Honorable Robert Talton, Chair, House Committee on Urban Affairs
FROM:
John Keel, Director, Legislative Budget Board
IN RE:
HB3551 by Chavez (Relating to the authority of a municipality to use commercial paper instead of certificates of obligation. ), Committee Report 1st House, Substituted
No fiscal implication to the State is anticipated.
The bill would amend the Government Code to include an activity for which a municipality may issue certificates of obligation as an eligible project for which securities may be issued. The bill would take effect September 1, 2003.
Local Government Impact
The option to issue securities or certificates of obligation would provide flexibility for a municipality that would assist in obtaining the lowest cost relative to the municipality's needs.