HBA-SEB H.B. 1722 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 1722
By: Counts
Pensions and Investments
6/28/1999
Enrolled



BACKGROUND AND PURPOSE 

Money in the veterans' land fund (fund) may be placed in a variety of
investments such as commercial paper or direct security repurchase
agreements.  H.B. 1722 includes revenue bonds issued under the Veterans'
Financial Assistance Program as an investment option for money in the fund.
This bill also prohibits the Veterans' Land Board (board) from investing
more than $50 million in such revenue bonds  and requires the board to
report the status of its investment in such revenue bonds and all related
debt service to certain members of the state government. 
    
RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 161.173(a), Natural Resources Code, to authorize
the investment of money from the veterans' land fund in revenue bonds
issued under Chapter 164 (Veterans' Financial Assistance Program) if the
money is not immediately committed to paying the principal of and interest
on general obligation bonds, the purchase of land, or the payment of
expenses as provided by this chapter (Veterans Land Board). 

SECTION 2.  Amends Section 161.173, Natural Resources Code, by adding
Subsection (c) to prohibit the Veterans' Land Board (board) from investing
more than $50 million in revenue bonds issued under Chapter 164.  Requires
the board to report the status of its investment in such revenue bonds and
all related debt service to the governor, the senate committee on finance,
and the house of representatives committee on appropriations by December 1,
2000.   

SECTION 3.Emergency clause.
  Effective date: upon passage.