SRC-JEC S.J.R. 50 77(R)   BILL ANALYSIS


Senate Research Center   S.J.R. 50
77R9804 QS-FBy: Lucio
Intergovernmental Relations
3/28/2001
As Filed


DIGEST AND PURPOSE 

The Housing Trust Fund is the sole program funded by the state to provide
affordable housing units for very low and low-income households.  It is
funded by general revenue funds.  As proposed, S.J.R. 50 proposes a
constitutional amendment to enable an increase in revenue available to the
Housing Trust Fund through a general obligation bond issuance. 

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 by general law to authorize the
Texas Department of Housing and Community Affairs (department) or its
successor to issue and sell general obligation bonds of the state in an
amount not to exceed $100 million.  Requires the bonds to be called "Texas
Housing Bonds" and to be issued and sold in forms and denominations, on
terms, at times, in the manner, at places, and in installments the
department or its successor determines.  Requires the bonds to bear a rate
or rates of interest the department or its successor determines, except
that the legislature by general law is required to set the maximum net
effective interest rate to be borne by the bonds.  

(b)  Requires the obligation of the department or its successor under the
agreements to make payments with respect to principal of or interest on the
bonds to also constitute a general obligation of the state.  

(c)  Requires all money received from the sale of the bonds to be deposited
in the housing trust fund or its successor fund administered by the
department or its successor to finance affordable housing for low and very
low income persons within the state in accordance with law.  Requires the
expenses of issuance of the bonds and administration of the fund to be paid
from money in the fund.  

(d)  Provides that while any of the bonds or interest on the bonds is
outstanding and unpaid, there is appropriated out of the first money coming
into the treasury in each fiscal year, not otherwise appropriated by this
constitution, the amount sufficient to pay the principal of and interest on
the bonds that mature or become due during the fiscal year, including
payments made during the fiscal year by the department or its successor
under bond enhancement agreements with respect to principal of or interest
on the bonds.  

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 authorizing issuance of $100 million in
general obligation bonds to augment funds available to finance housing for
low and very low income persons."