1-1 By: Brown S.J.R. No. 17
1-2 (In the Senate - Filed January 22, 1997; January 23, 1997,
1-3 read first time and referred to Committee on Natural Resources;
1-4 March 25, 1997, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 11, Nays 0; March 25, 1997,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.J.R. No. 17 By: Brown
1-8 SENATE JOINT RESOLUTION
1-9 proposing a constitutional amendment relating to creation of the
1-10 Texas Water Development Fund II; to authorizing the Texas Water
1-11 Development Board to administer the fund and issue general
1-12 obligation bonds for the purposes of the fund; and to the flow of
1-13 funds for repayment of Texas agricultural water conservation bonds.
1-14 BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-15 SECTION 1. Article III, Texas Constitution, is amended by
1-16 adding Section 49-d-8 to read as follows:
1-17 Sec. 49-d-8. (a) The Texas Water Development Fund II is
1-18 created in the state treasury as a fund separate and distinct from
1-19 the Texas Water Development Fund established under Section 49-c of
1-20 this article. Money in the Texas Water Development Fund II shall
1-21 be administered without further appropriation by the Texas Water
1-22 Development Board and shall be used for any one or more of the
1-23 purposes authorized by Sections 49-c, 49-d, 49-d-1, 49-d-2, 49-d-5,
1-24 49-d-6, and 49-d-7 of this article, as determined by the Texas
1-25 Water Development Board. Separate accounts shall be established in
1-26 the Texas Water Development Fund II for administering proceedings
1-27 related to the purposes described in Section 49-d of this article,
1-28 the purposes described in Subsection (e) of Section 49-d-7 of this
1-29 article, and all other authorized purposes. The Texas Water
1-30 Development Board is hereby authorized, at its determination, to
1-31 issue general obligation bonds for one or more accounts of the
1-32 Texas Water Development Fund II in an aggregate principal amount
1-33 equal to the amount of bonds authorized pursuant to Sections
1-34 49-d-2, 49-d-6, and 49-d-7 of this article less the amount of bonds
1-35 issued pursuant to those sections to augment the Texas Water
1-36 Development Fund. Nothing in this section, however, shall grant to
1-37 the Texas Water Development Board the authority to issue bonds
1-38 under this section and under Sections 49-d-2, 49-d-6, and 49-d-7 of
1-39 this article in excess of the total amount of authorized bonds
1-40 described in Sections 49-d-2, 49-d-6, and 49-d-7 of this article or
1-41 to issue bonds for purposes described in Subsection (e) of Section
1-42 49-d-7 of this article in excess of $250,000,000. The expenses of
1-43 the Texas Water Development Board in connection with the issuance
1-44 of bonds for an account of the Texas Water Development Fund II and
1-45 administration of such account may be paid from money in such
1-46 account.
1-47 (b) The Texas Water Development Board is hereby authorized,
1-48 at its determination, to issue general obligation bonds for one or
1-49 more accounts of the Texas Water Development Fund II in order to
1-50 refund outstanding bonds previously issued to augment the Texas
1-51 Water Development Fund, as long as the principal amount of the
1-52 refunding bonds does not exceed the outstanding principal amount of
1-53 the refunded bonds, and to refund the general obligation of the
1-54 State of Texas under long-term contracts entered into by the Texas
1-55 Water Development Board with the United States or any of its
1-56 agencies under authority granted by Section 49-d of this article,
1-57 as long as the principal amount of the refunding bonds does not
1-58 exceed the principal amount of the contractual obligation of the
1-59 Texas Water Development Board. Money and assets in the Texas Water
1-60 Development Fund attributable to such refunding bonds shall be
1-61 transferred to the appropriate account of the Texas Water
1-62 Development Fund II, as determined by the Texas Water Development
1-63 Board, to the extent not inconsistent with the proceedings
1-64 authorizing any outstanding bonds issued to augment the Texas Water
2-1 Development Fund and the terms of any long-term contracts entered
2-2 into by the Texas Water Development Board with the United States or
2-3 any of its agencies. Further, at such time as all bonds issued to
2-4 augment the Texas Water Development Fund and all such contractual
2-5 obligations have been paid or otherwise discharged, all money and
2-6 assets in the Texas Water Development Fund shall be transferred to
2-7 the credit of the Texas Water Development Fund II and deposited to
2-8 the accounts therein, as determined by the Texas Water Development
2-9 Board.
