S.J.R. No. 1
 
 
 
  proposing a constitutional amendment providing for the creation of
  the State Water Implementation Fund for Texas and the State Water
  Implementation Revenue Fund for Texas to assist in the financing of
  priority projects in the state water plan.
         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. Money in the State Water Implementation Fund
  for Texas shall be administered, without further appropriation, by
  the Texas Water Development Board or that board's successor in
  function and shall be used for the purpose of implementing the state
  water plan that is adopted as required by general law by the Texas
  Water Development Board or that board's successor in function.
  Separate accounts may be established in the State Water
  Implementation Fund for Texas as necessary to administer the fund
  or authorized projects.
         (b)  The legislature by general law may authorize the Texas
  Water Development Board or that board's successor in function to
  enter into bond enhancement agreements to provide additional
  security for general obligation bonds or revenue bonds of the Texas
  Water Development Board or that board's successor in function, the
  proceeds of which are used to finance state water plan projects.  
  Bond enhancement agreements must be payable solely from the State
  Water Implementation Fund for Texas; provided, however, the bond
  enhancement agreements may not exceed an amount that can be fully
  supported by the State Water Implementation Fund for Texas. Any
  amount paid under a bond enhancement agreement may be repaid as
  provided by general law; provided, however, any repayment may not
  cause general obligation bonds that are issued under Sections
  49-d-9 and 49-d-11 of this article and that are payable from the
  fund or account receiving the bond enhancement payment to be no
  longer self-supporting for purposes of Section 49-j(b) of this
  article. Payments under a bond enhancement agreement entered into
  pursuant to this section may not be a constitutional state debt
  payable from general revenues of the state.
         (c)  The legislature by general law may authorize the Texas
  Water Development Board or that board's successor in function to
  use the State Water Implementation Fund for Texas to finance,
  including by direct loan, water projects included in the state
  water plan.
         (d)  The Texas Water Development Board or that board's
  successor in function shall provide written notice to the
  Legislative Budget Board or that board's successor in function
  before each bond enhancement agreement or loan agreement entered
  into pursuant to this section has been executed by the Texas Water
  Development Board or that board's successor in function and shall
  provide a copy of the proposed agreement to the Legislative Budget
  Board or that board's successor in function for approval.  The
  proposed agreement shall be considered to be approved unless the
  Legislative Budget Board or that board's successor in function
  issues a written disapproval not later than the 21st day after the
  date on which the staff of that board receives the submission.
         (e)  The State Water Implementation Fund for Texas consists
  of:
               (1)  money transferred or deposited to the credit of
  the fund by general law, including money from any source
  transferred or deposited to the credit of the fund at the discretion
  of the Texas Water Development Board or that board's successor in
  function as authorized by general law;
               (2)  the proceeds of any fee or tax imposed by this
  state that by statute is dedicated for deposit to the credit of the
  fund;
               (3)  any other revenue that the legislature by statute
  dedicates for deposit to the credit of the fund;
               (4)  investment earnings and interest earned on amounts
  credited to the fund; and
               (5)  money transferred to the fund under a bond
  enhancement agreement from another fund or account to which money
  from the fund was transferred under a bond enhancement agreement,
  as authorized by general law.
         (f)  The legislature by general law shall provide for the
  manner in which the assets of the State Water Implementation Fund
  for Texas may be used, subject to the limitations provided by this
  section. The legislature by general law may provide for costs of
  investment of the State Water Implementation Fund for Texas to be
  paid from that fund.
         (g)  As provided by general law, each fiscal year the Texas
  Water Development Board or that board's successor in function shall
  set aside from amounts on deposit in the State Water Implementation
  Fund for Texas an amount that is sufficient to make 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 obligation under a bond enhancement
  agreement secured by a pledge of those amounts unless provisions
  have been made for a full discharge of the bond enhancement
  agreement.
         (i)  Money in the State Water Implementation Fund for Texas
  is dedicated by this constitution for purposes of Section 22,
  Article VIII, of this constitution and an appropriation from the
  economic stabilization fund to the credit of 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)  This section being intended only to establish a basic
  framework and not to be a comprehensive treatment of the State Water
  Implementation Fund for Texas, there is hereby reposed in the
  legislature full power to implement and effectuate the design and
  objects of this section, including the power to delegate such
  duties, responsibilities, functions, and authority to the Texas
  Water Development Board or that board's successor in function as
