HBA-KDB, SEP H.B. 1441 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 1441
By: Hawley
Land & Resource Management
2/26/2001
Introduced



BACKGROUND AND PURPOSE 

Currently, rural municipalities and counties are not expressly authorized
to sell anticipation notes to the Texas Agricultural Finance Authority
(authority).  The sale of anticipation notes may facilitate  economic
development growth in these municipalities and counties by providing the
political subdivisions with a simple and cost-effective means to borrow
small amounts of money.  House Bill 1441 authorizes these municipalities
and counties to sell anticipation notes to the authority. 

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 1441 amends the Government Code to authorize a county or
municipality (issuer) participating in a rural economic development plan
established by the Texas Agricultural Finance Authority to sell to the
authority an anticipation note issued for a specified purpose, provided
that the note matures before the 30th anniversary of the date the note is
issued.   Anticipation notes issued by a single issuer under this Act in an
aggregate original principal amount of not more than $500,000 are not
subject to the approval requirements of the attorney general or examination
and registration of public securities.  The bill authorizes an issuer to
issue anticipation notes under certain notes for rural economic development
for the same purpose not more than once in any 12-month period.     

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.