S.J.R. 43 78(R)    BILL ANALYSIS


S.J.R. 43
By: Ogden
State Affairs
Committee Report (Unamended)



BACKGROUND AND PURPOSE 

Under current Texas law, funds from the Permanent School Fund cannot be
lent for the purpose of acquiring rights-of-way for the state highway
system.  As proposed, Senate Joint Resolution 43 amends the constitution
to allow the State Board of Education to lend the Texas Department of
Transportation up to $1 billion from the Permanent School Fund for
acquiring rights-of-way, and sets forth certain provisions for any such
loans. 

RULEMAKING AUTHORITY

It is the opinion of the committee that this resolution does not expressly
grant any additional rulemaking authority to a state officer, department,
institution, or agency.  

ANALYSIS

Senate Joint Resolution 43 amends Article VII, Texas Constitution, by
adding Section 5a.  The section provides that the legislature may
authorize the State Board of Education by general law to make loans from
the permanent school fund for the purpose of acquiring rights-of-way for
development of the state highway system.  

The resolution authorizes a general law enacted under Section 5a to set
the interest rate to be paid on a loan under this section. The resolution
prohibits the interest rate from being less than the average rate of
return for the preceding five state fiscal years on all permanent school
fund investments other than a loan under this section.  

The resolution prohibits the total principal amount of loans under Section
5a outstanding at any one time from exceeding $1 billion.  The resolution
also requires any loan under that section to be guaranteed by the first
money received under Section 7-a, Article VIII, of the Texas Constitution. 

FOR ELECTION

This proposed constitutional amendment shall be submitted to the voters at
an election to be held on November 4, 2003.  The ballot is required to be
printed to permit voting for or against the proposition contained in
specified text.