79R4315 DWS-D

By:  Flynn                                                      H.J.R. No. 43 



A JOINT RESOLUTION

proposing a constitutional amendment authorizing the legislature 
to define rates of interest for commercial loans.
	BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:                       
	SECTION 1.  Section 11, Article XVI, Texas Constitution, is 
amended to read as follows:
	Sec. 11. (a)  The Legislature shall have authority to define 
interest and fix maximum rates of interest;  provided, however, in 
the absence of legislation fixing maximum rates of interest all 
contracts for a greater rate of interest than ten per centum (10%) 
per annum shall be deemed usurious;  provided, further, that in 
contracts where no rate of interest is agreed upon, the rate shall 
not exceed six per centum (6%) per annum.
	(b)  Notwithstanding Subsection (a), the Legislature, with 
respect to commercial loans, may create exemptions from the maximum 
rates of interest.  For purposes of this subsection, "commercial 
loan" means a loan made primarily for business, commercial, 
investment, agricultural, or similar purposes and not primarily for 
personal, family, or household purposes.
	SECTION 2.   This proposed constitutional amendment shall be 
submitted to the voters at an election to be held November 8, 2005. 
The ballot shall be printed to permit voting for or against the 
proposition: "The constitutional amendment allowing the 
legislature to define rates of interest for commercial loans."