Enrolled Bill Summary

Senate Bill 360	Senate Author:  Fraser
Effective:  9-1-11	House Sponsor:  Creighton

Senate Bill 360 amends the Water Code to provide that the rural water assistance fund consists of money that is directly appropriated to the Texas Water Development Board for a purpose of the fund and to include in the fund money transferred from the water assistance fund; money from gifts, grants, or donations; and any other fees or sources of revenue that the legislature may dedicate for deposit to the rural water assistance fund. 

The bill expands the authorized uses of the fund to include the provision of low-interest loans to rural political subdivisions to provide for water projects included in the state water plan or a regional water plan; development of groundwater sources and acquisition of water rights; the acquisition of retail public utilities; the acquisition of water supply or sewer service facilities or systems owned by municipalities or other political subdivisions; construction, acquisition, or improvement of water and wastewater projects to provide service to an economically distressed area; planning and design costs, permitting costs, and other costs associated with state or federal regulatory activities with respect to a project; and obtaining water or wastewater service supplied by other political subdivisions or financing the consolidation or regionalizing of neighboring political subdivisions, or both.  The bill authorizes the fund to be used to provide certain types of loans. 

The bill authorizes a rural political subdivision to enter into an agreement with another rural political subdivision to submit a joint application for financial assistance and authorizes the board to coordinate its review of a submitted application with a federal agency.  The bill authorizes the board to make financial assistance available to an eligible nonprofit water supply or sewer service corporation by entering into a loan agreement with the applicant.