SRC-TBR C.S.H.J.R. 97 77(R)BILL ANALYSIS


Senate Research CenterC.S.H.J.R. 97
77R15593 JRD-DBy: Junell (Ellis)
Finance
5/8/2001
Committee Report (Substituted)


DIGEST 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.  C.S.H.J.R. 97 requires the
submission to the voters of a constitutional amendment authorizing the
issuance of up to $800 million in general obligation bonds for construction
and repair projects. 

RULEMAKING AUTHORITY

This bill does not expressly 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 50-f,
as follows: 

Sec. 50-f.  (a)  Authorizes the legislature by general law to 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 $800
million and to enter into related credit agreements.  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 Texas Public
Finance Authority.  

 (b)  Requires proceeds from the sale of the bonds to be deposited in a
separate fund or account within the state treasury created by the
comptroller for this purpose.  Provides that money in the separate fund or
account may be used only to pay for: 

(1)  construction and repair projects authorized by the legislature by
general law or the General Appropriations Act and administered by or on
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 of the State of Texas, the
State Preservation Board, the Texas School for the Blind and Visually
Impaired; or 

(2)  the purchase, as authorized by the legislature by general law or the
General Appropriations Act, of needed equipment by or on behalf of a state
agency listed in Subdivision (1) of this subsection. 

(c)  Authorizes the maximum net effective interest rate to be borne by
bonds issued under this section to be set by general law.  

 (d)  Provides that while any of the bonds or interest on the bonds
authorized by this section is outstanding and unpaid, from the first money
coming into the state treasury in  each fiscal year not otherwise
appropriated by this constitution, an amount sufficient to pay the
principal and interest on bonds that mature or become due during the fiscal
year and to make payments that become due under a related credit agreement
during the fiscal year is appropriated, less the amount in the sinking fund
at the close of the previous fiscal year.  

(e)  Provides that bonds issued under this section, after approval by the
attorney general, registration by the comptroller of public accounts, and
delivery to the purchasers, are incontestable and are general obligations
of the State of Texas under this constitution. 

SECTION 2.  Requires that this proposed constitutional amendment to be
submitted to the voters at an election to be held November 6, 2001.
Requires the ballot to be printed to permit voting for or against the
proposition:  "The constitutional amendment authorizing the issuance of up
to $850 million in bonds payable from the general revenues of the state for
construction and repair projects and for the purchase of needed equipment."