By Lewis of Orange H.B. No. 1802
75R6912 E
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the development and management of the water resources
1-3 of the state; assessing fees; making appropriations.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subchapter F, Chapter 5, Water Code, is amended
1-6 by adding Section 5.2361 to read as follows:
1-7 Sec. 5.2361. WATER RESOURCE MANAGEMENT ASSESSMENT. (a) To
1-8 ensure the adequate support of the state's responsibilities for the
1-9 management of water resources, including the development of
1-10 available water supplies, the provision of adequate water utility
1-11 services, and the protection of the quality of water and drinking
1-12 water sources in the state, the commission is authorized to assess
1-13 a fee to be collected from each public water supply system in the
1-14 state.
1-15 (b) The fee shall be collected annually from the operator of
1-16 each system authorized under Chapter 341, Health and Safety Code,
1-17 to distribute drinking water to the public. The commission by rule
1-18 shall establish a rate or rates for the fee for each user served by
1-19 a public water system. The rates may reflect the type of water
1-20 user and the amounts of water used by different classes of users.
1-21 The fee for a residential customer shall not exceed a cost of $1
1-22 per month of each retail connection to a public water system.
1-23 (c) The operator of a public water system subject to an
1-24 assessment under this section may retain five cents for each
2-1 connection on its system to offset the administrative costs of the
2-2 assessment and collection.
2-3 (d) The fees collected under this section shall be deposited
2-4 to a special fund known as the water facilities fund established by
2-5 Section 15.010 for use under that section.
2-6 SECTION 2. Subchapter D, Chapter 11, Water Code, is amended
2-7 by adding Section 11.1352 to read as follows:
2-8 Sec. 11.1352. ANNUAL WATER RIGHTS FEE. (a) The commission
2-9 shall assess a fee for those water rights held under the authority
2-10 of this chapter and specified in Subsection (b). A fee shall not
2-11 be assessed for water rights for municipal use. The fee shall be
2-12 paid annually and is based on the amount of the water authorized to
2-13 be used.
2-14 (b) Fees under this section shall be assessed for the
2-15 following uses and shall not exceed the following amounts:
2-16 (1) industrial--50 cents per authorized acre-foot;
2-17 (2) irrigation--10 cents per authorized acre-foot;
2-18 (3) other consumptive freshwater uses--50 cents per
2-19 acre-foot; and
2-20 (4) hydro-power--one hundredth of one cent per
2-21 kilowatt produced.
2-22 (c) Fees collected under this section shall be deposited to
2-23 a special fund known as the water facilities fund established by
2-24 Section 15.010 for use under that section.
2-25 (d) A water right holder within the jurisdiction of a
2-26 watermaster authorized under this chapter who pays a fee to
2-27 reimburse the watermaster for the expenses of that office is not
3-1 subject to a fee for a water right under this section.
3-2 (e) To receive funding in accordance with Section 15.010(h),
3-3 a political subdivision as defined under Chapter 15 holding a water
3-4 right located in an area under the jurisdiction of a watermaster in
3-5 accordance with Subsection (d) must pay fees in accordance with
3-6 Subsection (b) and Section 15.010(i).
3-7 (f) To receive funding in accordance with Section 15.010(h),
3-8 a groundwater conservation district must pay annual fees in
3-9 accordance with Section 15.010(i) for the following uses and shall
3-10 not exceed the following amounts:
3-11 (1) industrial--50 cents per acre-foot;
3-12 (2) irrigation--10 cents per acre-foot; and
3-13 (3) other--50 cents per acre-foot.
3-14 SECTION 3. Subchapter C, Chapter 11, Water Code, is amended
3-15 by adding Section 11.0851 to read as follows:
3-16 Sec. 11.0851. COMPENSATION TO BASIN OF ORIGIN. (a) When
3-17 approving applications under Section 11.085, the commission shall
3-18 determine an amount of money that shall be paid to the benefit of
3-19 the basin of origin to assist the basin of origin in providing
3-20 projects to conserve, convey, and develop surface or subsurface
3-21 water resources, to provide for the maintenance and enhancement of
3-22 the quality of water, and to provide nonstructural or structural
3-23 flood control. The amount of money to be paid shall not be less
3-24 than $1 per authorized acre-foot per annum. In determining that
3-25 amount, the commission shall consult with the board and consider,
3-26 in part, the projected future needs of the basin of origin as
3-27 identified in the state water plan.
