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."