By: Williams S.J.R. No. 1
SENATE JOINT RESOLUTION
SENATE JOINT RESOLUTION
proposing constitutional amendments providing for the transfer of
existing money from the economic stabilization fund to assist in
the financing of priority water infrastructure projects in the
state water plan and to assist in the funding of transportation
construction, maintenance, and rehabilitation projects and
providing for the transfer of $800 million from the economic
stabilization fund for the purposes of public education.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Article III, Texas Constitution, is amended by
adding Sections 49-d-12 and 49-d-13 to read as follows:
Sec. 49-d-12. (a) The state water implementation fund for
Texas is created as a special fund in the state treasury outside the
general revenue fund to provide a means to finance water
infrastructure, conservation, and reuse projects in this state.
(b) Money or other assets in the state water implementation
fund for Texas may be used only to fund water infrastructure,
conservation, and reuse projects included in a statewide water plan
that is adopted as required by general law by the Texas Water
Development Board or that board's successor in function.
(c) The state water implementation fund for Texas consists
of:
(1) money or other assets deposited, appropriated, or
otherwise transferred to the credit of the fund as provided by law;
and
(2) interest or other investment earnings that accrue
on the balance of the fund.
(d) The legislature by general law may provide for the
assets of the state water implementation fund for Texas to be
invested separately from the investment of other treasury assets
and funds to the extent that the general law ensures that, in
managing the assets of the fund, on behalf of the fund the fund's
investment manager may acquire, exchange, sell, supervise, manage,
or retain any kind of investment that a prudent investor,
exercising reasonable care, skill, and caution, would acquire or
retain in light of the purposes, terms, distribution requirements,
and other circumstances of the fund then prevailing, taking into
consideration the investment of all the assets of the fund rather
than a single investment and taking into consideration the goal of
preserving the aggregate purchasing power of the fund assets.
(e) The legislature by general law shall prescribe the
manner in which the assets of the state water implementation fund
for Texas may be used, subject to the limitations provided by
Subsections (a) and (b) of this section.
(f) The legislature may authorize the Texas Water
Development Board or its successor in function to issue bonds and
enter into bond enhancement agreements that are payable or secured
by amounts on deposit in the state water implementation fund for
Texas.
(g) In each fiscal year there is appropriated from amounts
on deposit in the state water implementation fund for Texas an
amount that is sufficient to:
(1) pay the principal of and interest on the bonds that
mature or become due during the fiscal year, after considering all
other sources pledged for those purposes;
(2) fund or restore reserves necessary to secure the
bonds; and
(3) pay any cost related to the bonds, including
payments under bond enhancement agreements that become due during
that fiscal year.
(h) Any dedication or appropriation of amounts on deposit in
the state water implementation fund for Texas may not be modified so
as to impair any outstanding bonds secured by a pledge of those
amounts unless provisions have been made for a full discharge of
those bonds.
(i) An appropriation from the state water implementation
fund for Texas is an appropriation of state tax revenues dedicated
by this constitution for the purposes of Section 22, Article VIII of
this constitution.
(j) On November 30, 2013, the amount of $2 billion is
transferred from the economic stabilization fund to the credit of
the state water implementation fund for Texas. This subsection
expires January 1, 2014.
Sec. 49-d-13. (a) The state water implementation revenue
fund for Texas is created as a special fund in the state treasury
outside the general revenue fund to provide a means to finance water
infrastructure, conservation, and reuse projects in this state.
(b) Money or other assets in the state water implementation
revenue fund for Texas may be used only to fund water
infrastructure, conservation, and reuse projects included in the
statewide water plan that is adopted as required by general law by
the Texas Water Development Board or that board's successor in
function.
(c) The state water implementation revenue fund for Texas
consists of:
(1) money or other assets deposited, appropriated, or
otherwise transferred to the credit of the fund as provided by law;
(2) interest or other investment earnings that accrue
on the balance of the fund;
(3) the proceeds from the sale of bonds, including
revenue bonds issued by the board as authorized by law, that are
designated by the board for the purpose of providing money for the
fund;
(4) money disbursed to the fund from the state water
implementation fund for Texas as authorized by law;
(5) repayments of loans made from the fund; and
(6) proceeds from the sale of political subdivision
bonds or obligations held in the fund and not otherwise pledged to
the discharge, repayment, or redemption of revenue bonds or other
bonds, the proceeds of which were placed in the fund.
(d) The legislature by general law may provide for the
assets of the state water implementation revenue fund for Texas to
be invested separately from the investment of other treasury assets
and funds to the extent that the general law ensures that, in
managing the assets of the fund, on behalf of the fund the fund's
investment manager may acquire, exchange, sell, supervise, manage,
or retain any kind of investment that a prudent investor,
exercising reasonable care, skill, and caution, would acquire or
retain in light of the purposes, terms, distribution requirements,
and other circumstances of the fund then prevailing, taking into
consideration the investment of all the assets of the fund rather
than a single investment and taking into consideration the goal of
preserving the aggregate purchasing power of the fund assets.
