By: Hancock S.J.R. No. 62
SENATE JOINT RESOLUTION
proposing a constitutional amendment providing for the creation of
the State Utilities Reliability Fund and the State Utilities
Reliability Revenue Fund to provide financial support for projects
that enhance the reliability of water, electricity, natural gas and
broadband utilities in this state.
BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Article III, Texas Constitution, is amended by
adding Sections 49-d-15, and 49-d-16 to read as follows:
Sec. 49-d-15. (a) The State Utilities Reliability Fund is
created as a special fund in the state treasury outside the general
revenue fund. Money in the State Utilities Reliability Fund shall
be administered, without further appropriation, by the Texas Water
Development Board or that board's successor in function. The State
Utilities Reliability Fund shall serve as a utility infrastructure
bank in order to enhance the financing capabilities of the Texas
Water Development Board or that board's successor in function under
a revenue bond program designed to enhance the reliability of
water, electricity, natural gas and broadband utilities in this
state, including utilities owned by public and private entities, by
supporting projects to weatherize facilities and to provide
adequate capacity during periods of high demand, such program to be
adopted and implemented in accordance with general law by the Texas
Water Development Board or that board's successor in function.
Separate accounts may be established in the State Utilities
Reliability Fund as necessary to administer the fund, program, or
authorized projects. The financial assistance authorized by this
section may be provided directly to utilities owned by public or
private entities as provided by general law.
(b) The legislature by general law may authorize the Texas
Water Development Board or that board's successor in function to
enter into bond enhancement agreements to provide additional
security for revenue bonds of the Texas Water Development Board or
that board's successor in function, the proceeds of which are used
to finance state utilities reliability projects. Bond enhancement
agreements must be payable solely from the State Utilities
Reliability Fund; provided, however, the bond enhancement
agreements may not exceed an amount that can be fully supported by
the State Utilities Reliability Fund. Any amount paid under a bond
enhancement agreement may be repaid as provided by general law.
Payments under a bond enhancement agreement entered into pursuant
to this section may not be a constitutional state debt payable from
general revenues of the state.
(c) The legislature by general law may authorize the Texas
Water Development Board or that board's successor in function to
use the State Utilities Reliability Fund to finance, including by
direct loan, projects that enhance the reliability of water,
electricity, natural gas and broadband utilities in this state,
including utilities owned by public and private entities according
to the provisions of the legislation.
(d) The Texas Water Development Board or that board's
successor in function shall provide written notice to the
Legislative Budget Board or that board's successor in function
before each bond enhancement agreement or loan agreement entered
into pursuant to this section has been executed by the Texas Water
Development Board or that board's successor in function and shall
provide a copy of the proposed agreement to the Legislative Budget
Board or that board's successor in function for approval. The
proposed agreement shall be considered to be approved unless the
Legislative Budget Board or that board's successor in function
issues a written disapproval not later than the 21st day after the
date on which the staff of that board receives the submission.
(e) The State Utilities Reliability Fund consists of:
(1) money transferred or deposited to the credit of
the fund by general law, including appropriations and money from
any source transferred or deposited to the credit of the fund at the
discretion of the Texas Water Development Board or that board's
successor in function as authorized by general law;
(2) the proceeds of any fee or tax imposed by this
state that by statute is dedicated for deposit to the credit of the
fund;
(3) any other revenue that the legislature by statue
dedicates for deposit to the credit of the fund;
(4) investment earnings and interest earned on amounts
credited to the fund; and
(5) money transferred to the fund under a bond
enhancement agreement from another fund or account to which money
from the fund was transferred under a bond enhancement agreement,
as authorized by general law.
(f) The legislature by general law shall provide for the
manner in which the assets of the State Utilities Reliability Fund
may be used, subject to the limitations provided by this section.
The legislature by general law may provide for costs of investment
of the State Utilities reliability Fund to be paid from that fund.
(g) As provided by general law, each fiscal year the Texas
Water Development Board or that board's successor in function shall
set aside from amounts on deposit in the State Water Utilities
Reliability Fund an amount that is sufficient to make payments
under bond enhancement agreements that become due during that
fiscal year.
(h) Any dedication or appropriation of amounts on deposit in
the State Utilities Reliability Fund may not be modified so as to
impair any outstanding obligation under a bond enhancement
agreement secured by a pledge of those amounts unless provisions
have been made for a full discharge of the bond enhancement
agreement.
(i) Money in the State Utilities Reliability Fund is
dedicated by this constitution for purposes of Section 22, Article
VIII, of this constitution and an appropriation from the economic
stabilization fund to the credit of the State Utilities Reliability
Fund is an appropriation of state tax revenues dedicated by this
constitution for the purposes of Section 22, Article VIII, of this
constitution.
