HBA-KSM H.J.R. 2 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.J.R. 2
By: Oliveira
Financial Institutions
3/14/1999
Introduced



BACKGROUND AND PURPOSE 

The House Committee on Economic Development (committee) studied the North
American Free Trade Agreement's effect on Texas during the interim between
the 75th and 76th Legislatures. Findings revealed delays currently exist at
the Texas-Mexico border ports of entry because of inadequate
infrastructure.  This may be causing negative economic repercussions across
the state as goods are unable to move freely across the international
border with Mexico, the state's largest trading partner.  A large
investment will be necessary to improve border highway infrastructure. 

As proposed, H.J.R. 2 requires the submission to the voters of a
constitutional amendment providing for the issuance of general obligation
bonds to develop, construct, and improve highways, streets, and facilities
providing access to international ports of entry along the Texas-Mexico
border. 

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. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Article III, Texas Constitution, by adding Section 49-k,
as follows: 

Sec. 49-k.  INTERNATIONAL PORT OF ENTRY BONDS.  (a)  Authorizes the
legislature by law to provide for the issuance of $1 billion of general
obligation bonds and authorize the use of the bond proceeds to develop,
construct, and improve highways, streets, and facilities that provide
access to international ports of entry in this state that are located on
the border with the United Mexican States or in a county bordering the
United Mexican States having a seaport. 

        (b)  Provides that bonds authorized under this section constitute a
general obligation of the state.  Provides that while any of the bonds or
interest on the bonds 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 an interest on the bonds that mature or become due during
the fiscal year, less any amount in any interest and sinking account at the
end of the preceding fiscal year that is pledged to payment of the bonds or
interest. 

SECTION 2.  Requires this proposed constitutional amendment to be submitted
to the voters at an election to be held November 2, 1999.  Sets forth the
required language for the ballot.