HBA-JLV S.J.R. 37 77(R) BILL ANALYSIS Office of House Bill AnalysisS.J.R. 37 By: Lucio Financial Institutions 4/27/2001 Engrossed BACKGROUND AND PURPOSE Currently, inadequate development and substandard housing conditions along the Texas-Mexico border are prohibited by state law. However, many neighborhoods, known as colonias, were built in this region prior to 1989 when legislative reform began. Since little housing is available or affordable to the residents of these colonias, many Texas residents continue to live in neighborhoods without basic services. As proposed, S.J.R. 37 requires the submission to the voters of a constitutional amendment authorizing the issuance of state general obligation bonds to provide financial assistance to counties for roadway projects to serve border colonias. 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 S.J.R. 37 amends the Texas Constitution to provide that the legislature may authorize the governor to authorize the Texas Public Finance Authority or its successor to issue general obligation bonds of the State of Texas in an aggregate amount not to exceed $175 million and to enter into related bond enhancement agreements in order to fund financial assistance to counties for roadways to serve border colonias. Proceeds may be used only to provide financial assistance to counties for projects to provide access roads to connect border colonias with public roads. The bill authorizes the Texas Transportation Commission, in its discretion and in consultation with the office of the governor, to determine what constitutes a border colonia for purposes of selecting the counties and projects that may receive assistance. The bill provides that a portion of the proceeds from the sale of the bonds and a portion of the interest earned on the bonds may be used to pay the cost of administering authorized projects. The bill provides that while any of the bonds or interest on the bonds is outstanding and unpaid, there is appropriated out of the general revenue fund in each fiscal year an amount sufficient to pay the principal of and interest on the bonds that mature or become due during the fiscal year, including an amount sufficient to make payments under a related bond enhancement agreement. FOR ELECTION This proposed constitutional amendment shall be submitted to the voters at an election to be held November 6, 2001.