1-1  By:  West                                             S.J.R. No. 30
    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 to provide or guarantee surety
    1-9  bonds 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 73 to read as follows:
   1-13        Sec. 73.  (a)  The legislature by law may establish a Texas
   1-14  historically underutilized business bonding fund to be used without
   1-15  further appropriation solely in futherance of a program established
   1-16  by the legislature to provide surety bonds to historically
   1-17  underutilized businesses or to guarantee surety bonds provided to
   1-18  historically underutilized businesses, as defined by the
   1-19  legislature.  The fund shall contain a program account, an interest
   1-20  and sinking account, and other accounts authorized by the
   1-21  legislature.  To carry out the program authorized by this
   1-22  subsection, the legislature may issue up to $50 million of general
   1-23  obligation bonds to provide funding for the fund.  The fund is
   1-24  composed of the proceeds of the bonds authorized by this
   1-25  subsection, surety bond fees, guarantee fees, other amounts
   1-26  received from the issuance or guarantee of surety bonds made under
   1-27  this subsection, and any other amount the legislature requires to
   1-28  be deposited in the fund.
   1-29        (b)  The legislature may require review and approval of the
   1-30  issuance of bonds under this section, of the use of the bond
   1-31  proceeds, or of the rules adopted by an agency to govern use of the
   1-32  bond proceeds.  Notwithstanding any other provision of this
   1-33  constitution, any entity created or directed to conduct this review
   1-34  and approval may include members or appointees of members of the
   1-35  executive, legislative, and judicial departments of state
   1-36  government.
   1-37        (c)  Bonds authorized under this section constitute a general
   1-38  obligation of the state.  While any of the bonds or interest on the
   1-39  bonds is outstanding and unpaid, there is appropriated out of the
   1-40  first money coming into the treasury in each fiscal year not
   1-41  otherwise appropriated by this constitution the amount sufficient
   1-42  to pay the principal of and interest on the bonds that mature or
   1-43  become due during the fiscal year less any amount in any interest
   1-44  and sinking account at the end of the preceding fiscal year that is
   1-45  pledged to payment of the bonds or interest.
   1-46        SECTION 2.  This proposed amendment shall be submitted to the
   1-47  voters at an election to be held November 7, 1995.  The ballot
   1-48  shall be printed to permit voting for or against the proposition:
   1-49  "The constitutional amendment authorizing the legislature to
   1-50  provide for the issuance of $50 million of general obligation bonds
   1-51  for the recovery and further development of the state's economy,
   1-52  with the goal of increasing job opportunities and other benefits
   1-53  for Texas residents, through the state's provision and guarantee of
   1-54  surety bonds to historically underutilized businesses."
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