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A JOINT RESOLUTION
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proposing a constitutional amendment providing for the issuance of |
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general obligation bonds to finance educational loans to students |
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and for authority to enter into bond enhancement agreements with |
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respect to such bonds. |
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BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Article III, Texas Constitution, is amended by |
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adding Sections 50b-6 and 50b-6A to read as follows: |
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Sec. 50b-6. (a) The legislature by general law may |
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authorize the Texas Higher Education Coordinating Board or its |
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successor or successors to issue and sell general obligation bonds |
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of the State of Texas in an amount not to exceed $500 million in |
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order to finance educational loans to students in the manner |
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provided by law. The bonds are in addition to bonds issued under |
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Sections 50b-4 and 50b-5 of this article and under any other |
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provision or former provision of this constitution authorizing |
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similar bonds. |
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(b) The bonds shall be executed in the form, on the terms, |
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and in the denominations, bear interest, and be issued in |
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installments as prescribed by the Texas Higher Education |
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Coordinating Board or its successor or successors. |
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(c) The maximum net effective interest rate to be borne by |
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bonds issued under this section may not exceed the maximum rate |
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provided by law. |
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(d) The legislature may provide for the investment of bond |
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proceeds and may establish and provide for the investment of an |
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interest and sinking fund to pay the bonds. Income from the |
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investment shall be used for the purposes prescribed by the |
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legislature. |
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(e) Notwithstanding any other provision of this article, |
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there is appropriated out of the first money coming into the |
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treasury in each fiscal year, not otherwise appropriated by this |
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constitution, the amount sufficient to pay the principal of and |
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interest on any bonds issued under this section, under Sections |
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50b-4 and 50b-5 of this article, and under any other provision or |
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former provision of this article authorizing similar bonds that |
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mature or become due during the fiscal year, less any amount |
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remaining in an interest and sinking fund established under this |
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section, Section 50b-4 or 50b-5, or any other provision or former |
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provision of this article authorizing similar bonds at the end of |
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the preceding fiscal year that is pledged to the payment of the |
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bonds or interest. |
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(f) Bonds issued under this section, after approval by the |
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attorney general, registration by the comptroller of public |
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accounts, and delivery to the purchasers, are incontestable. |
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Sec. 50b-6A. The legislature by general law may provide for |
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the Texas Higher Education Coordinating Board or its successor or |
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successors to enter into bond enhancement agreements with |
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appropriate entities with respect to any bonds issued under Section |
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50b-4, 50b-5, or 50b-6 of this article or under any other provision |
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or former provision of this article authorizing similar bonds. |
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Payments due from the coordinating board under a bond enhancement |
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agreement with respect to the principal of or interest on the bonds |
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shall be treated for purposes of this constitution as payments of |
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the principal of and interest on the bonds, and money appropriated |
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for the purpose of paying the principal of and interest on the bonds |
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as they mature or become due may be used to make payments under bond |
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enhancement agreements authorized by this section with respect to |
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the bonds. |
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SECTION 2. This proposed constitutional amendment shall be |
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submitted to the voters at an election to be held on the earlier of |
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the first date on which another election on a constitutional |
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amendment proposed by the 80th Legislature, Regular Session, 2007, |
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is held or November 6, 2007. The ballot shall be printed to permit |
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voting for or against the proposition: "The constitutional |
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amendment providing for the issuance of $500 million in general |
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obligation bonds to finance educational loans to students and |
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authorizing bond enhancement agreements with respect to such |
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bonds." |