By: Alonzo H.J.R. No. 1
A JOINT RESOLUTION
proposing a constitutional amendment providing for the issuance of
general obligation bonds to provide funding to develop and maintain
research universities in this state of the highest tier.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Article III, Texas Constitution, is amended by
adding Section 68 to read as follows:
Sec. 68. (a) The legislature by general law may authorize
the Texas Public Finance Authority to provide for, issue, and sell
general obligation bonds of the State of Texas in an amount not to
exceed $3 billion and to enter into related credit agreements. The
authority may not issue more than $300 million in bonds authorized
by this section in a year. 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 Public Finance
Authority.
(b) Proceeds from the sale of the bonds shall be deposited
in a separate fund in the state treasury to be used by the
legislature to provide funding to develop and maintain research
universities in this state of the highest tier.
(c) The bond proceeds may also be used to pay the costs of
issuing the bonds and any administrative expense related to the
bonds.
(d) While any of the bonds or interest on the bonds
authorized by this section is outstanding and unpaid, from the
first money coming into the state treasury in each fiscal year not
otherwise appropriated by this constitution, an amount sufficient
to pay the principal of and interest on bonds that mature or become
due during the fiscal year and to make payments that become due
under a related credit agreement during the fiscal year is
appropriated, less the amount in the sinking fund at the close of
the previous fiscal year.
(e) 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 and are
general obligations of the State of Texas under this constitution.
SECTION 2. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 3, 2009.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment providing for the
issuance of general obligation bonds to provide funding to develop
and maintain research universities in this state of the highest
tier."