BILL ANALYSIS

S.B. 295

By: Hinojosa

Investments & Financial Services

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Interested parties note that recent legislation imposing restrictions on the issuance of capital appreciation bonds by political subdivisions was too narrowly tailored. S.B. 295 seeks to expand the application of the exemption.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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

S.B. 295 amends the Government Code to expand the scope of the exemption from a statutory provision limiting the authority of a political subdivision to issue capital appreciation bonds secured by property taxes applicable to the issuance of refunding bonds or capital appreciation bonds for the purpose of financing transportation projects to exempt the issuance of such bonds from the entirety of the provision relating to the issuance and approval of capital appreciation bonds by political subdivisions under the Public Security Procedures Act.

EFFECTIVE DATE

September 1, 2017.