SRC-TBR S.J.R. 10 77(R)   BILL ANALYSIS


Senate Research Center   S.J.R. 10
77R4056 DRH-DBy: Lucio
Business & Commerce
2/28/2001
As Filed


DIGEST AND PURPOSE 

Allowing the Texas Department of Transportation to use new financing tools
may speed delivery of new construction projects.  Federally-supported
leveraging techniques such as Grant Anticipation Revenue Vehicles (GARVEEs)
are one possible tool.  As proposed, S.J.R. 10 proposes a constitutional
amendment to allow the legislature to use GARVEEs to fund highway 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 49-k,
as follows; 

Sec. 49-k.  (a)  Authorizes the legislature to authorize the Texas
Transportation Commission (commission) or its successor to fund
improvements to the state highway system, including improvements relating
to critical highways in the border transportation districts of the Texas
Department of Transportation (department), to issue bonds and enter into
bond enhancement agreements that are payable from revenue received or to be
received from the federal highway trust fund and other revenue deposited to
the credit of the state highway fund. 

 (b)  Prohibits the maximum annual debt service in any fiscal year on state
debt authorized by this section from exceeding 15 percent of the amount
received from the federal highway trust fund by this state in the preceding
fiscal year. 

 (c)  Provides that while the principal of any of the bonds authorized by
this section or interest on those bonds is outstanding, there is
appropriated in each fiscal year from the revenue received from the federal
highway trust fund and other revenues deposited to the credit of the state
highway fund in that fiscal year an amount that does not exceed the limit
imposed by Subsection (b) of this section and is sufficient to pay certain
costs. 

SECTION 2.  Requires 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 a certain proposition.