By: Williams S.J.R. No. 57
         (In the Senate - Filed March 8, 2007; March 22, 2007, read
  first time and referred to Committee on Finance; May 11, 2007,
  reported adversely, with favorable Committee Substitute by the
  following vote:  Yeas 13, Nays 0; May 11, 2007, sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.J.R. No. 57 By:  Williams
 
 
SENATE JOINT RESOLUTION
 
  proposing a constitutional amendment providing for the issuance of
  general obligation bonds to finance educational loans to students
  and for authority to enter into bond enhancement agreements with
  respect to general obligation bonds issued for that purpose.
         BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.   Article III, Texas Constitution, is amended by
  adding Sections 50b-6 and 50b-6A to read as follows:
         Sec. 50b-6.  (a) The legislature by general law may
  authorize the Texas Higher Education Coordinating Board or its
  successor or successors to issue and sell general obligation bonds
  of the State of Texas in an amount not to exceed $500 million in
  order to finance educational loans to students in the manner
  provided by law. The bonds are in addition to bonds issued under
  Sections 50b-4 and 50b-5 of this article and under any other
  provision or former provision of this constitution authorizing
  similar bonds.
         (b)  The bonds shall be executed in the form, on the terms,
  and in the denominations, bear interest, and be issued in
  installments as prescribed by the Texas Higher Education
  Coordinating Board or its successor or successors.
         (c)  The maximum net effective interest rate to be borne by
  bonds issued under this section may not exceed the maximum rate
  provided by law.
         (d)  The legislature may provide for the investment of bond
  proceeds and may establish and provide for the investment of an
  interest and sinking fund to pay the bonds. Income from the
  investment shall be used for the purposes prescribed by the
  legislature.
         (e)  Notwithstanding any other provision of this article,
  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 any bonds issued under this section, under Sections
  50b-4 and 50b-5 of this article, and under any other provision or
  former provision of this article authorizing similar bonds that
  mature or become due during the fiscal year, less any amount
  remaining in an interest and sinking fund established under this
  section, Section 50b-4 or 50b-5 of this article, or any other
  provision or former provision of this article authorizing similar
  bonds at the end of the preceding fiscal year that is pledged to the
  payment of the bonds or interest.
         (f)  Bonds issued under this section, after approval by the
  attorney general, registration by the comptroller of public
  accounts, and delivery to the purchasers, are incontestable.
         Sec. 50b-6A.  The legislature by general law may provide for
  the Texas Higher Education Coordinating Board or its successor or
  successors to enter into bond enhancement agreements with
  appropriate entities with respect to any bonds issued under Section
  50b-4, 50b-5, or 50b-6 of this article or under any other provision
  or former provision of this article authorizing similar bonds.
  Payments due from the coordinating board under a bond enhancement
  agreement with respect to the principal of or interest on the bonds
  shall be treated for purposes of this constitution as payments of
  the principal of and interest on the bonds, and money appropriated
  for the purpose of paying the principal of and interest on the bonds
  as they mature or become due may be used to make payments under bond
  enhancement agreements authorized by this section with respect to
  the bonds.
         SECTION 2.   This proposed constitutional amendment shall be
  submitted to the voters at an election to be held on the earlier of
  the first date on which another election on a constitutional
  amendment proposed by the 80th Legislature, Regular Session, 2007,
  is held or November 6, 2007. The ballot shall be printed to permit
  voting for or against the proposition: "The constitutional
  amendment providing for the issuance of $500 million in general
  obligation bonds to finance educational loans to students and
  authorizing bond enhancement agreements with respect to general
  obligation bonds issued for that purpose."
 
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