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A BILL TO BE ENTITLED
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AN ACT
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relating to the funding of utility reliability projects by the |
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Texas Water Development Board and other entities; authorizing the |
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issuance of revenue bonds, granting rulemaking authority, and |
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making an appropriation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. (a) The legislature recognizes the importance of |
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providing for the reliability of this state's public utilities. The |
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purpose of this Act is to ensure that proper funding in the form of |
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meaningful and adequate financial assistance is available to |
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enhance the reliability of water, electricity, natural gas, and |
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broadband utilities for this state by supporting projects to |
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weatherize facilities and to provide adequate capacity during |
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periods of high demand. |
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(b) To accomplish that purpose, this Act creates the state |
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utilities reliability fund. The fund is intended to serve as a |
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utility infrastructure bank in order to enhance the financing |
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capabilities of the Texas Water Development Board under a |
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constitutionally created program and a revenue bond program. Money |
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in the fund will be available immediately to provide support for |
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market rate loans, low-interest loans, longer repayment terms for |
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loans, and deferral of loan payments. Money in the fund may not be |
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used to make grants. In addition, this Act creates the state |
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utilities reliability revenue fund for use in managing revenue |
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bonds issued by the board that are supported by the state utilities |
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reliability fund. |
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SECTION 2. Title 2, Water Code, is amended by adding |
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Subtitle G to read as follows: |
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SUBTITLE G. RELIABILITY OF STATE UTILITIES |
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CHAPTER 38 GENERAL PROVISIONS |
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Sec. 38.001. DEFINITIONS. In this subtitle: |
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(1) "Advisory committee" means the State Utilities |
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Reliability Fund Advisory Committee. |
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(2) "Board" means the Texas Water Development Board. |
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(3) "Broadband utility" means any person, |
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corporation, municipality, political subdivision or agency that |
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owns or operates for compensation in this state equipment or |
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facilities to provide broadband telecommunications capability and |
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Internet access in this state. |
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(4) "Electric utility" means any person, corporation, |
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municipality, political subdivision or agency that owns or operates |
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for compensation in this state equipment or facilities to produce, |
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generate, transmit, distribute, sell, or furnish electricity in |
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this state. |
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(5) "Executive administrator" means the executive |
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administrator of the Texas Water Development Board. |
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(6) "Facilities" means all of the plant and equipment |
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of an electric, natural gas, water, or broadband utility and |
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includes the tangible and intangible property, without limitation, |
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owned, operated, leased, licensed, used, controlled, or supplied |
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for, by, or in connection with the business of the electric, natural |
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gas, water or broadband utility in this state. |
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(7) "Fund" means the state utilities reliability fund. |
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(8) "Historically underutilized business" has the |
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meaning assigned by Section 2161.001, Government Code. |
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(9) "Natural gas utility" means any person, |
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corporation, municipality, political subdivision or agency that |
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owns or operates for compensation in this state equipment or |
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facilities to transmit or distribute combustible hydrocarbon |
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natural gas or synthetic natural gas for sale or resale in a manner |
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not subject to the jurisdiction of the Federal Energy Regulatory |
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Commission under the Natural Gas Act (15 U.S.C. Section 717 et |
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seq.). |
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(10) "Revenue fund" means the state utilities |
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reliability revenue fund. |
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(11) "Trust company" means the Texas Treasury |
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Safekeeping Trust Company. |
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(12) "Water utility" means any person, corporation, |
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municipality, political subdivision or agency operating, |
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maintaining, or controlling in this state facilities for providing |
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potable water service or sewer service, or both, for compensation. |
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CHAPTER 39. STATE UTILITIES RELIABILITY FUND |
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Sec. 39.001. FUND. (a) The state utilities reliability |
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fund is a special fund in the state treasury outside the general |
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revenue fund to be used by the board, without further legislative |
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appropriation, for the purpose of financing projects that enhance |
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the reliability of water, electricity, natural gas and broadband |
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utilities in this state by supporting projects to weatherize |
