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A BILL TO BE ENTITLED
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AN ACT
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relating to financial assistance provided and programs |
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administered by the Texas Water Development Board. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 10.010, Water Code, is amended to read as |
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follows: |
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Sec. 10.010. POWERS AND DUTIES OF COUNCIL. The council |
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shall: |
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(1) monitor trends in water conservation |
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implementation; |
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(2) monitor new technologies for possible inclusion by |
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the board as best management practices in the best management |
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practices guide developed by the water conservation implementation |
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task force under Chapter 109, Acts of the 78th Legislature, Regular |
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Session, 2003; |
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(3) monitor the effectiveness of the statewide water |
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[conservation] public awareness program developed under Section |
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16.026 [16.401] and associated local involvement in implementation |
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of the program; |
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(4) develop and implement a state water management |
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resource library; |
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(5) develop and implement a public recognition program |
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for water conservation; |
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(6) monitor the implementation of water conservation |
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strategies by water users included in regional water plans; and |
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(7) monitor target and goal guidelines for water |
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conservation to be considered by the board and commission. |
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SECTION 2. Chapter 15, Water Code, is amended by adding |
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Subchapter C-1 to read as follows: |
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SUBCHAPTER C-1. NEW WATER SUPPLY FOR TEXAS FUND |
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Sec. 15.151. DEFINITION. In this subchapter, "fund" means |
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the new water supply for Texas fund. |
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Sec. 15.152. FUND. (a) The new water supply for Texas fund |
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is a special fund in the state treasury. The fund consists of: |
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(1) money appropriated for transfer or deposit to the |
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credit of the fund; |
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(2) money the board transfers to the fund from any |
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available source; |
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(3) depository interest allocable to the fund and |
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other investment returns on money in the fund; |
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(4) money from gifts, grants, or donations to the |
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fund; and |
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(5) any other fees or sources of revenue that the |
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legislature may dedicate for deposit to the fund. |
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(b) The fund is exempt from the application of Section |
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403.095, Government Code. |
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Sec. 15.153. USE OF FUND. (a) The board by rule shall |
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undertake to finance projects through the fund that will lead to the |
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acquisition or creation of seven million acre-feet of new water |
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supplies by December 31, 2033. |
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(b) The fund may be used to: |
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(1) provide financial assistance to political |
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subdivisions to develop water supply projects that create new water |
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sources for the state, including: |
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(A) the acquisition of water from other states; |
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(B) desalination projects, including marine and |
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brackish water desalination; |
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(C) produced water treatment projects, other |
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than projects that are only for purposes of oil and gas exploration; |
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(D) aquifer storage and recovery projects; |
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(E) potable water reuse projects; and |
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(F) the development of infrastructure to |
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transport water that is made available by a project described by |
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this subdivision; |
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(2) make transfers from the fund: |
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(A) to the state water implementation fund for |
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Texas established under Subchapter G or the Texas Water Development |
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Fund II established under Subchapter L, Chapter 17; and |
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(B) for a purpose described by Subdivision (1); |
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and |
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(3) make transfers from the fund to the water bank |
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account established under Section 15.707 only for the acquisition |
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or transfer of water originating outside this state. |
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(c) The fund may be used for any purpose described by |
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Subsection (b) under criteria developed by the board. A loan made |
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from the fund under this subchapter may provide for repayment terms |
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of up to 30 years, in the board's discretion. |
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(d) Financial assistance for a purpose described by |
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Subsection (b)(1): |
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(1) may be provided for a qualifying project under |
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Chapter 2267, Government Code, only if the project complies with |
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that chapter; and |
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(2) may not be provided for expenses associated with |
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the maintenance or operation of a water supply project described by |
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Subsection (b)(1). |
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Sec. 15.154. FINANCIAL ASSISTANCE. (a) The board shall |
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adopt rules necessary to administer this subchapter, including |
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rules establishing procedures for the application for and award of |
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financial assistance, the distribution of financial assistance, |
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the investment of funds, and the administration of financial |
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assistance and the fund. |
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(b) When evaluating an application for financial assistance |
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from a political subdivision, the board shall consider: |
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(1) the intended end users of the water supply, the |
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needs of the area to be served by the project, the expected benefit |
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of the project to the area, the relationship of the project to the |
