BILL ANALYSIS

 

 

                                                                                                                                            S.B. 1440

                                                                                                                                       By: Hinojosa

                                                                                                     Local Government Ways & Means

                                                                                                       Committee Report (Unamended)

 

 

 

BACKGROUND AND PURPOSE

 

Currently, a city cannot pledge sales tax revenue to secure indebtedness issued by a city.  As proposed, S.B. 1440 allows sales and use tax dollars to be used to pay or secure the payment of public securities under certain circumstances.

 

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

 

 

SECTION 1. Amends Chapter 1331, Government Code, by adding Subchapter Z, as follows:

 

SUBCHAPTER Z.  MISCELLANEOUS PROVISIONS

 

Sec. 1331.901.  USE OF SALES TAX TO PAY OR SECURE CERTAIN PUBLIC SECURITIES.  (a)  Defines "public securities."

 

(b)  Authorizes revenue derived from a sales and use tax received by a municipality to be used to pay or secure the payment of public securities issued by or on behalf of the municipality to finance the acquisition, construction, equipping, renovation, or improvement of any public work or other project any part of which is located in certain zones, districts, or communities.

 

SECTION 2.  Amends Section 321.506, Tax Code, to make a conforming change.

 

SECTION 3.  Effective date:  upon passage or September 1, 2005.

 

EFFECTIVE DATE

 

Upon passage or September 1, 2005.