HBA-EDN H.J.R. 97 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.J.R. 97
By: Junell
Financial Institutions
78/8/2001
Enrolled


BACKGROUND AND PURPOSE 

This resolution and its enabling legislation authorize the Texas Public
Finance Authority to issue and sell general obligation bonds, proceeds from
which would be used to pay for construction and repair projects
administered by certain state agencies and for the purchase of needed
equipment by or on behalf of those state agencies.  As proposed, House
Joint Resolution 97 requires the submission to the voters of a
constitutional amendment authorizing the issuance of up to $850 million in
general obligation bonds for construction and repair projects and for the
purchase of needed equipment. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this resolution
does not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Joint Resolution 97 amends the Texas Constitution to provide that the
legislature by general law may authorize the Texas Public Finance Authority
to provide for, issue, and sell general obligation bonds of the State of
Texas in an amount not to exceed $850 million and to enter into related
credit agreements.  The resolution requires the bonds to be executed in the
form, on the terms, and in the denominations, bear interest, and be issued
in installments as prescribed by the authority.  The resolution requires
that proceeds from the sale of the bonds be deposited in a separate fund or
account within the state treasury.  The resolution authorizes money in this
fund to be used only to pay for, as authorized by the legislature by
general law or the General Appropriations Act, construction and repair
projects administered by or on the behalf of the General Services
Commission, the Texas Youth Commission, the Texas Department of Criminal
Justice, the Texas Department of Mental Health and Mental Retardation, the
Parks and Wildlife Department, the adjutant general's department, the Texas
School for the Deaf, the Department of Agriculture, the Department of
Public Safety, the State Preservation Board, the Texas Department of
Health, the Texas Historical Commission, or the Texas School for the Blind
and Visually Impaired or the purchase of needed equipment by or on behalf
of a state agency listed above.  

The resolution sets forth provisions relating to the payment of principal
and interest on bonds and payments on related credit agreements and
provides that bonds are incontestable and are general obligations to the
State of Texas.      

FOR ELECTION

November 6, 2001.