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.