BILL ANALYSIS
By: Smith, Wayne
Introduced
BACKGROUND AND PURPOSE
The Texas Private Activity Bond Program is a federal program administered by the Texas Bond Review Board to assist in financing eligible privately owned public-purpose projects.
The purpose of this bill is to change the reservation adjustment cap from $25 million to $50 million to account for inflation since the original $25 million cap was established a decade ago. The cost of construction for these types of privately owned public-purpose projects typically exceed $25 million thereby necessitating double financing for a single project.
H.B. 1901 adjusts the Texas Private Activity Bond Program by raising the reservation adjustment cap from $25 million to $50 million.
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RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 1901 amends Section 1372.037(a)(6), Government Code, by requiring the Texas Bond Review Board to raise the reservation cap from $25 million to $50 million on single projects that qualify for the granting of a reservation under this section.
EFFECTIVE DATE
September 1, 2005