By: West S.J.R. No. 50
(Branch, Alonzo)
proposing a constitutional amendment providing for the issuance of
general obligation bonds of the state to finance educational loans
to students.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Article III, Texas Constitution, is amended by
adding Section 50b-7 to read as follows:
Sec. 50b-7. (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 for the purpose of financing educational loans
to students in the manner provided by law. The principal amount of
outstanding bonds issued under this section must at all times be
equal to or less than the aggregate principal amount of state
general obligation bonds previously authorized for that purpose by
any other provision or former provision of this constitution.
(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) While any of the bonds issued under this section 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 amount in
an interest and sinking fund established under this section 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.
SECTION 2. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 8, 2011.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment providing for the
issuance of general obligation bonds of the State of Texas to
finance educational loans to students."