SRC-JXG S.J.R. 42 76(R)   BILL ANALYSIS


Senate Research Center   S.J.R. 42
76R8625 JRD-DBy: Brown
Finance
4/7/1999
As Filed


DIGEST 

Throughout the last decade, the state's population has grown by more than
2.8 million. According to the U.S. Census Bureau, five Texas counties were
among the 10 fastest growing counties in the nation, and the Rio Grande
Valley population has been steadily increasing. S.B. 1695 would address
Texas' rapidly growing population, and the increased infrastructure needs
this growth mandates. 

PURPOSE

As proposed, S.B. 1695 creates a vital infrastructure program to fund new
or existing improvement projects for schools, health facilities,
transportation structures, and environmental related infrastructure. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Article III, Texas Constitution, by adding Section 49-k,
to authorize the legislature by general law to authorize specific state
agencies to define vital infrastructure needs of the state and to develop
and propose projects designed to meet those needs, including constructing
or improving or assisting in the construction or improvement of certain
infrastructures. Authorizes the legislature by general law to provide for
the manner in which a proposed vital infrastructure program is approved.
Authorizes the procedure for approval to include a requirement that a state
agency submit a proposed vital infrastructure program to the governor and
the Legislative Budget Board for review, comment, and joint approval.
Authorizes the legislature by general law to allow bonds to be issued to
pay for an approved vital infrastructure program. Prohibits general
obligation bonds from being issued by the state under this section.
Provides that the only money that  may be pledged by the state to the
payment of the principal and interest on bonds issued under this section is
money generated by an approved vital infrastructure program and money
received by the state under the Comprehensive Settlement Agreement and
Release filed in the  case styled The State of Texas v. The American
Tobacco Co., et al., No. 5-96CV-91, in the United States District Court,
Eastern District of Texas. Provides that no more than 80 percent of the sum
of unspent and unencumbered money received in previous years from
settlement proceeds in the tobacco litigation, together with the projected
amount reasonably expected to be received from those proceeds during that
year, to be scheduled for the payment of principal and interest during the
year on all outstanding bonds issued under this section for any calendar
year. Requires bonds issued under this section to be issued subject to the
condition that bondholders do not have the right to demand payment out of a
source of money that has not been specifically pledged to the payment of
principal and interest on the bonds. Authorizes the legislature by general
law to provide for the manner in which bonds issued under this section are
approved and issued. 

SECTION 2. Requires this proposed constitutional amendment to be submitted
to the voters at an election to be held on November 2, 1999. Sets forth the
required language for the ballot.