BILL ANALYSIS


                                                        S.J.R. 30
                                                         By: West
                                                    State Affairs
                                                           3-3-95
                                     Committee Report (Unamended)
BACKGROUND

Testimony before the Joint Interim Committee on Historically
Underutilized Businesses suggests that as a direct result of the
size, bonding and insurance requirements of many state contracts,
the contracts are frequently awarded to large prime contractors,
which are the "lowest bidders" but are generally not HUBs.  In
order to achieve contract and procurement goals established by the
legislature, the committee recommended that a bonding fund be
established which would provide surety bonds for historically
underutilized businesses.  

PURPOSE

As proposed, S.J.R. 30 requires the submission to the voters of a
constitutional amendment authorizing the legislature to issue bonds
to provide or guarantee surety bonds for historically underutilized
businesses.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Article XVI, Texas Constitution, by adding
Section 73, as follows:

     Sec. 73.  (a) Authorizes the legislature, by law, to establish
     a Texas historically underutilized business (HUB) bonding fund
     to be used without further appropriation solely in furtherance
     of a program established by the legislature to provide surety
     bonds to HUBs.  Requires the fund to contain certain accounts
     authorized by the legislature.  Authorizes the legislature to
     issue up to $50 million of general obligation bonds (bonds) to
     provide funding for the program.  Sets forth the sources from
     which the fund is to be composed.
     
     (b) Authorizes the legislature to require review and
       approval of the issuance of bonds under this section, of the
       use of the bond proceeds, or of the rules adopted by an
       agency to govern use of the proceeds.  Authorizes any entity
       directed to conduct this review and approval to include
       members or appointees of members of all state government
       branches.
       
       (c) Provides that bonds under this section constitute a
       general obligation of the state.  Provides that there is
       appropriated out of the first money coming into the treasury
       in each fiscal year not otherwise appropriated the amount
       sufficient to pay the principal of and interest on the bonds
       less any amount in any interest and sinking account at the
       end of the preceding fiscal year that is pledged to payment
       of the bonds or interest.
SECTION 2. Requires this constitutional amendment to be submitted
to the voters at an election to be held November 7, 1995.  Sets
forth required language for the ballot.