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.