2-10 (c) Subject to the limitations set forth in Section 49-d of
2-11 this article, the legislature shall provide terms and conditions
2-12 under which the Texas Water Development Board may sell, transfer,
2-13 or lease, in whole or in part, facilities held for the account
2-14 established within the Texas Water Development Fund II for
2-15 administering proceedings related to the purposes described in
2-16 Section 49-d of this article, and the legislature may provide terms
2-17 and conditions under which the Texas Water Development Board may
2-18 sell any unappropriated public waters of the state that may be
2-19 stored in such facilities. Money received from any sale, transfer,
2-20 or lease of such facilities or water shall be credited to the
2-21 account established within the Texas Water Development Fund II for
2-22 the purpose of administering proceedings related to the purposes
2-23 described in Section 49-d of this article.
2-24 (d) Each account of the Texas Water Development Fund II
2-25 shall consist of:
2-26 (1) the Texas Water Development Board's rights to
2-27 receive repayment of financial assistance provided from such
2-28 account, together with any evidence of such rights;
2-29 (2) money received from the sale or other disposition
2-30 of the Texas Water Development Board's rights to receive repayment
2-31 of such financial assistance;
2-32 (3) money received as repayment of such financial
2-33 assistance;
2-34 (4) money and assets attributable to bonds issued and
2-35 sold by the Texas Water Development Board for such account,
2-36 including money and assets transferred from the Texas Water
2-37 Development Fund pursuant to this section;
2-38 (5) money deposited in such account pursuant to
2-39 Subsection (c) of this section;
2-40 (6) payments received by the Texas Water Development
2-41 Board under a bond enhancement agreement as authorized by law with
2-42 respect to bonds issued for such account; and
2-43 (7) interest and other income received from investment
2-44 of money in such account.
2-45 (e) Notwithstanding the provisions of Sections 49-d-2,
2-46 49-d-6, and 49-d-7 of this article, the principal of and interest
2-47 on the general obligation bonds issued for an account of the Texas
2-48 Water Development Fund II, including payments by the Texas Water
2-49 Development Board under a bond enhancement agreement as authorized
2-50 by law with respect to principal of or interest on such bonds,
2-51 shall be paid out of such account, but the money in such account
2-52 that is not immediately committed to the purposes of such account
2-53 or the payment of expenses may be invested as authorized by law
2-54 until the money is needed for those purposes. If there is not
2-55 enough money in any account available to pay the principal of and
2-56 interest on the general obligation bonds issued for such account,
2-57 including money to make payments by the Texas Water Development
2-58 Board under a bond enhancement agreement as authorized by law with
2-59 respect to principal of or interest on such bonds, there is
2-60 appropriated out of the first money coming into the state treasury
2-61 in each fiscal year not otherwise appropriated by this constitution
2-62 an amount that is sufficient to pay the principal of and interest
2-63 on such general obligation bonds that mature or become due during
2-64 that fiscal year or to make bond enhancement payments with respect
2-65 to those bonds.
2-66 (f) The general obligation bonds authorized by this section
2-67 may be issued as bonds, notes, or other obligations as permitted by
2-68 law and shall be sold in forms and denominations, on terms, at
2-69 times, in the manner, at places, and in installments, all as
3-1 determined by the Texas Water Development Board. The bonds shall
3-2 bear a rate or rates of interest the Texas Water Development Board
3-3 determines. The bonds authorized by this section shall be
3-4 incontestable after execution by the Texas Water Development Board,
3-5 approval by the attorney general, and delivery to the purchaser or
3-6 purchasers of the bonds.
3-7 (g) This section being intended only to establish a basic
3-8 framework and not to be a comprehensive treatment of the Texas
3-9 Water Development Fund II, there is hereby reposed in the
3-10 legislature full power to implement and effectuate the design and
3-11 objects of this section, including the power to delegate such
3-12 duties, responsibilities, functions, and authority to the Texas
3-13 Water Development Board as it believes necessary.
3-14 SECTION 2. Subsection (c), Section 50-d, Article III, Texas
3-15 Constitution, is amended to read as follows:
3-16 (c) Texas agricultural water conservation bonds are general
3-17 obligations of the State of Texas. During the time that Texas
3-18 agricultural water conservation bonds or any interest on those
3-19 bonds is outstanding or unpaid, there is appropriated out of the
3-20 first money coming into the state treasury in each fiscal year, not
3-21 otherwise appropriated by this constitution, an amount that is
3-22 sufficient to pay the principal of and interest on those bonds that
3-23 mature or become due during that fiscal year[, less the amount in
3-24 the sinking fund at the close of the prior fiscal year].
3-25 SECTION 3. This proposed constitutional amendment shall be
3-26 submitted to the voters at an election to be held November 4, 1997.
3-27 The ballot shall be printed to permit voting for or against the
3-28 proposition: "The constitutional amendment relating to the
3-29 authorization to the Texas Water Development Board to transfer
3-30 existing bond authorizations for water supply, water quality, flood
3-31 control, or state participation from one category of use to another
3-32 category to maximize the use of existing funds and relating to more
3-33 efficient operation of the bond programs."
3-34 * * * * *