HBA-MPM S.J.R. 10 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.J.R. 10
By: Lucio
Transportation
4/19/2001
Engrossed



BACKGROUND AND PURPOSE 

The federal National Highway System Designation Act of 1995 and the federal
Transportation Equity Act for the 21st Century authorized the use of Grant
Anticipation Revenue Vehicle (GARVEE) bonds to finance highway projects.
GARVEE bonds may be issued by the state and are guaranteed by future
federal reimbursements. The bonds are backed by state funds, usually state
gas tax revenues, if federal funds are insufficient to repay the state's
obligations. Allowing the Texas Transportation Commission to utilize GARVEE
bonds as a financing option may speed delivery of new construction
projects. Senate Joint Resolution 10 requires the submission to the voters
of a constitutional amendment authorizing the legislature to use GARVEE
bonds to fund highway projects. 

RULEMAKING AUTHORITY

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

ANALYSIS

Senate Joint Resolution 10 amends the Texas Constitution to authorize the
legislature for the funding of improvements to the state highway system to
authorize the Texas Transportation Commission to issue bonds and enter into
bond enhancement agreements that are payable from revenue received or to be
received from the federal highway trust fund and other revenue in the state
highway fund.  The resolution specifies the manner in which expenditures
for the principal and interest on the bonds and other related costs are
appropriated from the federal highway trust fund.  The resolution requires
the Texas Transportation Commission before each issuance of bonds to
determine the 10-year historic average expenditure ratio of nonfederal aid
projects to federal aid projects and certify to the governor and
Legislative Budget Board that the ratio will not be reduced as a result of
the proposed issuance. 

EFFECTIVE DATE

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