4-1 (b) The compensation that the commission determines shall be
4-2 paid for the benefit of the basin of origin under Subsection (a)
4-3 shall be deposited to the water facilities fund established by
4-4 Section 15.010. The compensation shall be paid annually so long as
4-5 the transfer is authorized.
4-6 (c) Payments deposited under Subsection (b) into the water
4-7 facilities fund shall be accounted for separately according to the
4-8 appropriate basin of origin. These funds shall not be calculated
4-9 in determining the percentage of funds allocated under Sections
4-10 15.010(d) and (e). These funds may be used by the board to benefit
4-11 the basin of origin:
4-12 (1) by providing financial assistance, including
4-13 low-interest loans, to political subdivisions located in the basin
4-14 of origin for projects under Section 15.102(a);
4-15 (2) for acquisition of projects under Subchapter E,
4-16 Chapter 15, or Subchapter E, Chapter 16;
4-17 (3) for payment of debt service on bonds issued for
4-18 state participation by the board for projects that benefit the
4-19 basin of origin; or
4-20 (4) for other purposes for which board funding
4-21 programs may be used to benefit the basin of origin.
4-22 SECTION 4. Sections 15.001(5) and (6), Water Code, are
4-23 amended to read as follows:
4-24 (5) "Political subdivision" means a state agency,
4-25 city, county, district or authority created under Article III,
4-26 Section 52, or Article XVI, Section 59, of the Texas Constitution,
4-27 any other political subdivision of the state, any interstate
5-1 compact commission to which the state is a party, and any
5-2 [nonprofit] water supply or sewer service corporation as defined by
5-3 Section 13.002 [created and operating under Chapter 76, Acts of the
5-4 43rd Legislature, 1st Called Session, 1933 (Article 1434a, Vernon's
5-5 Texas Civil Statutes)].
5-6 (6) "Project" or "facility" means:
5-7 (A) any undertaking or work to conserve, convey,
5-8 and develop surface or subsurface water resources in the state, to
5-9 provide for the maintenance and enhancement of the quality of the
5-10 water of the state, to provide nonstructural and structural flood
5-11 control, drainage, subsidence control, recharge, chloride control,
5-12 and desalinization, to provide for the acquisition of water rights
5-13 and the repair of unsafe dams, and to carry out other purposes
5-14 defined by board rules; or
5-15 (B) any undertaking or work outside the state to
5-16 provide for the maintenance and enhancement of the quality of water
5-17 by eliminating saline inflow through well pumping and deep well
5-18 injection of brine.
5-19 SECTION 5. Section 15.002(a), Water Code, is amended to read
5-20 as follows:
5-21 (a) The legislature finds that it is in the public interest
5-22 and to the benefit of the general public of the state to encourage
5-23 and to assist in the planning and construction of projects to
5-24 develop and conserve the storm water and floodwater as well as the
5-25 ordinary flows of the rivers and streams of the state and of the
5-26 subsurface water resources in the state, to maintain and enhance
5-27 the quality of the water of the state, to provide protection to the
6-1 state's citizens from the floodwater of the rivers and streams of
6-2 the state, to provide drainage, subsidence control, public beach
6-3 nourishment, recharge, chloride control, and desalinization, to
6-4 allow the purchase of water rights for future transfer or for use,
6-5 or for holding or retiring for environmental purposes, to provide a
6-6 mechanism for state acquisition and enhancement of fish or wildlife
6-7 habitat, and other purposes as provided by law or board rule.
6-8 SECTION 6. Section 15.008, Water Code, is amended to read as
6-9 follows:
6-10 Sec. 15.008. Grant Standards. Chapter 783, Government Code,
6-11 [The Uniform Grant and Contract Management Act of 1981 (Article
6-12 4413(32g), Vernon's Texas Civil Statutes)] does not apply to a
6-13 contract under Subchapter C, F, H, J, [or] K, or L of this chapter.
