HBA-TYH H.B. 2235 76(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 2235
By: Truitt
Financial Institutions
6/7/1999
Enrolled



BACKGROUND AND PURPOSE 

In 1997, the 75th Texas Legislature enacted legislation to prohibit a city
with a population less than 50,000 from issuing any installment sale
obligations or lease-purchase obligations of more than $1 million without
the approval of the attorney general.  Cities of 50,000 or more are not
restricted in the same way.  The purpose of H.B. 2235 is to restore local
control of municipal financing.  H.B. 2235 repeals Section 2256.056
(Compliance with Other Laws), Government Code, prohibiting a municipality
with a population of less than 50,000 from issuing installment sale
obligations or leasepurchase obligations having the principal amount of $1
million or more without the approval of the attorney general. 

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.  Repealed: Section 2256.056, Government Code.  This section
prohibits a municipality with a population of less than 50,000 from issuing
installment sale obligations or lease-purchase obligations having the
principal amount of one million dollars or more without the approval of the
attorney general. 

SECTION 2.  Effective date: September 1, 1999.

SECTION 3.  Emergency clause.