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.""