SRC-JEC S.B. 1214 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1214
By: Madla
Veteran Affairs & Military Installations
3/19/2001
As Filed


DIGEST AND PURPOSE 

Currently, a nonprofit defense base development authority, such as the
Greater Kelly Development Authority, is authorized to issue revenue bonds
for certain purposes.  However, the process of issuing bonds is complicated
by the fact that such authorities are allowed only to issue traditional
revenue bonds with a fixed interest rate.  As proposed, S.B. 1214
establishes a more flexible credit agreement and bond authority by making a
defense base development authority's bond authority and credit agreement
authority similar to the bond and credit agreement authority  of certain
cities, city agencies, and school districts. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency.  

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 378.004(a), Local Government Code, as added by
Chapter 1221, Acts of the 76th Legislature, Regular Session, 1999, to
authorize a defense base development authority to exercise power necessary
or convenient to carry out a purpose of this chapter, including the power
to: 

(18)  authorize by resolution the incorporation of a nonprofit airport
facility financing corporation as provided and authorized by Chapter 22E
(Nonprofit Airport Facility Financing Corporations), Transportation Code,
to provide financing to pay the costs, including interest, and reserves for
the costs of an airport facility authorized by that chapter and for other
purposes set forth in the articles of incorporation; and 

(19)  exercise the powers granted to a local government for the financing
of facilities to be located on airport property, including those set out in
Chapter 22 (County and Municipal Airports), Transportation Code, consistent
with the requirements and the purposes of Section 52-a, Article III (Loan
or Grant of Public Money for Economic Development), Texas Constitution. 

SECTION 2.  Amends Section 378.010, Local Government Code, by adding
Subsection (c), to authorize an authority issuing bonds under this section
to exercise the powers granted to the governing body of an issuer with
regard to the issuance of obligations and the execution of credit
agreements under Chapter 1371 (Obligations for Certain Public
Improvements), Government Code. 

SECTION 3.  Effective date: upon passage or September 1, 2001.