SRC-AMY S.B. 1103 78(R)   BILL ANALYSIS


Senate Research Center   S.B. 1103
78R5958 KEL-FBy: Fraser
Veteran Affairs & Military Installations
3/24/2003
As Filed


DIGEST AND PURPOSE 

Currently, Article III, Section 49-b, Texas Constitution  allows the
Veterans' Land Board (VLB) to administer the Veterans' Land Program and
the Veterans' Housing Assistance Program.  However, the Texas Constitution
does not provide for the use of assets in the Veterans' Land or Housing
Assistance programs for the state veterans' home programs.  As proposed,
S.B. 1103 provides that receipts of the Veterans' Land Fund, Veterans'
Housing Assistance Fund, or Veterans' Housing Assistance Fund II are not
required for the payment of debt service on the general obligation bonds
benefitting those funds, authorizing VLB to use such receipts to pay the
debt service on any revenue bonds issued by VLB. 

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 Section 164.009(a), Natural Resources Code, to
authorize the Veterans' Land Board (VLB) to provide for a pledge of and a
lien or mortgage on the receipts of all kinds of the veterans' land fund,
the veterans' housing assistance fund, and the veterans' housing
assistance fund II determined by VLB, on the basis of certain criteria,
not to be required for the payment of principal of or interest on the
general obligation bonds issued by VLB to augment the funds, rather than
funds under certain sections of the Texas Constitution, or to make
payments with respect to principal or interest under a bond enhancement
agreement with respect to the general obligation funds.  Deletes the text
specifying bonds that are issued to provide funds to purchase and sell
land to veterans or to make home mortgage loans to veterans.  Makes a
conforming change. 

SECTION 2.  Effective date: upon the effective date of the proposed
constitutional amendment. Provides that this act has no effect if that
amendment is not approved by the voters.