1-1 By: Montford S.B. No. 885
1-2 (In the Senate - Filed March 11, 1993; March 15, 1993, read
1-3 first time and referred to Committee on International Relations,
1-4 Trade, and Technology; March 31, 1993, reported favorably by the
1-5 following vote: Yeas 7, Nays 0; March 31, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Truan x
1-9 Barrientos x
1-10 Bivins x
1-11 Brown x
1-12 Carriker x
1-13 Harris of Tarrant x
1-14 Lucio x
1-15 Rosson x
1-16 Wentworth x
1-17 A BILL TO BE ENTITLED
1-18 AN ACT
1-19 relating to revolving fund programs administered by the Texas Water
1-20 Development Board to provide financial assistance to political
1-21 subdivisions.
1-22 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-23 SECTION 1. Section 15.601, Water Code, is amended to read as
1-24 follows:
1-25 Sec. 15.601. Creation of Fund. (a) The state water
1-26 pollution control revolving fund shall be administered by the board
1-27 under this subchapter and rules adopted by the board. The fund
1-28 shall be used to provide financial assistance to political
1-29 subdivisions for construction of treatment works in accordance with
1-30 the capitalization grant program established under the Federal
1-31 Water Pollution Control Act (33 U.S.C. 1251 et seq.).
1-32 (b) The board may establish one or more additional state
1-33 revolving funds in accordance with other capitalization grant
1-34 programs hereafter established by federal agencies or otherwise
1-35 authorized by federal law. Such additional state revolving funds
1-36 shall be held and administered by the board in the same manner as
1-37 provided by Section 15.603 of this code for the administration of
1-38 the state water pollution control revolving fund, except that such
1-39 additional state revolving funds shall be held and administered in
1-40 accordance with the federal legislation or federal agency program
1-41 under which the additional state revolving fund was established and
1-42 shall be used to provide financial assistance to political
1-43 subdivisions for public works in accordance with such legislation
1-44 or program. In the administration of such additional state
1-45 revolving funds, the board shall have all rights and powers
1-46 authorized to the board pursuant to this subchapter in connection
1-47 with the administration of the state water pollution control
1-48 revolving fund, together with such additional rights and powers as
1-49 are necessary or appropriate in connection with the administration
1-50 of such additional state revolving funds.
1-51 (c) The board may, in its discretion, provide for the state
1-52 water pollution control revolving fund to be merged into any
1-53 additional state revolving fund hereafter created.
1-54 SECTION 2. Section 15.602, Water Code, is amended to read as
1-55 follows:
1-56 Sec. 15.602. DEFINITIONS. In this subchapter:
1-57 (1) "Additional state revolving fund" means any state
1-58 revolving fund hereafter established by the board to provide
1-59 financial assistance to political subdivisions for public works in
1-60 accordance with a capitalization grant program hereafter
1-61 established by a federal agency or otherwise authorized by federal
1-62 law.
1-63 (2) "Authorized investments" means:
1-64 (A) direct obligations of the United States;
1-65 (B) other obligations unconditionally guaranteed
1-66 by the United States;
1-67 (C) obligations of the State of Texas;
1-68 (D) obligations of cities, counties, and other
2-1 political subdivisions of the state, except bonds issued to finance
2-2 <a project or> treatment works or public works described in this
2-3 chapter; and
2-4 (E) any authorized investments described in
2-5 Section 404.024, Government Code <2.014, Chapter 240, Acts of the
2-6 69th Legislature, Regular Session, 1985 (Article 4393-1, Vernon's
2-7 Texas Civil Statutes)>.
2-8 (3) <(2)> "Construction" shall have the meaning
2-9 assigned by the Federal Water Pollution Control Act (33 U.S.C. 1251
2-10 et seq.).
2-11 (4) <(3)> "Federal Act" means the Federal Water
2-12 Pollution Control Act, as amended (33 U.S.C. 1251 et seq.).
2-13 (5) <(4)> "Political subdivision" means a
2-14 municipality, intermunicipal, interstate, or state agency or any
2-15 other public entity eligible for assistance under this subchapter
2-16 <the federal act>.
