SRC-AMY S.J.R. 21 78(R)   BILL ANALYSIS


Senate Research Center   S.J.R. 21
78R1757 DWS-DBy: Lucio
Infrastructure Development and Security
2/27/2003
As Filed


DIGEST AND PURPOSE 

The federal National Highway System Designation Act of 1995 and the
Transportation Equity Act for the 21st Century authorized the use of Grant
Anticipation Revenue Vehicle (GARVEE) bonds to finance highway projects.
GARVEE bonds are issued by the state, guaranteed by future federal funds,
and may be backed by state funds such as gas and tax revenues.  Utilizing
GARVEE bonds to finance new construction projects may speed up the
construction process.  As proposed, S.J.R. 21 requires submission to the
voters of a constitutional amendment authorizing the legislature to use
GARVEE bonds, general obligation bonds, or a combination thereof to fund
state highway 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 Section
49-m, as follows: 

Sec. 49-m. Authorizes the legislature to authorize the Texas
Transportation Commission, or its successor, to issue bonds and enter into
bond enhancement agreements, payable from certain funds, to improve the
state highway system. 

(b)  Provides that each fiscal year, while the principal of or interest on
any bonds authorized by this section is outstanding, there will be an
appropriation from the state highway fund sufficient to pay the principal
and interest on mature bonds or bonds that become due during that fiscal
year, and any cost related to the bonds.  

SECTION 2.  Requires this proposed constitutional amendment be submitted
to the voters at an election to be held November 4, 2003. Requires that
the ballot be printed to allow voting for or against the proposition: "The
constitutional amendment authorizing the legislature to provide for the
issuance of bonds for improvements to the state highway system."