S.J.R. No. 34
                                SENATE 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, to fund the Veterans' Housing Assistance Fund II,
    1-4  and to provide financial assistance to veterans of the state.
    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 Section 49-b-2 to read as follows:
    1-8        Sec. 49-b-2.  (a)  In addition to the general obligation
    1-9  bonds authorized to be issued and to be sold by the Veterans' Land
   1-10  Board by Sections 49-b and 49-b-1 of this article, the Veterans'
   1-11  Land Board may provide for, issue, and sell general obligation
   1-12  bonds of the state in an amount not to exceed $750 million, to
   1-13  provide financing to veterans of the state in recognition of their
   1-14  service to their state and the United States of America.
   1-15        (b)  Two hundred fifty million dollars of the general
   1-16  obligation bonds authorized by this section shall be used to
   1-17  augment the Veterans' Land Fund.  Notwithstanding any provision of
   1-18  Section 49-b or 49-b-1 of this article to the contrary, the
   1-19  Veterans' Land Fund shall be used by the Veterans' Land Board to
   1-20  purchase lands situated in the state owned by the United States
   1-21  government, an agency of the United States government, this state,
   1-22  a political subdivision or agency of this state, or a person, firm,
   1-23  or corporation.  Lands purchased and comprising a part of the
    2-1  Veterans' Land Fund are declared to be held for a governmental
    2-2  purpose, but the individual purchasers of those lands shall be
    2-3  subject to taxation to the same extent and in the same manner as
    2-4  are purchasers of lands dedicated to the Permanent Free Public
    2-5  School Fund.  The lands shall be sold to veterans in quantities, on
    2-6  terms, at prices, and at fixed, variable, floating, or other rates
    2-7  of interest, determined by the Board and in accordance with rules
    2-8  of the Board.  Notwithstanding any provisions of this section to
    2-9  the contrary, lands in the Veterans' Land Fund that are offered for
   2-10  sale to veterans and that are not sold may be sold or resold to the
   2-11  purchasers in quantities, on terms, at prices, and at rates of
   2-12  interest determined by the Board and in accordance with rules of
   2-13  the Board.  The expenses of the Board in connection with the
   2-14  issuance of the bonds and the purchase and sale of the lands may be
   2-15  paid from money in the Veterans' Land Fund.
   2-16        (c)  The Veterans' Land Fund shall consist of:
   2-17              (1)  lands heretofore or hereafter purchased by the
   2-18  Board;
   2-19              (2)  money attributable to bonds heretofore or
   2-20  hereafter issued and sold by the Board for the fund, including
   2-21  proceeds from the issuance and sale of the bonds;
   2-22              (3)  money received from the sale or resale of lands or
   2-23  rights in lands purchased from those proceeds;
   2-24              (4)  money received from the sale or resale of lands or
   2-25  rights in lands purchased with other money attributable to the
    3-1  bonds;
    3-2              (5)  proceeds derived from the sale or other
    3-3  disposition of the Board's interest in contracts for the sale or
    3-4  resale of lands or rights in lands;
    3-5              (6)  interest and penalties received from the sale or
    3-6  resale of lands or rights in lands;
    3-7              (7)  bonuses, income, rents, royalties, and other
    3-8  pecuniary benefits received by the Board from lands;
    3-9              (8)  money received by way of indemnity or forfeiture
   3-10  for the failure of a bidder for the purchase of bonds to comply
   3-11  with the bid and accept and pay for the bonds or for the failure of
   3-12  a bidder for the purchase of lands comprising a part of the
   3-13  Veterans' Land Fund to comply with the bid and accept and pay for
   3-14  the lands;
   3-15              (9)  payments received by the Board under a bond
   3-16  enhancement agreement with respect to the bonds; and
   3-17              (10)  interest received from investments of money in
   3-18  the fund.
   3-19        (d)  The principal of and interest on the general obligation
   3-20  bonds authorized by this section for the benefit of the Veterans'
   3-21  Land Fund, including payments by the Board under a bond enhancement
   3-22  agreement with respect to principal of or interest on the bonds,
   3-23  shall be paid out of the money of the Veterans' Land Fund, but the
   3-24  money in the fund that is not immediately committed to the payment
   3-25  of principal and interest on the bonds, the purchase of lands, or
    4-1  the payment of expenses may be invested as authorized by law until
    4-2  the money is needed for those purposes.
    4-3        (e)  The Veterans' Housing Assistance Fund II is created, and
    4-4  $500 million of the general obligation bonds authorized by this
    4-5  section shall be used for the Veterans' Housing Assistance Fund II.
