78R10928 MCK-D


By:  Corte                                                      H.J.R. No. 7  

Substitute the following for H.J.R. No. 7:                                    

By:  Corte                                                  C.S.H.J.R. No. 7  


A JOINT RESOLUTION
proposing a constitutional amendment authorizing the issuance of general obligation bonds to provide loans for economic development projects that enhance the military value of military installations in the state. BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Article III, Texas Constitution, is amended by adding Section 49-n to read as follows: Sec. 49-n. (a) The legislature by general law may authorize one or more state agencies to issue general obligation bonds of the State of Texas in an aggregate amount not to exceed $250 million. The proceeds from the sale of the bonds shall be deposited in the Texas military value revolving loan account in the state treasury or its successor account to be used by one or more state agencies designated by the legislature by general law without further appropriation to provide loans for economic development projects that benefit defense-related communities, as defined by the legislature by general law, including projects that enhance the military value of military installations located in the state. (b) The expenses incurred in connection with the issuance of the bonds and the costs of administering the revolving loan account may be paid from money in the Texas military value revolving loan account. (c) A defense-related community receiving a loan from the Texas military value revolving loan account may use money from the account to capitalize interest on the loan. (d) An agency providing a loan from the Texas military value revolving loan account to a defense-related community may require the defense-related community to pay any pro rata cost of issuing the general obligation bonds. (e) Bonds authorized under this section are a general obligation of the state. While any of the bonds or interest on the bonds is outstanding and unpaid, there is appropriated out of the first money coming into the treasury in each fiscal year, not otherwise appropriated by this constitution, the amount sufficient to pay the principal of and interest on the bonds that mature or become due during the fiscal year, less any amounts in the interest and sinking accounts at the close of the preceding fiscal year that are pledged to payment of the bonds or interest. SECTION 2. This proposed constitutional amendment shall be submitted to the voters at an election to be held September 13, 2003. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment authorizing the issuance of general obligation bonds not to exceed $250 million payable from the general revenues of the state to provide loans to defense-related communities for economic development projects, including projects that enhance the military value of military installations."