SRC-AXB S.B. 1520 76(R) BILL ANALYSIS Senate Research Center S.B. 1520 By: Madla State Affairs 4/19/1999 As Filed 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 redefines "credit agreement" and defines "leaseleaseback agreement." PURPOSE As proposed, S.B. 1520 redefines "credit agreement" and defines "lease-leaseback agreement." 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 Section 1, Chapter 656, Acts of the 68th Legislature, Regular Session, 1983 (Article 717q, V.T.C.S.), by amending Subdivision (6), and adding Subdivision (8), as follows: (6) Redefines "credit agreement" to include lease-leaseback agreements. (8) Defines "lease-leaseback agreements" to mean certain agreements relating to foreign and domestic currency, and sets forth further provisions and authorizations of lease-leaseback agreements. SECTION 2.Emergency clause. Effective date: upon passage.