(j) This section is intended to establish a basic framework
of the State Utilities Reliability Fund, and the legislature shall
have the power to implement and effectuate the design and objects of
this section, including the power to delegate such duties,
responsibilities, functions, and authority to the Texas Water
Development Board or that board's successor in function.
Sec. 49-d-16. (a) The State Utilities Reliability Revenue
Fund is created as a special fund in the state treasury outside the
general revenue fund. Money in the State Utilities Reliability
Revenue Fund shall be administered, without further appropriation,
by the Texas Water Development Board or that board's successor in
function and shall be used for the purpose of providing financing
for projects that enhance the reliability of water, electricity,
natural gas and broadband utilities in this state, including
utilities owned by public and private entities, by supporting
projects to weatherize facilities and to provide adequate capacity
during periods of high demand in accordance with general law and
program requirements adopted by the Texas Water Development Board
or that board's successor in function. Separate accounts may be
established in the State Utilities Reliability Revenue Fund as
necessary to administer the fund or authorized projects. The
financial assistance authorized by this section may be provided
directly to utilities owned by public or private entities as
provided by general law.
(b) The legislature by general law may authorize the Texas
Water Development Board or that board's successor in function to
issue bonds, make loans and enter into related credit agreements
that are payable from revenues available to the State Utilities
Reliability Revenue Fund.
(c) The Texas Water Development Board or that board's
successor in function shall provide written notice to the
Legislative Budget Board or that board's successor in function
before issuing a bond pursuant to this section or entering into a
related credit agreement that is payable from revenue deposited to
the credit of the State Utilities Reliability Revenue Fund and
shall provide a copy of the proposed bond or agreement to the
Legislative Budget Board or that board's successor in function for
approval. The proposed bond or agreement shall be considered to be
approved unless the Legislative Budget Board or that board's
successor in function issues a written disapproval not later than
the 21st day after the date on which the staff of that board
receives the submission.
(d) The State Utilities Reliability Revenue Fund consists
of:
(1) money transferred or deposited to the credit of
the fund by general law, including appropriations and money from
any source transferred or deposited to the credit of the fund at the
discretion of the Texas Water Development Board or that board's
successor in function as authorized by general law;
(2) the proceeds of any fee or tax imposed by this
state that by statute is dedicated for deposit to the credit of the
fund;
(3) any other revenue that the legislature by statute
dedicates for deposit to the credit of the fund;
(4) investment earnings and interest earned on amounts
credited to the fund;
(5) the proceeds from the sale of bonds, including
revenue bonds issued under this section by the Texas Water
Development Board or that board's successor in function for the
purpose of providing money for the fund; and
(6) money disbursed to the fund from the State
Utilities Reliability Fund as authorized by general law.
(e) The legislature by general law shall provide for the
manner in which the assets of the State Utilities Reliability
Revenue Fund may be used, subject to the limitations provided by
this section. The legislature by general law may provide for costs
of investment of the State Utilities Reliability Revenue Fund to be
paid from that fund.
(f) In each fiscal year in which amounts become due under
the bonds or agreements authorized by this section, the Texas Water
Development Board or that board's successor in function shall
transfer from revenue deposited to the credit of the State
Utilities Reliability Revenue Fund 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 related credit agreements that become due during that fiscal
year.
(g) Any obligations authorized by general law to be issued
by the Texas Water Development Board or that board's successor in
function pursuant to this section shall be special obligations
payable solely from amounts in the State Utilities Reliability
Revenue Fund. Obligations issued by the Texas Water Development
Board or that board's successor in function pursuant to this
section may not be a constitutional state debt payable from the
general revenue of the state.
(h) Any dedication or appropriation of revenue to the credit
of the State Utilities Reliability Revenue Fund 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.
(i) Money in the State Utilities Reliability Revenue Fund is
dedicated by this constitution for purposes of Section 22, Article
VIII, of this constitution.
(j) This section is intended to establish a basic framework
of the State Utilities Reliability Revenue Fund, and the
legislature shall have the power to implement and effectuate the
design and objects of this section, including the power to delegate
such duties, responsibilities, functions, and authority to the
Texas Water Development Board or that board's successor in
function.
SECTION 2. This proposed constitutional amendment shall be
submitted to the voters at an election to be held November 2, 2021.
The ballot shall be printed to permit voting for or against the
proposition: "The constitutional amendment adding Sections 49-d-15
and 49-d-16, Article III, Texas Constitution, creating the state
utilities reliability fund and the state utilities reliability
revenue fund to provide financial support for projects that enhance
the reliability of water, electricity, natural gas and broadband
utilities in this state by supporting projects to weatherize
facilities and to provide adequate capacity during periods of high
demand,."