SRC-MSY S.J.R. 43 78(R)   BILL ANALYSIS


Senate Research Center   S.J.R. 43
78R8402 ESH-DBy: Ogden
Infrastructure Development and Security
3/21/2003
As Filed


DIGEST 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, S.J.R. 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 such rights-of-way,
and sets forth certain provisions for any such loans.  The bill also
provides the guidelines for the election to be held regarding the
amendment. 

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 VII, Texas Constitution, by adding Section 5a,
as follows: 

Sec.  5a.  (a)  Authorizes the legislature to 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. 

(b)  Authorizes a general law enacted under this section to set the
interest rate to be paid on a loan under this section.  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. 

(c) Prohibits the total principal amount of loans under this section
outstanding at any one time from exceeding $1 billion. 

(d)  Requires any loan under this section to be guaranteed by the first
money received under Section 7-a, Article VIII, of this constitution. 

SECTION 2.  Requires this proposed constitutional amendment to be
submitted to the voters at an election on November 4, 2003.  Requires the
ballot to be printed to permit voting for or against the proposition
contained in specified text.