85R14689 JJT-D

By: Perry S.J.R. No. 58

A JOINT RESOLUTION

proposing a constitutional amendment to set aside money from the economic stabilization fund to pay for certain state infrastructure projects and to create a state infrastructure endowment fund for funding certain costs of those projects.

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

SECTION 1. Article XVI, Texas Constitution, is amended by adding Section 76 to read as follows:

Sec. 76. (a) The state infrastructure endowment fund is created as a fund to be held outside of the state treasury and administered by the comptroller of public accounts as trustee for the purpose of paying the costs of state infrastructure as provided by this section.

(b) Notwithstanding Subsection (a) of this section, the comptroller of public accounts may transfer the state infrastructure endowment fund and the comptroller's duties as trustee to a special purpose trust company that, as provided by general law, is incorporated by the comptroller.

(c) Money transferred to the credit of the state infrastructure endowment fund and interest or other earnings on that money may be used only to:

(1) make payments of principal or interest on state general obligation bonds the proceeds of which were used to pay for projects to repair, renovate, rehabilitate, or construct state infrastructure other than transportation infrastructure; or

(2) make payments under a credit agreement or bond enhancement agreement related to bonds described by Subdivision (1) of this subsection.

(d) As soon as practicable after the effective date of this section, the comptroller of public accounts shall transfer from the economic stabilization fund to the credit of the state infrastructure endowment fund the amount of $1 billion. For the purposes of Section 22, Article VIII, of this constitution, the transfer made under this subsection to the state infrastructure endowment fund is not an appropriation of state tax revenues. This subsection expires September 1, 2018.

(e) The trustee of the state infrastructure endowment fund, without the necessity of a legislative appropriation, may apply available money from the fund toward payments described by Subsection (c) of this section. The trustee may enter into bond enhancement agreements to provide additional security for general obligation bonds or revenue bonds the proceeds of which are used to finance state infrastructure projects other than transportation infrastructure projects. Bond enhancement agreements must be payable solely from available money from the state infrastructure endowment fund. The bond enhancement agreements may not exceed an amount that can be fully supported by the state infrastructure endowment fund. A bond enhancement agreement entered into under this subsection may not provide for a duty to make a payment under the agreement so as to constitute a constitutional state debt payable from general revenues of the state.

(f) This section is self-executing, however the legislature by general law may provide for criteria or procedures for the trustee to use in determining the use of the state infrastructure endowment fund's resources.

SECTION 2. This proposed constitutional amendment shall be submitted to the voters at an election to be held November 7, 2017. The ballot shall be printed to permit voting for or against the proposition: "The constitutional amendment to set aside an amount of money from the economic stabilization fund as dedicated to pay for certain state infrastructure projects and to create a state infrastructure endowment fund outside of the state treasury for funding certain costs of those projects."