BILL ANALYSIS

 

 

Senate Research Center                                                                                                     H.B. 1901

79R7611 JJT-F                                                                                     By: Smith, Wayne (Williams)

                                                                                                                                                Finance

                                                                                                                                            4/29/2005

                                                                                                                                           Engrossed

 

 

AUTHOR'S/SPONSOR'S STATEMENT OF INTENT

 

The Texas Private Activity Bond Program (program) is a federal program administered by the Texas Bond Review Board (board) to assist in financing privately owned public-purpose projects.  H.B. 1901 adjusts the program with respect to the board granting reservations greater than $25 million for single projects that qualify under the Texas Government Code.  The change in the reservation adjustment cap from $25 million to $50 million is necessary to account for inflation since the original $25 million cap was established a decade ago. The cost of construction for these types of projects typically exceeds $25 million, thus oftentimes necessitating double financing for a single project.

 

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 1372.037(a), Government Code, to prohibit the Bond Review Board, except as provided by Subsection (b), before September 1, from granting for any single project a reservation for that year that is greater than $50 million, rather $25 million, if the issuer is any other issuer of bonds that require an allocation.

 

SECTION 2.  Effective date:  upon passage or the 91st day after adjournment.