By Hunter H.J.R. No. 83 Line and page numbers may not match official copy. Bill not drafted by TLC or Senate E&E. A JOINT RESOLUTION 1-1 proposing a constitutional amendment providing for the issuance of 1-2 general obligation bonds to finance educational loans to students. 1-3 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Article III, Texas Constitution, is amended by 1-5 adding Section 50b-5 to read as follows: 1-6 Sec. 50b-5. (a) The legislature by general law may 1-7 authorize the Texas Higher Education Coordinating Board or its 1-8 successor or successors to issue and sell general obligation bonds 1-9 of the State of Texas in an amount not to exceed $400 million to 1-10 finance educational loans to students. The bonds are in addition 1-11 to those bonds issued under Sections 50b, 50b-1, 50b-2, 50b-3, and 1-12 50b-4 of this article. 1-13 (b) The bonds shall be executed in the form, on the terms, 1-14 and in the denominations, bear interest, and be issued in 1-15 installments as prescribed by the Texas Higher Education 1-16 Coordinating Board or its successor or successors. 1-17 (c) The maximum net effective interest rate to be borne by 1-18 bonds issued under this section may not exceed the maximum provided 1-19 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 2-1 interest and sinking fund to pay the bonds. Income from the 2-2 investment shall be used for the purposes prescribed by the 2-3 legislature. 2-4 (e) While any of the bonds issued under this section or 2-5 interest on the bonds is outstanding and unpaid, there is 2-6 appropriated out of the first money coming into the treasury in 2-7 each fiscal year, not otherwise appropriated by this constitution, 2-8 the amount sufficient to pay the principal of and interest on the 2-9 bonds that mature or become due during the fiscal year, less any 2-10 amount in an interest and sinking fund established under this 2-11 section at the end of the preceding fiscal year that is pledged to 2-12 the payment of the bonds or interest. 2-13 (f) Bonds issued under this section, after approval by the 2-14 attorney general, registration by the comptroller of public 2-15 accounts, and delivery to the purchasers, are incontestable. 2-16 SECTION 2. This proposed constitutional amendment shall be 2-17 submitted to the voters at an election to be held on the earlier of 2-18 the first date on which another election on a constitutional 2-19 amendment proposed by the 76th Legislature, Regular Session, 1999, 2-20 is held or November 2, 1999. The ballot shall be printed to permit 2-21 voting for or against the proposition: "The constitutional 2-22 amendment providing for the issuance of $400 million in general 2-23 obligation bonds to finance educational loans to students."