1-1 By: Junell, Davis of Harris H.J.R. No. 97 1-2 (Senate Sponsor - Ellis) 1-3 (In the Senate - Received from the House May 2, 2001; 1-4 May 3, 2001, read first time and referred to Committee on Finance; 1-5 May 9, 2001, reported adversely, with favorable Committee 1-6 Substitute by the following vote: Yeas 12, Nays 0; May 9, 2001, 1-7 sent to printer.) 1-8 COMMITTEE SUBSTITUTE FOR H.J.R. No. 97 By: Ellis 1-9 HOUSE JOINT RESOLUTION 1-10 proposing a constitutional amendment authorizing the issuance of 1-11 general obligation bonds for construction and repair projects and 1-12 for the purchase of needed equipment. 1-13 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-14 SECTION 1. Article III, Texas Constitution, is amended by 1-15 adding Section 50-f to read as follows: 1-16 Sec. 50-f. (a) The legislature by general law may authorize 1-17 the Texas Public Finance Authority to provide for, issue, and sell 1-18 general obligation bonds of the State of Texas in an amount not to 1-19 exceed $850 million and to enter into related credit agreements. 1-20 The bonds shall be executed in the form, on the terms, and in the 1-21 denominations, bear interest, and be issued in installments as 1-22 prescribed by the Texas Public Finance Authority. 1-23 (b) Proceeds from the sale of the bonds shall be deposited 1-24 in a separate fund or account within the state treasury created by 1-25 the comptroller for this purpose. Money in the separate fund or 1-26 account may be used only to pay for: 1-27 (1) construction and repair projects authorized by the 1-28 legislature by general law or the General Appropriations Act and 1-29 administered by or on behalf of the General Services Commission, 1-30 the Texas Youth Commission, the Texas Department of Criminal 1-31 Justice, the Texas Department of Mental Health and Mental 1-32 Retardation, the Parks and Wildlife Department, the adjutant 1-33 general's department, the Texas School for the Deaf, the Department 1-34 of Agriculture, the Department of Public Safety of the State of 1-35 Texas, the State Preservation Board, or the Texas School for the 1-36 Blind and Visually Impaired; or 1-37 (2) the purchase, as authorized by the legislature by 1-38 general law or the General Appropriations Act, of needed equipment 1-39 by or on behalf of a state agency listed in Subdivision (1) of this 1-40 subsection. 1-41 (c) The maximum net effective interest rate to be borne by 1-42 bonds issued under this section may be set by general law. 1-43 (d) While any of the bonds or interest on the bonds 1-44 authorized by this section is outstanding and unpaid, from the 1-45 first money coming into the state treasury in each fiscal year not 1-46 otherwise appropriated by this constitution, an amount sufficient 1-47 to pay the principal and interest on bonds that mature or become 1-48 due during the fiscal year and to make payments that become due 1-49 under a related credit agreement during the fiscal year is 1-50 appropriated, less the amount in the sinking fund at the close of 1-51 the previous fiscal year. 1-52 (e) Bonds issued under this section, after approval by the 1-53 attorney general, registration by the comptroller of public 1-54 accounts, and delivery to the purchasers, are incontestable and are 1-55 general obligations of the State of Texas under this constitution. 1-56 SECTION 2. This proposed constitutional amendment shall be 1-57 submitted to the voters at an election to be held November 6, 2001. 1-58 The ballot shall be printed to permit voting for or against the 1-59 proposition: "The constitutional amendment authorizing the 1-60 issuance of up to $850 million in bonds payable from the general 1-61 revenues of the state for construction and repair projects and for 1-62 the purchase of needed equipment." 1-63 * * * * *