1-1 By: Turner S.J.R. No. 34
1-2 (In the Senate - Filed March 10, 1993; March 11, 1993, read
1-3 first time and referred to Committee on Finance; April 14, 1993,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 11, Nays 0; April 14, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Montford x
1-9 Turner x
1-10 Armbrister x
1-11 Barrientos x
1-12 Bivins x
1-13 Ellis x
1-14 Haley x
1-15 Moncrief x
1-16 Parker x
1-17 Ratliff x
1-18 Sims x
1-19 Truan x
1-20 Zaffirini x
1-21 COMMITTEE SUBSTITUTE FOR S.J.R. No. 34 By: Turner
1-22 SENATE JOINT RESOLUTION
1-23 proposing a constitutional amendment relating to bonds issued to
1-24 augment the Veterans' Land Fund and the Veterans' Housing
1-25 Assistance Fund, to fund the Veterans' Housing Assistance Fund II,
1-26 and to provide financial assistance to veterans of the state.
1-27 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-28 SECTION 1. Article III of the Texas Constitution is amended
1-29 by adding Section 49-b-2 to read as follows:
1-30 Sec. 49-b-2. (a) In addition to the general obligation
1-31 bonds authorized to be issued and to be sold by the Veterans' Land
1-32 Board by Sections 49-b and 49-b-1 of this article, the Veterans'
1-33 Land Board may provide for, issue, and sell general obligation
1-34 bonds of the state in an amount not to exceed $750 million, to
1-35 provide financing to veterans of the state in recognition of their
1-36 service to their state and the United States of America.
1-37 (b) Two hundred fifty million dollars of the general
1-38 obligation bonds authorized by this section shall be used to
1-39 augment the Veterans' Land Fund. Notwithstanding any provision of
1-40 Section 49-b or 49-b-1 of this article to the contrary, the
1-41 Veterans' Land Fund shall be used by the Veterans' Land Board to
1-42 purchase lands situated in the state owned by the United States
1-43 government, an agency of the United States government, this state,
1-44 a political subdivision or agency of this state, or a person, firm,
1-45 or corporation. Lands purchased and comprising a part of the
1-46 Veterans' Land Fund are declared to be held for a governmental
1-47 purpose, but the individual purchasers of those lands shall be
1-48 subject to taxation to the same extent and in the same manner as
1-49 are purchasers of lands dedicated to the Permanent Free Public
1-50 School Fund. The lands shall be sold to veterans in quantities, on
1-51 terms, at prices, and at fixed, variable, floating, or other rates
1-52 of interest, determined by the Board and in accordance with rules
1-53 of the Board. Notwithstanding any provisions of this section to
1-54 the contrary, lands in the Veterans' Land Fund that are offered for
1-55 sale to veterans and that are not sold may be sold or resold to the
1-56 purchasers in quantities, on terms, at prices, and at rates of
1-57 interest determined by the Board and in accordance with rules of
1-58 the Board. The expenses of the Board in connection with the
1-59 issuance of the bonds and the purchase and sale of the lands may be
1-60 paid from money in the Veterans' Land Fund.
1-61 (c) The Veterans' Land Fund shall consist of:
1-62 (1) lands heretofore or hereafter purchased by the
1-63 Board;
1-64 (2) money attributable to bonds heretofore or
1-65 hereafter issued and sold by the Board for the fund, including
1-66 proceeds from the issuance and sale of the bonds;
1-67 (3) money received from the sale or resale of lands or
1-68 rights in lands purchased from those proceeds;
2-1 (4) money received from the sale or resale of lands or
2-2 rights in lands purchased with other money attributable to the
2-3 bonds;
2-4 (5) proceeds derived from the sale or other
2-5 disposition of the Board's interest in contracts for the sale or
2-6 resale of lands or rights in lands;
2-7 (6) interest and penalties received from the sale or
2-8 resale of lands or rights in lands;
2-9 (7) bonuses, income, rents, royalties, and other
2-10 pecuniary benefits received by the Board from lands;
2-11 (8) money received by way of indemnity or forfeiture
2-12 for the failure of a bidder for the purchase of bonds to comply
2-13 with the bid and accept and pay for the bonds or for the failure of
2-14 a bidder for the purchase of lands comprising a part of the
2-15 Veterans' Land Fund to comply with the bid and accept and pay for
2-16 the lands;
2-17 (9) payments received by the Board under a bond
2-18 enhancement agreement with respect to the bonds; and
2-19 (10) interest received from investments of money in
2-20 the fund.
2-21 (d) The principal of and interest on the general obligation
2-22 bonds authorized by this section for the benefit of the Veterans'
2-23 Land Fund, including payments by the Board under a bond enhancement
2-24 agreement with respect to principal of or interest on the bonds,
2-25 shall be paid out of the money of the Veterans' Land Fund, but the
2-26 money in the fund that is not immediately committed to the payment
2-27 of principal and interest on the bonds, the purchase of lands, or
2-28 the payment of expenses may be invested as authorized by law until
2-29 the money is needed for those purposes.