6-14 SECTION 7. Subchapter B, Chapter 15, Water Code, is amended
6-15 to read as follows:
6-16 SUBCHAPTER B. WATER FACILITIES FUND AND WATER ASSISTANCE FUND
6-17 Sec. 15.010. WATER FACILITIES FUND. (a) The water
6-18 facilities fund is created as a fund in the state treasury and
6-19 shall be administered by the board under this chapter and rules
6-20 adopted by the board. The fund is created and shall be maintained
6-21 to provide funding for the state's various programs for water
6-22 resources development and management.
6-23 (b) The water facilities fund shall consist of:
6-24 (1) appropriations from the legislature;
6-25 (2) fees dedicated by Sections 5.2361, 11.0851, and
6-26 11.1352;
6-27 (3) any fees or sources of revenue that the
7-1 legislature may dedicate for deposit to the fund;
7-2 (4) repayments of loans from the water loan assistance
7-3 fund;
7-4 (5) money from the purchase or lease of state
7-5 ownership interests in projects under Subchapter E;
7-6 (6) interest earned on the fund;
7-7 (7) money from gifts, grants, or donations to the
7-8 fund;
7-9 (8) money from any other source designated by the
7-10 legislature or the board; and
7-11 (9) funds received from the sale of any political
7-12 subdivision bonds or obligations held in the water loan assistance
7-13 fund or the project acquisition fund.
7-14 (c) A portion of the fee revenues deposited in the water
7-15 facilities fund, not to exceed 11.8 percent, shall be transferred
7-16 and used to fund any of the operating expenses of the commission
7-17 relating to water resources management and protection. Money
7-18 appropriated to the commission from fees collected under Section
7-19 5.2361 may be used to supplement any other funds available to the
7-20 commission for the purposes of supporting the commission's
7-21 regulatory and water resource programs under this code and Chapter
7-22 341, Health and Safety Code. Money appropriated to the commission
7-23 from fees collected under Section 11.1352 may be used to supplement
7-24 any other funds available to the commission in the administration
7-25 of Chapter 11 and other provisions of this code relating to the
7-26 management of the surface water resources of the state. Any
7-27 amounts appropriated from the water facilities fund to the
8-1 commission may be transferred to and appropriated from the water
8-2 resource management account in the general revenue fund.
8-3 (d) The legislature hereby appropriates without further
8-4 legislative action any funds deposited in the water facilities fund
8-5 under Subsections (b)(4), (5), and (9) and 50 percent of the money
8-6 in the water facilities fund remaining after uses prescribed by
8-7 Subsection (c). The board by rule shall determine the manner to
8-8 provide financial assistance from these funds through the following
8-9 financial assistance programs of the board, including financial
8-10 assistance for hardship projects, and shall determine the amount of
8-11 money allocated for transfer to:
8-12 (1) the water assistance fund established under
8-13 Section 15.011 to be used for loans from the water loan assistance
8-14 fund and for project acquisition under Subchapter E;
8-15 (2) the development fund clearance fund established
8-16 under Section 17.077(a) or to any fund created for payment of bonds
8-17 issued for the purposes authorized by Section 49-d, Article III,
8-18 Texas Constitution, such transfers under this subdivision to be
8-19 used only to support payments of bonds issued or contracts executed
8-20 for state acquisition of facilities under Section 49-d, Article
8-21 III, Texas Constitution;
8-22 (3) the agricultural water conservation fund
8-23 established under Subchapter J, Chapter 17, to be used for purposes
8-24 authorized by law;
8-25 (4) the state water pollution control revolving fund
8-26 or additional state revolving funds under Subchapter J;
8-27 (5) the Texas water resources fund established under
9-1 Subchapter I, Chapter 17, for purposes authorized by law. The
9-2 board may pledge not to exceed one-half of the first revenues
9-3 dedicated for deposit into the water facilities fund from fees
9-4 under Sections 5.2361 and 11.1352 to be used without further
9-5 appropriation to make payments on revenue bonds issued under the
9-6 authority of Subchapter I, Chapter 17; and
9-7 (6) the general revenue fund for use without further
9-8 appropriation for purposes of providing operational expenses of the
9-9 board in an amount not greater than two and one-half percent times
9-10 the amount of financial assistance provided by the board from the
9-11 water facilities fund for the purposes of providing the financial
9-12 assistance authorized in this act.
