HBA-JLV H.B. 2329 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2329
By: Solis, Jim
Financial Institutions
3/22/2001
Introduced



BACKGROUND AND PURPOSE 

It is common practice for local governments to hire outside legal counsel
to approve bonding provisions to ensure bonds are in compliance with the
law.  Often, counsel retained for these purposes are from a large firm
headquartered in different parts of the state from which the bonds are
being issued.  Requiring a local government to select legal counsel in the
area in which the issuer is located could provide more opportunities for
local businesses associated with bonding.  House Bill 2329 requires a local
government to select legal counsel located in the area in which the issuer
is located. 

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. 

ANALYSIS

House Bill 2329 amends the Government Code to require an issuer to select
legal counsel located in the area in which the issuer is located for legal
services needed in connection with public securities after the public
securities have been issued. 

EFFECTIVE DATE

September 1, 2001.