Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By Lewis of Orange H.J.R. No. 6
A JOINT RESOLUTION
1-1 proposing a constitutional amendment to create the Texas Water
1-2 Development Fund II and to authorize the Texas Water Development
1-3 Board to administer the fund and issue general obligation bonds for
1-4 the purposes of the fund.
1-5 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Article III, Texas Constitution, is amended by
1-7 adding Section 49-d-8 to read as follows:
1-8 Sec. 49-d-8. (a) The Texas Water Development Fund II is
1-9 created in the state treasury as a fund separate and distinct from
1-10 the Texas Water Development Fund established under Section 49-c of
1-11 this article. Money in the Texas Water Development Fund II shall
1-12 be administered without further appropriation by the Texas Water
1-13 Development Board and shall be used for any one or more of the
1-14 purposes authorized by Sections 49-c, 49-d, 49-d-1, 49-d-2, 49-d-5,
1-15 49-d-6, and 49-d-7 of this article, as determined by the Texas
1-16 Water Development Board. Separate accounts shall be established in
1-17 the Texas Water Development Fund II for administering proceedings
1-18 related to the purposes described in Section 49-d of this article,
1-19 the purposes described in Subsection (e) of Section 49-d-7 of this
1-20 article, and all other authorized purposes. The Texas Water
1-21 Development Board is hereby authorized, at its determination, to
1-22 issue general obligation bonds for one or more accounts of the
1-23 Texas Water Development Fund II in an aggregate principal amount
1-24 equal to the amount of bonds authorized pursuant to Sections
2-1 49-d-2, 49-d-6, and 49-d-7 of this article less the amount of bonds
2-2 issued pursuant to those sections to augment the Texas Water
2-3 Development Fund. Nothing in this section, however, shall grant to
2-4 the Texas Water Development Board the authority to issue bonds
2-5 under this section and under Sections 49-d-2, 49-d-6, and 49-d-7 of
2-6 this article in excess of the total amount of authorized bonds
2-7 described in Sections 49-d-2, 49-d-6, and 49-d-7 of this article or
2-8 to issue bonds for purposes described in Subsection (e) of Section
2-9 49-d-7 of this article in excess of $250,000,000. The expenses of
2-10 the Texas Water Development Board in connection with the issuance
2-11 of bonds for an account of the Texas Water Development Fund II and
2-12 administration of such account may be paid from money in such
2-13 account.
2-14 (b) The Texas Water Development Board is hereby authorized,
2-15 at its determination, to issue general obligation bonds for one or
2-16 more accounts of the Texas Water Development Fund II in order to
2-17 refund outstanding bonds previously issued to augment the Texas
2-18 Water Development Fund, as long as the principal amount of the
2-19 refunding bonds does not exceed the outstanding principal amount of
2-20 the refunded bonds, and to refund the general obligation of the
2-21 State of Texas under long-term contracts entered into by the Texas
2-22 Water Development Board with the United States or any of its
2-23 agencies under authority granted by Section 49-d of this article,
2-24 as long as the principal amount of the refunding bonds does not
2-25 exceed the principal amount of the contractual obligation of the
2-26 Texas Water Development Board. Money and assets in the Texas Water
2-27 Development Fund attributable to such refunding bonds shall be
2-28 transferred to the appropriate account of the Texas Water
2-29 Development Fund II, as determined by the Texas Water Development
2-30 Board, to the extent not inconsistent with the proceedings
3-1 authorizing any outstanding bonds issued to augment the Texas Water
3-2 Development Fund and the terms of any long-term contracts entered
3-3 into by the Texas Water Development Board with the United States or
3-4 any of its agencies. Further, at such time as all bonds issued to
3-5 augment the Texas Water Development Fund and all such contractual
3-6 obligations have been paid or otherwise discharged, all money and
3-7 assets in the Texas Water Development Fund shall be transferred to
3-8 the credit of the Texas Water Development Fund II and deposited to
3-9 the accounts therein, as determined by the Texas Water Development
3-10 Board.
