JWB C.S.H.B. 3189 75(R)BILL ANALYSIS WAYS & MEANS C.S.H.B. 3189 By: Kuempel 4-22-97 Committee Report (Substituted) BACKGROUND The Texas Parks and Wildlife Department (TPWD) receives dedicated revenue from tax on certain sporting goods. The amount is capped at $27 million for FY's 1994 and 1995, and $32 million for FY's 1996 and 1997. Of the first $27 million of dedicated sporting goods sales tax received by TPWD, 50% goes to the state parks (State Parks Account) and 50% 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% to state parks, 40% to local parks, and 20% to the Texas Parks and Wildlife Capital Account. The capital account is authorized for use to pay debt service on TPWD 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, TPWD 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. PURPOSE The bill authorizes the Parks and Wildlife Department to request the Texas Public Finance Authority to issue up to $60 million in revenue bonds for the same purpose. 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 Sec. 11.043, Parks and Wildlife Code (Texas Parks and Wildlife Capital Account), to provide that the Texas Parks and Wildlife Capital Account can consist of proceeds from revenue bonds issued under Section 13.0045. Provides that the proceeds of bonds issued under Section 13.0045 may be spent to finance the repair, renovation, improvement, and equipping of parks and wildlife facilities. Provides that the comptroller may invest money in the account SECTION 2.Amends Sec. 13.004 (a), Parks and Wildlife Code (Financing of Park Programs), to provide that, except as provided by Sec. 13.0045, the operation, maintenance, and improvement of state parks shall be financed from the general revenue fund, the state parks account, other accounts authorized by law, and donations, grants and gifts received by the department for these purposes. SECTION 3.Amends Subchapter A, Chapter 13, Parks and Wildlife Code (General Powers and Duties), by adding Sec. 13.0045. REVENUE BONDS FOR PARKS AND WILDLIFE FACILITIES. (a) Provides that the department, by resolution of the commission, may request the Texas Public Finance 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. (b) Provides that on receipt of the department's request, the authority shall promptly issue the bonds or other obligations under and in accordance with the Texas Public Finance Authority Act (Article 601d, Vernon's Texas Civil Statutes). (c) Provides that the department shall deposit the proceeds of bonds issued under this section to the credit of the Texas parks and wildlife capital account and may 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. COMPARISON OF ORIGINAL TO SUBSTITUTE SECTION 1 of HB 3189 amended Section 11.035(b), Parks and Wildlife Code (State Parks Fund), to specify that not more than $32 million per year could be credited to the department's state parks account. This language is not contained in the Substitute. SECTION 5 of HB 3189 amended Section 24.003, Parks and Wildlife Code (Use of Fund), to specify that not more than $32 million per year could be credited to the department's recreation and parks account. This language is not contained in the Substitute. SECTION 6 of HB 3189 amended Section 151.801(c), Tax Code (Disposition of Proceeds), providing that the proceeds from the taxes collected on the sale, storage, or use of sporting goods to be credited to the Parks and Wildlife Department. The comptroller would not credit in excess of $37 million in sporting goods tax revenue to the Department. This language is not contained in the Substitute.