By Delisi                                             H.J.R. No. 59

         75R1852 RJA-D                           

                                 A JOINT RESOLUTION

 1-1     proposing a constitutional amendment limiting debt payable from the

 1-2     general   revenue fund.

 1-3           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Article III, Texas Constitution, is amended by

 1-5     adding Section 49-j to read as follows:

 1-6           Sec. 49-j.  (a)  The legislature may not authorize additional

 1-7     state debt if the resulting annual debt service exceeds the

 1-8     limitation imposed by this section.  The maximum annual debt

 1-9     service in any fiscal year on state debt payable from the general

1-10     revenue fund may not exceed five percent of an amount equal to the

1-11     average of the amount of general revenue fund revenues, excluding

1-12     revenues constitutionally dedicated for purposes other than payment

1-13     of state debt, for the three preceding fiscal years.

1-14           (b)  For purposes of this section, "state debt payable from

1-15     the general revenue fund" means general obligation and revenue

1-16     bonds, including authorized but unissued bonds, and lease-purchase

1-17     agreements in an amount greater than $250,000, which bonds or lease

1-18     purchase agreements are designed to be repaid with the general

1-19     revenues of the state.  The term does not include bonds that,

1-20     although backed by the full faith or credit of the state, are

1-21     reasonably expected to be paid from other revenue sources and that

1-22     are not expected to create a general revenue draw.  Bonds or lease

1-23     purchase agreements that pledge the full faith and credit of the

1-24     state are considered to be reasonably expected to be paid from

 2-1     other revenue sources if they are designed to receive revenues

 2-2     other than state general revenues sufficient to cover their debt

 2-3     service over the life of the bonds or agreement.  If those bonds or

 2-4     agreements, or any portion of the bonds or agreements, subsequently

 2-5     requires use of the state's general revenue for payment, the bonds

 2-6     or agreements, or portion of the bonds or agreements, is considered

 2-7     to be a "state debt payable from the general revenue fund" under

 2-8     this section, until:

 2-9                 (1)  the bonds or agreements are backed by insurance or

2-10     another form of guarantee that ensures payment from a source other

2-11     than general revenue; or

2-12                 (2)  the issuer demonstrates to the satisfaction of the

2-13     Bond Review Board or its successor designated by law that the bonds

2-14     no longer require payment from general revenue, and the Bond Review

2-15     Board so certifies to the Legislative Budget Board or its successor

2-16     designated by law.

2-17           SECTION 2.  This proposed constitutional amendment shall be

2-18     submitted to the voters at an election to be held on November 4,

2-19     1997.  The ballot shall be printed to provide for voting for  or

2-20     against the proposition:  "The constitutional amendment limiting

2-21     the amount of state debt payable from the general revenue fund."