2-17 (6) "Public works" means any project to acquire,
2-18 construct, improve, repair, or otherwise provide any buildings,
2-19 structures, facilities, equipment, or other real or personal
2-20 property or improvements designed for public use, protection, or
2-21 enjoyment undertaken by a political subdivision and paid for, in
2-22 whole or in part, out of public funds.
2-23 (7) <(5)> "Revolving fund" means the state water
2-24 pollution control revolving fund.
2-25 (8) <(6)> "Treatment works" has the meaning
2-26 established by the federal act and the eligible components of the
2-27 management programs established by Sections 319 and 320 of the
2-28 federal act.
2-29 SECTION 3. Section 15.604, Water Code, is amended to read as
2-30 follows:
2-31 Sec. 15.604. Financial Assistance Under the Revolving Fund.
2-32 (a) The board may use the revolving fund for financial assistance
2-33 only as provided by the federal act:
2-34 (1) to make loans, on the conditions that:
2-35 (A) those loans are made at or below market
2-36 interest rates, including interest-free loans, at terms not to
2-37 exceed 20 years;
2-38 (B) principal and interest payments will begin
2-39 not later than one year after completion of any treatment works and
2-40 all loans will be fully amortized not later than 20 years after
2-41 completion of the treatment works;
2-42 (C) the recipient of a loan will establish a
2-43 dedicated source of revenue for repayment of loans; and
2-44 (D) the revolving fund will be credited with all
2-45 payments of principal of and interest on all loans;
2-46 (2) to buy or refinance the debt obligation of
2-47 political subdivisions at or below market rates if the debt
2-48 obligations were incurred after March 7, 1985;
2-49 (3) to guarantee or purchase insurance for political
2-50 subdivisions if the guarantee or insurance would improve access to
2-51 market credit or reduce interest rates;
2-52 (4) as a source of revenue or security for the payment
2-53 of principal and interest on bonds issued by the state if the
2-54 proceeds of the sale of those bonds will be deposited in the
2-55 revolving fund;
2-56 (5) to provide loan guarantees to similar revolving
2-57 funds established by municipalities or intermunicipal agencies;
2-58 (6) to earn interest on revolving fund accounts; <and>
2-59 (7) for the reasonable costs of administering the
2-60 revolving fund and conducting activities provided for by Title VI
2-61 of the federal act, except that those amounts may not exceed the
2-62 amount authorized <four percent of all grant awards to the
2-63 revolving fund> under Title VI of the federal act; and
2-64 (8) for other purposes as provided by the federal act.
2-65 (b) The board shall adopt rules specifying the manner in
2-66 which any additional state revolving fund hereafter established by
2-67 the board may be used to provide financial assistance to political
2-68 subdivisions for public works. Such rules shall require financial
2-69 assistance to be provided for the purpose or purposes and on the
2-70 terms authorized by the federal legislation or federal agency
3-1 program under which the additional state revolving fund was
3-2 established.
3-3 SECTION 4. Section 17.853, Water Code, is amended to read as
3-4 follows:
3-5 Sec. 17.853. TEXAS WATER RESOURCES FUND. (a) The Texas
3-6 water resources fund is in the State Treasury.
3-7 (b) The fund shall be administered by the board in
3-8 accordance with this subchapter, and the board shall create
3-9 accounts within the fund that will facilitate the conservation of
3-10 water resources and the payment of revenue bonds issued for the
3-11 conservation of water resources.