(e) The legislature by general law shall prescribe the
manner in which the assets of the state water implementation
revenue fund for Texas may be used, subject to the limitations
provided by Subsections (a) and (b) of this section.
(f) The legislature may authorize the Texas Water
Development Board or its successor in function to issue bonds and
enter into bond enhancement agreements that are payable from
revenue deposited to the credit of the state water implementation
revenue fund for Texas.
(g) In each fiscal year in which amounts become due under
the bonds, or agreements authorized by this section, there is
appropriated from revenue deposited to the credit of the state
water implementation revenue fund for Texas in that fiscal year an
amount that is sufficient to pay:
(1) the principal of and interest on the bonds that
mature or become due during the fiscal year; and
(2) any cost related to the bonds, including payments
under bond enhancement agreements that become due during that
fiscal year.
(h) Any dedication or appropriation of revenue to the credit
of the state water implementation revenue fund for Texas may not be
modified so as to impair any outstanding bonds secured by a pledge
of that revenue unless provisions have been made for a full
discharge of those bonds.
SECTION 2. Section 49-p, Article III, Texas Constitution,
is amended by adding Subsection (e) to read as follows:
(e) Money deposited to the credit of the state highway fund
may be appropriated to repay the principal and interest on bonds
issued under this section.
SECTION 3. Section 49-g, Article III, Texas Constitution,
is amended by adding Subsection (p) to read as follows:
(p) On November 30, 2013, the amount of $2.9 billion is
transferred from the economic stabilization fund to the credit of
an account created by the Texas Department of Transportation in the
state highway fund for the purposes described by this subsection.
Funds transferred under this subsection may only be appropriated to
the Texas Department of Transportation for the purposes of paying
the principal and interest on bonds issued on or before January 1,
2013, for projects described by Rider No. 42, pages VII-36 and
VII-37, Article VII, Chapter 1355, Acts of the 82nd Legislature,
Regular Session, 2011 (the General Appropriations Act), and funding
projects previously selected to be funded with the proceeds of
bonds issued under Section 49-p, Article III of this constitution.
Interest earned on funds transferred under this subsection must be
deposited to the credit of the state highway fund. The amounts
appropriated under this subsection are not included in determining
the total amount of appropriations from state tax revenues for
purposes of Section 22, Article VIII of this constitution. This
subsection expires August 31, 2015.
SECTION 4. Section 49-g, Article III, Texas Constitution,
is amended by adding Subsection (q) to read as follows:
(q) The amount of $500 million is appropriated from the
economic stabilization fund to the Texas Education Agency for the
state fiscal biennium beginning September 1, 2013, for purposes of
the Foundation School Program. The commissioner of education shall
use the amount appropriated for the Foundation School Program under
this subsection to increase the basic allotment under the
Foundation School Program for the 2013-2014 and 2014-2015 school
years. The amount of $300 million is appropriated from the economic
stabilization fund to the Texas Education Agency for the state
fiscal biennium beginning September 1, 2013, for purposes of the
educator excellence awards program as provided by Sections
21.705(1)-(8), Education Code. Priority shall be given to campuses
that fail to meet the standard defined under Section 39.054,
Education Code. The amounts appropriated under this subsection are
not included in determining the total amount of appropriations from
state tax revenues for purposes of Section 22, Article VIII of this
constitution. This subsection expires August 31, 2015.
SECTION 5. (a) The proposed amendment to the Texas
Constitution providing for adding Sections 49-d-12 and 49-d-13,
Article III, to the constitution shall be submitted to the voters at
an election to be held November 5, 2013. The ballot shall be
printed to permit voting for or against the proposition: "The
constitutional amendment providing for the transfer of existing
money from the economic stabilization fund to a state water
implementation fund for Texas to assist in the financing of
priority water infrastructure projects in the state water plan."
(b) The proposed amendment to the Texas Constitution
relating to transportation and providing for amending Section 49-g,
Article III, shall be submitted to the voters at an election to be
held November 5, 2013. The ballot shall be printed to permit voting
for or against the proposition: "The constitutional amendment
providing for the transfer of existing money from the economic
stabilization fund to assist in the funding of transportation
construction, maintenance, and rehabilitation projects."
(c) The proposed amendment to the Texas Constitution
relating to education and providing for amending Section 49-g,
Article III, shall be submitted to the voters at an election to be
held November 5, 2013. The ballot shall be printed to permit voting
for or against the proposition: "The constitutional amendment
transferring $800 million from the economic stabilization fund for
purposes of public education."