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.