3-12 (c) The board may use the fund only:
3-13 (1) to provide state matching funds for federal funds
3-14 provided to the state water pollution control revolving fund or to
3-15 any additional state revolving fund created under Subchapter J of
3-16 Chapter 15 of this code;
3-17 (2) to provide financial assistance from the proceeds
3-18 of taxable bond issues to water supply corporations organized under
3-19 Chapter 76, Acts of the 43rd Legislature, 1st Called Session, 1933
3-20 (Article 1434a, Vernon's Texas Civil Statutes), and other
3-21 participants;
3-22 (3) to provide financial assistance to participants
3-23 for the construction of water supply projects and treatment works;
3-24 (4) to provide financial assistance for an interim
3-25 construction period to participants for projects for which the
3-26 board will provide long-term financing through the water
3-27 development fund; and
3-28 (5) to provide financial assistance for water supply
3-29 and sewer service projects in economically distressed areas as
3-30 provided by Subchapter K of Chapter 17 of this code to the extent
3-31 the board can make that assistance without adversely affecting the
3-32 current or future integrity of the fund or of any other financial
3-33 assistance program of the board.
3-34 (d) Money in the fund may be invested by the board as
3-35 permitted by this subchapter, other applicable law, or as provided
3-36 by resolutions authorizing the issuance of revenue bonds.
3-37 SECTION 5. Section 17.0821, Water Code, is amended to read
3-38 as follows:
3-39 Sec. 17.0821. TRANSFERS TO REVOLVING FUNDS <FUND>. (a) In
3-40 order to meet requirements of Title VI of the Federal Water
3-41 Pollution Control Act, the board may direct the comptroller to
3-42 transfer amounts from the water quality enhancement account to the
3-43 state water pollution control revolving fund created by Section
3-44 15.601 of this code to provide financial assistance pursuant to
3-45 this chapter.
3-46 (b) In order to meet requirements of any federal legislation
3-47 or federal agency program under which an additional state revolving
3-48 fund, as defined in Section 15.602 of this code, has been
3-49 established, the board may direct the comptroller to transfer
3-50 amounts from the water supply account, the flood control account,
3-51 and the economically distressed areas account to such additional
3-52 state revolving fund to provide financial assistance pursuant to
3-53 this chapter.
3-54 (c) The board shall use the state water pollution control
3-55 revolving fund in accordance with Section 15.604(4) of this code
3-56 and the Federal Water Pollution Control Act, Section 603(d)(4), as
3-57 a source of revenue to be deposited in accordance with this chapter
3-58 for the payment of principal and interest on water quality
3-59 enhancement bonds issued by the state, the proceeds of which are
3-60 deposited into the state water pollution control revolving fund.
3-61 (d) In the event amounts are transferred to any additional
3-62 state revolving fund, as defined in Section 15.602 of this code,
3-63 pursuant to Subsection (b) of this section, the board shall, to the
3-64 extent permitted by the federal legislation or federal agency
3-65 program under which such additional state revolving fund was
3-66 established, use such additional state revolving fund as a source
3-67 of revenue to be deposited in accordance with this chapter for the
3-68 payment of principal and interest on water development bonds issued
3-69 by the state, the proceeds of which are deposited into such
3-70 additional state revolving fund.
4-1 SECTION 6. The importance of this legislation and the
4-2 crowded condition of the calendars in both houses create an
4-3 emergency and an imperative public necessity that the
4-4 constitutional rule requiring bills to be read on three several
4-5 days in each house be suspended, and this rule is hereby suspended,
4-6 and that this Act take effect and be in force from and after its
4-7 passage, and it is so enacted.
4-8 * * * * *
4-9 Austin,
4-10 Texas
4-11 March 31, 1993
4-12 Hon. Bob Bullock
4-13 President of the Senate
4-14 Sir:
4-15 We, your Committee on International Relations, Trade, and
4-16 Technology to which was referred S.B. No. 885, have had the same
4-17 under consideration, and I am instructed to report it back to the
4-18 Senate with the recommendation that it do pass and be printed.
4-19 Truan,
4-20 Chairman
4-21 * * * * *
4-22 WITNESSES
4-23 FOR AGAINST ON
4-24 ___________________________________________________________________
4-25 Name: Mr. Craig D. Pedersen x
4-26 Representing: Tx Water Dev. Bd.
4-27 City: Austin
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4-29 Name: Ms. Suzanne Schwartz x
4-30 Representing: Tx Water Dev. Bd.
4-31 City: Austin
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