    4-6  The Veterans' Housing Assistance Fund II is a separate and distinct
    4-7  fund from the Veterans' Housing Assistance Fund established under
    4-8  Section 49-b-1 of this article.  Money in the Veterans' Housing
    4-9  Assistance Fund II shall be administered by the Veterans' Land
   4-10  Board and shall be used to make home mortgage loans to veterans for
   4-11  housing within this state in quantities, on terms, and at fixed,
   4-12  variable, floating, or other rates of interest, determined by the
   4-13  Board and in accordance with rules of the Board.  The expenses of
   4-14  the Board in connection with the issuance of the bonds and the
   4-15  making of the loans may be paid from money in the Veterans' Housing
   4-16  Assistance Fund II.
   4-17        (f)  The Veterans' Housing Assistance Fund II shall consist
   4-18  of:
   4-19              (1)  the Board's interest in home mortgage loans the
   4-20  Board makes to veterans from money in the fund under the Veterans'
   4-21  Housing Assistance Program established by law;
   4-22              (2)  proceeds derived from the sale or other
   4-23  disposition of the Board's interest in home mortgage loans;
   4-24              (3)  money attributable to bonds issued and sold by the
   4-25  Board to provide money for the fund, including the proceeds from
    5-1  the issuance and sale of bonds;
    5-2              (4)  income, rents, and other pecuniary benefits
    5-3  received by the Board as a result of making loans;
    5-4              (5)  money received by way of indemnity or forfeiture
    5-5  for the failure of a bidder for the purchase of bonds to comply
    5-6  with the bid and accept and pay for the bonds;
    5-7              (6)  payments received by the Board under a bond
    5-8  enhancement agreement with respect to the bonds; and
    5-9              (7)  interest received from investments of money.
   5-10        (g)  The principal of and interest on the general obligation
   5-11  bonds authorized by this section for the benefit of the Veterans'
   5-12  Housing Assistance Fund II, including payments by the Board under a
   5-13  bond enhancement agreement with respect to principal of or interest
   5-14  on the bonds, shall be paid out of the money of the Veterans'
   5-15  Housing Assistance Fund II, but the money in the fund that is not
   5-16  immediately committed to the payment of principal and interest on
   5-17  the bonds, the making of home mortgage loans, or the payment of
   5-18  expenses may be invested as authorized by law until the money is
   5-19  needed for those purposes.
   5-20        (h)  Notwithstanding the provisions of Section 49-b-1 of this
   5-21  article to the contrary, the Veterans' Housing Assistance Fund
   5-22  shall consist of:
   5-23              (1)  the Board's interest in home mortgage loans the
   5-24  Board makes to veterans from money in the fund under the Veterans'
   5-25  Housing Assistance Program established by law;
    6-1              (2)  proceeds derived from the sale or other
    6-2  disposition of the Board's interest in home mortgage loans;
    6-3              (3)  money attributable to bonds issued and sold by the
    6-4  Board to provide money for the fund, including proceeds from the
    6-5  issuance and sale of bonds;
    6-6              (4)  income, rents, and other pecuniary benefits
    6-7  received by the Board as a result of making loans;
    6-8              (5)  money received by way of indemnity or forfeiture
    6-9  for the failure of a bidder for the purchase of bonds to comply
   6-10  with the bid and accept and pay for the bonds;
   6-11              (6)  payments received by the Board under a bond
   6-12  enhancement agreement with respect to the bonds; and
   6-13              (7)  interest received from investments of money.
   6-14        (i)  The principal of and interest on the general obligation
   6-15  bonds authorized by Section 49-b-1 of this article for the benefit
   6-16  of the Veterans' Housing Assistance Fund, including payments by the
   6-17  Board under a bond enhancement agreement  with respect to principal
   6-18  of or interest on the bonds, shall be paid out of money in the
   6-19  Veterans' Housing Assistance Fund.
   6-20        (j)  If there is not enough money in the Veterans' Land Fund,
   6-21  the Veterans' Housing Assistance Fund, or the Veterans' Housing
   6-22  Assistance Fund II, as the case may be, available to pay the
   6-23  principal of and interest on the general obligation bonds
   6-24  authorized by this section or by Section 49-b or 49-b-1 of this
   6-25  article, including money to make payments by the Board under a bond
    7-1  enhancement agreement with respect to principal of or interest on
    7-2  the bonds, there is appropriated out of the first money coming into
    7-3  the treasury in each fiscal year, not otherwise appropriated by
    7-4  this constitution, an amount that is sufficient to pay the
    7-5  principal of and interest on the general obligation bonds that
    7-6  mature or become due during that fiscal year or to make bond
    7-7  enhancement payments with respect to those bonds.