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water supply needs of this state overall, and the relationship of |
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the project to the state water plan; |
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(2) the amount of water expected to be produced by the |
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project; and |
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(3) the availability of money or revenue to the |
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political subdivision from all sources for the ultimate repayment |
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of the cost of the project, including all interest. |
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(c) The board by resolution may approve an application if, |
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after considering the factors listed in Subsection (b) and other |
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relevant factors, the board finds that: |
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(1) the public interest is served by state assistance |
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for the project; and |
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(2) for an application for financial assistance in the |
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form of a loan, the money or revenue pledged by the political |
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subdivision will be sufficient to meet all the obligations assumed |
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by the political subdivision during the term of the loan. |
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(d) The repayment of principal or interest on a loan made |
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under this subchapter must be deposited to the credit of the Texas |
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water fund. This subsection does not apply to a loan made under |
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other law with money transferred under Section 15.153(b)(2). |
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(e) An application from a political subdivision for |
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financial assistance under this subchapter must comply with the |
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requirements of Section 16.4021. |
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(f) Sections 17.183-17.187 apply to the construction of |
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projects funded under this subchapter. |
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SECTION 3. Section 15.438(a), Water Code, is amended to |
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read as follows: |
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(a) The State Water Implementation Fund for Texas Advisory |
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Committee is composed of the following 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) the chair [a member] of the committee of the |
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senate having primary jurisdiction over water [natural] resources; |
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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) the chair [a member] of the committee of the |
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house of representatives having primary jurisdiction over water |
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[natural] resources. |
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SECTION 4. Section 15.472(a), Water Code, is amended to |
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read as follows: |
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(a) The state water implementation revenue fund for Texas is |
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a special fund in the state treasury outside the general revenue |
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fund to be used by the board, without further legislative |
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appropriation, only for the purpose of providing financing for |
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projects included in the state water plan that are authorized under |
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Subchapter C-1, Q, or R of this chapter, Subchapter E or F, Chapter |
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16, or Subchapter J or L, Chapter 17. The board may establish |
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separate accounts in the fund. The board has legal title to money |
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and investments in the fund until the money is disbursed as provided |
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by this subchapter 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 in |
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the state water plan; 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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SECTION 5. Section 15.474(a), Water Code, is amended to |
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read as follows: |
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(a) Except as provided by Subsection (c), money in the fund |
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may be used by the board only to provide financing or refinancing, |
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under terms specified by the board, for projects included in the |
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state water plan that are authorized under Subchapter C-1, Q, or R |
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of this chapter, Subchapter E or F, Chapter 16, or Subchapter J or |
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L, Chapter 17, including water conservation or reuse projects |
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designed to reduce the need for this state or political |
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subdivisions of this state to develop additional water resources. |
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SECTION 6. Chapter 15, Water Code, is amended by adding |
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Subchapter H-1 to read as follows: |
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SUBCHAPTER H-1. TEXAS WATER FUND |
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Sec. 15.501. DEFINITION. In this subchapter, "fund" means |
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the Texas water fund. |
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Sec. 15.502. FUND. (a) The Texas water fund is a special |
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fund in the state treasury outside the general revenue fund. The |
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fund is administered by the board. |
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(b) The board may use the fund only to transfer money to: |
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(1) the water assistance fund established under |
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Subchapter B; |
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(2) the new water supply for Texas fund established |
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under Subchapter C-1; |
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(3) the state water implementation fund for Texas |
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established under Subchapter G; |
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(4) the state water implementation revenue fund for |
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Texas established under Subchapter H; |
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(5) a revolving fund established under Subchapter J; |
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(6) the rural water assistance fund established under |
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Subchapter R; |
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(7) the statewide water public awareness account |
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established under Section 16.027; |
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(8) the Texas Water Development Fund II water |
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financial assistance account established under Section 17.959; and |
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(9) the Texas Water Development Fund II state |
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participation account established under Section 17.957. |
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(c) Money and investments in the fund shall be kept and held |
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for and in the name of the board. |
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(d) The comptroller may not use the fund for certification |
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under Section 49a, Article III, Texas Constitution. |
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(e) Money in the fund may be used only as provided by this |
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subchapter. |
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(f) 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 money appropriated by the legislature |
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directly to the fund and money from any source transferred or |
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deposited to the credit of the fund as authorized by law; |
