BILL ANALYSIS

Senate Research Center	S.B. 2072
86R13742 SLB-F	By: Taylor
	Intergovernmental Relations
	4/14/2019
	As Filed

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

The Gulf Coast Authority (GCA) has the authority to own and operate regional industrial and municipal wastewater treatment plants, water systems, and solid waste facilities statewide and also to issue bonds for a variety of projects. In 2103, GCA was given the authority to build, own, and operate other types of water systems such as brackish water treatment, desalination, and effluent reuse projects in an effort to help provide solutions to water shortages across the state.

In addition, GCA supports Texas economic development and environmental protection by providing financing services. They have issued over $3 billion in private activity bonds. They have also issued industrial development bonds for small manufacturers in Galveston, Harris, and Chambers counties. GCA is currently working on several projects to help attract industry to our state.

In order to continue to encourage development and to be able take advantage of opportunities requested of the authority, GCA is seeking the ability to use PACE financing and act as a conduit financer out of the state.

As proposed, S.B. 2072 amends current law relating to the authority of a development corporation created by the Gulf Coast Authority to finance certain improvements.

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. Amend Section 3.01, Chapter 409, Acts of the 61st Legislature, Regular Session, 1969, by adding Subsection (g), as follows:

(g)� Authorizes a development corporation created by the Gulf Coast Authority (GCA) under Chapter 501 (Provisions Governing Development Corporations), Local Government Code, to finance qualified improvements as defined by Section 399.002 (Definitions), Local Government Code, located inside or outside this state in the same manner and to the same extent as a municipality or county may do so under Chapter 399 (Municipal and County Water and Energy Improvement Regions) of that code. Provides that, notwithstanding any other law, the development corporation is not required to obtain approval from any entity other than GCA for its actions under this subsection.

SECTION 2. Effective date: September 1, 2019.