By:  Lewis                                            H.B. No. 1571
       73R3582 MI-F
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the funding of the petroleum storage tank remediation
    1-3  fund.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Chapter 17, Water Code, is amended by adding
    1-6  Subchapter L to read as follows:
    1-7        SUBCHAPTER L.  PETROLEUM STORAGE TANK REMEDIATION FUND
    1-8                         REVENUE BOND PROGRAM
    1-9        Sec. 17.961.  DEFINITIONS.  In this subchapter:
   1-10              (1)  "Bonds" means petroleum storage tank remediation
   1-11  fund revenue bonds or other obligations issued or incurred by the
   1-12  board under this subchapter.
   1-13              (2)  "Debt service fund" means the petroleum storage
   1-14  tank remediation fund revenue bond debt service fund or any
   1-15  subaccount of that fund.
   1-16              (3)  "Fund" means the petroleum storage tank
   1-17  remediation fund.
   1-18              (4)  "Pledged fees" means the fees collected by the
   1-19  comptroller under Section 26.3574 of this code.
   1-20              (5)  "Reserve fund" means the petroleum storage tank
   1-21  remediation fund revenue bond reserve fund or any subaccount of
   1-22  that fund.
   1-23        Sec. 17.962.  ISSUANCE OF REVENUE BONDS.  On the request of
   1-24  the commission under Section 26.35741 of this code, and using the
    2-1  estimate of the pledged fees to be collected prepared by the
    2-2  comptroller under Section 26.35741 of this code, the board may
    2-3  authorize the issuance of bonds to provide money for the fund.
    2-4        Sec. 17.963.  BONDS NOT GENERAL OBLIGATIONS.  (a)  The bonds
    2-5  are not debts of the state.
    2-6        (b)  The bonds are special obligations payable only from:
    2-7              (1)  pledged fees;
    2-8              (2)  amounts on deposit in the debt service fund and
    2-9  the reserve fund; and
   2-10              (3)  investment income on amounts in the fund, the debt
   2-11  service fund, and the reserve fund.
   2-12        Sec. 17.964.  FORM AND PROCEDURE.  (a)  The board must
   2-13  authorize the issuance of the bonds by resolution.  The bonds must
   2-14  have the form and characteristics and bear the designations
   2-15  provided in the resolution.
   2-16        (b)  The resolution may include the provisions and covenants
   2-17  that the board determines necessary.
   2-18        (c)  The board may approve and execute other proceedings,
   2-19  agreements, trust agreements, or other instruments necessary and
   2-20  convenient to the issuance of the bonds.
   2-21        (d)  The resolution may provide that either the board or the
   2-22  treasurer is the paying agent, the registrar, or both paying agent
   2-23  and registrar for the bonds.
   2-24        Sec. 17.965.  TERMS.  The bonds may, as provided in the
   2-25  resolution authorizing their issuance:
   2-26              (1)  bear no interest or bear interest at the rate or
   2-27  rates determined in accordance with law;
    3-1              (2)  be dated;
    3-2              (3)  mature serially or otherwise not more than 50
    3-3  years after the date on which they are issued;
    3-4              (4)  be made callable before maturity on the terms and
    3-5  at the prices, be in the denominations, be in the form, be executed
    3-6  in the manner, and be payable at the place or places inside or
    3-7  outside the state, as provided by the resolution authorizing their
    3-8  issuance;
    3-9              (5)  be issued in temporary or permanent form;
   3-10              (6)  be issued in various series and issues and from
   3-11  time to time as required and be sold at a price or prices and under
   3-12  terms determined by the board to be the most advantageous
   3-13  reasonably obtainable; and
   3-14              (7)  be issued on a parity with and be secured in the
   3-15  same manner as other bonds authorized to be issued under this
   3-16  subchapter.
   3-17        Sec. 17.966.  APPROVAL BY ATTORNEY GENERAL; REGISTRATION BY
   3-18  COMPTROLLER.  (a)  Bonds issued under this subchapter and records
   3-19  relating to their issuance must be submitted to the attorney
   3-20  general for examination.
