S.J.R. No. 4
                                SENATE JOINT RESOLUTION
    1-1  proposing a constitutional amendment authorizing the issuance of
    1-2  $750 million in state general obligation bonds or revenue bonds to
    1-3  assist school districts in partially financing facilities,
    1-4  authorizing the state to forgive payment of loans made to a school
    1-5  district for partially financing facilities, and repealing the
    1-6  authorization for $750 million in state revenue bonds guaranteed by
    1-7  the permanent school fund.
    1-8        BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-9        SECTION 1.  Article VII,  Section 5, Subsection (b), of the
   1-10  Texas Constitution is amended to read as follows:
   1-11        (b)  The legislature by law may provide for using the
   1-12  permanent school fund and the income from the permanent school fund
   1-13  to guarantee bonds issued by school districts.  The legislature by
   1-14  law may provide for the issuance of general obligation bonds or
   1-15  revenue bonds of <or by> the state for the purpose of making loans
   1-16  to or purchasing the bonds of school districts for the purpose of
   1-17  acquisition, construction, or improvement of instructional
   1-18  facilities including all furnishings thereto.  The state, pursuant
   1-19  to general law, may forgive the payment of principal and interest
   1-20  on all or part of a loan made to a school district under this
   1-21  section to partially finance an instructional facility <If any
   1-22  payment is required to be made by the permanent school fund as a
   1-23  result of its guarantee of bonds issued by the state, an amount
   1-24  equal to this payment shall be immediately paid by the state from
    2-1  the treasury to the permanent school fund.  An amount owed by the
    2-2  state to the permanent school fund under this section shall be a
    2-3  general obligation of the state until paid>.  The amount of bonds
    2-4  authorized hereunder shall not exceed $750 million.  While any of
    2-5  the general obligation bonds issued under this subsection or any of
    2-6  the interest on those bonds is outstanding and unpaid, there is
    2-7  appropriated out of the first money coming into the state treasury
    2-8  in each fiscal year, not otherwise appropriated by this
    2-9  constitution, the amount sufficient to pay the principal and
   2-10  interest on those bonds that mature or become due during that year
   2-11  <or a higher amount authorized by a two-thirds record vote of both
   2-12  houses of the legislature>.  If the proceeds of bonds issued by the
   2-13  state are used to provide a loan to a school district and the
   2-14  district becomes delinquent on the loan payments, the amount of the
   2-15  delinquent payments shall be offset against state aid to which the
   2-16  district is otherwise entitled.
   2-17        SECTION 2.  This proposed constitutional amendment shall be
   2-18  submitted to the voters at an election to be held May 1, 1993.  The
   2-19  ballot  shall be printed to provide for voting  for or against the
   2-20  proposition:  "The constitutional amendment authorizing the
   2-21  issuance of $750 million in state general obligation or revenue
   2-22  bonds to assist school districts in partially financing facilities,
   2-23  authorizing the state to forgive payments of loans made to a school
   2-24  district for partially financing facilities, and repealing the
   2-25  authorization for $750 million in state revenue bonds guaranteed by
   2-26  the permanent school fund."