9-13 (e) The legislature hereby appropriates without further
9-14 legislative action the money deposited annually into the water
9-15 facilities fund and remaining after uses prescribed by Subsections
9-16 (c) and (d). Money appropriated by this subsection shall be
9-17 divided annually and equally among the following categories:
9-18 (1) acquisition of real property necessary for water
9-19 supply projects;
9-20 (2) reservoir construction;
9-21 (3) water and wastewater treatment and conveyance
9-22 facilities, including reuse facilities;
9-23 (4) conservation, including aquifer recharge;
9-24 (5) weather modification;
9-25 (6) brush control and reestablishment of grassland;
9-26 (7) flood control and drainage;
9-27 (8) salinity control;
10-1 (9) dam repairs;
10-2 (10) nonpoint source pollution control; and
10-3 (11) for transfer to the conservation and restoration
10-4 fund at the request of the Parks and Wildlife Department for use
10-5 under Subchapter O.
10-6 (f) Funds allocated by Subsection (e) to be used under
10-7 Subdivisions (1)-(10) of that subsection shall be transferred by
10-8 the board from the water facilities fund in amounts determined by
10-9 the board to the water loan assistance fund, the project
10-10 acquisition fund, the pilot weather modification fund, the research
10-11 and planning fund, or any other fund in the water assistance fund
10-12 from which grants may be made, to be used as provided by law.
10-13 However, none of the funds shall be used for making grants for
10-14 purposes specified in Section 15.102(b) or 15.407 or Subchapter K,
10-15 Chapter 17. On a finding of imminent public necessity, the board
10-16 annually may redistribute up to 15 percent of the funds
10-17 appropriated among Subdivisions (1)-(10) of Subsection (e) to be
10-18 used for any of the purposes in those subdivisions. At the request
10-19 of the Parks and Wildlife Department, funds allocated by Subsection
10-20 (e)(11) shall be transferred to the conservation and restoration
10-21 fund for use under Subchapter O.
10-22 (g) The board may invest, reinvest, and direct the
10-23 investment of money accumulated in the water facilities fund as
10-24 provided by law for the investment of money under Section 404.024,
10-25 Government Code.
10-26 (h) Political subdivisions that are required to pay fees
10-27 under Sections 11.0851 and 11.1352, or that are required to assess
11-1 fees under Section 5.2361, are not eligible to receive financial
11-2 assistance made available from the water facilities fund unless
11-3 they have paid, or collected and paid, such fees since the
11-4 inception of the fund.
11-5 (i) To be eligible to receive financial assistance made
11-6 available from the water facilities fund, a political subdivision
11-7 that is not required to pay fees under Section 11.0851 or 11.1352
11-8 may agree to pay fees equivalent to fees that would have been paid
11-9 had the fees been collected since inception of the act, with
11-10 accrued interest at a rate determined by board rule, under the
11-11 following conditions:
11-12 (1) the fees shall be paid within one year of the
11-13 effective date of this act; or
11-14 (2) the political subdivision must obtain legislative
11-15 authorization to later pay such fees. The board by rule shall
11-16 establish the methods for allowing such political subdivisions to
11-17 make payments of fees that have not previously been paid.
11-18 (j) The payment of fees to establish eligibility under
11-19 Subsections (h) and (i) does not guarantee a political subdivision
11-20 will receive funding made available by the water facilities fund.
