HBA-TYH H.B. 2235 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2235 By: Truitt Financial Institutions 6/7/1999 Enrolled BACKGROUND AND PURPOSE In 1997, the 75th Texas Legislature enacted legislation to prohibit a city with a population less than 50,000 from issuing any installment sale obligations or lease-purchase obligations of more than $1 million without the approval of the attorney general. Cities of 50,000 or more are not restricted in the same way. The purpose of H.B. 2235 is to restore local control of municipal financing. H.B. 2235 repeals Section 2256.056 (Compliance with Other Laws), Government Code, prohibiting a municipality with a population of less than 50,000 from issuing installment sale obligations or leasepurchase obligations having the principal amount of $1 million or more without the approval of the attorney general. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Repealed: Section 2256.056, Government Code. This section prohibits a municipality with a population of less than 50,000 from issuing installment sale obligations or lease-purchase obligations having the principal amount of one million dollars or more without the approval of the attorney general. SECTION 2. Effective date: September 1, 1999. SECTION 3. Emergency clause.