HBA-LCA C.S.H.B. 2898 76(R)BILL ANALYSIS Office of House Bill AnalysisC.S.H.B. 2898 By: Coleman Urban Affairs 4/27/1999 Committee Report (Substituted) BACKGROUND AND PURPOSE Currently, neither an independent school district nor a venue district may enter into credit agreements or issue short-term obligations, including commercial paper. C.S.H.B. 2898 allows an independent school district with an average daily attendance of 50,000 or more, a municipality or county operating a sports or community venue, or an approved venue district, to issue short-term obligations such as commercial paper. 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 Sections 1(1) and (3), Article 717q, V.T.C.S., as follows: 1(1) Includes an independent school district with an average daily attendance of 50,000 or as defined under Section 42.005, Education Code (Average Daily Attendance), a municipality or county operating under Chapter 334, Local Government Code (Sports and Community Venues), and a venue district created under Chapter 335, Local Government Code (Sports and Community Venue Districts), in the definition of "issuer." 1(3) Includes an improved venue project under Chapter 334 or 335, Local Government Code, in the definition of "eligible project." SECTION 2.Effective date: September 1, 1999. SECTION 3. Emergency clause. COMPARISON OF ORIGINAL TO SUBSTITUTE The substitute modifies the original in the caption, which read "relating to anticipation notes and short-term obligations for a public utility," and now reads, as substituted, "relating to the execution of credit agreements and issuance of obligations by certain political subdivisions." The substitute modifies the original in SECTION 1 by modifying the definition of "issuer" to include an independent school district that has an average daily attendance of 50,000, rather than 190,000, or more; a municipality or county operating under Chapter 334, Local Government Code (Sports and Community Venues); and district created under Chapter 335, Local Government Code (Sports and Community Venue Districts). The substitute modifies the original by moving the provisions of SECTION 2 of the original, which amended the definition of "eligible project," to SECTION 1 of the substitute. The substitute modifies the original by creating an effective date of September 1, 1999, in SECTION 2, rather than 90 days after passage in SECTION 3. The substitute modifies the original to conform to Legislative Council format.