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  By: Williams S.J.R. No. 1
 
 
  SENATE JOINT RESOLUTION
 
 
 
SENATE JOINT RESOLUTION
  proposing constitutional amendments providing for the transfer of
  existing money from the economic stabilization fund to assist in
  the financing of priority water infrastructure projects in the
  state water plan and to assist in the funding of transportation
  construction, maintenance, and rehabilitation projects and
  providing for the transfer of $800 million from the economic
  stabilization fund for the purposes of public education.
         BE IT RESOLVED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Article III, Texas Constitution, is amended by
  adding Sections 49-d-12 and 49-d-13 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, conservation, and reuse 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,
  conservation, and reuse 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)  The legislature may authorize the Texas Water
  Development Board or its successor in function to issue bonds and
  enter into bond enhancement agreements that are payable or secured
  by amounts on deposit in the state water implementation fund for
  Texas.
         (g)  In each fiscal year there is appropriated from amounts
  on deposit in the state water implementation fund for Texas an
  amount that is sufficient to:
               (1)  pay the principal of and interest on the bonds that
  mature or become due during the fiscal year, after considering all
  other sources pledged for those purposes;
               (2)  fund or restore reserves necessary to secure the
  bonds; and
               (3)  pay any cost related to the bonds, including
  payments under bond enhancement agreements that become due during
  that fiscal year.
         (h)  Any dedication or appropriation of amounts on deposit in
  the state water implementation fund for Texas may not be modified so
  as to impair any outstanding bonds secured by a pledge of those
  amounts unless provisions have been made for a full discharge of
  those bonds.
         (i)  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.
         (j)  On November 30, 2013, the amount of $2 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.
         Sec. 49-d-13.  (a)  The state water implementation revenue
  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, conservation, and reuse projects in this state.
         (b)  Money or other assets in the state water implementation
  revenue fund for Texas may be used only to fund water
  infrastructure, conservation, and reuse projects included in the
  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 revenue 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;
               (2)  interest or other investment earnings that accrue
  on the balance of the fund;
               (3)  the proceeds from the sale of bonds, including
  revenue bonds issued by the board as authorized by law, that are
  designated by the board for the purpose of providing money for the
  fund;
               (4)  money disbursed to the fund from the state water
  implementation fund for Texas as authorized by law;
               (5)  repayments of loans made from the fund; and
               (6)  proceeds from the sale of political subdivision
  bonds or obligations held in the fund and not otherwise pledged to
  the discharge, repayment, or redemption of revenue bonds or other
  bonds, the proceeds of which were placed in the fund.
         (d)  The legislature by general law may provide for the
  assets of the state water implementation revenue 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
  revenue fund for Texas may be used, subject to the limitations
  provided by Subsections (a) and (b) of this section.
         (f)  The legislature may authorize the Texas Water
  Development Board or its successor in function to issue bonds and
  enter into bond enhancement agreements that are payable from
  revenue deposited to the credit of the state water implementation
  revenue fund for Texas.
         (g)  In each fiscal year in which amounts become due under
  the bonds, or agreements authorized by this section, there is
  appropriated from revenue deposited to the credit of the state
  water implementation revenue fund for Texas in that fiscal year an
  amount that is sufficient to pay:
               (1)  the principal of and interest on the bonds that
  mature or become due during the fiscal year; and
               (2)  any cost related to the bonds, including payments
  under bond enhancement agreements that become due during that
  fiscal year.
         (h)  Any dedication or appropriation of revenue to the credit
  of the state water implementation revenue fund for Texas may not be
  modified so as to impair any outstanding bonds secured by a pledge
  of that revenue unless provisions have been made for a full
  discharge of those bonds.
         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.  Section 49-g, Article III, Texas Constitution,
  is amended by adding Subsection (p) to read as follows:
         (p)  On November 30, 2013, the amount of $2.9 billion is
  transferred from the economic stabilization fund to the credit of
  an account created by the Texas Department of Transportation in the
  state highway fund for the purposes described by this subsection.  
  Funds transferred under this subsection may only be appropriated to
  the Texas Department of Transportation for the purposes of paying
  the principal and interest on bonds issued on or before January 1,
  2013, for projects described by Rider No. 42, pages VII-36 and
  VII-37, Article VII, Chapter 1355, Acts of the 82nd Legislature,
  Regular Session, 2011 (the General Appropriations Act), and funding
  projects previously selected to be funded with the proceeds of
  bonds issued under Section 49-p, Article III of this constitution.  
  Interest earned on funds transferred under this subsection must be
  deposited to the credit of the state highway fund.  The amounts
  appropriated under this subsection are not included in determining
  the total amount of appropriations from state tax revenues for
  purposes of Section 22, Article VIII of this constitution. This
  subsection expires August 31, 2015.
         SECTION 4.  Section 49-g, Article III, Texas Constitution,
  is amended by adding Subsection (q) to read as follows:
         (q)  The amount of $500 million is appropriated from the
  economic stabilization fund to the Texas Education Agency for the
  state fiscal biennium beginning September 1, 2013, for purposes of
  the Foundation School Program. The commissioner of education shall
  use the amount appropriated for the Foundation School Program under
  this subsection to increase the basic allotment under the
  Foundation School Program for the 2013-2014 and 2014-2015 school
  years. The amount of $300 million is appropriated from the economic
  stabilization fund to the Texas Education Agency for the state
  fiscal biennium beginning September 1, 2013, for purposes of the
  educator excellence awards program as provided by Sections
  21.705(1)-(8), Education Code.  Priority shall be given to campuses
  that fail to meet the standard defined under Section 39.054,
  Education Code. The amounts appropriated under this subsection are
  not included in determining the total amount of appropriations from
  state tax revenues for purposes of Section 22, Article VIII of this
  constitution. This subsection expires August 31, 2015.
         SECTION 5.  (a)  The proposed amendment to the Texas
  Constitution providing for adding Sections 49-d-12 and 49-d-13,
  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
  relating to transportation and providing for amending Section 49-g,
  Article III, 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 assist in the funding of transportation
  construction, maintenance, and rehabilitation projects."
         (c)  The proposed amendment to the Texas Constitution
  relating to education and providing for amending Section 49-g,
  Article III, 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
  transferring $800 million from the economic stabilization fund for
  purposes of public education."