By: Brown S.J.R. No. 17
SENATE JOINT RESOLUTION
1-1 proposing a constitutional amendment relating to creation of the
1-2 Texas Water Development Fund II; to authorizing the Texas Water
1-3 Development Board to administer the fund and issue general
1-4 obligation bonds for the purposes of the fund; and to the flow of
1-5 funds for repayment of Texas agricultural water conservation bonds.
1-6 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Article III, Texas Constitution, is amended by
1-8 adding Section 49-d-8 to read as follows:
1-9 Sec. 49-d-8. (a) The Texas Water Development Fund II is
1-10 created in the state treasury as a fund separate and distinct from
1-11 the Texas Water Development Fund established under Section 49-c of
1-12 this article. Money in the Texas Water Development Fund II shall
1-13 be administered without further appropriation by the Texas Water
1-14 Development Board and shall be used for any one or more of the
1-15 purposes authorized by Sections 49-c, 49-d, 49-d-1, 49-d-2, 49-d-5,
1-16 49-d-6, and 49-d-7 of this article, as determined by the Texas
1-17 Water Development Board. Separate accounts shall be established in
1-18 the Texas Water Development Fund II for administering proceedings
1-19 related to the purposes described in Section 49-d of this article,
1-20 the purposes described in Subsection (e) of Section 49-d-7 of this
1-21 article, and all other authorized purposes. The Texas Water
1-22 Development Board is hereby authorized, at its determination, to
1-23 issue general obligation bonds for one or more accounts of the
1-24 Texas Water Development Fund II in an aggregate principal amount
2-1 equal to the amount of bonds authorized pursuant to Sections
2-2 49-d-2, 49-d-6, and 49-d-7 of this article less the amount of bonds
2-3 issued pursuant to those sections to augment the Texas Water
2-4 Development Fund. Nothing in this section, however, shall grant to
2-5 the Texas Water Development Board the authority to issue bonds
2-6 under this section and under Sections 49-d-2, 49-d-6, and 49-d-7 of
2-7 this article in excess of the total amount of authorized bonds
2-8 described in Sections 49-d-2, 49-d-6, and 49-d-7 of this article or
2-9 to issue bonds for purposes described in Subsection (e) of Section
2-10 49-d-7 of this article in excess of $250,000,000. The expenses of
2-11 the Texas Water Development Board in connection with the issuance
2-12 of bonds for an account of the Texas Water Development Fund II and
2-13 administration of such account may be paid from money in such
2-14 account.
2-15 (b) The Texas Water Development Board is hereby authorized,
2-16 at its determination, to issue general obligation bonds for one or
2-17 more accounts of the Texas Water Development Fund II in order to
2-18 refund outstanding bonds previously issued to augment the Texas
2-19 Water Development Fund, as long as the principal amount of the
2-20 refunding bonds does not exceed the outstanding principal amount of
2-21 the refunded bonds, and to refund the general obligation of the
2-22 State of Texas under long-term contracts entered into by the Texas
2-23 Water Development Board with the United States or any of its
2-24 agencies under authority granted by Section 49-d of this article,
2-25 as long as the principal amount of the refunding bonds does not
2-26 exceed the principal amount of the contractual obligation of the
2-27 Texas Water Development Board. Money and assets in the Texas Water
3-1 Development Fund attributable to such refunding bonds shall be
3-2 transferred to the appropriate account of the Texas Water
3-3 Development Fund II, as determined by the Texas Water Development
3-4 Board, to the extent not inconsistent with the proceedings
3-5 authorizing any outstanding bonds issued to augment the Texas Water
3-6 Development Fund and the terms of any long-term contracts entered
3-7 into by the Texas Water Development Board with the United States or
3-8 any of its agencies. Further, at such time as all bonds issued to
3-9 augment the Texas Water Development Fund and all such contractual
3-10 obligations have been paid or otherwise discharged, all money and
3-11 assets in the Texas Water Development Fund shall be transferred to
3-12 the credit of the Texas Water Development Fund II and deposited to
3-13 the accounts therein, as determined by the Texas Water Development
3-14 Board.
3-15 (c) Subject to the limitations set forth in Section 49-d of
3-16 this article, the legislature shall provide terms and conditions
3-17 under which the Texas Water Development Board may sell, transfer,
3-18 or lease, in whole or in part, facilities held for the account
3-19 established within the Texas Water Development Fund II for
3-20 administering proceedings related to the purposes described in
3-21 Section 49-d of this article, and the legislature may provide terms
3-22 and conditions under which the Texas Water Development Board may
3-23 sell any unappropriated public waters of the state that may be
3-24 stored in such facilities. Money received from any sale, transfer,
3-25 or lease of such facilities or water shall be credited to the
3-26 account established within the Texas Water Development Fund II for
3-27 the purpose of administering proceedings related to the purposes
4-1 described in Section 49-d of this article.
