S.J.R. No. 21 


SENATE 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) of this section, 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."





______________________________    ______________________________
President of the Senate             Speaker of the House
	I hereby certify that S.J.R. No. 21 was adopted by the Senate 
on April 14, 2005, by the following vote:  Yeas 31, Nays 0.




______________________________ 
   Secretary of the Senate             
	I hereby certify that S.J.R. No. 21 was adopted by the House 
on May 9, 2005, by the following vote:  Yeas 139, Nays 0, three 
present not voting.




______________________________ 
   Chief Clerk of the House