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." 1-51 * * * * *