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facilities and to provide adequate capacity during periods of high |
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demand. The board may establish separate accounts in the fund. The |
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fund and the fund's accounts are kept and held by the trust company |
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for and in the name of the board. The board has legal title to money |
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and investments in the fund until money is disbursed from the fund |
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as provided by this chapter and board rules. It is the intent of the |
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legislature that the fund will never be used: |
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(1) for a purpose other than the support of projects |
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that enhance the reliability of water, electricity, natural gas and |
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broadband utilities in this state and to pay expenses authorized by |
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section 39.003; or |
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(2) to certify that appropriations from the treasury |
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are within the amount estimated to be available in a fund of the |
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treasury affected by the appropriation. |
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(b) Money deposited to the credit of the fund may be used |
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only as provided by this chapter. |
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(c) The fund consists of: |
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(1) money transferred or deposited to the credit of |
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the fund by law, including appropriations and money from any source |
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transferred or deposited to the credit of the fund at the board's |
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discretion as authorized by law; |
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(2) the proceeds of any fee or tax imposed by this |
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state that by statute is dedicated for deposit to the credit of the |
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fund; |
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(3) any other revenue that the legislature by statute |
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dedicates for deposit to the credit of the fund; |
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(4) investment earnings and interest earned on amounts |
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credited to the fund; and |
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(5) money transferred to the fund under a bond |
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enhancement agreement from another fund or account to which money |
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from the fund was transferred under a bond enhancement agreement, |
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as authorized by Section 39.004. |
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Sec. 39.002. MANAGEMENT AND INVESTMENT OF FUND. (a) The |
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trust company shall hold and invest the fund, and any accounts |
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established in the fund, for and in the name of the board, taking |
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into account the purposes for which money in the fund may be used. |
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The fund may be invested with the state treasury pool. |
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(b) The overall objective for the investment of the fund is |
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to maintain sufficient liquidity to meet the needs of the fund while |
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striving to preserve the purchasing power of the fund. |
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(c) The trust company has any power necessary to accomplish |
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the purposes of managing and investing the assets of the fund. In |
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managing the assets of the fund, through procedures and subject to |
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restrictions the trust company considers appropriate, the trust |
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company may acquire, exchange, sell, supervise, manage, or retain |
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any kind of investment that a prudent investor, exercising |
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reasonable care, skill, and caution, would acquire or retain in |
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light of the purposes, terms, distribution requirements, and other |
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circumstances of the fund then prevailing, taking into |
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consideration the investment of all the assets of the fund rather |
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than a single investment. |
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(d) The trust company may charge fees to cover its costs |
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incurred in managing and investing the fund. The fees must be |
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consistent with the fees the trust company charges other state and |
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local governmental entities for which it provides investment |
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management services. The trust company may recover fees it charges |
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under this subsection only from the earnings of the fund. |
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(e) The trust company shall provide an annual report to the |
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board and to the advisory committee with respect to the investment |
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of the fund. The trust company shall contract with a certified |
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public accountant to conduct an independent audit of the fund |
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annually and shall present the results of each annual audit to the |
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board and to the advisory committee. This subsection does not |
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affect the state auditor's authority to conduct an audit of the fund |
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under Chapter 321, Government Code. |
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(f) The trust company shall adopt a written investment |
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policy that is appropriate for the fund. The trust company shall |
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present the investment policy to the investment advisory board |
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established under Section 404.028, Government Code. The investment |
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advisory board shall submit to the trust company recommendations |
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regarding the policy. |
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(g) The board shall provide to the trust company an annual |
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forecast of the cash flows into and out of the fund. The board shall |
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provide updates to the forecasts as appropriate to ensure that the |
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trust company is able to achieve the objective specified by |
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Subsection (b). |
