By Lucio                                               S.J.R. No. 7
         77R1714 DRH-D                           
                                 A JOINT RESOLUTION
 1-1     proposing a constitutional amendment authorizing the legislature to
 1-2     provide for the issuance of bonds for certain improvements to the
 1-3     state highway system.
 1-4           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Article III, Texas Constitution, is amended by
 1-6     adding Section 49-k to read as follows:
 1-7           Sec. 49-k. (a)  To fund improvements to the state highway
 1-8     system, including improvements relating to North American Free
 1-9     Trade Agreement-related corridors, the legislature may authorize
1-10     the Texas Transportation Commission or its successor to issue bonds
1-11     and enter into bond enhancement agreements that are payable from
1-12     revenue received or to be received from the federal highway trust
1-13     fund and other revenue deposited to the credit of the state highway
1-14     fund.
1-15           (b)  The maximum annual debt service in any fiscal year on
1-16     state debt authorized by this section may not exceed 15 percent of
1-17     the amount received from the federal highway trust fund by this
1-18     state in the preceding fiscal year.
1-19           (c)  While the principal of any of the bonds authorized by
1-20     this section or interest on those bonds is outstanding, there is
1-21     appropriated in each fiscal year from the revenue received from the
1-22     federal highway trust fund and other revenues deposited to the
1-23     credit of the state highway fund in that fiscal year an amount that
1-24     does not exceed the limit imposed by Subsection (b) of this section
 2-1     and is sufficient to pay:
 2-2                 (1)  the principal of and interest on the bonds that
 2-3     mature or become due during the fiscal year; and
 2-4                 (2)  any bond-related cost eligible for reimbursement
 2-5     under federal law that becomes due during that fiscal year.
 2-6           (d)  The authority to issue bonds under this section expires
 2-7     on September 1, 2005, unless before that date:
 2-8                 (1)  the legislature enacts legislation to authorize
 2-9     the issuance of bonds under this section and that legislation
2-10     becomes law;
2-11                 (2)  the legislature or a legislative agency
2-12     subsequently reviews the legislative authorization to issue bonds
2-13     under this section in the manner in which state agencies are
2-14     periodically reviewed under general law; and
2-15                 (3)  the 78th or 79th Legislature at its regular
2-16     session enacts legislation that becomes law and that continues in
2-17     effect the legislative authorization to issue bonds under this
2-18     section.
2-19           (e)  The expiration of the authority to issue bonds under
2-20     this section as provided by Subsection (d) of this section does not
2-21     affect the validity of a bond that was issued before the authority
2-22     expired.
2-23           SECTION 2.  This proposed constitutional amendment shall be
2-24     submitted to the voters at an election to be held November 6, 2001.
2-25     The ballot shall be printed to permit voting for or against the
2-26     proposition:  "The constitutional amendment authorizing the
2-27     legislature to provide for the issuance of certain state highway
 3-1     system improvement bonds payable from federal and state highway
 3-2     funds."