SRC-JRN S.B. 835 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 835
By: Nixon
State Affairs
4-16-97
As Filed


DIGEST 

Currently, the Texas Water Development Board can issue a financially
binding resolution to an applicant for bond approval without giving public
notice.  Water customers may be responsible for repaying borrowed funds.
This bill requires public input for loans that are required to be paid by
persons other than the applicant.  

PURPOSE

As proposed, S.B. 835 requires public input for loans that are required to
be paid by persons other than the applicant.  

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 Title 10F, Government Code, by adding Chapter 2259, as
follows: 

CHARTER 2259. PUBLIC NOTICE OF INTENT
TO APPLY FOR LOAN OR GRANT FROM STATE AGENCY

Sec. 2259.001.  NOTICE REQUIRED.  Requires a person who intends to apply
for a loan or grant described by Subsection (b) from a state agency to
give notice of that intention as prescribed by this chapter.  Sets forth
types of loans and grants to which this chapter applies. Prohibits a state
agency from making a loan or grant to which this chapter applies, unless
the person applying for the loan or grant files proof of publication or
posting with the agency. Provides that services are affected by a loan or
grant if revenues from the services are authorized to be used to repay the
loan or grant. 

Sec. 2259.002.  PUBLICATION OF NOTICE.  Requires a person who intends to
apply for a loan or grant to publish notice of that intention in a
newspaper published in each county in which the person offers services
that will be affected by the loan or grant.  Requires the notice to be
published by the 30th day on which the person applies for the loan or
grant. Requires the person applying for the loan or grant to publish
notice in each county in which the person offers services that will be
affected by the loan or grant, if the person offers services that will be
affected by the loan or grant in more than one county. 

Sec. 2259.003.  POSTING OF NOTICE.  Requires the person applying for the
loan or grant to post the notice at the courthouse door and at five other
public places in the immediate locality in the county in which the person
offers services that will be affected by the loan or grant, if a newspaper
is not published in the county.  Requires the notice to be posted for at
least 30 days before the date on which the person applies for the loan or
grant. 

Sec. 2259.004.  CONTENTS OF NOTICE.  Requires the notice to identify the
state agency with which the person will apply for the loan or grant and to
contain a statement of the general purpose of and the amount of the loan
or grant for which the person will apply. 

 Sec. 2259.005.  COST OF PUBLICATION OR POSTING.  Requires the person who
intends to apply for a loan or grant to pay the cost of publication or
posting the notice. 

Sec. 2259.006.  PROOF OF PUBLICATION OR POSTING.  Requires proof of
publication to be made by the affidavit of the publisher accompanied by a
printed copy of the notice as published.  Requires proof of posting to be
made by the return of the sheriff or constable or by the affidavit of a
credible person made on a copy of the posted notice showing the fact of
the posting. 

SECTION 2. Effective date: September 1, 1997.

SECTION 3. Makes application of this Act prospective.

SECTION 4. Emergency clause.