1-1     By:  Lucio                                            S.J.R. No. 35
 1-2           (In the Senate - Filed March 12, 1999; March 18, 1999, read
 1-3     first time and referred to Committee on Intergovernmental
 1-4     Relations; April 9, 1999, rereferred to Special Committee on Border
 1-5     Affairs; April 19, 1999, reported adversely, with favorable
 1-6     Committee Substitute by the following vote:  Yeas 5, Nays 0;
 1-7     April 19, 1999, sent to printer.)
 1-8     COMMITTEE SUBSTITUTE FOR S.J.R. No. 35                   By:  Truan
 1-9                           SENATE JOINT RESOLUTION
1-10     proposing a constitutional amendment providing for the issuance of
1-11     bonds to augment funds for low and very low income housing.
1-12           BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Article III, Texas Constitution, is amended by
1-14     adding Section 49-k to read as follows:
1-15           Sec. 49-k.  (a)  The legislature by general law may authorize
1-16     the Texas Department of Housing and Community Affairs or its
1-17     successor to issue and sell general obligation bonds of the state
1-18     in an amount not to exceed $100 million.  The bonds shall be called
1-19     "Texas Housing Bonds" and shall be issued and sold in forms and
1-20     denominations, on terms, at times, in the manner, at places, and in
1-21     installments the department or its successor determines.  The bonds
1-22     shall bear a rate or rates of interest the department or its
1-23     successor determines, except that the legislature by general law
1-24     shall set the maximum net effective interest rate to be borne by
1-25     the bonds.
1-26           (b)  The obligation of the department or its successor under
1-27     the agreements to make payments with respect to principal of or
1-28     interest on the bonds shall also constitute a general obligation of
1-29     the state.
1-30           (c)  All money received from the sale of the bonds shall be
1-31     deposited in the housing trust fund or its successor fund
1-32     administered by the Texas Department of Housing and Community
1-33     Affairs or its successor to finance affordable housing for low and
1-34     very low income persons within the state in accordance with law.
1-35     The expenses of issuance of the bonds and administration of the
1-36     fund shall be paid from money in the fund.
1-37           (d)  While any of the bonds or interest on the bonds is
1-38     outstanding and unpaid, there is appropriated out of the first
1-39     money coming into the treasury in each fiscal year, not otherwise
1-40     appropriated by this constitution, the amount sufficient to pay the
1-41     principal of and interest on the bonds that mature or become due
1-42     during the fiscal year, including payments made during the fiscal
1-43     year by the Texas Department of Housing and Community Affairs or
1-44     its successor under bond enhancement agreements with respect to
1-45     principal of or interest on the bonds.
1-46           SECTION 2.  This proposed constitutional amendment shall be
1-47     submitted to the voters at an election to be held November 2, 1999.
1-48     The ballot shall be printed to permit voting for or against the
1-49     proposition:  "The constitutional amendment authorizing issuance of
1-50     $100 million in general obligation bonds to augment funds available
1-51     to finance housing for low and very low income persons."
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