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. ADDITIONAL STUDENT LOANS. (a) The legislature 1-7 by general law may authorize the Texas Higher Education 1-8 Coordinating Board or its successor or successors to issue and sell 1-9 general obligation bonds of the State of Texas in an amount not to 1-10 exceed $400 million to finance educational loans to students. The 1-11 bonds are in addition to those bonds issued under Sections 50b, 1-12 50b-1, 50b-2, 50b-3, and 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 rate 1-19 provided 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." _______________________________ _______________________________ President of the Senate Speaker of the House I hereby certify that S.J.R. No. 16 was adopted by the Senate on April 8, 1999, by the following vote: Yeas 30, Nays 0; and that the Senate concurred in House amendment on May 7, 1999, by the following vote: Yeas 30, Nays 0. _______________________________ Secretary of the Senate I hereby certify that S.J.R. No. 16 was adopted by the House, with amendment, on May 5, 1999, by the following vote: Yeas 145, Nays 0, two present not voting. _______________________________ Chief Clerk of the House