By:  Averitt                                                    S.C.R. No. 6  



SENATE CONCURRENT RESOLUTION
	WHEREAS, Current federal tax provisions place an arbitrary 
state cap on the volume of private activity bonds, which hinders the 
ability of Texas to meet its rapidly growing water infrastructure 
needs; and
	WHEREAS, Private activity bonds afford a cost-effective, 
nonrecourse means of financing the development of adequate 
wastewater and drinking water facilities for the future and 
minimize the risk to the ratepayer; and
	WHEREAS, Other sources of municipal infrastructure 
financing, such as general obligation bonds, revenue bonds, 
enterprise bonds, and loans under the federal Environmental 
Protection Agency's state revolving loan fund program, are 
insufficient to allow Texas to comply with new federal 
environmental and public health mandates; and
	WHEREAS, The cap on the volume of private activity bonds 
forces water and wastewater projects to compete with other projects 
in Texas without regard to the urgent priority of protecting public 
health and the environment; and
	WHEREAS, Private activity bonds foster innovative 
public-private partnerships and help them develop cost-effective 
projects for the construction of sewage and drinking water 
facilities and the rehabilitation and upgrade of existing water 
infrastructure; and
	WHEREAS, Removing the financing cap would give public 
officials the maximum number of tools for meeting the growing 
public demand for water services while ensuring compliance with 
federal environmental and public health laws; now, therefore, be it
	RESOLVED, That the 78th Legislature of the State of Texas 
hereby respectfully urge the Congress of the United States to amend 
the Internal Revenue Code of 1986 to provide that the volume cap for 
private activity bonds not apply to bonds for water and wastewater 
facilities; and, be it further
	RESOLVED, That the Texas secretary of state forward official 
copies of this resolution to the president of the United States, to 
the speaker of the house of representatives and the president of the 
senate of the United States Congress, and to all the members of the 
Texas delegation to the congress with the request that this 
resolution be officially entered in the Congressional Record as a 
memorial to the Congress of the United States of America.