   3-21        (b)  If the attorney general finds that the bonds have been
   3-22  authorized in accordance with law, the attorney general shall
   3-23  approve the bonds, including any trust agreements or other
   3-24  agreements securing the payment of the bonds, and the bonds shall
   3-25  be registered by the comptroller of public accounts.
   3-26        (c)  After the approval and registration of the bonds, the
   3-27  bonds are incontestable in any court or other forum for any reason
    4-1  and are valid and binding obligations in accordance with their
    4-2  terms for all purposes.
    4-3        Sec. 17.967.  APPROVAL BY BOND REVIEW BOARD.  Bonds may not
    4-4  be issued under this subchapter unless the issuance of the bonds
    4-5  has been reviewed and approved by the bond review board.
    4-6        Sec. 17.968.  PETROLEUM STORAGE TANK REMEDIATION FUND REVENUE
    4-7  BOND DEBT SERVICE FUND.  (a)  The petroleum storage tank
    4-8  remediation fund revenue bond debt service fund is in the state
    4-9  treasury.
   4-10        (b)  The fund consists of:
   4-11              (1)  that portion of pledged fees allocated to the fund
   4-12  by a resolution authorizing the issuance of bonds under this
   4-13  subchapter and deposited in the fund according to Section 17.972 of
   4-14  this code; and
   4-15              (2)  interest earned on amounts in the petroleum
   4-16  storage tank remediation fund.
   4-17        (c)  Money in the fund may be used only to pay the principal
   4-18  of and interest on the bonds as they come due.
   4-19        Sec. 17.969.  PETROLEUM STORAGE TANK REMEDIATION FUND REVENUE
   4-20  BOND RESERVE FUND.  (a)  The petroleum storage tank remediation
   4-21  fund revenue bond reserve fund is in the state treasury.
   4-22        (b)  The fund consists of that portion of pledged fees
   4-23  allocated to the fund by a resolution authorizing the issuance of
   4-24  bonds under this subchapter and deposited in the fund according to
   4-25  Section 17.972 of this code.
   4-26        (c)  Money in the fund may be used only as a reserve for the
   4-27  payment of the principal of and interest on the bonds.
    5-1        Sec. 17.970.  INVESTMENT OF MONEY IN FUNDS.  The treasurer
    5-2  may invest money credited to the reserve fund or the debt service
    5-3  fund and not immediately required for its intended use in
    5-4  investments authorized by law for state deposits.
    5-5        Sec. 17.971.  DISPOSITION OF BOND PROCEEDS.  Proceeds from
    5-6  the sale of the bonds shall be deposited to the credit of the fund.
    5-7        Sec. 17.972.  DISPOSITION OF PLEDGED FEES.  (a)  The
    5-8  comptroller shall deposit to the credit of the debt service fund
    5-9  and the reserve fund, as allocated by each resolution authorizing
   5-10  an issuance of bonds, the first pledged fees received by the
   5-11  comptroller.
   5-12        (b)  After the debt service fund and the reserve fund contain
   5-13  the amounts required to be on deposit in those funds, pledged fees
   5-14  received by the comptroller shall be used first to pay the board's
   5-15  administrative expenses relating to board duties under this
   5-16  subchapter and specified in the board's authorized budget.
   5-17        (c)  Amounts remaining after the deposits and payments under
   5-18  Subsections (a) and (b) of this section shall be deposited to the
   5-19  credit of the fund.
   5-20        Sec. 17.973.  REFUNDING BONDS.  (a)  The board by resolution
   5-21  may provide for the issuance of refunding bonds to refund
   5-22  outstanding bonds issued under this subchapter and accrued interest
   5-23  on those bonds.