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(h) The trust company shall disburse money from the fund as |
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directed by the board. The board shall direct disbursements from |
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the fund on a semiannual schedule specified by the board and not |
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more frequently than twice in any state fiscal year. |
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(i) An investment-related contract entered into under this |
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section is not subject to Chapter 2260, Government Code. |
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Sec. 39.003. USE OF FUND; PAYMENTS TO AND FROM OTHER FUNDS |
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OR ACCOUNTS. (a) At the direction of the board, the trust company |
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shall make disbursements from the fund to the state utilities |
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reliability revenue fund pursuant to a bond enhancement agreement |
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authorized by Section 39.004 in the amounts the board determines |
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are needed for debt service payments on or security provisions of |
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the board's revenue bonds, after considering all other sources |
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available for those purposes. |
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(b) The fund may be used only: |
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(1) to enhance the reliability of water, electricity, |
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natural gas and broadband utilities for this state by supporting |
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projects to weatherize facilities and to provide adequate capacity |
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to ensure continuous and adequate service during periods of high |
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demand; and |
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(2) to pay the necessary and reasonable expenses of |
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the board in administering the fund. |
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(c) notwithstanding any other provision in this chapter, |
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the use of the fund may be prioritized based on future legislative |
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directives, including any statewide utility reliability plan |
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required in the future. |
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Sec. 39.004. BOND ENHANCEMENT AGREEMENTS. (a) A bond |
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enhancement agreement entered into under this section is an |
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agreement for professional services. A bond enhancement agreement |
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must contain terms that are consistent with Section 39.002(h), and |
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the agreement, including the period covered by the agreement and |
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all other terms and conditions of the agreement, must be approved by |
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the board. An obligation to disburse money from the fund, or from a |
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special account established by the board, in accordance with a bond |
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enhancement agreement is a special obligation of the board payable |
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solely from designated income and receipts of the fund or of the |
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account, as determined by the board. An obligation to disburse |
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money from the fund, or from a special account established by the |
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board, in accordance with a bond enhancement agreement does not |
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constitute indebtedness of the state. |
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(b) To facilitate the use of the fund for the purposes of |
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this chapter, the board may direct the trust company to enter into |
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bond enhancement agreements to: |
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(1) provide a source of revenue or security for the |
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payment of the principal of and interest on revenue bonds issued by |
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the board to finance, or |
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(2) refinance projects authorized by chapter 40 of |
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this title. |
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(c) If the trust company enters into a bond enhancement |
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agreement under Subsection (b), the board may direct the trust |
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company to make disbursements from the fund to provide financial |
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assistance for a project authorized by this chapter or by chapter 40 |
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of this title in the form of: |
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(1) a loan bearing an interest rate of not less than 50 |
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percent of the then-current market rate of interest available to |
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the board; |
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(2) a loan to finance a facility under repayment terms |
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similar to the terms of debt customarily issued by the entity |
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requesting assistance but not to exceed the lesser of: |
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(A) the expected useful life of the facility; or |
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(B) 30 years; |
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(3) a deferral of loan repayment, including deferral |
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of the repayment of: |
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(A) principal and interest; or |
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(B) accrued interest; or |
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(4) a combination of the methods of financing |
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described by Subdivisions (1)-(3). |
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(d) The board may direct the trust company to enter into |
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bond enhancement agreements with respect to refunding bonds issued |
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by the board to refund bonds issued by the board the proceeds of |
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which have been or are to be used for projects authorized by this |
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chapter and which otherwise satisfied the requirements of |
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Subsections (b) and (c). |
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(f) The board may not direct the trust company to enter into |
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a bond enhancement agreement with respect to bonds issued by the |
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board the proceeds of which have been or are to be used to make |
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grants. |
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(g) The board may not direct the trust company to enter into |
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a bond enhancement agreement with respect to bonds issued by the |
