By Counts H.J.R. No. 75
A JOINT RESOLUTION
1-1 proposing a constitutional amendment relating to bonds issued to
1-2 augment the Veterans' Land Fund and the Veterans' Housing
1-3 Assistance Fund and to create and fund the Veterans' Housing
1-4 Assistance Fund II.
1-5 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Article III of the Texas Constitution is amended
1-7 by adding a new section 49-b-2, to read as follows:
1-8 Sec. 49-b-2. Bonds issued to augment Veterans' Land Fund and
1-9 Veterans' Housing Assistance Fund and for Veterans' Housing
1-10 Assistance Fund II; appropriation when money in any Fund not
1-11 available
1-12 Sec. 49-b-2. (a) In addition to the general obligation
1-13 bonds authorized to be issued and to be sold by the Veterans' Land
1-14 Board by sections 49-b and 49-b-1 of this article, the Veterans'
1-15 Land Board may provide for, issue, and sell not to exceed $750
1-16 million in general obligation bonds of the State of Texas at any
1-17 time outstanding to provide financing to veterans of the state in
1-18 recognition of their service to their state and the United States
1-19 of America.
1-20 (b) For purposes of this section, "veteran" has the same
1-21 meaning as provided for in section 49-b-1 of this article.
1-22 (c) Two hundred fifty million dollars of the general
1-23 obligation bonds authorized to be outstanding by this section shall
2-1 be used to augment the Veterans' Land Fund. Notwithstanding any
2-2 provision of section 49-b or 49-b-1 of this article to the
2-3 contrary, the Veterans' Land Fund shall be used by the Veterans'
2-4 Land Board in accordance with this section for the purpose of
2-5 purchasing lands situated in the State of Texas owned by United
2-6 States government or any agency thereof, the State of Texas or any
2-7 subdivision or agency thereof, or any person, firm, or corporation.
2-8 Such lands heretofore or hereafter purchased and comprising a part
2-9 of the Veterans' Land Fund are hereby declared to be held for a
2-10 governmental purpose, although the individual purchasers thereof
2-11 shall be subject to taxation to the same extent and in the same
2-12 manner as are purchasers of lands dedicated to the Permanent Free
2-13 Public School Fund. The lands shall be sold to veterans in such
2-14 quantities, on such terms, at such prices, at such rate or rates of
2-15 interest (fixed, variable, floating or otherwise), and under such
2-16 rules and regulations as may be authorized by said Board. The
2-17 foregoing notwithstanding, any lands in the Veterans' Land Fund
2-18 which have been first offered for sale to veterans and which have
2-19 been first offered for sale to veterans and which have not been
2-20 sold may be sold or resold to such purchasers, in such quantities,
2-21 and on such terms, and at such prices and rates of interest, and
2-22 under such rules and regulations as are now or may hereafter be
2-23 determined by said Board. The expenses of said Board in connection
2-24 with the issuance of the bonds and the purchase and sale of the
2-25 lands, may be paid from money in the Veterans' Land Fund. The
3-1 Veterans' Land Fund shall consist of any lands heretofore or
3-2 hereafter purchased by said Board and of the money attributable to
3-3 any bonds heretofore or hereafter issued and sold by said Board for
3-4 such fund, which money so attributable shall include but shall not
3-5 be limited to the proceeds from the issuance and sale of such
3-6 bonds; the money received from the sale or resale of any lands, or
3-7 rights therein, purchased from such proceeds; the money received
3-8 from the sale or resale of any lands, or rights therein, purchased
3-9 with other money attributable to such bonds; the proceeds derived
3-10 from the sale or other disposition of said Board's interest in
3-11 contracts for the sale or resale of any such lands, or rights
3-12 therein; the interest and penalties received from the sale or
3-13 resale of such lands, or rights therein; the bonuses, income,
3-14 rents, royalties, and any other pecuniary benefit received by said
3-15 Board from any such lands; sums received by way of indemnity or
3-16 forfeiture for the failure of any bidder for the purchase of any
3-17 such bonds to comply with his bid and accept and pay for such bonds
3-18 or for the failure of any bidder for the purchase of any lands
3-19 comprising a part of the Veterans' Land Fund to comply with his bid
3-20 and accept and pay for any such lands; payments received by the
3-21 Board under any bond enhancement agreements with respect to such
3-22 bonds; and interest received from investments of any such money.
3-23 The principal of and interest on the general obligation bonds
3-24 authorized by this section for the benefit of the Veterans' Land
3-25 Fund (including payments by the Board under any bond enhancement
4-1 agreements with respect to principal of or interest on such bonds)
4-2 shall be paid out of the money of the Veterans' Land Fund, but the
4-3 money of such fund which is not immediately committed to the
4-4 payment of principal and interest on such bonds, the purchase of
4-5 lands as herein provided, or the payment of expenses as herein
4-6 provided may be invested as authorized by law until the money is
4-7 needed for such purposes.