2-30 (e) The Veterans' Housing Assistance Fund II is created, and
2-31 $500 million of the general obligation bonds authorized by this
2-32 section shall be used for the Veterans' Housing Assistance Fund II.
2-33 The Veterans' Housing Assistance Fund II is a separate and distinct
2-34 fund from the Veterans' Housing Assistance Fund established under
2-35 Section 49-b-1 of this article. Money in the Veterans' Housing
2-36 Assistance Fund II shall be administered by the Veterans' Land
2-37 Board and shall be used to make home mortgage loans to veterans for
2-38 housing within this state in quantities, on terms, and at fixed,
2-39 variable, floating, or other rates of interest, determined by the
2-40 Board and in accordance with rules of the Board. The expenses of
2-41 the Board in connection with the issuance of the bonds and the
2-42 making of the loans may be paid from money in the Veterans' Housing
2-43 Assistance Fund II.
2-44 (f) The Veterans' Housing Assistance Fund II shall consist
2-45 of:
2-46 (1) the Board's interest in home mortgage loans the
2-47 Board makes to veterans from money in the fund under the Veterans'
2-48 Housing Assistance Program established by law;
2-49 (2) proceeds derived from the sale or other
2-50 disposition of the Board's interest in home mortgage loans;
2-51 (3) money attributable to bonds issued and sold by the
2-52 Board to provide money for the fund, including the proceeds from
2-53 the issuance and sale of bonds;
2-54 (4) income, rents, and other pecuniary benefits
2-55 received by the Board as a result of making loans;
2-56 (5) money received by way of indemnity or forfeiture
2-57 for the failure of a bidder for the purchase of bonds to comply
2-58 with the bid and accept and pay for the bonds;
2-59 (6) payments received by the Board under a bond
2-60 enhancement agreement with respect to the bonds; and
2-61 (7) interest received from investments of money.
2-62 (g) The principal of and interest on the general obligation
2-63 bonds authorized by this section for the benefit of the Veterans'
2-64 Housing Assistance Fund II, including payments by the Board under a
2-65 bond enhancement agreement with respect to principal of or interest
2-66 on the bonds, shall be paid out of the money of the Veterans'
2-67 Housing Assistance Fund II, but the money in the fund that is not
2-68 immediately committed to the payment of principal and interest on
2-69 the bonds, the making of home mortgage loans, or the payment of
2-70 expenses may be invested as authorized by law until the money is
3-1 needed for those purposes.
3-2 (h) Notwithstanding the provisions of Section 49-b-1 of this
3-3 article to the contrary, the Veterans' Housing Assistance Fund
3-4 shall consist of:
3-5 (1) the Board's interest in home mortgage loans the
3-6 Board makes to veterans from money in the fund under the Veterans'
3-7 Housing Assistance Program established by law;
3-8 (2) proceeds derived from the sale or other
3-9 disposition of the Board's interest in home mortgage loans;
3-10 (3) money attributable to bonds issued and sold by the
3-11 Board to provide money for the fund, including proceeds from the
3-12 issuance and sale of bonds;
3-13 (4) income, rents, and other pecuniary benefits
3-14 received by the Board as a result of making loans;
3-15 (5) money received by way of indemnity or forfeiture
3-16 for the failure of a bidder for the purchase of bonds to comply
3-17 with the bid and accept and pay for the bonds;
3-18 (6) payments received by the Board under a bond
3-19 enhancement agreement with respect to the bonds; and
3-20 (7) interest received from investments of money.
3-21 (i) The principal of and interest on the general obligation
3-22 bonds authorized by Section 49-b-1 of this article for the benefit
3-23 of the Veterans' Housing Assistance Fund, including payments by the
3-24 Board under a bond enhancement agreement with respect to principal
3-25 of or interest on the bonds, shall be paid out of money in the
3-26 Veterans' Housing Assistance Fund.
3-27 (j) If there is not enough money in the Veterans' Land Fund,
3-28 the Veterans' Housing Assistance Fund, or the Veterans' Housing
3-29 Assistance Fund II, as the case may be, available to pay the
3-30 principal of and interest on the general obligation bonds
3-31 authorized by this section or by Section 49-b or 49-b-1 of this
3-32 article, including money to make payments by the Board under a bond
3-33 enhancement agreement with respect to principal of or interest on
3-34 the bonds, there is appropriated out of the first money coming into
3-35 the treasury in each fiscal year, not otherwise appropriated by
3-36 this constitution, an amount that is sufficient to pay the
3-37 principal of and interest on the general obligation bonds that
3-38 mature or become due during that fiscal year or to make bond
3-39 enhancement payments with respect to those bonds.
