By Corte                                              H.J.R. No. 11
         77R837 KSK-F                           
                                 A JOINT RESOLUTION
 1-1     proposing a constitutional amendment to limit the tax rate on the
 1-2     income component of the franchise tax.
 1-3           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Article VIII of the Texas Constitution is amended
 1-5     by adding Section 25 to read as follows:
 1-6           Sec. 25.  If the legislature imposes a tax on the privilege
 1-7     to operate in this state as a corporation or other legal entity and
 1-8     a component of the tax is determined by the corporation's or other
 1-9     entity's gross, net, or other adjusted income, the legislature may
1-10     not impose the tax on the component determined on income at a rate
1-11     that exceeds 4.5 percent.
1-12           SECTION 2.  This proposed constitutional amendment shall be
1-13     submitted to the voters at an election to be held November 6, 2001.
1-14     The ballot shall be printed to permit voting for or against the
1-15     proposition:  "The constitutional amendment to limit the tax rate
1-16     on the income component of the franchise tax."