4-8 (d) The Veterans' Housing Assistance Fund II is created, and
4-9 $500 million of the general obligation bonds authorized to be
4-10 outstanding by this section shall be used for the Veterans' Housing
4-11 Assistance Fund II. The Veterans' Housing Assistance Fund II is a
4-12 separate and distinct fund from the Veterans' Housing Assistance
4-13 Fund, established pursuant to section 49-b-1 of this article.
4-14 Money in the Veterans' Housing Assistance Fund II shall be
4-15 administered by the Veterans' Land Board and shall be used for the
4-16 purpose of making home mortgage loans to veterans for housing
4-17 within the State of Texas in such quantities, on such terms, at
4-18 such rates of interest (fixed, variable, floating or otherwise),
4-19 and under such rules and regulations as may be authorized by law.
4-20 The expenses of said Board in connection with the issuance of the
4-21 bonds and the making of the loans may be paid from money in the
4-22 Veterans' Housing Assistance Fund II. The Veterans' Housing
4-23 Assistance Fund II shall consist of any interest of said Board in
4-24 home mortgage loans made to veterans by said Board from money in
4-25 such fund pursuant to the Veterans' Housing Assistance Program
5-1 established by the legislature; the proceeds derived from the sale
5-2 or other disposition of said Board's interest in such home mortgage
5-3 loans; the money attributable to any bonds issued and sold by said
5-4 Board to provide money for such fund, which money so attributable
5-5 shall include but shall not be limited to the proceeds from the
5-6 issuance and sale of such bonds; income, rents, and any other
5-7 pecuniary benefit received by said Board as a result of making such
5-8 loans; sums received by way of indemnity or forfeiture for the
5-9 failure of any bidder for the purchase of any such bonds to comply
5-10 with his bid and accept and pay for such bonds; payments received
5-11 by the Board under any bond enhancement agreements with respect to
5-12 such bonds; and interest received from investments of any such
5-13 money. The principal of and interest on the general obligation
5-14 bonds authorized by this section for the benefit of the Veterans'
5-15 Housing Assistance Fund II (including payments by the Board under
5-16 any bond enhancement agreements with respect to principal of or
5-17 interest on such bonds) shall be paid out of the money of the
5-18 Veterans' Housing Assistance Fund II, but the money of such fund
5-19 which is not immediately committed to the payment of principal and
5-20 interest on such bonds, the making of home mortgage loans as herein
5-21 provided may be invested as authorized by law until the money is
5-22 needed for such purposes.
5-23 (e) Notwithstanding the provisions of section 49-b-1 of this
5-24 article to the contrary, the Veterans' Housing Assistance Fund
5-25 shall consist of any interest of said Board in home mortgage loans
6-1 made to veterans by said Board from money in such fund pursuant to
6-2 the Veterans' Housing Assistance Program established by the
6-3 legislature; the proceeds derived from the sale or other
6-4 disposition of said Board's interest in such home mortgage loans;
6-5 the money attributable to any bonds issued and sold by said Board
6-6 to provide money for such fund, which money so attributable shall
6-7 include but shall not be limited to the proceeds from the issuance
6-8 and sale of such bonds; income, rents, and any other pecuniary
6-9 benefit received by said Board as a result of making such loans;
6-10 sums received by way of indemnity or forfeiture for the failure of
6-11 any bidder for the purchase of any such bonds to comply with his
6-12 bid and accept and pay for such bonds; payments received by the
6-13 Board under any bond enhancement agreements with respect to such
6-14 bonds; and interest received from investments of any such money.
6-15 The principal of and interest on the general obligation bonds
6-16 authorized by section 49-b-1 of this section for the benefit of the
6-17 Veterans' Housing Assistance Fund (including payments by the Board
6-18 under any bond enhancement agreements with respect to principal of
6-19 or interest on such bonds) shall be paid out of money in the
6-20 Veterans' Housing Assistance Fund.
6-21 (f) To the extent there is not money in any of the Veterans'
6-22 Land Fund, the Veterans' Housing Assistance Fund or the Veterans'
6-23 Housing Assistance Fund II, as the case may be, available for
6-24 payment of principal of and interest on the general obligation
6-25 bonds authorized by this section or by sections 49-b or 49-b-1 of
7-1 this article to provide money for any of the funds (including money
7-2 to make payments by the Board under any bond enhancement agreements
7-3 with respect to principal of or interest on such bonds), there is
7-4 hereby appropriated out of the first money coming into the treasury
7-5 in each fiscal year, not otherwise appropriated by this
7-6 constitution, an amount which is sufficient to pay the principal of
7-7 and interest on such general obligation bonds (or to make such bond
7-8 enhancement payments with respect thereto) that mature or become
7-9 due during that fiscal year.
