BWM H.J.R. 59 75(R)BILL ANALYSIS FINANCIAL INSTITUTIONS H.J.R. 59 By: Delisi 2-24-97 Committee Report (Unamended) BACKGROUND Under current state law, the limit on state debt payable from the general revenue fund is 5% of general revenue fund revenues (Art. 717k-7, Sec. 8(a)). Currently this percentage is below the 5% mark. The current debt-limit ratio is 2.7%, including authorized, but unissued bonds. PURPOSE This bill constitutionally limits the amount of bonded indebtedness the state can enter into. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Article III, Texas Constitution by adding Section 49j(a) and (b), as follows: (a) Prohibits the Legislature from authorizing additional state debt if the annual debt service payable from General Revenue will exceed 5% of general revenue fund reserves; excluding constitutionally dedicated revenues for three immediately preceding fiscal years. (b) Defines "state debt payable from the general revenue fund." SECTION 2. Provides for the proposed constitutional amendment to be submitted statewide to voters on November 4, 1997.