SRC-AMY S.J.R. 49 78(R)   BILL ANALYSIS


Senate Research Center   S.J.R. 49
78R4132 MCK-DBy: Van de Putte
Subcommittee on Base Realignment and Closure
4/1/2003
As Filed


DIGEST AND PURPOSE 

The military represents a significant part of the Texas economy,
accounting for more than $49 billion in economic impact.  The Office of
Defense Affairs (ODA) is responsible for assisting defense communities to
develop infrastructure to minimize the possibility of, or the negative
effects of, a base closure.  However, the current revolving loan program
is unfunded.  As proposed, S.J.R. 49 authorizes the Texas Public Finance
Authority to issue general obligation bonds, in an aggregate amount not to
exceed $150 million, to be deposited in a separate account to fund
economic development projects in defense communities.  This joint
resolution also sets forth the criteria projects must meet to receive
financial assistance, provisions for paying back the bonds, and provisions
for administering the account. 


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.  FINANCIAL ASSISTANCE RELATING TO MILITARY INSTALLATIONS.  (a)
Authorizes the legislature, by general law, to authorize the Texas Public
Finance Authority (TPFA), or its successor, to issue general obligation
bonds of the State of Texas in an aggregate amount not to exceed $150
million.  Requires the proceeds from the sale of the bonds to be deposited
in a separate account in the treasury and used only to provide financial
assistance for economic development projects that benefit defense-related
communities, as defined by the legislature by general law, including
certain kinds of projects. 

(b) Authorizes the expenses incurred in connection with issuing the bonds
and administering the account to be paid from the bond proceeds. 

(c) Provides that bonds authorized under this section are a general
obligation of the state.  Provides that while any of the bonds, or
interest thereon, is outstanding and unpaid, each fiscal year the first
money coming into the treasury sufficient to pay the principal of an
interest on bonds that mature or become due, not otherwise appropriated by
this constitution, is appropriated less any amounts in the interest and
sinking accounts at the close of the preceding fiscal year that are
pledged to payment of the bonds or interest. 

SECTION 2.  Requires this proposed constitutional amendment to be
submitted to the voters at an election on November 4, 2003.  Sets forth
the required wording of the ballot.