SRC-SEW S.J.R. 41 77(R)   BILL ANALYSIS


Senate Research Center   S.J.R. 41
77R6658 DWS-DBy: Lucio
Finance
4/5/2001
As Filed


DIGEST AND PURPOSE 

Despite significant increases in transportation dollars associated with
passage of the federal Transportation Equity Act for the 21st Century
(TEA-21), the Texas Department of Transportation (TxDOT) is currently able
to meet only 36 percent of the state's documented transportation needs. The
state comptroller's review of TxDOT in January 2001 recommended that TxDOT
be able to borrow funds on a short-term basis, either from the state
treasury or from outside capital markets, in order to allow TxDOT to manage
its cash position more aggressively.   The ability to borrow on a
short-term basis would lessen concerns about spending beyond day-to-day
available cash.  As proposed, S.J.R. 41 authorizes the Texas Transportation
Commission or its successor to borrow money for a term of one year or less. 

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 borrow money
from certain sources for certain purposes. 

(b)  Prohibits a loan under this section from having a term of more than
one year. Provides that a debt created by the loan is not a general
obligation of the state and is payable only as authorized by legislative
appropriation. 

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 the proposition: "The
constitutional amendment providing for authorization of the borrowing of
money on a short-term basis by a state transportation agency for
transportation-related projects."