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board the proceeds of which may be used to provide financial |
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assistance to an applicant if at the time of the request the |
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applicant has failed to satisfactorily complete a request by the |
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executive administrator for information relevant to the project for |
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which the financial assistance is sought. |
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(h) The board may not direct the trust company to enter into |
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a bond enhancement agreement with respect to bonds issued by the |
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board the proceeds of which may be used to provide financial |
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assistance to an applicant unless at the time of the request the |
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applicant has acknowledged its legal obligation to comply with any |
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applicable requirements of: |
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(1) federal law relating to contracting with |
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disadvantaged business enterprises; and |
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(2) state law relating to contracting with |
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historically underutilized businesses. |
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(i) The board may not approve a bond enhancement agreement |
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unless the agreement contains a provision to the effect that if the |
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trust company makes a disbursement under the bond enhancement |
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agreement from the fund to the credit of the state utilities |
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reliability revenue fund as provided by Section 39.003(a), the |
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board may direct the comptroller to transfer an amount not to exceed |
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that amount from the state utilities reliability revenue fund back |
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to the fund if: |
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(1) money is certified by the executive director to be |
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a surplus balance in the state utilities reliability revenue fund |
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for that purpose; and |
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(2) the money transferred back to the fund will not |
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cause bonds that are payable from the state utilities reliability |
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revenue fund to rate below the highest rating category for any bonds |
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outstanding. |
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(j) For purposes of Subsection (i)(1), the surplus balance |
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of the state utilities reliability revenue fund is the amount of |
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money on deposit in the fund, as determined by the board, that is |
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attributable to the revenue bonds, including money received from |
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the sale or other disposition of the board's rights to receive |
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repayment of financial assistance, money received from the sale of |
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utilities associated with a modified facility, and related |
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investment earnings, that exceeds the amount required to pay annual |
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debt service on the bonds and any other amounts specified in the |
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resolution or other proceedings authorizing the bonds and any |
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related obligations. |
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(k) The board shall submit each bond enhancement agreement |
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and the record relating to the agreement to the attorney general for |
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examination as to the validity of the agreement. If the attorney |
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general finds that the agreement has been made in accordance with |
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the constitution and other laws of this state, the attorney general |
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shall approve the agreement and the comptroller shall register the |
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agreement. If the agreement is not submitted at the same time that |
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the bonds to which it relates are submitted, the agreement shall be |
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treated as a public security solely for the purposes of Section |
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1202.004, Government Code. |
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(l) After a bond enhancement agreement has been approved and |
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registered as provided by Subsection (k), the agreement is valid |
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and is incontestable for any cause. |
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(m) At the direction of the board, the trust company shall |
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make disbursements from the fund, or from a special account |
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established by the board, in accordance with a bond enhancement |
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agreement in the amounts the board determines are needed for debt |
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service payments on, or for security provisions of, revenue bonds |
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issued by the board the proceeds of the sale of which have been |
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deposited in the state utilities reliability revenue fund, or in an |
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account in that fund, for use in accordance with this chapter, after |
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the board considers all other sources available for those purposes |
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in that fund or account. Money transferred under this subsection |
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may be deposited into that fund or into a special account |
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established by the trust company or a corporate trustee that is a |
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trust company or a bank that has the powers of a trust company, as |
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determined by the board. |
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Sec. 39.005. PRIORITIZATION OF PROJECTS BY BOARD. (a) The |
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board, for the purpose of providing financial assistance under this |
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chapter, shall prioritize projects that enhance the reliability of |
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water, electricity, natural gas and broadband utilities for this |
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state. |
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(b) The board shall establish a point system for |
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prioritizing projects for which financial assistance is sought from |