   5-24        (b)  The board may sell the refunding bonds and use the
   5-25  proceeds to retire outstanding bonds issued under this subchapter,
   5-26  exchange the refunding bonds for the outstanding bonds, or refund
   5-27  the bonds in the manner provided by any other applicable statute,
    6-1  including Chapter 503, Acts of the 54th Legislature, 1955 (Article
    6-2  717k, Vernon's Texas Civil Statutes), and Chapter 784, Acts of the
    6-3  61st Legislature, Regular Session, 1969 (Article 717k-3, Vernon's
    6-4  Texas Civil Statutes).
    6-5        Sec. 17.974.  MUTILATED, LOST, OR DESTROYED BONDS.  The board
    6-6  may provide in the resolution authorizing the bonds for the
    6-7  replacement of mutilated, lost, or destroyed bonds.
    6-8        Sec. 17.975.  ELIGIBLE SECURITY.  The bonds are eligible to
    6-9  secure deposits of public funds of the state and political
   6-10  subdivisions of the state.  The bonds are lawful and sufficient
   6-11  security for deposits to the extent of their face value.
   6-12        Sec. 17.976.  TAX EXEMPT BONDS.  Since the board is
   6-13  performing an essential governmental function in the exercise of
   6-14  the powers conferred on it by this subchapter, the bonds issued
   6-15  under this subchapter and the interest and income from the bonds,
   6-16  including any profit made on the sale of bonds, and all fees,
   6-17  charges, gifts, grants, revenues, receipts, and other money
   6-18  received or pledged to pay or secure the payment of the bonds are
   6-19  free from taxation and assessments of every kind by the state and
   6-20  any political subdivision of the state.
   6-21        Sec. 17.977.  SUBCHAPTER CUMULATIVE OF OTHER LAWS.  (a)  This
   6-22  subchapter is cumulative of other laws on the subject, and the
   6-23  board may use provisions of other applicable laws in the issuance
   6-24  of bonds and other obligations, but this subchapter is wholly
   6-25  sufficient authority for the issuance of bonds and the performance
   6-26  of all other acts and procedures authorized by this subchapter.
   6-27        (b)  In addition to other authority granted by this
    7-1  subchapter, the board may exercise the powers granted to the
    7-2  governing body of an issuer with regard to issuance of obligations
    7-3  under Chapter 656, Acts of the 68th Legislature, Regular Session,
    7-4  1983 (Article 717q, Vernon's Texas Civil Statutes), Chapter 3, Acts
    7-5  of the 61st Legislature, Regular Session, 1969 (Article 717k-2,
    7-6  Vernon's Texas Civil Statutes), and Chapter 845, Acts of the 67th
    7-7  Legislature, Regular Session, 1981 (Article 717k-6, Vernon's Texas
    7-8  Civil Statutes).
    7-9        Sec. 17.978.  LIABILITY.  A member of the board or the
   7-10  commission or an employee of the board or of the commission is not
   7-11  personally liable in the person's private capacity for any act
   7-12  performed or for any contract or other obligation entered into or
   7-13  undertaken in an official capacity in good faith and without intent
   7-14  to defraud, in connection with the administration, management, or
   7-15  conduct of the board or the commission of the petroleum storage
   7-16  tank remediation program under this chapter or Chapter 26 of this
   7-17  code.
   7-18        Sec. 17.979.  CONTRACTS AND INTERAGENCY AGREEMENTS.  (a)  The
   7-19  board and the commission may enter contracts with any person to
   7-20  implement this subchapter.
   7-21        (b)  The comptroller, the treasurer, the board, or the
   7-22  commission may enter into interagency agreements to implement this
   7-23  subchapter and Subchapter I, Chapter 26, of this code.
   7-24        SECTION 2.  Sections 26.3573(b), (c), and (d), Water Code,
   7-25  are amended to read as follows:
   7-26        (b)  The petroleum storage tank remediation fund consists of
   7-27  money from:
    8-1              (1)  fees charged under Section 26.3574 of this code,
    8-2  as allocated under Section 17.972 of this code;
    8-3              (2)  the interest and penalties for the late payment of
    8-4  the fee charged under Section 26.3574 of this code; <and>
    8-5              (3)  funds received from cost recovery for corrective
    8-6  action and enforcement actions concerning petroleum storage tanks
    8-7  as provided by this subchapter; and
    8-8              (4)  proceeds of bonds issued by the board under
    8-9  Subchapter L, Chapter 17, of this code.
