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."