11-21 (k) The water facilities fund may not be used to provide
11-22 grants or loans of any type for projects eligible for economically
11-23 distressed areas funding or for payment of debt service on bonds
11-24 issued pursuant to Section 49-d-7(e), Article III, Texas
11-25 Constitution, nor shall the fund be used to benefit projects
11-26 approved before passage of the bill creating the water facilities
11-27 fund. Not more than five percent of any of the money contributed
12-1 annually to the fund shall be used by the board to purchase water
12-2 rights, nor shall any board funds be used to purchase water rights
12-3 for environmental purposes.
12-4 Sec. 15.011. Water Assistance Fund. (a) The water
12-5 assistance fund is created and shall be administered by the board
12-6 under this chapter and rules adopted by the board.
12-7 (b) After notice and hearing and subject to any limitations
12-8 established by the General Appropriations Act, the board may
12-9 transfer money from the fund to the loan fund created under
12-10 Subchapter C of this chapter, the project [storage] acquisition
12-11 fund created under Subchapter E of this chapter, the research and
12-12 planning fund created under Subchapter F of this chapter, [and] the
12-13 hydrographic survey account created under Subchapter M of this
12-14 chapter, the pilot weather modification fund created under
12-15 Subchapter N of this chapter, and the conservation and restoration
12-16 fund created under Subchapter O of this chapter, provided the
12-17 hydrographic survey account transfer does not exceed $425,000.
12-18 [(c) The board may transfer money in the fund to the water
12-19 bank account to be used by the board for administration and
12-20 operation of the Texas Water Bank.]
12-21 Sec. 15.012. Management of Fund. (a) The board may invest,
12-22 reinvest, and direct the investment of money accumulated in the
12-23 fund.
12-24 (b) Money appropriated by the legislature to the fund shall
12-25 be deposited in this fund. Gifts or grants from the United States
12-26 government, local or regional governments, private sources, or
12-27 other sources may be deposited in this fund. Money from the water
13-1 facilities fund shall be deposited in this fund at the direction of
13-2 the legislature or the board.
13-3 (c) Money appropriated to the fund by the legislature for a
13-4 specific purpose stated in Subchapter C, E, F, [or] M, N, or O of
13-5 this chapter or appropriated to any other fund into which money
13-6 from the fund may be transferred shall be placed in the appropriate
13-7 fund created by that subchapter.
13-8 (d) The money held in the fund may be invested as provided
13-9 by law for investment of money under Section 404.024, Government
13-10 Code.
13-11 SECTION 8. Section 15.101(b), Water Code, is amended to read
13-12 as follows:
13-13 (b) Repayments of loans shall be deposited in the water
13-14 facilities [assistance] fund.
13-15 SECTION 9. Section 15.102, Water Code, is amended by
13-16 amending Subsection (a) and adding Subsections (e) and (f) to read
13-17 as follows:
13-18 (a) The loan fund may be used by the board to provide loans
13-19 of financial assistance to political subdivisions, federal
13-20 agencies, or both political subdivisions and federal agencies
13-21 acting jointly for the construction, acquisition, improvement, or
13-22 enlargement of projects, including those involving water
13-23 conservation, water development, or water quality enhancement,
13-24 conveyance facilities, nonpoint source pollution control, or
13-25 providing nonstructural and structural flood control, or drainage,
13-26 or project recreation lands and revenue-generating recreational
13-27 improvements within any watershed, including projects for the
14-1 purposes of [or] providing recharge, chloride control, subsidence
14-2 control, repair of unsafe dams, acquifer recharge, brush control
14-3 and reestablishment of grasslands, weather modification or
14-4 desalinization, purchase of land for projects eligible for any
14-5 other funding of the board, the acquisition of land or options for
14-6 acquisition of land to preserve such land for future water supply
14-7 projects, for creation and not to exceed two years' operational
14-8 expenses for newly formed districts or authorities created under
14-9 Section 52, Article III, or Section 59, Article XVI, Texas
14-10 Constitution, as provided by legislative appropriations, this
14-11 chapter, and the board rules.
14-12 (e) The board by rule shall establish the interest rate for
14-13 loans made from the loan fund, which shall be at or below market
14-14 interest rates.
