1-1     By:  Barrientos                                       S.J.R. No. 16
 1-2           (In the Senate - Filed January 19, 1999; February 1, 1999,
 1-3     read first time and referred to Committee on Education;
 1-4     April 6, 1999, reported favorably by the following vote:  Yeas 8,
 1-5     Nays 0; April 6, 1999, sent to printer.)
 1-6                           SENATE JOINT RESOLUTION
 1-7     proposing a constitutional amendment providing for the issuance of
 1-8     general obligation bonds to finance educational loans to students.
 1-9           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-10           SECTION 1.  Article III, Texas Constitution, is amended by
1-11     adding Section 50b-5 to read as follows:
1-12           Sec. 50b-5.  (a)  The legislature by general law may
1-13     authorize the Texas Higher Education Coordinating Board or its
1-14     successor or successors to issue and sell general obligation bonds
1-15     of the State of Texas in an amount not to exceed $400 million to
1-16     finance educational loans to students.  The bonds are in addition
1-17     to those bonds issued under Sections 50b, 50b-1, 50b-2, 50b-3, and
1-18     50b-4 of this article.
1-19           (b)  The bonds shall be executed in the form, on the terms,
1-20     and in the denominations, bear interest, and be issued in
1-21     installments as prescribed by the Texas Higher Education
1-22     Coordinating Board or its successor or successors.
1-23           (c)  The maximum net effective interest rate to be borne by
1-24     bonds issued under this section may not exceed the maximum provided
1-25     by law.
1-26           (d)  The legislature may provide for the investment of bond
1-27     proceeds and may establish and provide for the investment of an
1-28     interest and sinking fund to pay the bonds.  Income from the
1-29     investment shall be used for the purposes prescribed by the
1-30     legislature.
1-31           (e)  While any of the bonds issued under this section or
1-32     interest on the bonds is outstanding and unpaid, there is
1-33     appropriated out of the first money coming into the treasury in
1-34     each fiscal year, not otherwise appropriated by this constitution,
1-35     the amount sufficient to pay the principal of and interest on the
1-36     bonds that mature or become due during the fiscal year, less any
1-37     amount in an interest and sinking fund established under this
1-38     section at the end of the preceding fiscal year that is pledged to
1-39     the payment of the bonds or interest.
1-40           (f)  Bonds issued under this section, after approval by the
1-41     attorney general, registration by the comptroller of public
1-42     accounts, and delivery to the purchasers, are incontestable.
1-43           SECTION 2.  This proposed constitutional amendment shall be
1-44     submitted to the voters at an election to be held on the earlier of
1-45     the first date on which another election on a constitutional
1-46     amendment proposed by the 76th Legislature, Regular Session, 1999,
1-47     is held or November 2, 1999.  The ballot shall be printed to permit
1-48     voting for or against the proposition:  "The constitutional
1-49     amendment providing for the issuance of $400 million in general
1-50     obligation bonds to finance educational loans to students."
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