By:  West                                             S.J.R. No. 29
                                SENATE JOINT RESOLUTION
    1-1  proposing a constitutional amendment authorizing the legislature to
    1-2  provide for the issuance of bonds for the state financing of
    1-3  start-up costs for historically underutilized businesses.
    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 72 to read as follows:
    1-7        Sec. 72.  (a)  The legislature by law may establish a Texas
    1-8  historically underutilized business capital growth and start-up
    1-9  fund.  The money in the fund may be used, without further
   1-10  appropriation, only for a program established by the legislature to
   1-11  aid in the start-up costs of historically underutilized businesses,
   1-12  as defined by the legislature.  The fund must contain a program
   1-13  account, an interest and sinking account, and other accounts
   1-14  authorized by the legislature.  To carry out the program authorized
   1-15  by this subsection, the legislature may issue up to $50 million of
   1-16  general obligation bonds to provide funding for the fund.  The fund
   1-17  is to be composed of the proceeds of the bonds authorized by this
   1-18  subsection, loan guarantee fees and other amounts received from
   1-19  loan guarantees made under this subsection, and any other amount
   1-20  the legislature requires to be deposited in the fund.
   1-21        (b)  The legislature may require review and approval of the
   1-22  issuance of bonds under this section, of the use of the bond
   1-23  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 an amount sufficient to
   2-11  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 amendment shall be submitted to the
   2-16  voters at an election to be held November 7, 1995.  The ballot
   2-17  shall be printed to permit voting for or against the
   2-18  proposition:  "The constitutional amendment authorizing the
   2-19  legislature to provide for the issuance of $50 million of general
   2-20  obligation bonds for the recovery and further development of the
   2-21  state's economy and for increasing job opportunities and other
   2-22  benefits for Texas residents through state financing of the
   2-23  start-up costs of historically underutilized businesses."