By: Montford S.B. No. 885
A BILL TO BE ENTITLED
AN ACT
1-1 relating to revolving fund programs administered by the Texas Water
1-2 Development Board to provide financial assistance to political
1-3 subdivisions.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 15.601, Water Code, is amended to read as
1-6 follows:
1-7 Sec. 15.601. Creation of Fund. (a) The state water
1-8 pollution control revolving fund shall be administered by the board
1-9 under this subchapter and rules adopted by the board. The fund
1-10 shall be used to provide financial assistance to political
1-11 subdivisions for construction of treatment works in accordance with
1-12 the capitalization grant program established under the Federal
1-13 Water Pollution Control Act (33 U.S.C. 1251 et seq.).
1-14 (b) The board may establish one or more additional state
1-15 revolving funds in accordance with other capitalization grant
1-16 programs hereafter established by federal agencies or otherwise
1-17 authorized by federal law. Such additional state revolving funds
1-18 shall be held and administered by the board in the same manner as
1-19 provided by Section 15.603 of this code for the administration of
1-20 the state water pollution control revolving fund, except that such
1-21 additional state revolving funds shall be held and administered in
1-22 accordance with the federal legislation or federal agency program
1-23 under which the additional state revolving fund was established and
2-1 shall be used to provide financial assistance to political
2-2 subdivisions for public works in accordance with such legislation
2-3 or program. In the administration of such additional state
2-4 revolving funds, the board shall have all rights and powers
2-5 authorized to the board pursuant to this subchapter in connection
2-6 with the administration of the state water pollution control
2-7 revolving fund, together with such additional rights and powers as
2-8 are necessary or appropriate in connection with the administration
2-9 of such additional state revolving funds.
2-10 (c) The board may, in its discretion, provide for the state
2-11 water pollution control revolving fund to be merged into any
2-12 additional state revolving fund hereafter created.
2-13 SECTION 2. Section 15.602, Water Code, is amended to read as
2-14 follows:
2-15 Sec. 15.602. DEFINITIONS. In this subchapter:
2-16 (1) "Additional state revolving fund" means any state
2-17 revolving fund hereafter established by the board to provide
2-18 financial assistance to political subdivisions for public works in
2-19 accordance with a capitalization grant program hereafter
2-20 established by a federal agency or otherwise authorized by federal
2-21 law.
2-22 (2) "Authorized investments" means:
2-23 (A) direct obligations of the United States;
2-24 (B) other obligations unconditionally guaranteed
2-25 by the United States;
3-1 (C) obligations of the State of Texas;
3-2 (D) obligations of cities, counties, and other
3-3 political subdivisions of the state, except bonds issued to finance
3-4 <a project or> treatment works or public works described in this
3-5 chapter; and
3-6 (E) any authorized investments described in
3-7 Section 404.024, Government Code <2.014, Chapter 240, Acts of the
3-8 69th Legislature, Regular Session, 1985 (Article 4393-1, Vernon's
3-9 Texas Civil Statutes)>.
3-10 (3) <(2)> "Construction" shall have the meaning
3-11 assigned by the Federal Water Pollution Control Act (33 U.S.C. 1251
3-12 et seq.).
3-13 (4) <(3)> "Federal Act" means the Federal Water
3-14 Pollution Control Act, as amended (33 U.S.C. 1251 et seq.).
3-15 (5) <(4)> "Political subdivision" means a
3-16 municipality, intermunicipal, interstate, or state agency or any
3-17 other public entity eligible for assistance under this subchapter
3-18 <the federal act>.
3-19 (6) "Public works" means any project to acquire,
3-20 construct, improve, repair, or otherwise provide any buildings,
3-21 structures, facilities, equipment, or other real or personal
3-22 property or improvements designed for public use, protection, or
3-23 enjoyment undertaken by a political subdivision and paid for, in
3-24 whole or in part, out of public funds.
3-25 (7) <(5)> "Revolving fund" means the state water
4-1 pollution control revolving fund.
4-2 (8) <(6)> "Treatment works" has the meaning
4-3 established by the federal act and the eligible components of the
4-4 management programs established by Sections 319 and 320 of the
4-5 federal act.
4-6 SECTION 3. Section 15.604, Texas Water Code, is amended to
4-7 read as follows:
4-8 Sec. 15.604. Financial Assistance Under the Revolving Fund.
4-9 (a) The board may use the revolving fund for financial assistance
4-10 only as provided by the federal act:
4-11 (1) to make loans, on the conditions that:
4-12 (A) those loans are made at or below market
4-13 interest rates, including interest-free loans, at terms not to
4-14 exceed 20 years;
4-15 (B) principal and interest payments will begin
4-16 not later than one year after completion of any treatment works and
4-17 all loans will be fully amortized not later than 20 years after
4-18 completion of the treatment works;
4-19 (C) the recipient of a loan will establish a
4-20 dedicated source of revenue for repayment of loans; and
4-21 (D) the revolving fund will be credited with all
4-22 payments of principal of and interest on all loans;
4-23 (2) to buy or refinance the debt obligation of
4-24 political subdivisions at or below market rates if the debt
4-25 obligations were incurred after March 7, 1985;
5-1 (3) to guarantee or purchase insurance for political
5-2 subdivisions if the guarantee or insurance would improve access to
5-3 market credit or reduce interest rates;
5-4 (4) as a source of revenue or security for the payment
5-5 of principal and interest on bonds issued by the state if the
5-6 proceeds of the sale of those bonds will be deposited in the
5-7 revolving fund;
5-8 (5) to provide loan guarantees to similar revolving
5-9 funds established by municipalities or intermunicipal agencies;
5-10 (6) to earn interest on revolving fund accounts; <and>
5-11 (7) for the reasonable costs of administering the
5-12 revolving fund and conducting activities provided for by Title VI
5-13 of the federal act, except that those amounts may not exceed the
5-14 amount authorized <four percent of all grant awards to the
5-15 revolving fund> under Title VI of the federal act; and
5-16 (8) for other purposes as provided by the federal act.