  the legislature believes necessary.
         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. Money in the State Water
  Implementation Revenue Fund for Texas shall be administered,
  without further appropriation, by the Texas Water Development Board
  or that board's successor in function and shall be used for the
  purpose of implementing the state water plan that is adopted as
  required by general law by the Texas Water Development Board or that
  board's successor in function. Separate accounts may be
  established in the State Water Implementation Revenue Fund for
  Texas as necessary to administer the fund or authorized projects.
         (b)  The legislature by general law may authorize the Texas
  Water Development Board or that board's successor in function to
  issue bonds and enter into related credit agreements that are
  payable from all revenues available to the State Water
  Implementation Revenue Fund for Texas.
         (c)  The Texas Water Development Board or that board's
  successor in function shall provide written notice to the
  Legislative Budget Board or that board's successor in function
  before issuing a bond pursuant to this section or entering into a
  related credit agreement that is payable from revenue deposited to
  the credit of the State Water Implementation Revenue Fund for Texas
  and shall provide a copy of the proposed bond or agreement to the
  Legislative Budget Board or that board's successor in function for
  approval. The proposed bond or agreement shall be considered to be
  approved unless the Legislative Budget Board or that board's
  successor in function issues a written disapproval not later than
  the 21st day after the date on which the staff of that board
  receives the submission.
         (d)  The State Water Implementation Revenue Fund for Texas
  consists of:
               (1)  money transferred or deposited to the credit of
  the fund by general law, including money from any source
  transferred or deposited to the credit of the fund at the discretion
  of the Texas Water Development Board or that board's successor in
  function as authorized by general law;
               (2)  the proceeds of any fee or tax imposed by this
  state that by statute is dedicated for deposit to the credit of the
  fund;
               (3)  any other revenue that the legislature by statute
  dedicates for deposit to the credit of the fund;
               (4)  investment earnings and interest earned on amounts
  credited to the fund;
               (5)  the proceeds from the sale of bonds, including
  revenue bonds issued under this section by the Texas Water
  Development Board or that board's successor in function for the
  purpose of providing money for the fund; and
               (6)  money disbursed to the fund from the State Water
  Implementation Fund for Texas as authorized by general law.
         (e)  The legislature by general law shall provide for the
  manner in which the assets of the State Water Implementation
  Revenue Fund for Texas may be used, subject to the limitations
  provided by this section. The legislature by general law may
  provide for costs of investment of the State Water Implementation
  Revenue Fund for Texas to be paid from that fund.
         (f)  In each fiscal year in which amounts become due under
  the bonds or agreements authorized by this section, the Texas Water
  Development Board or that board's successor in function shall
  transfer 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 related credit agreements that become due during that fiscal
  year.
         (g)  Any obligations authorized by general law to be issued
  by the Texas Water Development Board or that board's successor in
  function pursuant to this section shall be special obligations
  payable solely from amounts in the State Water Implementation
  Revenue Fund for Texas. Obligations issued by the Texas Water
  Development Board or that board's successor in function pursuant to
  this section may not be a constitutional state debt payable from the
  general revenue of the state.
         (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.
         (i)  Money in the State Water Implementation Revenue Fund for
  Texas is dedicated by this constitution for purposes of Section 22,
  Article VIII, of this constitution.
         (j)  This section being intended only to establish a basic
  framework and not to be a comprehensive treatment of the State Water
  Implementation Revenue Fund for Texas, there is hereby reposed in
  the legislature full power to implement and effectuate the design
  and objects of this section, including the power to delegate such
  duties, responsibilities, functions, and authority to the Texas
  Water Development Board or that board's successor in function as
  the legislature believes necessary.
         SECTION 2.  This proposed constitutional amendment 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
  creation of the State Water Implementation Fund for Texas and the
  State Water Implementation Revenue Fund for Texas to assist in the
  financing of priority projects in the state water plan to ensure the
  availability of adequate water resources."
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.J.R. No. 1 was adopted by the Senate
  on April 23, 2013, by the following vote: Yeas 31, Nays 0; and
  that the Senate concurred in House amendments on May 26, 2013, by
  the following vote: Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.J.R. No. 1 was adopted by the House,
  with amendments, on May 22, 2013, by the following vote: Yeas 130,
  Nays 16, one present not voting.
 
 
  ______________________________
  Chief Clerk of the House