million in revenue bonds to renovate parks and wildlife facilities. PURPOSE As proposed, H.B. 3189 authorizes the Parks and Wildlife Department to request the Texas Public Finance Authority to issue up to $60 million in revenue bonds to finance the repair, renovation, improvement, and equipping of parks and wildlife facilities. 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 Section 11.043, Parks and Wildlife Code, to provide that the Texas parks and wildlife capital account (account) consists of the amount of credits made to the Texas Parks and Wildlife Department (department) under Section 151.801, Tax Code, after allocations to the state parks account and the Texas recreation and parks account, proceeds of revenue bonds issued under Section 13.0045, or any other source authorized by law. Sets forth an exception. Authorizes the proceeds of bonds issued under Section 13.0045 and deposited to the account to be spent to finance parks and wildlife projects, including the repair, renovation, improvement, and equipping of parks and wildlife facilities. Authorizes the comptroller, rather than the treasurer, to invest money in the account. Makes conforming changes. SECTION 2. Amends Section 13.004(a), Parks and Wildlife Code, to set forth an exception. Makes a conforming change. SECTION 3. Amends Chapter 13A, Parks and Wildlife Code, by adding Section 13.0045, as follows: Sec. 13.0045. REVENUE BONDS FOR PARKS AND WILDLIFE FACILITIES. Authorizes the department, by resolution of the Parks and Wildlife Commission, to request the Texas Public Finance Authority (authority) to issue revenue bonds or other revenue obligations to finance the repair, renovation, improvement, and equipping of parks and wildlife facilities for an estimated project cost not to exceed $60 million. Requires the authority, upon receipt of the department's request, to promptly issue the bonds or other obligations under and in accordance with Article 601d, V.T.C.S. (Texas Public Finance Authority Act). Requires the department to deposit the proceeds of bonds issued under this section to the credit of the Texas parks and wildlife capital account and authorizes the department to use the proceeds only to finance the repair, renovation, improvement, and equipping of parks and wildlife facilities. SECTION 4. Effective date: September 1, 1997. SECTION 5. Emergency clause.