BILL ANALYSIS
By: Williams
BACKGROUND AND PURPOSE
The state needs additional funding toward the completion of projects at several state agencies. This funding is limited by current law limiting the Texas Public Finance Authority (the authority) to $850 million in issued general obligation bonds.
Senate Bill 2033 authorizes the authority to issue up to $1 billion in general obligation bonds toward the maintenance, improvement, repair, or construction of projects, or for the purchase of needed equipment, as authorized by the legislature, upon passage of the necessary constitutional amendment.
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
SECTIONA1. Amends Subchapter C, Chapter 1232, Government Code, by adding Section 1232.1116 as follows:
Sec.A1232.1116.AACERTAIN MAINTENANCE, IMPROVEMENT, REPAIR, AND CONSTRUCTION PROJECTS; GENERAL OBLIGATION BONDS. (a) The authority has the exclusive power to issue general obligation bonds under Section 50-g, Article III, Texas Constitution. The board of directors of the authority (board) shall issue the bonds in a cumulative amount not to exceed $1 billion for:
(1) maintenance, improvement, repair, and construction projects in or outside Travis County that are administered by or on behalf of a state agency listed in Section 50-g, Article III, Texas Constitution, and authorized by the legislature in accordance with Section 1232.108; or
(2) the purchase of needed equipment by or on behalf of such an agency, and authorized by the legislature by the General Appropriations Act or other law.
(b) The board shall provide for, issue, and sell the bonds in accordance with Section 50-g, Article III, Texas Constitution, and this chapter. Proceeds from the sale of the bonds shall be invested as provided by this chapter.
(c) Proceeds from the sale of the bonds may be spent on an authorized project or for the purchase of needed equipment only in accordance with the legislative appropriation of the proceeds.
SECTIONA2.AAStates the effective date of the Act.
EFFECTIVE DATE
The date on which the constitutional amendment proposed by the 80th Legislature at its regular session authorizing the issuance of general obligation bonds in an amount not to exceed $1 billion for maintenance, improvement, repair, and construction projects takes effect, if that amendment is approved by the voters.