HBA-EDN C.S.H.J.R. 97 77(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.J.R. 97
By: Junell
Financial Institutions
4/2/2001
Committee Report (Substituted)


BACKGROUND AND PURPOSE 

This resolution and its enabling legislation authorize the Texas Public
Finance Authority to issue and sell general obligation bonds, proceeds from
which would be used to pay for construction and repair projects
administered by certain state agencies.  As proposed, C.S.H.J.R. 97
requires the submission to the voters of a constitutional amendment
authorizing the issuance of up to $800 million in general obligation bonds
for construction and repair projects. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this resolution
does not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

C.S.H.J.R. 97 amends the Texas Constitution to provide that the legislature
by general law may authorize the Texas Public Finance Authority (authority)
to provide for, issue, and sell general obligation bonds of the State of
Texas (bonds) in an amount not to exceed $800 million.  The resolution
requires the bonds to be executed in the form, on the terms, and in the
denominations, bear interest, and be issued in installments as prescribed
by the authority.  The resolution requires that proceeds from the sale of
the bonds be deposited in a separate fund or account within the state
treasury and authorizes money in this fund to be used only to pay for
construction and repair projects authorized by the legislature by general
law or the General Appropriations Act and administered by or on the behalf
of the General Services Commission, the Texas Youth Commission, the Texas
Department of Criminal Justice, the Texas Department of Mental Health and
Mental Retardation, the Parks and Wildlife Department, the adjutant
general's department, the Texas School for the Deaf, the Department of
Agriculture, the Department of Public Safety, the State Preservation Board,
the Texas School for the Blind and Visually Impaired, the Texas Natural
Resource Conservation Commission, or the Texas Department of
Transportation.  

The resolution sets forth provisions relating to the payment of principal
and interest on bonds and provides that bonds are incontestable and are
general obligations to the State of Texas.      

FOR ELECTION

This proposed constitutional amendment shall be submitted to the voters at
an election to be held November 6, 2001. 

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.J.R. 97 modifies the original by authorizing the Texas Public Finance
Authority to provide for, issue, and sell bonds in an amount not to exceed
$800 million, rather than $10 million.  The substitute stipulates that
legislative authorization is needed for construction and repair projects
financed by proceeds from the sale of bonds.  The substitute also includes
additional state agencies by which or on behalf of which such projects may
be administered from the proceeds of the bonds.