SRC-AXB S.B. 1520 76(R)BILL ANALYSIS


Senate Research CenterS.B. 1520
By: Madla
State Affairs
6/30/1999
Enrolled


DIGEST 

Currently, most governmental entities are not authorized to lease their
property.  Potential cash benefits or deductions, such as depreciation of
an asset, can be realized by instituting a leaseleaseback transaction.
Lease-leaseback agreements provide for a private entity to pay a
governmental entity for the value of a tax benefit, while ensuring that the
governmental entity will not jeopardize the use of the property.  S.B. 1520
sets forth provisions regarding the sale or transfer of property by certain
governmental entities. 

PURPOSE

As enrolled, S.B. 1520 sets forth provisions regarding the sale or transfer
of property by certain governmental entities. 

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 Chapter 272, Local Government Code, by adding Section
272.004, as follows: 

Sec.  272.004.  TRANSFERS OF PROPERTY BY CERTAIN POLITICAL SUBDIVISIONS.
Defines "political subdivision."  Authorizes and sets forth provisions for
a political subdivision to take certain actions regarding the sale or
transfer of property. Requires the approval of certain actions by a
majority of the voters at a certain election, under certain conditions. 

SECTION 2.  Amends Section 452.108(d), Transportation Code, to authorize,
rather than require, certain actions regarding deposits and payment
agreements.  Adds a provision regarding an obligation due under a certain
transaction.  Deletes text regarding a certification. 

SECTION 3.  Makes application of this Act prospective.

SECTION 4.Emergency clause.
  Effective date:  upon passage.