   8-10        (c)  Interest earned on amounts in the petroleum storage tank
   8-11  remediation fund shall be credited to the petroleum storage tank
   8-12  remediation fund revenue bond debt service fund <general revenue
   8-13  fund>.
   8-14        (d)  The commission may use the money in the petroleum
   8-15  storage tank remediation fund remaining after the required deposits
   8-16  to the petroleum storage tank remediation fund revenue bond debt
   8-17  service fund and the petroleum storage tank remediation fund
   8-18  revenue bond reserve fund and the payment of the administrative
   8-19  expenses of the board under Subchapter L, Chapter 17, of this code
   8-20  to pay:
   8-21              (1)  necessary expenses associated with the
   8-22  administration of the petroleum storage tank remediation fund and
   8-23  the groundwater protection cleanup program, not to exceed an amount
   8-24  equal to three percent of the gross receipts of that fund, provided
   8-25  that the increment between two and three percent of the gross
   8-26  receipts may be used only to pay administrative expenses associated
   8-27  with regulating petroleum storage tanks, reimbursing eligible
    9-1  owners and operators, and disposing of contaminated soils;
    9-2              (2)  expenses associated with investigation, cleanup,
    9-3  or corrective action measures performed in response to a release or
    9-4  threatened release from a petroleum storage tank, whether those
    9-5  expenses are incurred by the commission or pursuant to a contract
    9-6  between a contractor and an eligible owner or operator as
    9-7  authorized by this subchapter; and
    9-8              (3)  subject to the conditions of Subsection (e) of
    9-9  this section, expenses associated with investigation, cleanup, or
   9-10  corrective action measures performed in response to a release or
   9-11  threatened release of hydraulic fluid or spent oil from hydraulic
   9-12  lift systems or tanks located at a vehicle service and fueling
   9-13  facility and used as part of the operations of that facility.
   9-14        SECTION 3.  Subchapter I, Chapter 26, Water Code, is amended
   9-15  by adding Section 26.35741 to read as follows:
   9-16        Sec. 26.35741.  ESTIMATED DEMAND AND RECEIPTS; REQUEST FOR
   9-17  REVENUE BONDS.  (a)  The commission annually shall estimate, for
   9-18  each year in the 10-year period beginning with 1994, the demand on
   9-19  the fund under Section 26.3573(d) of this code.  The comptroller
   9-20  annually shall estimate the amount of fees to be collected under
   9-21  Section 26.3574 of this code in each year of the 10-year period and
   9-22  in each additional year in which bonds issued by the board under
   9-23  Subchapter L, Chapter 17, of this code are scheduled to be
   9-24  outstanding.
   9-25        (b)  Using the estimates prepared under Subsection (a) of
   9-26  this section, the commission shall attempt to achieve the maximum
   9-27  economic benefit to the state from the receipt of the fees by using
   10-1  the most efficient combination of fees and proceeds of bonds issued
   10-2  under Subchapter L, Chapter 17, of this code to meet demands on the
   10-3  fund.
   10-4        (c)  The commission by resolution shall request the issuance
   10-5  of bonds by the board under Subchapter L, Chapter 17, of this code
   10-6  in amounts that, together with the fees and after satisfying the
   10-7  debt service and reserve requirements of the bonds, will enable the
   10-8  commission to maximize the use of the fees.
   10-9        SECTION 4.  This Act takes effect September 1, 1993.
  10-10        SECTION 5.  The importance of this legislation and the
  10-11  crowded condition of the calendars in both houses create an
  10-12  emergency and an imperative public necessity that the
  10-13  constitutional rule requiring bills to be read on three several
  10-14  days in each house be suspended, and this rule is hereby suspended.