HBA-NMO H.B. 3793 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3793
By: Averitt
Natural Resources
4/5/1999
Introduced



BACKGROUND AND PURPOSE 

In 1929, the 41st Texas Legislature enacted legislation creating the Brazos
River Authority.  Certain modern financing techniques and operational
procedures available to other river authorities are currently not available
to Brazos River Authority.  H.B. 3793 authorizes the Brazos River Authority
to use a broad range of financing techniques, and  removes the aggregate
value cap of $100,000 from property that the authority is authorized to
sell in one year.  

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 Chapter 13, Acts of the 41st Legislature, 2nd Called
Session, 1929, as amended, by adding Section 11, as follows: 

Sec. 11.  (a) Provides that the Brazos River Authority (authority) is a
district and a river authority as defined in Chapter 30 (Regional Waste
Disposal Act), Water Code, and provides that all of the provisions of that
Act are applicable to the authority.   

(b) Defines "person" and "public agency."

(c) Authorizes the authority and all persons to contract with each other in
any manner and on terms as to which the parties may agree with respect to
any power function, facilities, or services which the authority is
authorized by law to provide or finance.  Authorizes all  public agencies
to use and pledge any available revenues for and in the payment of amounts
due under the contracts as an additional source of payment of the contracts
or as the sole source of payment of the contracts and to covenant with
respect to available revenues so as to assure the availability of these
revenues when required.  Defines the term "revenues" as used in this
subsection. 
 
(d)  Authorizes each public agency  to fix, charge, and collect fees,
rates, charges, rentals, and other amounts for any services or facilities
provided by any utility operated by it or provided under or in connection
with any contract with the authority from its inhabitants or from any users
or beneficiaries of any utility, services, or facilities.  Authorizes each
public agency to covenant to do so in amounts sufficient to make all or any
part of the payments to the authority when due.  Requires that the
payments, if the parties agree in the contract, constitute an expense of
operation of any facilities or utility operated by the public agency.  

(e)  Authorizes the authority, acting through its board of directors,  to
undertake and carry out any activities and to acquire, purchase, construct,
own, operate, maintain, repair, improve, extend, lease, or sell all works,
improvements, facilities, plants, buildings, structures, equipment, and
appliances and all related property or any interest in related property
that is incident to or necessary in carrying out any power or function of
the authority under this section.  
  
(f)  Authorizes the authority to issue bonds with respect to the
acquisition, purchase, construction, maintenance, repair, improvement, and
extension of works, improvements, facilities, plants, buildings,
structures, appliances, and property for the purpose of exercising any of
its powers and functions under this section in the manner provided by this
Act or any other applicable law.  Authorizes the authority to issue revenue
bonds to pay for the costs of feasibility studies for proposed projects of
the authority, including engineering, planning and design, and
environmental studies.  Authorizes the authority to include in any revenue
bond issue the funds to operate and maintain for a period not to exceed two
years after completion of the facilities acquired or constructed through
the revenue bond issue.  Sets forth the procedure for bonds secured by
pledge of payment. Provides certain statutes that are applicable to bonds
issued by the authority. 
 
(g)  Provides that this section is wholly sufficient authority within
itself for the issuance of the bonds, the execution of contracts, and the
performance of the other acts and procedures authorized in this section by
the authority and all persons. 

SECTION 2.  Amends Section 12, Chapter 368, Acts of the 44th Legislature,
1st Called Session, 1935, as amended, to remove the aggregate value cap of
$100,000 from property that the authority is authorized to sell in one
year.  Makes a conforming change. 

SECTION 3.  Sets forth the satisfaction of procedural requirements.

SECTION 4.  Emergency clause.
     Effective date: upon passage.