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."