SRC-CTC S.B. 1296 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1296
77R9107 TBy: Lucio
Business & Commerce
3/25/2001
As Filed


DIGEST AND PURPOSE 

Currently, unscrupulous 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 is available or affordable to
the residents of these colonias, many Texas residents continue to live in
neighborhoods without basic services.  As proposed, S.B. 1296 authorizes
the issuance of general obligation bonds to aid counties in roadway
improvement projects to serve colonias. 

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 Chapter 1401, Government Code, by adding Section
1401.0411, as follows: 

Sec. 1401.0411.  GENERAL OBLIGATION SECURITIES FOR COLONIA ROADWAY
PROJECTS.  (a) Authorizes the Texas Public Finance Authority (authority),
as provided by Section 49-1 (State Debts), Article III, Texas Constitution,
to issue general obligation public securities in an amount not to exceed
$175 million, and enter into related credit agreements, to provide
financial assistance to counties for roadway improvement projects to serve
colonias. 

(b) Requires the authority to issue the securities to provide financial
assistance to counties in accordance with a request for financing from the
Office of the Governor. Requires the counties that are to receive financial
assistance, the projects, and the amount of such assistance to be approved
by the Office of the Governor in accordance with administrative procedures
established by that Office. 

(c) Requires the issuance of public securities under this section to be in
accordance with and subject to Chapters 1201-1207, 1231, 1232, and 1371. 

SECTION 2.  Effective date: upon passage or September 1, 2001.