By: Williams S.J.R. No. 1

(In the Senate - Filed April 10, 2013; April 10, 2013, read first time and referred to Committee on Finance; April 11, 2013, reported favorably by the following vote: Yeas 15, Nays 0; April 11, 2013, sent to printer.)

SENATE JOINT RESOLUTION

proposing a constitutional amendment providing for the creation and use of funds in the state treasury to provide financial assistance for certain projects related to economic development and water infrastructure and for the transfer to the funds of money from the economic stabilization fund.

BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Article III, Texas Constitution, is amended by adding Section 49-d-12 to read as follows:

Sec. 49-d-12. (a) The state water implementation fund for Texas is created as a special fund in the state treasury outside the general revenue fund to provide a means to finance water infrastructure projects in this state.

(b) Money or other assets in the state water implementation fund for Texas may be used only to fund water infrastructure projects included in a statewide water plan that is adopted as required by general law by the Texas Water Development Board or that board's successor in function.

(c) The state water implementation fund for Texas consists of:

(1) money or other assets deposited, appropriated, or otherwise transferred to the credit of the fund as provided by law; and

(2) interest or other investment earnings that accrue on the balance of the fund.

(d) The legislature by general law may provide for the assets of the state water implementation fund for Texas to be invested separately from the investment of other treasury assets and funds to the extent that the general law ensures that, in managing the assets of the fund, on behalf of the fund the fund's investment manager may acquire, exchange, sell, supervise, manage, or retain any kind of investment that a prudent investor, exercising reasonable care, skill, and caution, would acquire or retain in light of the purposes, terms, distribution requirements, and other circumstances of the fund then prevailing, taking into consideration the investment of all the assets of the fund rather than a single investment, and taking into consideration the goal of preserving the aggregate purchasing power of the fund assets.

(e) The legislature by general law shall prescribe the manner in which the assets of the state water implementation fund for Texas may be used, subject to the limitations provided by Subsections (a) and (b) of this section.

(f) An appropriation from the state water implementation fund for Texas is an appropriation of state tax revenues dedicated by this constitution for the purposes of Section 22, Article VIII, of this constitution.

(g) On November 30, 2013, the amount of $2.5 billion is transferred from the economic stabilization fund to the credit of the state water implementation fund for Texas. This subsection expires January 1, 2014.

SECTION 2. Section 49-p, Article III, Texas Constitution, is amended by adding Subsection (e) to read as follows:

(e) Money deposited to the credit of the state highway fund may be appropriated to repay the principal and interest on bonds issued under this section.

SECTION 3. Article XVI, Texas Constitution, is amended by adding Section 74 to read as follows:

Sec. 74. (a) In this section:

(1) "Commission" means the Texas Transportation Commission or its successor in function.

(2) "Economic development infrastructure" includes transportation infrastructure and port infrastructure. The term includes freight rail infrastructure.

(3) "Fund" means the state infrastructure fund.

(4) "Political subdivision" means:

(A) a county;

(B) a municipality; or

(C) another governmental unit that has the authority to build roads or operate and develop ports, including a district created under Section 52, Article III, or Section 59, Article XVI, of this constitution.

(b) The state infrastructure fund is created as a special fund in the state treasury outside the general revenue fund. The fund consists of:

(1) money or other assets deposited, appropriated, or otherwise transferred to the credit of the fund as provided by law;

(2) donations made to the fund;

(3) loan repayments received by the commission from loans made under this section; and

(4) interest or other investment earnings that accrue on the balance of the fund.

(c) The commission may use money or other assets in the fund only to provide:

(1) loans to political subdivisions for projects related to economic development infrastructure; or

(2) credit enhancement to political subdivisions and other governmental entities for projects related to economic development infrastructure.

(d) Money or other assets in the fund shall be invested separately from the investment of other treasury assets and funds. In managing the assets of the fund, on behalf of the fund the comptroller may acquire, exchange, sell, supervise, manage, or retain any kind of investment that a prudent investor, exercising reasonable care, skill, and caution, would acquire or retain in light of the purposes, terms, distribution requirements, and other circumstances of the fund then prevailing, taking into consideration the investment of all the assets of the fund rather than a single investment, and taking into consideration the goal of preserving the aggregate purchasing power of the fund assets.

(e) The legislature by general law shall prescribe the manner in which the assets of the fund may be used, subject to the limitations provided by Subsection (c) of this section.

(f) Money in the fund may not be used for passenger rail projects.

(g) An appropriation from the fund is an appropriation of state tax revenues dedicated by this constitution for the purposes of Section 22, Article VIII, of this constitution.

(h) On November 30, 2013, the amount of $3.5 billion is transferred from the economic stabilization fund to the credit of the fund. This subsection expires January 1, 2014.

SECTION 4. (a) The proposed amendment to the Texas Constitution providing for adding Section 49-d-12, Article III, to the constitution shall be submitted to the voters at an election to be held November 5, 2013. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment providing for the transfer of existing money from the economic stabilization fund to a state water implementation fund for Texas to assist in the financing of priority water infrastructure projects in the state water plan."

(b) The proposed amendment to the Texas Constitution providing for amending Section 49-p, Article III, and adding Section 74, Article XVI, to the constitution shall be submitted to the voters at an election to be held November 5, 2013. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment providing for the transfer of existing money from the economic stabilization fund to a state infrastructure fund to assist in the financing of transportation, port, freight rail, and other similar economic development infrastructure projects and authorizing the use of state highway funds for paying the principal and interest on certain general obligation bonds issued by the Texas Transportation Commission."

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