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(2) 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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(3) investment earnings and interest earned on amounts |
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credited to the fund; |
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(4) money from gifts, grants, or donations to the |
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fund; and |
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(5) money returned from any authorized transfer. |
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Sec. 15.503. MANAGEMENT AND INVESTMENT OF FUND. (a) Money |
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in the fund shall be invested as determined by the board. If |
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managed by the comptroller, the fund may be invested with the state |
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treasury pool. |
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(b) The fund and any accounts established in the fund shall |
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be kept and maintained by or at the direction of the board. |
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(c) The money in the fund may be managed by the board, the |
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comptroller, or a corporate trustee that is a trust company or a |
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bank that has the powers of a trust company for and on behalf of the |
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board and pending the money's use for the purposes provided by this |
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subchapter, if managed by a corporate trustee, may be invested as |
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provided by an order, resolution, or rule of the board. |
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(d) If directed by the board to manage the fund under |
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Subsection (c), a corporate trustee shall manage the fund in strict |
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accordance with this subchapter and the orders, resolutions, and |
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rules of the board. In managing the assets of the fund, the board, |
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comptroller, or corporate trustee may acquire, exchange, sell, |
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supervise, manage, or retain any kind of investment that a prudent |
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investor, exercising reasonable care, skill, and caution, would |
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acquire or retain in light of the purposes, terms, distribution |
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requirements, and other circumstances of the fund then prevailing, |
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taking into consideration the investment of all the assets of the |
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fund rather than a single investment. The reasonable expenses of |
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managing the fund's assets shall be paid from the fund. |
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Sec. 15.504. USE OF FUND. (a) The board by resolution may |
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make transfers from the fund to a fund or account described by |
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Section 15.502(b) for an authorized purpose of the receiving fund |
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or account. |
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(b) The board may not transfer money to a fund or account |
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described by Section 15.502(b) until the application for the |
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project for which the money is to be used has been approved. |
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(c) The board shall ensure that a portion of the money |
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transferred from the fund is used for: |
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(1) water or wastewater infrastructure projects, |
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prioritized by risk or need, for: |
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(A) rural political subdivisions; and |
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(B) municipalities with a population of less than |
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150,000; |
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(2) projects for which all required state or federal |
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permitting has been substantially completed, as determined by the |
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board; |
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(3) the statewide water public awareness program |
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established under Section 16.026; and |
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(4) water conservation strategies. |
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(d) Money transferred from the fund for the purposes |
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described by Subsection (c) may be transferred to funds or accounts |
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described by Section 15.502(b) to be used to provide financial |
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assistance for any purpose described by Subsection (c) under |
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criteria developed by the board and in accordance with law. |
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(e) Money deposited to the credit of the fund as provided by |
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Section 15.154(d) may be used only for the purposes described by |
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Section 15.153(b). |
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(f) The board may use the fund to pay the necessary and |
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reasonable expenses of the board in administering the fund. |
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Sec. 15.505. TRANSFER OF MONEY. Notwithstanding any other |
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law: |
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(1) the board may: |
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(A) transfer money from the fund into any other |
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fund or account described by Section 15.502(b); and |
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(B) restore to the fund money transferred from |
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the fund and deposited to the credit of a fund or account described |
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by Section 15.502(b); and |
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(2) a fund or account described by Section 15.502(b) |
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may accept a transfer of money made under this subchapter. |
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Sec. 15.506. ADVISORY COMMITTEE. (a) The State Water |
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Implementation Fund for Texas Advisory Committee established under |
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Section 15.438: |
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(1) shall submit comments and recommendations to the |
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board regarding the use of money in the fund for use by the board in |
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adopting rules under Section 15.507; |
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(2) shall review the overall operation, function, and |
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structure of the fund at least annually and may provide comments and |
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recommendations to the board on any matter; and |
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(3) may adopt rules, procedures, and policies as |
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needed to administer this section and implement its |
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responsibilities. |
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(b) The advisory committee may not recommend specific |
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projects for consideration for receipt of financial assistance from |
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the fund. |
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Sec. 15.507. RULES. (a) The board may adopt rules |
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providing for the use of money in the fund that are consistent with |
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this subchapter. |
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(b) Rules adopted under this section must require each |
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recipient of financial assistance administered through the fund to |
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submit to the board a water conservation plan consistent with the |
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requirements of Section 16.4021. |
