78R5958 KEL-F


By:  Hupp                                                         H.B. No. 1749



A BILL TO BE ENTITLED

AN ACT

relating to the security provided for revenue bonds issued by the 
Veterans' Land Board.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 164.009(a), Natural Resources Code, is 
amended to read as follows:
	(a)  The bonds issued under this chapter shall be special 
obligations of the board.  As security for the payment of the bonds, 
the board may provide for a pledge of and lien or mortgage on:
		(1)  the receipts of all kinds of the veterans' land 
fund, the veterans' housing assistance fund, and the veterans' 
housing assistance fund II determined by the board, on the basis of 
facts, circumstances, and expectations at the time of issuance of 
the bonds, not to be required for the payment of principal of or 
interest on the general obligation bonds issued by the board to 
augment the funds [under Article III, Sections 49-b, 49-b-1, and 
49-b-2, of the Texas Constitution] or to make payments with respect 
to principal or interest under a bond enhancement agreement with 
respect to the general obligation bonds [if the bonds are issued to 
provide funds to purchase land and sell land to veterans or to make 
home mortgage loans to veterans];
		(2)  the assets of the veterans' land fund, the 
veterans' housing assistance fund, or the veterans' housing 
assistance fund II determined by the board on the basis of facts, 
circumstances, and expectations at the time of issuance of the 
bonds not to be required for the purposes of the fund [if the bonds 
are issued to provide funds to purchase land and sell land to 
veterans or to make home mortgage loans to veterans];
		(3)  the payments and repayments received by the board 
from the board's financial assistance provided under this chapter;
		(4)  other program revenues;                                                  
		(5)  other available revenues of the board; and                               
		(6)  one or more veterans homes.                                              
	SECTION 2.  This Act takes effect on the date on which the 
constitutional amendment proposed by the 78th Legislature, Regular 
Session, 2003, authorizing the Veterans' Land Board to make certain 
payments on revenue bonds and to use assets in certain funds to 
provide for veterans homes, takes effect.  If that amendment is not 
approved by the voters, this Act has no effect.