By:  Barrientos, et al.                               S.J.R. No. 16
                               SENATE 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
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 76th Legislature, Regular Session, 1999,
2-17     is held or November 2, 1999.  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."