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the board. The system must include a standard for the board to apply |
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in determining whether a project qualifies for financial assistance |
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at the time the application for financial assistance is filed with |
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the board. |
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(c) The board shall give the highest consideration in |
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awarding points to projects that will have a substantial effect, |
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including projects that will: |
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(1) weatherize facilities to protect against cold |
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weather; and |
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(2) create excess capacity that will be used during |
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periods of high demand to provide continuous and adequate electric, |
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natural gas, water and broadband service. |
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(d) In addition to the criteria provided by Subsection (c), |
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the board must also consider at least the following criteria in |
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prioritizing projects: |
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(1) other contributions to be made to finance the |
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project, including the up-front capital to be provided by the |
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applicant; |
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(2) the financial capacity of the applicant to repay |
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the financial assistance provided; |
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(3) the ability of the board and the applicant to |
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timely leverage state financing with local, federal or private |
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funding; |
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(4) whether there is an emergency need for the |
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project, taking into consideration whether federal funding for |
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which the project is eligible has been used or sought; and |
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(5) whether the applicant is ready to proceed with the |
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project at the time of the application, including whether: |
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(A) all preliminary planning and design work |
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associated with the project has been completed; |
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(B) the applicant has acquired any necessary |
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rights associated with the project; |
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(C) the applicant has secured funding for the |
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project from other sources; and |
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(D) the applicant is able to begin implementing |
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or constructing the project. |
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Sec. 39.006. ADVISORY COMMITTEE. (a) The State Utilities |
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Reliability Fund Advisory Committee is composed of the following |
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seven members: |
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(1) the comptroller, or a person designated by the |
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comptroller; |
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(2) three members of the senate appointed by the |
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lieutenant governor, including: |
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(A) a member of the committee of the senate |
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having primary jurisdiction over matters relating to finance; and |
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(B) a member of the committee of the senate |
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having primary jurisdiction over natural resources; and |
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(3) three members of the house of representatives |
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appointed by the speaker of the house of representatives, |
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including: |
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(A) a member of the committee of the house of |
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representatives having primary jurisdiction over appropriations; |
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and |
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(B) a member of the committee of the house of |
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representatives having primary jurisdiction over natural |
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resources. |
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(b) Board staff shall provide staff support for the advisory |
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committee. |
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(c) An appointed member of the advisory committee serves at |
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the will of the person who appointed the member. |
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(d) The lieutenant governor shall appoint a co-presiding |
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officer of the advisory committee from among the members appointed |
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by the lieutenant governor, and the speaker of the house of |
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representatives shall appoint a co-presiding officer of the |
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committee from among the members appointed by the speaker. |
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(e) The advisory committee may hold public hearings, formal |
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meetings, or work sessions. Either co-presiding officer of the |
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advisory committee may call a public hearing, formal meeting, or |
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work session of the advisory committee at any time. The advisory |
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committee may not take formal action at a public hearing, formal |
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meeting, or work session unless a quorum of the committee is |
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present. |
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(f) Except as otherwise provided by this subsection, a |
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member of the advisory committee is not entitled to receive |
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compensation for service on the committee or reimbursement for |
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expenses incurred in the performance of official duties as a member |
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of the committee. Service on the advisory committee by a member of |
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the senate or house of representatives is considered legislative |
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service for which the member is entitled to reimbursement and other |
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benefits in the same manner and to the same extent as for other |
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legislative service. |
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(g) The advisory committee shall submit comments and |
