SRC-BWC S.B. 1556 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1556
By: Shapleigh
Veteran Affairs & Military Installations
3/27/2001
As Filed


DIGEST AND PURPOSE 

Currently, the aggregate amount of revenue bonds issued by the Veterans'
Land Board (VLB) may not exceed $250 million.  Of that amount, the VLB
currently has a remaining $50 million in authority.  In connection with the
VLB's housing program, revenue bonds are typically issued to supplement the
amounts available to the VLB through its general obligation bonding
authority.  Over the next four years, the VLB expects that it will need to
issue up to $1 billion in revenue bonds, in addition to the $1 billion in
general obligation bonds that it expects to issue over the same period, to
provide the funding necessary to meet the expected demand for home mortgage
loans by Texas veterans.  As proposed, S.B. 1556 removes the wording that
limits the issuance of bonds to $250 million.  All other condition of the
issuance of bonds remain intact.  The issuance of bonds will still require
the approval of the Bond Review Board. 

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 164.007, Natural Resources Code, by deleting
text providing that bonds issued for a purpose other than buying back or
refunding general obligation bonds may not in the aggregate exceed $250
million. 

SECTION 2.  Effective date:  upon passage.