73R7459 RJA-D By Chisum H.J.R. No. 33 Substitute the following for H.J.R. No. 33: By Heflin C.S.H.J.R. No. 33 A JOINT RESOLUTION 1-1 proposing a constitutional amendment limiting debt payable from the 1-2 general revenue fund. 1-3 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Article III of the Texas Constitution is amended 1-5 by adding Section 49-j to read as follows: 1-6 Sec. 49-j. (a) The legislature may not authorize additional 1-7 state debt if the resulting annual debt service exceeds the 1-8 limitation imposed by this section. The maximum annual debt 1-9 service in any fiscal year on state debt payable from the general 1-10 revenue fund may not exceed five percent of an amount equal to the 1-11 average of the amount of general revenue fund revenues, excluding 1-12 revenues constitutionally dedicated for purposes other than payment 1-13 of state debt, for the three immediately preceding fiscal years. 1-14 (b) For purposes of this section, "state debt payable from 1-15 the general revenue fund" means general obligation and revenue 1-16 bonds, including authorized but unissued bonds, and lease-purchase 1-17 agreements in an amount greater than $250,000, which bonds or lease 1-18 purchase agreements are designed to be repaid with the general 1-19 revenues of the state. The term does not include bonds that, 1-20 although backed by the full faith or credit of the state, are 1-21 reasonably expected to be paid from other revenue sources and that 1-22 are not expected to create a general revenue draw. Bonds or lease 1-23 purchase agreements that pledge the full faith and credit of the 1-24 state will be considered to be reasonably expected to be paid from 2-1 other revenue sources if they are designed to receive revenues 2-2 other than state general revenues sufficient to cover their debt 2-3 service over the life of the bonds or agreement. In the event 2-4 those bonds or agreements, or any portion of the bonds or 2-5 agreements, subsequently requires use of the state's general 2-6 revenue for payment, the bonds or agreements, or portion of the 2-7 bonds or agreements, will be considered to be a "state debt payable 2-8 from the general revenue fund" within the definition of this 2-9 section, until one of the following events occurs: 2-10 (1) the bonds or agreements are backed by insurance or 2-11 other form of guarantee that will ensure payment from other than 2-12 general revenue; or 2-13 (2) the issuer demonstrates to the satisfaction of the 2-14 Bond Review Board or its successor that the bonds will no longer 2-15 require a general revenue draw, and the Bond Review Board so 2-16 certifies to the Legislative Budget Board or its successor. 2-17 SECTION 2. This proposed constitutional amendment shall be 2-18 submitted to the voters at an election to be held on November 8, 2-19 1994. The ballot shall be printed to provide for voting for or 2-20 against the proposition: "The constitutional amendment limiting 2-21 the amount of state debt payable from the general revenue fund."