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recommendations to the board regarding the use of money in the fund |
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and in the revenue fund for use by the board in adopting rules under |
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Section 39.007 and in adopting policies and procedures under |
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Section 39.009. The submission must include: |
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(1) comments and recommendations on rulemaking |
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related to the prioritization of projects in accordance with |
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Section 39.005; |
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(2) comments and recommendations on rulemaking |
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related to establishing standards for determining whether projects |
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meet the criteria provided by Section 39.003(b); |
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(3) an evaluation of the available programs for |
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providing financing for projects authorized by this chapter and |
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guidelines for implementing those programs; |
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(4) an evaluation of the lending practices of the |
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board and guidelines for lending standards; |
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(5) an evaluation of the use of funds by the board to |
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provide support for financial assistance for projects that enhance |
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the reliability of water, electricity, natural gas and broadband |
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utilities for this state, including support for the purposes |
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described by Section 39.004(c); |
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(6) an evaluation of whether premium financing |
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programs should be established within the funds described by |
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Section 39.004 to serve the purposes of this chapter, especially in |
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connection with projects described by Section 39.003(b); |
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(7) an evaluation of methods for encouraging |
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participation in the procurement process by companies domiciled in |
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this state or that employ a significant number of residents of this |
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state; and |
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(8) an evaluation of the overall operation, function, |
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and structure of the fund. |
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(h) The advisory committee shall review the overall |
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operation, function, and structure of the fund at least |
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semiannually and may provide comments and recommendations to the |
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board on any matter. |
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(i) The advisory committee may adopt rules, procedures, and |
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policies as needed to administer this section and implement its |
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responsibilities. |
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(j) Chapter 2110, Government Code, does not apply to the |
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size, composition, or duration of the advisory committee. |
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(k) The advisory committee is subject to Chapter 325, |
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Government Code (Texas Sunset Act). Unless continued in existence |
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as provided by that chapter, the advisory committee is abolished |
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and this section expires September 1, 2035. |
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(l) The advisory committee shall make recommendations to |
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the board regarding information to be posted on the board's |
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Internet website under Section 39.008(b). |
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(m) The advisory committee shall evaluate and may provide |
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comments or recommendations on the feasibility of the state owning, |
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constructing, and operating water, electricity, natural gas or |
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broadband utilities. |
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(n) The executive administrator shall provide an annual |
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report to the advisory committee on: |
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(1) the board's compliance with statewide annual goals |
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relating to historically underutilized businesses; and |
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(2) the participation level of historically |
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underutilized businesses in projects that receive funding related |
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to a bond enhancement agreement under this chapter. |
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(o) If the aggregate level of participation by historically |
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underutilized businesses in projects that receive funding related |
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to a bond enhancement agreement under this chapter does not meet |
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statewide annual goals adopted under Chapter 2161, Government Code, |
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the advisory committee shall make recommendations to the board to |
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improve the participation level. |
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Sec. 39.007. RULES. (a) The board shall adopt rules |
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providing for the use of money in the fund that are consistent with |
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this chapter, including rules: |
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(1) establishing standards for determining whether |
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projects meet the criteria provided by Section 39.003(b); and |
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(2) specifying the manner for prioritizing projects |
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for purposes of Section 39.005. |
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(b) The board shall give full consideration to the |
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recommendations of the advisory committee before adopting rules |
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under this chapter. |
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Sec. 39.008. REPORTING AND TRANSPARENCY REQUIREMENTS. (a) |
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Not later than December 1 of each even-numbered year, the board |
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shall provide a report to the governor, lieutenant governor, |
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speaker of the house of representatives, and members of the |
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legislature regarding the use of the fund. |
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(b) The board shall post the following information on the |