    7-8        (k)  Notwithstanding any provisions of Section 49-b or 49-b-1
    7-9  of this article to the contrary, receipts of all kinds of the
   7-10  Veterans' Land Fund, the Veterans' Housing Assistance Fund, or the
   7-11  Veterans' Housing Assistance Fund II that the Board determines are
   7-12  not required for the payment of principal of and interest on the
   7-13  general obligation bonds, including payments by the Board under a
   7-14  bond enhancement agreement with respect to principal of or interest
   7-15  on the bonds, authorized by this section or by Section 49-b or
   7-16  49-b-1 of this article or otherwise authorized by this constitution
   7-17  to be issued by the Board to provide money for the fund, may be
   7-18  used by the Board, to the extent not inconsistent with the
   7-19  proceedings authorizing the bonds to:
   7-20              (1)  make temporary transfers to another of those funds
   7-21  to avoid a temporary cash deficiency in that fund or make a
   7-22  transfer to another of those funds for the purposes of that fund;
   7-23              (2)  pay the principal of and interest on general
   7-24  obligation bonds issued to provide money for another of those funds
   7-25  or make bond enhancement payments with respect to the bonds; or
    8-1              (3)  pay the principal of and interest on revenue bonds
    8-2  of the Board or make bond enhancement payments with respect to the
    8-3  bonds if the bonds are issued to provide funds to purchase lands
    8-4  and sell lands to veterans or make home mortgage loans to veterans.
    8-5        (l)  If the Board determines that assets from the Veterans'
    8-6  Land Fund, the Veterans' Housing Assistance Fund, or the Veterans'
    8-7  Housing Assistance Fund II are not required for the purposes of the
    8-8  fund, the Board may transfer the assets to another of those funds
    8-9  or use the assets to secure revenue bonds issued by the Board under
   8-10  this section.
   8-11        (m)  The revenue bonds shall be special obligations of the
   8-12  Board and payable only from and secured only by receipts of the
   8-13  funds, assets transferred from the funds, and other revenues and
   8-14  assets as determined by the Board and shall not constitute
   8-15  indebtedness of the state or the Veterans' Land Board.  The Board
   8-16  may issue revenue bonds from time to time, which bonds may not
   8-17  exceed an aggregate principal amount that the Board determines can
   8-18  be fully retired from the receipts of the funds, the assets
   8-19  transferred from the funds, and the other revenues and assets
   8-20  pledged to the retirement of the revenue bonds.  The revenue bonds
   8-21  shall be issued and sold in forms and denominations, in the manner,
   8-22  on terms, at times and places, and in installments the Board
   8-23  determines.  Notwithstanding the rate of interest specified by any
   8-24  other provision of this constitution, the revenue bonds shall bear
   8-25  a rate or rates of interest the Board determines.  A determination
    9-1  made by the Board under this subsection shall be binding and
    9-2  conclusive as to the matter determined.
    9-3        (n)  Notwithstanding any provisions of Section 49-b or 49-b-1
    9-4  of this article to the contrary, the bonds authorized to be issued
    9-5  and sold by the Veterans' Land Board by this section or by Sections
    9-6  49-b and 49-b-1 of this article shall be issued and sold in forms
    9-7  and denominations, on terms, at times, in the manner, at places,
    9-8  and in installments the Board determines.  The bonds shall bear a
    9-9  rate or rates of interest the Board determines.  The bonds shall be
   9-10  incontestable after execution by the Board, approval by the
   9-11  Attorney General of Texas, and delivery to the purchaser or
   9-12  purchasers of the bonds.
   9-13        (o)  This Amendment being intended only to establish a basic
   9-14  framework and not to be a comprehensive treatment of the Veterans'
   9-15  Housing Assistance Program and the Veterans' Land Program, there is
   9-16  hereby reposed in the Legislature full power to implement and
   9-17  effectuate the design and objects of this Amendment, including the
   9-18  power to delegate such duties, responsibilities, functions, and
   9-19  authority to the Veterans' Land Board as it believes necessary.
   9-20        (p)  In this section, "veteran" has the meaning assigned by
   9-21  Section 49-b-1 of this article.
   9-22        SECTION 2.  This proposed constitutional amendment shall be
   9-23  submitted to the voters at an election to be held November 2, 1993.
   9-24  The ballot shall be printed to provide for voting for or against
   9-25  the proposition:  "The constitutional amendment authorizing
   10-1  issuance of $750 million in general obligation bonds to augment the
   10-2  Veterans' Land Fund and the Veterans' Housing Assistance Fund and
   10-3  to fund the Veterans' Housing Assistance Fund II."