HBA-SEB H.J.R. 9 76(R) BILL ANALYSIS Office of House Bill AnalysisH.J.R. 9 By: Burnam Pensions and Investments 4/7/1999 Introduced BACKGROUND AND PURPOSE Federal funding for low income housing dropped from $71.2 billion in 1978 to $16.3 billion in 1997. In search of a way to raise funds for low income housing, the Texas Intergovernmental Task Force on Housing Investment investigated the possibility of investing statewide pension money in affordable housing. The task force rejected the possibility because the Texas Constitution prohibits social investment. As proposed, H.J.R. 9 requires the submission to the voters of a constitutional amendment requiring the board of trustees of the Texas growth fund II to invest not more than one percent of the fund in low income housing. 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 Section 67(a)(3), Article XVI, Texas Constitution, to provide that each statewide benefits system must have a board of trustees to administer the system and to invest the funds of the system in such investments, rather than securities, as the board may consider prudent. SECTION 2. Amends Sections 70(a)(1) and (2), Article XVI, Texas Constitution, to include the board of trustees of Texas growth fund II in the definition of "board of trustees," along with the board of trustees of Texas growth fund. Includes Texas growth fund II in the definition of "fund," along with Texas growth fund. SECTION 3. Amends Sections 70(b), (g), (j), and (k), Article XVI, Texas Constitution, as follows: (b) Makes a conforming change. (g) Provides that Subsection (j) is an exception to this subsection, which requires all investments of the fund to be directly related to the creation, retention, or expansion of employment opportunity and economic growth in Texas. (j) Requires the board of trustees to establish criteria for the investment of not more than one percent of the fund in low-income housing. (k) Makes conforming changes. SECTION 4. Requires this proposed constitutional amendment to be submitted to the voters at an election to be held on November 2, 1999. Sets forth the required language for the ballot.