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."