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SECTION 7. Section 15.994(c), Water Code, is amended to |
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read as follows: |
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(c) The board may use money in the fund to contract for |
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outreach, financial, planning, and technical assistance to assist |
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rural political subdivisions [in obtaining and using financing from |
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any source] for a purpose described by this section, including in |
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obtaining and using financing from funds and accounts administered |
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by the board. |
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SECTION 8. Section 16.0121, Water Code, is amended by |
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adding Subsections (k) and (l) to read as follows: |
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(k) The board by rule shall establish a program to provide |
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technical assistance to retail public utilities in conducting water |
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audits required under Subsections (b) and (b-1) and in applying for |
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financial assistance from the board to mitigate the utility |
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system's water loss. The board may provide for the implementation |
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of the program established under this subsection by contracting or |
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partnering with other entities. Rules adopted under this section |
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must provide for the prioritization of technical assistance to |
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retail public utilities based on: |
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(1) water loss audits submitted to the board; |
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(2) the population served by the utility; and |
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(3) the integrity of the utility's system. |
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(l) The board shall post on the board's Internet website |
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information that: |
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(1) summarizes the information compiled under |
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Subsection (f); |
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(2) summarizes the measures taken by retail public |
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utilities to reduce water loss; and |
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(3) identifies the retail public utilities |
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participating in the program established under Subsection (k) and |
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details the use of financial assistance provided under that |
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subsection. |
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SECTION 9. Section 16.401, Water Code, is transferred to |
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Subchapter B, Chapter 16, Water Code, redesignated as Section |
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16.026, Water Code, and amended to read as follows: |
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Sec. 16.026 [16.401]. STATEWIDE WATER [CONSERVATION] |
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PUBLIC AWARENESS PROGRAM. (a) The executive administrator shall |
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develop and implement a statewide water [conservation] public |
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awareness program to educate residents of this state about water |
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[conservation]. The program shall take into account the |
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differences in water [conservation] needs of various geographic |
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regions of the state and shall be designed to complement and support |
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existing local and regional water education or awareness |
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[conservation] programs. |
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(b) The executive administrator is required to develop and |
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implement the program required by Subsection (a) in a state fiscal |
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biennium only if the legislature appropriates sufficient money in |
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that biennium specifically for that purpose. |
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SECTION 10. Subchapter B, Chapter 16, Water Code, is |
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amended by adding Section 16.027 to read as follows: |
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Sec. 16.027. STATEWIDE WATER PUBLIC AWARENESS ACCOUNT. (a) |
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The statewide water public awareness account is an account in the |
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general revenue fund. The account consists of: |
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(1) money appropriated to the board for deposit to the |
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credit of the account; |
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(2) money transferred by the board to the credit of the |
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account from other funds available to the board; |
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(3) money from gifts or grants to the account from any |
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source, including the federal government, an educational |
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institution, or a private donor; |
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(4) proceeds from the sale of educational or public |
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awareness materials, publications, and other items deposited to the |
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credit of the account; and |
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(5) interest earned on the investment of money in the |
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account and depository interest allocable to the account. |
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(b) The account may be used by the board to develop, |
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administer, and implement the statewide water public awareness |
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program established by Section 16.026. |
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(c) The board may invest, reinvest, and direct the |
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investment of available money in the account as provided by law for |
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the investment of money under Section 404.024, Government Code. |
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(d) The account is exempt from the application of Section |
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403.095, Government Code. |
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SECTION 11. Section 16.4021(b), Water Code, is amended to |
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read as follows: |
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(b) This section applies to an application for financial |
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assistance under: |
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(1) Subchapters C, C-1, D, E, G, H, J, O, Q, and R, |
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Chapter 15; |
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(2) Subchapters E and F of this chapter; and |
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(3) Subchapters D, F, I, K, and L, Chapter 17. |
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SECTION 12. Not later than January 1, 2024, the Texas Water |
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Development Board shall adopt rules as required by Section |
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16.0121(k), Water Code, as added by this Act. |
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SECTION 13. (a) Except as otherwise provided by this Act, |
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this Act takes effect September 1, 2023. |
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(b) Section 6 of this Act takes effect January 1, 2024, but |
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only if the constitutional amendment proposed by the 88th |
|
Legislature, Regular Session, 2023, creating the Texas water fund |
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to assist in financing water projects in this state is approved by |
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the voters. If that constitutional amendment is not approved by |
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the voters, Section 6 of this Act has no effect. |