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board's Internet website regarding the use of the fund and |
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regularly update the information posted: |
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(1) the progress made in enhancing the reliability of |
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water, electricity, natural gas and broadband utilities for this |
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state; and |
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(2) a description of each project funded through bonds |
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supported by a bond enhancement agreement entered into under |
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Section 39.004, including: |
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(A) the expected date of completion of the |
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project; and |
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(B) the current status of the project. |
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Sec. 39.009. POLICIES AND PROCEDURES TO MITIGATE OR |
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MINIMIZE ADVERSE EFFECTS OF CERTAIN FEDERAL LAWS. The board shall |
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adopt, and may amend from time to time at the board's discretion, |
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policies and procedures for the purpose of mitigating or minimizing |
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the adverse effects, if any, of federal laws and regulations |
|
relating to income taxes, arbitrage, rebates, and related matters |
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that may restrict the board's ability to freely invest all or part |
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of the fund or to receive and retain all the earnings from the fund. |
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CHAPTER 40. STATE UTILITIES RELIABILITY REVENUE FUND |
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Sec. 40.001. FUND. (a) The state utilities reliability |
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revenue fund is a special fund in the state treasury outside the |
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general revenue fund to be a revolving finance program used by the |
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board, without further legislative appropriation, only for the |
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purpose of providing financing for projects that enhance the |
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reliability of water, electricity, natural gas and broadband |
|
utilities for this state by supporting projects to weatherize |
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facilities and to provide adequate capacity during periods of high |
|
demand. The board may establish separate accounts in the revenue |
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fund. The board has legal title to money and investments in the |
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revenue fund until the money is disbursed as provided by this |
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chapter and board rules. It is the intent of the legislature that |
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the revenue fund will never be used: |
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(1) for a purpose other than the support of projects |
|
that enhance the reliability of water, electricity, natural gas and |
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broadband utilities for this state; or |
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(2) to certify that appropriations from the treasury |
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are within the amount estimated to be available in a fund of the |
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treasury affected by the appropriation. |
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(b) Money deposited to the credit of the revenue fund may be |
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used only as provided by this chapter. |
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(c) The revenue fund consists of: |
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(1) money transferred or deposited to the credit of |
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the revenue fund by law, including appropriations and money from |
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any source transferred or deposited to the credit of the revenue |
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fund at the board's discretion as authorized by law; |
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(2) the proceeds of any fee or tax imposed by this |
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state that by statute is dedicated for deposit to the credit of the |
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revenue fund; |
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(3) any other revenue that the legislature by statute |
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dedicates for deposit to the credit of the revenue fund; |
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(4) investment earnings and interest earned on amounts |
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credited to the revenue fund; |
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(5) the proceeds from the sale of revenue bonds, |
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issued by the board under this chapter, that are designated by the |
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board for the purpose of providing money for the revenue fund; |
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(6) repayments of loans made from the revenue fund; |
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and |
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(7) money disbursed to the revenue fund from the state |
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utilities reliability fund as authorized by Section 39.003. |
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Sec. 40.002. MANAGEMENT AND INVESTMENT OF REVENUE FUND. |
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(a) Money deposited to the credit of the revenue fund shall be |
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invested as determined by the board. The revenue fund may be |
|
invested with the state treasury pool. |
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(b) The revenue fund and any accounts established in the |
|
revenue fund shall be kept and maintained by or at the direction of |
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the board. |
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(c) At the direction of the board, the revenue fund and any |
|
accounts established in the revenue fund may be managed by the |
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comptroller or a corporate trustee that is a trust company or a bank |
|
that has the powers of a trust company for and on behalf of the board |
|
and pending their use for the purposes provided by this chapter may |
|
be invested as provided by an order, resolution, or rule of the |
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board. |
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(d) The comptroller or corporate trustee shall manage the |
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revenue fund in strict accordance with this chapter and the orders, |
|
resolutions, and rules of the board. |
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Sec. 40.003. USE OF REVENUE FUND. (a) Except as provided |
|
by Subsection (c), money in the revenue fund may be used by the |
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board only to provide financing or refinancing, under terms |
|
specified by the board, for projects that enhance the reliability |
|
of water, electricity, natural gas and broadband utilities for this |
|
state by weatherizing facilities or by providing adequate capacity |
|
during periods of high demand. |
|
(b) Financing or refinancing of projects described by |
|
Subsection (a) may be provided by using money in the revenue fund to |
