Texas House Bill HB4279

Texas 2009 - 81st Regular

• Out of House Committee: 4/28/09

Caption

Relating to credit agreements executed in connection with the issuance of obligations for certain public improvements.

Impact

The proposed changes in HB4279 are particularly significant as they provide a more defined framework for public entities when dealing with public improvements financing. By specifying how issuers can utilize their available resources, including revenues and assets, the bill fosters a structured approach that can enhance fiscal responsibility and accountability. This has the potential for positive implications on local government financing and could lead to more efficient use of public funds in Texas.

Summary

House Bill 4279 is an act that seeks to amend existing statutes related to credit agreements executed in connection with the issuance of obligations for public improvements. This bill modifies the definitions and processes involved in these credit agreements, enhancing clarity and compliance protocols for governing bodies. It aims to streamline procedures for issuers to manage obligations without overstepping regulatory bounds, potentially providing issuers with more flexibility in handling their financial agreements and obligations.

Contention

While specifics regarding contentious points surrounding HB4279 are not detailed, any modification to financial agreements typically invites scrutiny from various stakeholders. Concerns may arise regarding the balance between flexibility for issuers and the necessary oversight to protect public funds. Stakeholders may argue over the sufficiency of the safeguards proposed in the bill, especially if they believe it opens avenues for misuse of credit agreements without proper accountability mechanisms in place.