1-1  By:  West                                             S.J.R. No. 29
    1-2        (In the Senate - Filed January 30, 1995; January 31, 1995,
    1-3  read first time and referred to Committee on State Affairs;
    1-4  March 3, 1995, reported favorably by the following vote:  Yeas 8,
    1-5  Nays 5; March 3, 1995, sent to printer.)
    1-6                        SENATE JOINT RESOLUTION
    1-7  proposing a constitutional amendment authorizing the legislature to
    1-8  provide for the issuance of bonds for the state financing of
    1-9  start-up costs for historically underutilized businesses.
   1-10        BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-11        SECTION 1.  Article XVI of the Texas Constitution is amended
   1-12  by adding Section 72 to read as follows:
   1-13        Sec. 72.  (a)  The legislature by law may establish a Texas
   1-14  historically underutilized business capital growth and start-up
   1-15  fund.  The money in the fund may be used, without further
   1-16  appropriation, only for a program established by the legislature to
   1-17  aid in the start-up costs of historically underutilized businesses,
   1-18  as defined by the legislature.  The fund must contain a program
   1-19  account, an interest and sinking account, and other accounts
   1-20  authorized by the legislature.  To carry out the program authorized
   1-21  by this subsection, the legislature may issue up to $50 million of
   1-22  general obligation bonds to provide funding for the fund.  The fund
   1-23  is to be composed of the proceeds of the bonds authorized by this
   1-24  subsection, loan guarantee fees and other amounts received from
   1-25  loan guarantees made under this subsection, and any other amount
   1-26  the legislature requires to be deposited in the fund.
   1-27        (b)  The legislature may require review and approval of the
   1-28  issuance of bonds under this section, of the use of the bond
   1-29  proceeds, or of the rules adopted by an agency to govern use of the
   1-30  bond proceeds.  Notwithstanding any other provision of this
   1-31  constitution, any entity created or directed to conduct this review
   1-32  and approval may include members or appointees of members of the
   1-33  executive, legislative, and judicial departments of state
   1-34  government.
   1-35        (c)  Bonds authorized under this section constitute a general
   1-36  obligation of the state.  While any of the bonds or interest on the
   1-37  bonds is outstanding and unpaid, there is appropriated out of the
   1-38  first money coming into the treasury in each fiscal year not
   1-39  otherwise appropriated by this constitution an amount sufficient to
   1-40  pay the principal of and interest on the bonds that mature or
   1-41  become due during the fiscal year less any amount in any interest
   1-42  and sinking account at the end of the preceding fiscal year that is
   1-43  pledged to payment of the bonds or interest.
   1-44        SECTION 2.  This proposed amendment shall be submitted to the
   1-45  voters at an election to be held November 7, 1995.  The ballot
   1-46  shall be printed to permit voting for or against the
   1-47  proposition:  "The constitutional amendment authorizing the
   1-48  legislature to provide for the issuance of $50 million of general
   1-49  obligation bonds for the recovery and further development of the
   1-50  state's economy and for increasing job opportunities and other
   1-51  benefits for Texas residents through state financing of the
   1-52  start-up costs of historically underutilized businesses."
   1-53                               * * * * *