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make loans to eligible water, electric, natural gas and broadband |
|
utilities or to purchase bonds or other obligations of eligible |
|
water, electric, natural gas and broadband utilities bearing |
|
interest at a rate or rates determined by the board, including a |
|
rate at or rates below prevailing market rates. |
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(c) The board may use money in the revenue fund: |
|
(1) as a source of revenue or security for: |
|
(A) the payment of the principal of and interest |
|
on revenue bonds issued by the board under this chapter; or |
|
(B) a bond enhancement agreement; or |
|
(2) to pay the necessary and reasonable expenses of |
|
paying agents, bond counsel, and financial advisory services and |
|
similar costs incurred by the board in administering the revenue |
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fund. |
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(d) The board, or comptroller or corporate trustee managing |
|
the revenue fund at the direction of the board as provided by |
|
Section 40.003(c), shall withdraw from the revenue fund and forward |
|
to another person any amounts, as determined by the board, for |
|
timely payment of: |
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(1) the principal of and interest on bonds described |
|
by Subsection (c)(1)(A) of this section that mature or become due; |
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and |
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(2) any cost related to bonds described by Subsection |
|
(c)(1)(A) of this section that become due, including payments under |
|
related credit agreements or bond enhancement agreements. |
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Sec. 40.004. ISSUANCE OF REVENUE BONDS. (a) The board may |
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issue revenue bonds for the purpose of providing money for the |
|
revenue fund. |
|
(b) The board may issue revenue bonds to refund revenue |
|
bonds or bonds and obligations issued or incurred in accordance |
|
with other provisions of law. |
|
(c) Revenue bonds issued under this chapter are special |
|
obligations of the board payable only from and secured by |
|
designated income and receipts of the revenue fund, or of one or |
|
more accounts in the revenue fund, including principal of and |
|
interest paid and to be paid on revenue fund assets or income from |
|
accounts created within the revenue fund by the board, as |
|
determined by the board. |
|
(d) Revenue bonds issued under this chapter do not |
|
constitute indebtedness of the state as prohibited by the |
|
constitution. |
|
(e) The board may require revenue fund participants to make |
|
charges, levy taxes, or otherwise provide for sufficient money to |
|
pay acquired obligations. |
|
(f) Revenue bonds issued under this chapter must be |
|
authorized by resolution of the board and must have the form and |
|
characteristics and bear the designations as the resolution |
|
provides. |
|
(g) Revenue bonds issued under this chapter may: |
|
(1) bear interest at the rate or rates payable |
|
annually or otherwise; |
|
(2) be dated; |
|
(3) mature at the time or times, serially, as term |
|
revenue bonds, or otherwise in not more than 50 years from their |
|
dates; |
|
(4) be callable before stated maturity on the terms |
|
and at the prices, be in the denominations, be in the form, either |
|
coupon or registered, carry registration privileges as to principal |
|
only or as to both principal and interest and as to successive |
|
exchange of coupon for registered bonds or one denomination for |
|
bonds of other denominations, and successive exchange of registered |
|
revenue bonds for coupon revenue bonds, be executed in the manner, |
|
and be payable at the place or places inside or outside the state, |
|
as provided by the resolution; |
|
(5) be issued in temporary or permanent form; |
|
(6) be issued in one or more installments and from time |
|
to time as required and sold at a price or prices and under terms |
|
determined by the board to be the most advantageous reasonably |
|
obtainable; and |
|
(7) be issued on a parity with and be secured in the |
|
manner as other revenue bonds authorized to be issued by this |
|
chapter or may be issued without parity and secured differently |
|
than other revenue bonds. |
|
(h) Section 17.955 applies to revenue bonds issued under |
|
this chapter in the same manner as that section applies to water |
|
financial assistance bonds. |
|
(i) All proceedings relating to the issuance of revenue |
|
bonds issued under this chapter shall be submitted to the attorney |
|
general for examination. If the attorney general finds that the |
|
revenue bonds have been authorized in accordance with law, the |
|
attorney general shall approve the revenue bonds, and the revenue |
|
bonds shall be registered by the comptroller. After the approval |
|
and registration, the revenue bonds are incontestable in any court |
|
or other forum for any reason and are valid and binding obligations |
|
in accordance with their terms for all purposes. |
|
(j) The proceeds received from the sale of revenue bonds |
|
issued under this chapter may be deposited or invested in any manner |
|
and in such investments as may be specified in the resolution or |
|
other proceedings authorizing those obligations. Money in the |
|
revenue fund or accounts created by this chapter or created in the |
|
resolution or other proceedings authorizing the revenue bonds may |
|
be invested in any manner and in any obligations as may be specified |
|
in the resolution or other proceedings. |
|
Sec. 40.005. CHAPTER CUMULATIVE OF OTHER LAWS. (a) This |
|
chapter is cumulative of other laws on the subject, and the board |
|
may use provisions of other applicable laws in the issuance of bonds |
|
and other obligations and the execution of bond enhancement |
|
agreements, but this chapter is wholly sufficient authority for the |
|
issuance of bonds and other obligations, the execution of bond |
|
enhancement agreements, and the performance of all other acts and |
|
procedures authorized by this chapter. |
|
(b) In addition to other authority granted by this chapter, |
|
the board may exercise the authority granted to the governing body |
|
of an issuer with regard to the issuance of obligations under |
|
Chapter 1371, Government Code. |
|
SECTION 3. Section 15.978, Water Code, is amended by adding |
|
subsection (c-1) to read as follows: |
|
(c-1) Notwithstanding other provisions of this chapter, the |
|
board may sell to the Texas Water Resources Finance Authority or to |
|
the state utilities reliability fund any political subdivision |
|
bonds purchased with money in the state utilities reliability |
|
revenue fund and may apply the proceeds of a sale in the manner |
|
provided by Chapter 40 of this title. |
|
SECTION 4. As soon as practicable after the effective date |
|
of this Act, the lieutenant governor and the speaker of the house of |
|
representatives shall appoint the initial appointive members of the |
|
State Utilities Reliability Fund Advisory Committee as provided by |
|
Section 39.006, Water Code, as added by this Act. |
|
SECTION 5. (a) Not later than September 1, 2022, the State |
|
Utilities Reliability Fund Advisory Committee shall submit |
|
recommendations to the Texas Water Development Board on the rules |
|
to be adopted by the board under Sections 39.007(a)(1) and (2), |
|
Water Code, as added by this Act. |
|
(b) Not later than the later of the 90th day after the date |
|
the Texas Water Development Board receives the recommendations |
|
described by Subsection (a) of this section or March 1, 2023, the |
|
board shall propose rules under Section 39.007, Water Code, as |
|
added by this Act. |
|
SECTION 6. The Texas Water Development Board shall post the |
|
information described by Section 39.008(b), Water Code, as added by |
|
this Act, on the board's Internet website not later than March 1, |
|
2022. |
|
SECTION 7. This Act takes effect on the date on which the |
|
constitutional amendment proposed by the 87th Legislature, Regular |
|
Session, 2021, adding Sections 49-d-15 and 49-d-16, Article III, |
|
Texas Constitution, creating the state utilities reliability fund |
|
and the state utilities reliability revenue fund takes effect. If |
|
that amendment is not approved by the voters, this Act has no |
|
effect. |