3-11 (c) Subject to the limitations set forth in Section 49-d of
3-12 this article, the legislature shall provide terms and conditions
3-13 under which the Texas Water Development Board may sell, transfer,
3-14 or lease, in whole or in part, facilities held for the account
3-15 established within the Texas Water Development Fund II for
3-16 administering proceedings related to the purposes described in
3-17 Section 49-d of this article, and the legislature may provide terms
3-18 and conditions under which the Texas Water Development Board may
3-19 sell any unappropriated public waters of the state that may be
3-20 stored in such facilities. Money received from any sale, transfer,
3-21 or lease of such facilities or water shall be credited to the
3-22 account established within the Texas Water Development Fund II for
3-23 the purpose of administering proceedings related to the purposes
3-24 described in Section 49-d of this article.
3-25 (d) Each account of the Texas Water Development Fund II
3-26 shall consist of:
3-27 (1) the Texas Water Development Board's rights to
3-28 receive repayment of financial assistance provided from such
3-29 account, together with any evidence of such rights;
3-30 (2) money received from the sale or other disposition
4-1 of the Texas Water Development Board's rights to receive repayment
4-2 of such financial assistance;
4-3 (3) money received as repayment of such financial
4-4 assistance;
4-5 (4) money and assets attributable to bonds issued and
4-6 sold by the Texas Water Development Board for such account,
4-7 including money and assets transferred from the Texas Water
4-8 Development Fund pursuant to this section;
4-9 (5) money deposited in such account pursuant to
4-10 Subsection (c) of this section;
4-11 (6) payments received by the Texas Water Development
4-12 Board under a bond enhancement agreement as authorized by law with
4-13 respect to bonds issued for such account; and
4-14 (7) interest and other income received from investment
4-15 of money in such account.
4-16 (e) Notwithstanding the provisions of Sections 49-d-2,
4-17 49-d-6, and 49-d-7 of this article, the principal of and interest
4-18 on the general obligation bonds issued for an account of the Texas
4-19 Water Development Fund II, including payments by the Texas Water
4-20 Development Board under a bond enhancement agreement as authorized
4-21 by law with respect to principal of or interest on such bonds,
4-22 shall be paid out of such account, but the money in such account
4-23 that is not immediately committed to the purposes of such account
4-24 or the payment of expenses may be invested as authorized by law
4-25 until the money is needed for those purposes. If there is not
4-26 enough money in any account available to pay the principal of and
4-27 interest on the general obligation bonds issued for such account,
4-28 including money to make payments by the Texas Water Development
4-29 Board under a bond enhancement agreement as authorized by law with
4-30 respect to principal of or interest on such bonds, there is
5-1 appropriated out of the first money coming into the state treasury
5-2 in each fiscal year not otherwise appropriated by this constitution
5-3 an amount that is sufficient to pay the principal of and interest
5-4 on such general obligation bonds that mature or become due during
5-5 that fiscal year or to make bond enhancement payments with respect
5-6 to those bonds.
5-7 (f) The general obligation bonds authorized by this section
5-8 may be issued as bonds, notes, or other obligations as permitted by
5-9 law and shall be sold in forms and denominations, on terms, at
5-10 times, in the manner, at places, and in installments, all as
5-11 determined by the Texas Water Development Board. The bonds shall
5-12 bear a rate or rates of interest the Texas Water Development Board
5-13 determines. The bonds authorized by this section shall be
5-14 incontestable after execution by the Texas Water Development Board,
5-15 approval by the attorney general, and delivery to the purchaser or
5-16 purchasers of the bonds.
5-17 (g) This section being intended only to establish a basic
5-18 framework and not to be a comprehensive treatment of the Texas
5-19 Water Development Fund II, there is hereby reposed in the
5-20 legislature full power to implement and effectuate the design and
5-21 objects of this section, including the power to delegate such
5-22 duties, responsibilities, functions, and authority to the Texas
5-23 Water Development Board as it believes necessary.
5-24 SECTION 2. This proposed constitutional amendment shall be
5-25 submitted to the voters at an election to be held November 4, 1997.
5-26 The ballot shall be printed to permit voting for or against the
5-27 proposition: "The constitutional amendment establishing the Texas
5-28 Water Development Fund II."