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.