3-40 (k) Notwithstanding any provisions of Section 49-b or 49-b-1
3-41 of this article to the contrary, receipts of all kinds of the
3-42 Veterans' Land Fund, the Veterans' Housing Assistance Fund, or the
3-43 Veterans' Housing Assistance Fund II that the Board determines are
3-44 not required for the payment of principal of and interest on the
3-45 general obligation bonds, including payments by the Board under a
3-46 bond enhancement agreement with respect to principal of or interest
3-47 on the bonds, authorized by this section or by Section 49-b or
3-48 49-b-1 of this article or otherwise authorized by this constitution
3-49 to be issued by the Board to provide money for the fund, may be
3-50 used by the Board, to the extent not inconsistent with the
3-51 proceedings authorizing the bonds to:
3-52 (1) make temporary transfers to another of those funds
3-53 to avoid a temporary cash deficiency in that fund or make a
3-54 transfer to another of those funds for the purposes of that fund;
3-55 (2) pay the principal of and interest on general
3-56 obligation bonds issued to provide money for another of those funds
3-57 or make bond enhancement payments with respect to the bonds; or
3-58 (3) pay the principal of and interest on revenue bonds
3-59 of the Board or make bond enhancement payments with respect to the
3-60 bonds if the bonds are issued to provide funds to purchase lands
3-61 and sell lands to veterans or make home mortgage loans to veterans.
3-62 (l) If the Board determines that assets from the Veterans'
3-63 Land Fund, the Veterans' Housing Assistance Fund, or the Veterans'
3-64 Housing Assistance Fund II are not required for the purposes of the
3-65 fund, the Board may transfer the assets to another of those funds
3-66 or use the assets to secure revenue bonds issued by the Board under
3-67 this section.
3-68 (m) The revenue bonds shall be special obligations of the
3-69 Board and payable only from and secured only by receipts of the
3-70 funds, assets transferred from the funds, and other revenues and
4-1 assets as determined by the Board and shall not constitute
4-2 indebtedness of the state or the Veterans' Land Board. The Board
4-3 may issue revenue bonds from time to time, which bonds may not
4-4 exceed an aggregate principal amount that the Board determines can
4-5 be fully retired from the receipts of the funds, the assets
4-6 transferred from the funds, and the other revenues and assets
4-7 pledged to the retirement of the revenue bonds. The revenue bonds
4-8 shall be issued and sold in forms and denominations, in the manner,
4-9 on terms, at times and places, and in installments the Board
4-10 determines. Notwithstanding the rate of interest specified by any
4-11 other provision of this constitution, the revenue bonds shall bear
4-12 a rate or rates of interest the Board determines. A determination
4-13 made by the Board under this subsection shall be binding and
4-14 conclusive as to the matter determined.
4-15 (n) Notwithstanding any provisions of Section 49-b or 49-b-1
4-16 of this article to the contrary, the bonds authorized to be issued
4-17 and sold by the Veterans' Land Board by this section or by Sections
4-18 49-b and 49-b-1 of this article shall be issued and sold in forms
4-19 and denominations, on terms, at times, in the manner, at places,
4-20 and in installments the Board determines. The bonds shall bear a
4-21 rate or rates of interest the Board determines. The bonds shall be
4-22 incontestable after execution by the Board, approval by the
4-23 Attorney General of Texas, and delivery to the purchaser or
4-24 purchasers of the bonds.
4-25 (o) This Amendment being intended only to establish a basic
4-26 framework and not to be a comprehensive treatment of the Veterans'
4-27 Housing Assistance Program and the Veterans' Land Program, there is
4-28 hereby reposed in the Legislature full power to implement and
4-29 effectuate the design and objects of this Amendment, including the
4-30 power to delegate such duties, responsibilities, functions, and
4-31 authority to the Veterans' Land Board as it believes necessary.
4-32 (p) In this section, "veteran" has the meaning assigned by
4-33 Section 49-b-1 of this article.
4-34 SECTION 2. This proposed constitutional amendment shall be
4-35 submitted to the voters at an election to be held November 2, 1993.
4-36 The ballot shall be printed to provide for voting for or against
4-37 the proposition: "The constitutional amendment authorizing
4-38 issuance of $750 million in general obligation bonds to augment the
4-39 Veterans' Land Fund and the Veterans' Housing Assistance Fund and
4-40 to fund the Veterans' Housing Assistance Fund II."
4-41 * * * * *
4-42 Austin,
4-43 Texas
4-44 April 14, 1993
4-45 Hon. Bob Bullock
4-46 President of the Senate
4-47 Sir:
4-48 We, your Committee on Finance to which was referred S.J.R. No. 34,
4-49 have had the same under consideration, and I am instructed to
4-50 report it back to the Senate with the recommendation that it do not
4-51 pass, but that the Committee Substitute adopted in lieu thereof do
4-52 pass and be printed.
4-53 Montford,
4-54 Chairman
4-55 * * * * *
4-56 WITNESSES
4-57 FOR AGAINST ON
4-58 ___________________________________________________________________
4-59 Name: Bruce R. Salzer x
4-60 Representing: Veterans Land Board
4-61 City: Austin
4-62 -------------------------------------------------------------------
4-63 Name: David A. Gloier x
4-64 Representing: Tx. Veterans Land Board
4-65 City: Austin
4-66 -------------------------------------------------------------------
4-67 Name: Jerry Turner x
4-68 Representing: Tx. Veterans Land Board
4-69 City: Austin
4-70 -------------------------------------------------------------------