HBA-JLV C.S.S.J.R. 37 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.S.J.R. 37
By: Lucio
Financial Institutions
5/7/2001
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Currently, inadequate development and substandard housing conditions along
the Texas-Mexico border are prohibited by state law. However, many
neighborhoods, known as colonias, were built in this region prior to 1989
when legislative reform began. Since little housing is available or
affordable to the residents of these colonias, many Texas residents
continue to live in neighborhoods without basic services.  As proposed,
C.S.S.J.R. 37 requires the submission to the voters of a constitutional
amendment authorizing the issuance of state general obligation bonds and
notes to provide financial assistance to counties for roadway projects to
serve border colonias.  

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

C.S.S.J.R. 37 amends the Texas Constitution to provide that the legislature
may authorize the governor to authorize the Texas Public Finance Authority
or its successor to issue general obligation bonds or notes of the State of
Texas in an aggregate amount not to exceed $175 million and to enter into
related credit agreements in order to fund financial assistance to counties
for roadways to serve border colonias. Proceeds from the sale of the bonds
and notes may be used only to provide financial assistance to counties for
projects to provide access roads to connect border colonias with public
roads. 

The bill authorizes the Texas Transportation Commission, in its discretion
and in consultation with the office of the governor, to determine what
constitutes a border colonia for purposes of selecting the counties and
projects that may receive assistance.  The bill provides that a portion of
the proceeds from the sale of the bonds and notes and a portion of the
interest earned on the bonds and notes may be used to pay the cost of
administering authorized projects and all or part of a payment owed or to
be owed under a credit agreement.  The bill provides that while any of the
bonds or notes or interest on the bonds or notes is outstanding and unpaid,
there is appropriated out of the general revenue fund in each fiscal year
an amount sufficient to pay the principal of and interest on the bonds and
notes that mature or become due during the fiscal year, including an amount
sufficient to make payments under a related credit agreement. 

FOR ELECTION

This proposed constitutional amendment shall be submitted to the voters at
an election to be held November 6, 2001. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.S.J.R. 37 modifies the original to provide that the legislature may
authorize the governor to authorize the Texas Public Finance Authority to
issue general obligation notes, in addition to general obligation bonds,
and to enter into related credit agreements, rather than related bond
enhancement agreements.  The  substitute authorizes the use of proceeds
from bonds or notes for all or part of a payment owed or to be owed under a
credit agreement.