SRC-TJG C.S.H.J.R. 28 78(R)BILL ANALYSIS


Senate Research CenterC.S.H.J.R. 28
By: Pickett (Lucio)
                      Finance
5/23/2003
Committee Report (Substituted)


DIGEST AND PURPOSE 

C.S.H.J.R. 28 requires the submission to the voters of a constitutional
amendment authorizing the Texas Transportation Commission to authorize the
Texas Department of Transportation to borrow money from any source for
transportation-related 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 Sections
49-m and 49-n, as follows: 

Sec. 49-m.  (a) Authorizes the legislature, by law, to authorize the Texas
Transportation Commission (TTC) or its successor to authorize the Texas
Department of Transportation (TxDOT) or its successor to issue notes or
borrow money from any source to carry out the functions of TxDOT. 

(b) Prohibits notes issued or a loan obtained under this section from
having a term of more than two years.  Authorizes the legislature to
appropriate money dedicated by Sections 7-a and 7-b, Article VIII, of this
constitution for the purposes of paying a debt created by the notes or
loan. 

Sec. 49-n.  (a) Authorizes the legislature, to fund highway improvement
projects, to authorize TTC or its successor to issue bonds and other
public securities and enter into bond enhancement agreements that are
payable from revenue deposited to the credit of the state highway fund.  

(b) Authorizes proceeds from the sale of bonds and other public securities
issued under this section to only be used to provide funding for certain
projects or shortterm financing of certain turnpike project costs. 

(c) Defines "Texas Highway Trunk System."

(d) Provides that in each fiscal year in which amounts become due under
the bonds, other public securities, or agreements authorized by this
section, there is appropriated from the revenue deposited to the credit of
the state highway fund in that fiscal year an amount that is sufficient to
pay certain expenses. 

(e) Prohibits any dedication or appropriation of revenue to the credit of
the state highway fund from being modified so as to impair any outstanding
bonds or other public securities secured by a pledge of that revenue
unless provisions have been made for a full discharge of those securities. 

SECTION 2.  Requires this proposed constitutional amendment to be
submitted to the voters at an election to be held November 4, 2003.
Requires the ballot to be printed to permit voting for  or against a
certain proposition.