| 1 | 1 | | By: West S.J.R. No. 50 |
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| 2 | 2 | | (Branch, Alonzo) |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | proposing a constitutional amendment providing for the issuance of |
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| 6 | 6 | | general obligation bonds of the state to finance educational loans |
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| 7 | 7 | | to students. |
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| 8 | 8 | | BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Article III, Texas Constitution, is amended by |
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| 10 | 10 | | adding Section 50b-7 to read as follows: |
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| 11 | 11 | | Sec. 50b-7. (a) The legislature by general law may |
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| 12 | 12 | | authorize the Texas Higher Education Coordinating Board or its |
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| 13 | 13 | | successor or successors to issue and sell general obligation bonds |
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| 14 | 14 | | of the State of Texas for the purpose of financing educational loans |
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| 15 | 15 | | to students in the manner provided by law. The principal amount of |
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| 16 | 16 | | outstanding bonds issued under this section must at all times be |
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| 17 | 17 | | equal to or less than the aggregate principal amount of state |
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| 18 | 18 | | general obligation bonds previously authorized for that purpose by |
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| 19 | 19 | | any other provision or former provision of this constitution. |
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| 20 | 20 | | (b) The bonds shall be executed in the form, on the terms, |
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| 21 | 21 | | and in the denominations, bear interest, and be issued in |
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| 22 | 22 | | installments as prescribed by the Texas Higher Education |
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| 23 | 23 | | Coordinating Board or its successor or successors. |
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| 24 | 24 | | (c) The maximum net effective interest rate to be borne by |
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| 25 | 25 | | bonds issued under this section may not exceed the maximum rate |
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| 26 | 26 | | provided by law. |
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| 27 | 27 | | (d) The legislature may provide for the investment of bond |
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| 28 | 28 | | proceeds and may establish and provide for the investment of an |
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| 29 | 29 | | interest and sinking fund to pay the bonds. Income from the |
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| 30 | 30 | | investment shall be used for the purposes prescribed by the |
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| 31 | 31 | | legislature. |
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| 32 | 32 | | (e) While any of the bonds issued under this section or |
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| 33 | 33 | | interest on the bonds is outstanding and unpaid, there is |
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| 34 | 34 | | appropriated out of the first money coming into the treasury in each |
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| 35 | 35 | | fiscal year, not otherwise appropriated by this constitution, the |
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| 36 | 36 | | amount sufficient to pay the principal of and interest on the bonds |
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| 37 | 37 | | that mature or become due during the fiscal year, less any amount in |
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| 38 | 38 | | an interest and sinking fund established under this section at the |
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| 39 | 39 | | end of the preceding fiscal year that is pledged to the payment of |
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| 40 | 40 | | the bonds or interest. |
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| 41 | 41 | | (f) Bonds issued under this section, after approval by the |
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| 42 | 42 | | attorney general, registration by the comptroller of public |
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| 43 | 43 | | accounts, and delivery to the purchasers, are incontestable. |
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| 44 | 44 | | SECTION 2. This proposed constitutional amendment shall be |
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| 45 | 45 | | submitted to the voters at an election to be held November 8, 2011. |
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| 46 | 46 | | The ballot shall be printed to permit voting for or against the |
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| 47 | 47 | | proposition: "The constitutional amendment providing for the |
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| 48 | 48 | | issuance of general obligation bonds of the State of Texas to |
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| 49 | 49 | | finance educational loans to students." |
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