By: Bivins S.J.R. No. 4
73R1864 ESH-F
A JOINT RESOLUTION
1-1 proposing a constitutional amendment authorizing the issuance of
1-2 $750 million in state general obligation bonds to assist school
1-3 districts in financing facilities and repealing the authorization
1-4 for $750 million in state revenue bonds guaranteed by the permanent
1-5 school fund.
1-6 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Article VII, Section 5(b), of the Texas
1-8 Constitution is amended to read as follows:
1-9 (b) The legislature by law may provide for using the
1-10 permanent school fund and the income from the permanent school fund
1-11 to guarantee bonds issued by school districts. The legislature by
1-12 law may provide for the issuance of general obligation bonds of <or
1-13 by> the state for the purpose of making loans to or purchasing the
1-14 bonds of school districts for the purpose of acquisition,
1-15 construction, or improvement of instructional facilities including
1-16 all furnishings thereto. The state, pursuant to general law, may
1-17 forgive the payment of principal and interest on all or part of a
1-18 loan made to a school district under this section to finance an
1-19 instructional facility <If any payment is required to be made by
1-20 the permanent school fund as a result of its guarantee of bonds
1-21 issued by the state, an amount equal to this payment shall be
1-22 immediately paid by the state from the treasury to the permanent
1-23 school fund. An amount owed by the state to the permanent school
1-24 fund under this section shall be a general obligation of the state
2-1 until paid>. The amount of bonds authorized hereunder shall not
2-2 exceed $750 million. While any of the general obligation bonds
2-3 issued under this subsection or any of the interest on those bonds
2-4 is outstanding and unpaid, there is appropriated out of the first
2-5 money coming into the state treasury in each fiscal year, not
2-6 otherwise appropriated by this constitution, the amount sufficient
2-7 to pay the principal and interest on those bonds that mature or
2-8 become due during that year <or a higher amount authorized by a
2-9 two-thirds record vote of both houses of the legislature. If the
2-10 proceeds of bonds issued by the state are used to provide a loan to
2-11 a school district and the district becomes delinquent on the loan
2-12 payments, the amount of the delinquent payments shall be offset
2-13 against state aid to which the district is otherwise entitled>.
2-14 SECTION 2. This proposed constitutional amendment shall be
2-15 submitted to the voters at an election to be held May 1, 1993. The
2-16 ballot shall be printed to provide for voting for or against the
2-17 proposition: "The constitutional amendment authorizing the
2-18 issuance of $750 million in state general obligation bonds to
2-19 assist school districts in financing facilities and repealing the
2-20 authorization for $750 million in state revenue bonds guaranteed by
2-21 the permanent school fund."