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


Senate Research CenterC.S.S.J.R. 10
77R8458 DWS-FBy: Lucio
Business & Commerce
3/14/2001
Committee Report (Substituted)


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.  C.S.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)  Provides that the legislature, to fund improvements to the
state highway system, may authorize the Texas Transportation Commission
(commission) or its successor 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, or a combination of those sources. 

 (b)  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 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. 

SUMMARY OF COMMITTEE CHANGES

SECTION 1.  Amends As Filed S.J.R. 10, Article III, Texas Constitution,
Section 49-k, by adding that bonds and bond enhancement agreements are
payable from revenue received or to be received from a combination of the
sources already offered.   

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 is sufficient to pay any cost related to
the bonds, including payments under bond agreements.   

Deletes a provision stating that the maximum annual debt service in any
fiscal year on state debt  authorized by this section may not exceed 15
percent of the amount received from the federal highway trust fund by this
state in the preceding physical year.   

Deletes language regarding improvements relating to critical highways in
the border transportation districts of the Texas Department of
Transportation.