H.B. 2608 78(R)    BILL ANALYSIS


H.B. 2608
By: Coleman
Urban Affairs
Committee Report (Amended)



BACKGROUND AND PURPOSE

Government Code Chapter 1504 is entitled Obligations for Municipal
Buildings.  Subchapter A, to be amended by House Bill 2608 authorizes the
issuance of revenue bonds for specified purposes (civic centers, halls,
museums, recreational facilities, etc.). 

As currently constituted, Section 1504.012 of the Government Code allows
municipalities with populations of 1.5 million or more people to enter
into leases for terms not to exceed 60 years if the  lessee proposes to
invest more than $20 million to renovate or redevelop existing civic
center buildings  and facilities.  H.B. 2608 amends this section of the
Government Code to allow for applicability to municipalities of 1 million
or more and to apply to new buildings and facilities. 

RULEMAKING AUTHORITY

It is the opinion of the committee that this bill does not expressly grant
any additional rulemaking authority to a state officer, department, agency
or institution. 

ANALYSIS

SECTION 1.  Amends Section 1504.012, Government Code, to permit a
municipality with a population of 1 million or more to enter into leases
for terms not to exceed 60 years if the lessee proposes to invest more
than $20 million to develop a new building or facilities on civic center
property.  Additionally, the municipality must find that the new building
and facilities will generate additional revenue and that a term exceeding
30 years is necessary to enable the lessee to recoup its investment or
obtain financing for the project. 

SECTION 2.  Effective date.

EFFECTIVE DATE

Upon passage, or, if the Act does not receive the necessary vote, the Act
takes effect September 1, 2003. 
EXPLANATION OF AMENDMENTS
Committee Amendment No. 1 to H.B. 2608 changes the applicability of
Section 1504.012, Government Code, to municipalities of 1 million or more.
Currently, Texas cities meeting this bracket are Dallas, Houston, and San
Antonio.