SRC-TAG, EPT, TAG C.S.H.B. 3420 78(R)BILL ANALYSIS


Senate Research CenterC.S.H.B. 3420
By: Garza (Madla)
International Relations and Trade
5/18/2003
Committee Report (Substituted)


DIGEST AND PURPOSE 

Currently, certain Texas-Mexico rural border communities known as colonias
continue to experience substandard living conditions.  Many of these
colonias existed prior to 1989, when the Texas Legislature began to
address the issues that these communities faced.  S.B. 1296, passed by the
77th Texas Legislature,  authorized the issuance of general obligations
bonds to aid  counties in roadway improvement projects to serve colonias
and provided a means to constructively address certain challenges faced by
these communities.  C.S.H.B. 3420 provides for a set-aside of funds
generated from the general obligation bonds issued under S.B. 1296 to pave
roads in rural border counties.  

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 1403, Government Code, by adding Section
1403.003 and 1403.004, as follows: 

Sec. 1403.003.  SET-ASIDE FOR COLONIAS LOCATED IN RURAL BORDER COUNTIES.
(a)  Defines "border colonia," "rural border county," and "set-aside." 

(b)  Requires the Texas Public Finance Authority (authority) to set aside
an amount equal to five percent of the proceeds from each sale of general
obligation bonds and notes under this chapter to provide financial
assistance for colonia access roadway projects designed to pave roads
serving border colonias located in rural border counties. 

(c)  Requires the authority, as directed by the Texas Department of
Transportation, to provide a grant from the set-aside on a priority basis
to a rural border county that proposes to pave for the first time a road
serving a border colonia located in that county.  

(d)  Authorizes a grant under this section to be used by a rural border
county to purchase any materials or equipment reasonably necessary to
accomplish the goal of the project.  

Sec. 1403.004.  USE OF GRANTS FOR PROJECT MATERIALS OR EQUIPMENT.
Authorizes a grant under this subchapter to be used to purchase any
materials or to lease any equipment as reasonably necessary to accomplish
the goal of the project.  Requires materials purchased as permitted by
this subsection to be used solely in connection with the project.
Requires equipment leased as permitted by this subsection to be used
substantially in connection with the project throughout the period of the
applicable lease. 

SECTION 2.  Provides that the change in law made by this Act applies to
proceeds from the sale of general obligation bonds and notes that are
distributed under Chapter 1403, Government Code, as amended by this Act,
on or after the effective date of this Act. 
 
SECTION 3.  Effective date: upon passage or September 1, 2003.