By:  Ellis                                            S.J.R. No. 51
       73R9624 DWS-F
                                  A JOINT RESOLUTION
    1-1  proposing a constitutional amendment providing for the issuance of
    1-2  general obligation bonds for the support of the business start-up
    1-3  and small business development fund.
    1-4        BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Article XVI of the Texas Constitution is amended
    1-6  by adding Section 73 to read as follows:
    1-7        Sec. 73.  (a)  The legislature by law may establish a
    1-8  business start-up and small business development fund to be used
    1-9  without further appropriation solely in furtherance of a program
   1-10  established by the legislature to provide loans and loan guarantees
   1-11  to promote small business development, capital growth, and business
   1-12  start-up in the state.  The fund shall contain a program account,
   1-13  an interest and sinking account, and other accounts authorized by
   1-14  the legislature.  To carry out the program authorized by this
   1-15  subsection, the legislature may issue up to $100 million of general
   1-16  obligation bonds to provide funding for the fund.  The fund is
   1-17  composed of the proceeds of the bonds authorized by this
   1-18  subsection, loan and loan guarantee fees and other amounts received
   1-19  from loans and loan guarantees made under this subsection, and any
   1-20  other amount required to be deposited in the fund by the
   1-21  legislature.
   1-22        (b)  The legislature may require review and approval of the
   1-23  issuance of bonds under this section, of the use of the bond
   1-24  proceeds, or of the rules adopted by an agency to govern use of the
    2-1  bond proceeds.  Notwithstanding any other provision of this
    2-2  constitution, any entity created or directed to conduct this review
    2-3  and approval may include members, or appointees of members, of the
    2-4  executive, legislative, and judicial departments of state
    2-5  government.
    2-6        (c)  Bonds authorized under this section constitute a general
    2-7  obligation of the state.  While any of the bonds or interest on the
    2-8  bonds is outstanding and unpaid, there is appropriated out of the
    2-9  first money coming into the treasury in each fiscal year, not
   2-10  otherwise appropriated by this constitution, the amount sufficient
   2-11  to pay the principal of and interest on the bonds that mature or
   2-12  become due during the fiscal year, less any amount in any interest
   2-13  and sinking account at the end of the preceding fiscal year that is
   2-14  pledged to payment of the bonds or interest.
   2-15        SECTION 2.  This proposed constitutional amendment shall be
   2-16  submitted to the voters at an election to be held on November 2,
   2-17  1993.  The ballot shall be printed to provide for voting for or
   2-18  against the proposition:  "The constitutional amendment authorizing
   2-19  up to $100 million in general obligation bonds to finance the
   2-20  business start-up and small business development fund for providing
   2-21  financial assistance to promote economic development, capital
   2-22  growth, and business start-up in the state."