BILL ANALYSIS

 

 

Senate Research Center                                                                                                      S.B. 2033

80R16092 MTB-D                                                                                                         By: Williams

                                                                                                                                                Finance

                                                                                                                                            4/21/2007

                                                                                                                                              As Filed

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

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 to $850 million in issued general obligation bonds. 

 

As proposed, S.B. 2033 authorizes the Texas Public Finance Authority to  issue up to $1 billion in general obligation bonds toward the maintenance, improvement, repair, or construction of projects authorized by the legislature, upon passage of the necessary constitutional amendment. 

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1.  Amends Subchapter C, Chapter 1232, Government Code, by adding Section 1232.1116, as follows:

 

Sec. 1232.1116.  CERTAIN MAINTENANCE, IMPROVEMENT, REPAIR, AND CONSTRUCTION PROJECTS; GENERAL OBLIGATION BONDS.  (a)  Provides that the Texas Public Finance Authority (authority) has the exclusive power to issue general obligation bonds under Section 50-g, Article III, Texas Constitution (Section 50-g).  Requires the board of directors of the authority (board) to issue the bonds in a cumulative amount not to exceed $1 billion for maintenance, improvement, repair, and construction projects in or outside Travis County that is administered by or on behalf of a state agency listed in Section 50-g and authorized by the legislature in accordance with Section 1232.108 (Legislative Authorization Required), Government Code. 

 

(b)  Requires the board to provide for, issue, and sell the bonds in accordance with Section 50-g and this chapter.  Requires proceeds from the sale of the bonds (proceeds) to be invested as provided in this chapter. 

 

(c)  Authorizes the spending of proceeds on an authorized project only in accordance with the legislative appropriation of the proceeds. 

 

SECTION 2.  Effective date: upon passage, contingent upon approval by the voters of the constitutional amendment authorizing the issuance of general obligation bonds in an amount not to exceed $1 billion for maintenance, improvement, repair, and construction projects.