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.