HBA-LCA H.B. 2685 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2685
By: Coleman
Public Education
4/12/1999
Introduced



BACKGROUND AND PURPOSE 

A municipality or a county may issue notes with a maximum maturity of seven
years.  These notes may be used to finance, among other things, equipment,
machinery, professional services, and operating expenses.  In addition, a
municipality or a county may issue short-term obligations such as
commercial paper as another method of finance.  Under current law, an
independent school district may not issue either form of obligation. 

H.B.  2685 allows a school district with an average daily attendance of at
least 190,000 to issue both anticipation notes and short-term obligations,
with certain provisions regarding the use of funds generated and
restrictions on the amounts of notes issued. 

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 Subdivision 1, Section 1, Article 717q, V.T.C.S., to
include an independent school district having an average daily attendance
of 190,000 or more in the definition of "issuer." Makes a conforming
change. 

SECTION 2.  Amends Section 1(7), Article 717w, V.T.C.S., to include
"eligible school district" in the definition of "issuer."  Defines
"eligible school district" as an independent school district having an
average daily attendance of 190,000 or more. Makes conforming changes. 

SECTION 3.  Amends Section 3, Article 717w, V.T.C.S., to make a conforming
change and add Subsection (b), as follows:   

(b)  Authorizes the governing body of an eligible school district to
authorize anticipation notes for certain described in Section 3(a). 

SECTION 4.  Amends Section 4(a), Article 717w, V.T.C.S., to include an
eligible school district among entities to which Section 4 applies. 

SECTION 5.  Amends Section 5, Article 717w, V.T.C.S., to authorize an order
adopted by the governing body of an eligible school district to authorize
anticipation notes. 

SECTION 6.  Amends Section 6(g), Article 717w, V.T.C.S., to prohibit
anticipation notes issued by a school district under Subdivision (4),
Section 3, Article 717w, from exceeding 75 percent of the district's
previous year's income.  

SECTION 7.  Effective date: September 1, 1999.

SECTION 8.  Emergency clause.