SRC-AMY S.J.R. 55 78(R)    BILL ANALYSIS


Senate Research CenterS.J.R. 55
By: Shapleigh
Veteran Affairs & Military Installations
7/14/2003
Enrolled
DIGEST AND PURPOSE 

Currently, Texas has 18 major military installations throughout the state
that employ 225,000 people and contribute $43.4 billion annually to the
state economy.  The Department of Defense has announced plans to adopt new
technologies and national defense strategies to meet the changing needs of
warfare.  This transformation largely will be funded through execution of
the 2005 Base Realignment and Closure process, which may close as much as
25 percent of the existing military installation infrastructure.  State
and defense community leaders are committed to ensuring that Texas remains
a primary home and contributor to the evolving new defense strategies.
S.J.R. 55 proposes a constitutional amendment to authorize  the
legislature, by general law, to provide for a guarantee program to which
the state pledges its general credit in an amount not to exceed $250
million, to enhance the military value of a military facility in the
state.  This joint resolution also establishes provisions to pay for the
guarantee program and for how the guarantee program will be managed. 

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-n, as follows: 

Sec. 49-n.  (a) Authorizes the legislature by general law to authorize one
or more state agencies to issue general obligation bonds or notes of the
State of Texas in an aggregate amount not to exceed $250 million and to
enter into related credit agreements.  Requires the proceeds from the sale
of the bonds and notes to be deposited in the Texas military value
revolving loan account in the state treasury or its successor account to
be used by one or more state agencies designated by the legislature by
general law without further appropriation to provide loans for economic
development projects that benefit defenserelated communities, as defined
by the legislature by general law, including projects that enhance the
military value of military installations located in the state. 

(b) Authorizes the expenses incurred in connection with the issuance of
the bonds and notes and the costs of administering the Texas military
value revolving loan account to be paid from money in the account.
Authorizes money in the Texas military value revolving loan account to be
used to pay all or part of any payment owed under a credit agreement
related to the bonds or notes. 

(c) Authorizes a defense-related community receiving a loan from the Texas
military value revolving loan account to use money from the account to
capitalize interest on the loan. 

(d) Authorizes an agency providing a loan from the Texas military value
revolving loan account to a defense-related community to require the
defense-related community to pay any pro rata cost of issuing the general
obligation bonds and notes. 

(e) Provides that bonds and notes authorized under this section are a
general obligation of the state.  Provides that while any of the bonds or
notes or interest on  the bonds or notes is outstanding and unpaid, there
is appropriated out of the first money coming into the treasury in each
fiscal year, not otherwise appropriated by this constitution, the amount
sufficient to pay the principal of and interest on the bonds or notes that
mature or become due during the fiscal year, including an amount
sufficient to make payments under a related credit agreement, 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 notes or interest. 

SECTION 2.  Requires that this proposed constitutional amendment be
submitted to the voters at an election on September 13, 2003.  Sets forth
the required wording of the ballot.