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


Office of House Bill AnalysisH.B. 2235
By: Truitt
Financial Institutions
4/5/1999
Introduced



BACKGROUND AND PURPOSE 

During the 75th Legislature, legislation was passed to prohibit a city of
less than 50,000 in population from issuing any installment sale
obligations or lease-purchase obligations of more than one million dollars
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,
Government Code, prohibiting 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. 

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  Repealed: Section 2256.056, Government Code.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.