BILL ANALYSIS

 

 

                                                                                                                                           H.B. 1901

                                                                                                                               By: Smith, Wayne

                                                                                                                          Financial Institutions

                                                                                                                                          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