HBA-JLV C.S.S.B. 1296 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.S.B. 1296
By: Lucio
Financial Institutions
5/7/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, inadequate development and substandard housing conditions along
the Texas-Mexico border are prohibited by state law. However, many
neighborhoods, known as colonias, were built in this region prior to 1989
when legislative reform began. Since little housing is available or
affordable to the residents of these colonias, many Texas residents
continue to live in neighborhoods without basic services.  C.S.S.B. 1296
authorizes the issuance of general obligation bonds and notes to aid
counties in roadway improvement projects to serve colonias.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Transportation Commission in
SECTION 1 (Section 1403.002, Government Code) of this bill. 

ANALYSIS

C.S.S.B. 1296 amends the Government Code to require the Texas Public
Finance Authority (authority), in accordance with requests from the office
of the governor, to issue general obligation bonds and notes in an
aggregate amount not to exceed $175 million and as directed by the Texas
Department of Transportation (TxDOT), distribute the proceeds from the sale
of the bonds and notes to counties to provide financial assistance for
colonia access roadway projects to serve border colonias.  The bill
requires the office of the governor to determine the amount of bonds or
notes to be issued at any one time by the authority and the times at which
the bonds or notes are issued.  The bill requires the Texas Transportation
Commission (commission) to establish a program to administer the use of the
proceeds of the bonds and notes.  TxDOT is required to administer the
program in cooperation with the office of the governor, the secretary of
state, and the Texas A&M University Center for Housing and Urban
Development.   

The commission, in cooperation with the office of the governor, is required
to determine the counties and the colonia access roadway projects that are
to receive financial assistance and the amount of assistance given to a
county or project.  The commission, in cooperation with the office of the
governor, is also required, by rule, to: 

 _define "border colonia";
 
 _establish criteria for selecting which areas and which colonia access
roadway projects are eligible for assistance; 

 _establish minimum road standards a county's colonia access roadway
proposal must meet to be awarded a grant; 

 _establish grant application procedures; and

 _establish financial reporting requirements for counties that receive
assistance for colonia access roadway projects to serve border colonias. 
 
The bill authorizes the authority to enter into one or more credit
agreements at any time for a period and on conditions the authority
approves. 

EFFECTIVE DATE

This Act takes effect on the date on which the constitutional amendment
authorizing the issuance of state general obligation bonds to provide
financial assistance to counties for roadway projects to serve border
colonias takes effect.  If that amendment is not approved by the voters,
this Act has no effect. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.S.B. 1296 modifies the original to require the Texas Public Finance
Authority (authority), in accordance with requests from the office of the
governor, to issue general obligation notes in addition to bonds.  The
substitute removes provisions that would require the authority to enter
into related bond enhancement agreements and instead authorizes the
authority to enter into one or more credit agreements at any time for a
period and on conditions the authority approves.  The substitute sets forth
the definition of a credit agreement.