LEGISLATIVE BUDGET BOARD

Austin, Texas

FISCAL NOTE, 79TH LEGISLATIVE REGULAR SESSION

March 24, 2005

TO:	Honorable Ray Allen, Chair, House Committee on County Affairs
FROM:	John S. O'Brien, Deputy Director, Legislative Budget Board
IN RE:	HB1232 by Castro (Relating to the payment of certain expenses of a public project financed by certificates of obligation.), As Introduced

No fiscal implication to the State is anticipated.

The bill would authorize the governing body of an issuer of certificates of obligation to allocate or attribute proceeds from the certificates to the capital costs of the project for work done by employees of the issuer and paid for as work progresses. The bill would take effect immediately if it receives the required two-thirds vote in each house; otherwise, it would take effect September 1, 2005.

Current statute specifically prohibits the use of proceeds from certificates of obligation to be paid to employees of the issuer or to be paid as work progresses.

Local Government Impact

The proposed change would provide flexibility to local governments in the use of proceeds from certificates of obligation.

No significant fiscal implication to units of local government is anticipated.

Source Agencies:

LBB Staff:

JOB, DLBa