7-10 (g) Notwithstanding any provisions of section 49-b or 49-b-1
7-11 of this article to the contrary, receipt of all kinds of the
7-12 Veterans' Land Fund, the Veterans' Housing Assistance Fund or the
7-13 Veterans' Housing Assistance Fund II determined by said Board not
7-14 to be required for the payment of principal of and interest on the
7-15 general obligation bonds (including payments by the Board under any
7-16 bond enhancement agreement with respect to principal of or interest
7-17 on such bonds) authorized by this section or by section 49-b or
7-18 49-b-1 of this article, or hereafter authorized by this
7-19 Constitution to be issued by the Board to provide money for such
7-20 fund, may be used by the Board, to the extent not inconsistent with
7-21 the proceedings authorizing such bonds, (1) to make temporary
7-22 transfers to any other such fund to avoid a temporary cash
7-23 deficiency therein or to make transfers to any other such fund for
7-24 the purposes thereof, (2) to pay the principal of and interest on
7-25 general obligation bonds issued to provide money for any other such
8-1 fund (or to make any bond enhancement payments with respect
8-2 thereto), or (3) to pay the principal of and interest on revenue
8-3 bonds of said Board issued for the purposes of providing funds for
8-4 the purchasing of lands and making the sale thereof to veterans or
8-5 making home mortgage loans to veterans (or to make any bond
8-6 enhancement payments with respect thereto). The Board may also
8-7 transfer any assets from the Veterans' Land Fund, the Veterans'
8-8 Housing Assistance Fund or the Veterans' Housing Assistance Fund II
8-9 determined by said Board not to be required for the purposes
8-10 thereof to any other such fund or to secure revenue bonds issued by
8-11 said Board under this subsection. Such revenue bonds shall be
8-12 special obligations of said Board and payable only from and secured
8-13 only by such receipts of the funds and such assets transferred from
8-14 the funds and such other revenues and assets as determined by said
8-15 Board and shall not constitute indebtedness of the state or the
8-16 Veterans' Land Board. Said Board is authorized to issue such
8-17 revenue bonds from time to time which shall not exceed an aggregate
8-18 principal amount that said Board determines can be fully retired
8-19 from the receipts of the funds and the assets transferred from the
8-20 funds and from the other revenues and assets pledged to the
8-21 retirement of the revenue bonds. The revenue bonds shall be issued
8-22 and sold in such forms and denominations, in such manner, upon such
8-23 terms, at such times and places, and in such installments as may be
8-24 determined by said Board; and, notwithstanding the rate of interest
8-25 specified by any other provision of this constitution, shall bear a
9-1 rate or rates of interest as determined by said Board. Any
9-2 determination made by the Board hereunder shall be binding and
9-3 conclusive as to the matters so determined.
9-4 (h) Notwithstanding any provisions of section 49-b or 49-b-1
9-5 of this article to the contrary, the bonds authorized to be issued
9-6 and sold by the Veterans' Land Board by this section or by sections
9-7 49-b and 49-b-1 of this article shall be issued in such forms and
9-8 denominations, and upon such terms as are now or may hereafter be
9-9 determined by said Board; shall be issued and sold at such times,
9-10 in such manner, at such places, and in such installments as may be
9-11 determined by said Board; and shall bear a rate or rates of
9-12 interest as determined by said Board. All such bonds shall, after
9-13 execution by said Board, approval by the Attorney General of Texas
9-14 and delivery to the purchaser or purchasers thereof, be
9-15 incontestable.
9-16 (i) This Amendment being intended only to establish a basic
9-17 framework and not to be a comprehensive treatment of the Veterans'
9-18 Housing Assistance Program and the Veterans' Land Program, there is
9-19 hereby reposed in the Legislature full power to implement and
9-20 effectuate the design and objects of this Amendment, including the
9-21 power to delegate such duties, responsibilities, functions, and
9-22 authority to the Veterans' Land Board as it believes necessary.
9-23 SECTION 2. This proposed constitutional amendment shall be
9-24 submitted to the voters at an election to be held November 2, 1993.
9-25 The ballot shall be printed to provide for voting for or against
10-1 the proposition: "__ J.R. ____, 73rd Legislature, Regular
10-2 Session: "The constitutional amendment authorizing issuance of
10-3 general obligation bonds to augment the Veterans' Land Fund and
10-4 Veterans' Housing Assistance Fund and to fund the Veterans' Housing
10-5 Assistance Fund II and authorizing issuance of revenue bonds to
10-6 provide financial assistance to veterans of the state.""