4-2 (d) Each account of the Texas Water Development Fund II
4-3 shall consist of:
4-4 (1) the Texas Water Development Board's rights to
4-5 receive repayment of financial assistance provided from such
4-6 account, together with any evidence of such rights;
4-7 (2) money received from the sale or other disposition
4-8 of the Texas Water Development Board's rights to receive repayment
4-9 of such financial assistance;
4-10 (3) money received as repayment of such financial
4-11 assistance;
4-12 (4) money and assets attributable to bonds issued and
4-13 sold by the Texas Water Development Board for such account,
4-14 including money and assets transferred from the Texas Water
4-15 Development Fund pursuant to this section;
4-16 (5) money deposited in such account pursuant to
4-17 Subsection (c) of this section;
4-18 (6) payments received by the Texas Water Development
4-19 Board under a bond enhancement agreement as authorized by law with
4-20 respect to bonds issued for such account; and
4-21 (7) interest and other income received from investment
4-22 of money in such account.
4-23 (e) Notwithstanding the provisions of Sections 49-d-2,
4-24 49-d-6, and 49-d-7 of this article, the principal of and interest
4-25 on the general obligation bonds issued for an account of the Texas
4-26 Water Development Fund II, including payments by the Texas Water
4-27 Development Board under a bond enhancement agreement as authorized
5-1 by law with respect to principal of or interest on such bonds,
5-2 shall be paid out of such account, but the money in such account
5-3 that is not immediately committed to the purposes of such account
5-4 or the payment of expenses may be invested as authorized by law
5-5 until the money is needed for those purposes. If there is not
5-6 enough money in any account available to pay the principal of and
5-7 interest on the general obligation bonds issued for such account,
5-8 including money to make payments by the Texas Water Development
5-9 Board under a bond enhancement agreement as authorized by law with
5-10 respect to principal of or interest on such bonds, there is
5-11 appropriated out of the first money coming into the state treasury
5-12 in each fiscal year not otherwise appropriated by this constitution
5-13 an amount that is sufficient to pay the principal of and interest
5-14 on such general obligation bonds that mature or become due during
5-15 that fiscal year or to make bond enhancement payments with respect
5-16 to those bonds.
5-17 (f) The general obligation bonds authorized by this section
5-18 may be issued as bonds, notes, or other obligations as permitted by
5-19 law and shall be sold in forms and denominations, on terms, at
5-20 times, in the manner, at places, and in installments, all as
5-21 determined by the Texas Water Development Board. The bonds shall
5-22 bear a rate or rates of interest the Texas Water Development Board
5-23 determines. The bonds authorized by this section shall be
5-24 incontestable after execution by the Texas Water Development Board,
5-25 approval by the attorney general, and delivery to the purchaser or
5-26 purchasers of the bonds.
5-27 (g) This section being intended only to establish a basic
6-1 framework and not to be a comprehensive treatment of the Texas
6-2 Water Development Fund II, there is hereby reposed in the
6-3 legislature full power to implement and effectuate the design and
6-4 objects of this section, including the power to delegate such
6-5 duties, responsibilities, functions, and authority to the Texas
6-6 Water Development Board as it believes necessary.
6-7 SECTION 2. Subsection (c), Section 50-d, Article III, Texas
6-8 Constitution, is amended to read as follows:
6-9 (c) Texas agricultural water conservation bonds are general
6-10 obligations of the State of Texas. During the time that Texas
6-11 agricultural water conservation bonds or any interest on those
6-12 bonds is outstanding or unpaid, there is appropriated out of the
6-13 first money coming into the state treasury in each fiscal year, not
6-14 otherwise appropriated by this constitution, an amount that is
6-15 sufficient to pay the principal of and interest on those bonds that
6-16 mature or become due during that fiscal year[, less the amount in
6-17 the sinking fund at the close of the prior fiscal year].
6-18 SECTION 3. This proposed constitutional amendment shall be
6-19 submitted to the voters at an election to be held November 4, 1997.
6-20 The ballot shall be printed to permit voting for or against the
6-21 proposition: "The constitutional amendment relating to the
6-22 authorization to the Texas Water Development Board to transfer
6-23 existing bond authorizations for water supply, water quality, flood
6-24 control, or state participation from one category of use to another
6-25 category to maximize the use of existing funds and relating to more
6-26 efficient operation of the bond programs."