5-17 (b) The board shall adopt rules specifying the manner in
5-18 which any additional state revolving fund hereafter established by
5-19 the board may be used to provide financial assistance to political
5-20 subdivisions for public works. Such rules shall require financial
5-21 assistance to be provided for the purpose or purposes and on the
5-22 terms authorized by the federal legislation or federal agency
5-23 program under which the additional state revolving fund was
5-24 established.
5-25 SECTION 4. Section 17.853, Water Code, is amended to read as
6-1 follows:
6-2 Sec. 17.853. TEXAS WATER RESOURCES FUND. (a) The Texas
6-3 water resources fund is in the State Treasury.
6-4 (b) The fund shall be administered by the board in
6-5 accordance with this subchapter, and the board shall create
6-6 accounts within the fund that will facilitate the conservation of
6-7 water resources and the payment of revenue bonds issued for the
6-8 conservation of water resources.
6-9 (c) The board may use the fund only:
6-10 (1) to provide state matching funds for federal funds
6-11 provided to the state water pollution control revolving fund or to
6-12 any additional state revolving fund created under Subchapter J of
6-13 Chapter 15 of this code;
6-14 (2) to provide financial assistance from the proceeds
6-15 of taxable bond issues to water supply corporations organized under
6-16 Chapter 76, Acts of the 43rd Legislature, 1st Called Session, 1933
6-17 (Article 1434a, Vernon's Texas Civil Statutes), and other
6-18 participants;
6-19 (3) to provide financial assistance to participants
6-20 for the construction of water supply projects and treatment works;
6-21 (4) to provide financial assistance for an interim
6-22 construction period to participants for projects for which the
6-23 board will provide long-term financing through the water
6-24 development fund; and
6-25 (5) to provide financial assistance for water supply
7-1 and sewer service projects in economically distressed areas as
7-2 provided by Subchapter K of Chapter 17 of this code to the extent
7-3 the board can make that assistance without adversely affecting the
7-4 current or future integrity of the fund or of any other financial
7-5 assistance program of the board.
7-6 (d) Money in the fund may be invested by the board as
7-7 permitted by this subchapter, other applicable law, or as provided
7-8 by resolutions authorizing the issuance of revenue bonds.
7-9 SECTION 5. Section 17.0821, Water Code, is amended to read
7-10 as follows:
7-11 Sec. 17.0821. TRANSFERS TO REVOLVING FUNDS <FUND>. (a) In
7-12 order to meet requirements of Title VI of the Federal Water
7-13 Pollution Control Act, the board may direct the comptroller to
7-14 transfer amounts from the water quality enhancement account to the
7-15 state water pollution control revolving fund created by Section
7-16 15.601 of this code to provide financial assistance pursuant to
7-17 this chapter.
7-18 (b) In order to meet requirements of any federal legislation
7-19 or federal agency program under which an additional state revolving
7-20 fund, as defined in Section 15.602 of this code, has been
7-21 established, the board may direct the comptroller to transfer
7-22 amounts from the water supply account, the flood control account,
7-23 and the economically distressed areas account to such additional
7-24 state revolving fund to provide financial assistance pursuant to
7-25 this chapter.
8-1 (c) The board shall use the state water pollution control
8-2 revolving fund in accordance with Section 15.604(4) of this code
8-3 and the Federal Water Pollution Control Act, Section 603(d)(4), as
8-4 a source of revenue to be deposited in accordance with this chapter
8-5 for the payment of principal and interest on water quality
8-6 enhancement bonds issued by the state, the proceeds of which are
8-7 deposited into the state water pollution control revolving fund.
8-8 (d) In the event amounts are transferred to any additional
8-9 state revolving fund, as defined in Section 15.602 of this code,
8-10 pursuant to Subsection (b) of this section, the board shall, to the
8-11 extent permitted by the federal legislation or federal agency
8-12 program under which such additional state revolving fund was
8-13 established, use such additional state revolving fund as a source
8-14 of revenue to be deposited in accordance with this chapter for the
8-15 payment of principal and interest on water development bonds issued
8-16 by the state, the proceeds of which are deposited into such
8-17 additional state revolving fund.
8-18 SECTION 6. The importance of this legislation and the
8-19 crowded condition of the calendars in both houses create an
8-20 emergency and an imperative public necessity that the
8-21 constitutional rule requiring bills to be read on three several
8-22 days in each house be suspended, and this rule is hereby suspended,
8-23 and that this Act take effect and be in force from and after its
8-24 passage, and it is so enacted.