By Hernandez                                          H.J.R. No. 50
       74R2490 SMH-F
                                  A JOINT RESOLUTION
    1-1  proposing a constitutional amendment providing for the issuance of
    1-2  general obligation bonds by the Texas Higher Education Coordinating
    1-3  Board.
    1-4        BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Article III, Texas Constitution, is amended by
    1-6  adding Section 50b-4 to read as follows:
    1-7        Sec. 50b-4.  ADDITIONAL STUDENT LOANS.  (a)  The legislature
    1-8  by general law may authorize the Texas Higher Education
    1-9  Coordinating Board or its successor or successors to issue and sell
   1-10  general obligation bonds of the State of Texas in an amount not to
   1-11  exceed $400 million to finance educational loans to students.  The
   1-12  bonds are in addition to those bonds issued under Sections 50b,
   1-13  50b-1, 50b-2, and 50b-3, Article III, Texas Constitution.
   1-14        (b)  The bonds shall be executed in the form, on the terms,
   1-15  and in the denominations, bear interest, and be issued in
   1-16  installments as prescribed by the Texas Higher Education
   1-17  Coordinating Board or its successor or successors.
   1-18        (c)  The maximum net effective interest rate to be borne by
   1-19  bonds issued under this section must be set by law.
   1-20        (d)  The legislature may provide for the investment of bond
   1-21  proceeds and may establish and provide for the investment of an
   1-22  interest and sinking fund to pay the bonds.  Income from the
   1-23  investment shall be used for the purposes prescribed by the
   1-24  legislature.
    2-1        (e)  While any of the bonds issued under this section or
    2-2  interest on the bonds is outstanding and unpaid, there is
    2-3  appropriated out of the first money coming into the treasury in
    2-4  each fiscal year, not otherwise appropriated by this constitution,
    2-5  the amount sufficient to pay the principal of and interest on the
    2-6  bonds that mature or become due during the fiscal year, less any
    2-7  amount in an interest and sinking fund established under this
    2-8  section at the end of the preceding fiscal year that is pledged to
    2-9  the payment of the bonds or interest.
   2-10        (f)  Bonds issued under this section, after approval by the
   2-11  attorney general, registration by the comptroller of public
   2-12  accounts, and delivery to the purchasers, are incontestable.
   2-13        SECTION 2.  This proposed constitutional amendment shall be
   2-14  submitted to the voters at an election to be held on the earlier of
   2-15  the first date on which another election on a constitutional
   2-16  amendment proposed by the 74th Legislature, Regular Session, 1995,
   2-17  is held or November 7, 1995.  The ballot shall be printed to permit
   2-18  voting for or against the proposition:  "The constitutional
   2-19  amendment providing for the issuance of $400 million in general
   2-20  obligation bonds to finance educational loans to students."