SRC-MWN H.J.R. 81 77(R)BILL ANALYSIS


Senate Research CenterH.J.R. 81
By: Counts (J.E, "Buster" Brown)
Natural Resources
5/10/2001
Committee Report (Amended)


DIGEST AND PURPOSE 

With the increasing population of Texas, the need to secure the future of
our state's water supply is of vital importance. The Texas Water
Development Board (board) currently provides a funding mechanism for new
water management strategies and projects through the Texas Water
Development Fund II. This fund authorizes the board to issue bonds for a
wide range of projects, including water supply projects, water quality
enhancement projects, flood control projects, state participation in water
and wastewater facilities, and economically distressed areas projects.
However, under current law there is a limit on the amount of bonds which
the board can issue. As proposed, H.J.R. 81 requires the submission to the
voters of a constitutional amendment authorizing the board to issue
additional general obligation bonds in an amount not to exceed $2 billion
for the Texas Water Development Fund II.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Article III, Texas Constitution, by adding Section
49-d-9, as follows: 

Sec. 49-d-9. (a)  Authorizes the Texas Water Development Board (board) to
issue additional general obligation bonds, for one or more accounts of the
Texas Water Development Fund II and the water infrastructure fund, in an
amount not to exceed $2 billion. Requires the board to allocate the first
$50 million in proceeds from any bonds issued under this subsection to the
water infrastructure fund. 

(b)  Provides that Section 49-d-8 of this article applies to the bonds
authorized by this section.  Provides that the limitation in Section 49-d-8
of this article that the board may not issue bonds in excess of the
aggregate principal amount of previously authorized bonds does not apply to
the bonds authorized by and issued under this section. 

(c)  Provides that a limitation on the percentage of state participation in
any single project imposed by this article does not apply to a project
funded with the proceeds of bonds issued under the authority of Section
49-d-8 of this article or this section. 

SECTION 2. Requires this proposed constitutional amendment to be submitted
to the voters at an election to be held November 6, 2001. Requires the
ballot to be printed to provide for voting for or against "The
constitutional amendment providing for the issuance of additional general
obligation bonds by the Texas Water Development Board in an amount not to
exceed $2 billion." 

SUMMARY OF COMMITTEE CHANGES

SECTION 1. Amends proposed Section 49-d-9(a).