14-15 (f) The board may make grants to political subdivisions for
14-16 the purposes listed in Section 15.010(e) in amounts not to exceed
14-17 90 percent of the net cost of a project to political subdivisions
14-18 after deducting federal funds available for the project. The board
14-19 may provide a grant under this subsection only if, after making the
14-20 findings required in Sections 15.105(1) and (3), the board finds
14-21 there is broad state interest not directly benefiting the grantee
14-22 alone that warrants the grant in the amount approved by the board
14-23 or the board finds the project can be reasonably accomplished only
14-24 with a grant in the amount approved by the board. The board by
14-25 rule shall establish the procedure for grant applications and the
14-26 method for ranking which projects receive funds for grants.
14-27 SECTION 10. Section 15.105, Water Code, is amended to read
15-1 as follows:
15-2 Sec. 15.105. CONSIDERATIONS IN PASSING ON APPLICATION. In
15-3 passing on an application for financial assistance under Section
15-4 15.102(a) or (b) from the loan fund, the board shall consider but
15-5 is not limited to:
15-6 (1) the needs of the area to be served by the project
15-7 and the benefit of the project to the area in relation to the needs
15-8 of other areas requiring state assistance in any manner and the
15-9 benefits of those projects to the other areas;
15-10 (2) the availability of revenue to the applicant from
15-11 all sources for the ultimate repayment of the cost of the project,
15-12 including all interest;
15-13 (3) the relationship of the project to overall
15-14 statewide needs;
15-15 (4) the ability of the applicant to finance the
15-16 project without state assistance; and
15-17 (5) for applications for grants for economically
15-18 distressed areas, the regulatory efforts by the county in which the
15-19 project is located to control the construction of subdivisions that
15-20 lack basic utility services.
15-21 SECTION 11. The heading to Subchapter E, Chapter 15, Water
15-22 Code, is amended to read as follows:
15-23 SUBCHAPTER E. PROJECT [STORAGE] ACQUISITION PROGRAM
15-24 SECTION 12. Section 15.301, Water Code, is amended to read
15-25 as follows:
15-26 Sec. 15.301. Fund Created. There is created a fund in the
15-27 state treasury to be known as the project [storage] acquisition
16-1 fund which is to be funded by direct appropriations and by
16-2 transfers from the fund at the discretion of the board or direction
16-3 of the legislature.
16-4 SECTION 13. Section 15.302(a), Water Code, is amended to
16-5 read as follows:
16-6 (a) The board may use the project [storage] acquisition fund
16-7 for projects including the design, acquisition, lease,
16-8 construction, reconstruction, development, or enlargement in whole
16-9 or part of any existing or proposed [water storage] project and
16-10 including the acquisition of land or options for the acquisition of
16-11 land to preserve such land for future water supply projects.
16-12 SECTION 14. Sections 15.304 and 15.306, Water Code, are
16-13 amended to read as follows:
16-14 Sec. 15.304. Permits Required. Except as provided by
16-15 Section 15.3041 of this code, the board shall obtain permits from
16-16 the commission for the storage, transportation, and application to
16-17 beneficial use of water in reservoirs and associated works
16-18 constructed by the board, and for any other permit required by
16-19 state law, and may expend funds from the project acquisition fund
16-20 for such purposes.
16-21 Sec. 15.306. Board Findings. Before the board may acquire
16-22 [storage] facilities [in any reservoir], the board shall find
16-23 affirmatively that:
16-24 (1) [it is reasonable to expect that the state will
16-25 recover its investment in the facilities;]
16-26 [(2)] the cost of the facilities exceeds the current
16-27 financing capabilities of the area involved, and the facilities
17-1 cannot be reasonably financed by local interests without state
17-2 participation;
17-3 (2) [(3)] the public interest will be served by
17-4 acquisition of the facilities; [and]
17-5 (3) [(4)] the facilities to be constructed or
17-6 reconstructed contemplate the optimum development of the project
17-7 [site] which is reasonably reserved under all existing
17-8 circumstances; and
17-9 (4) the needs addressed by the project will be
17-10 addressed in a manner consistent with the state water plan, unless
17-11 the board determines that conditions warrant waiver of this
17-12 requirement [of the site].
17-13 SECTION 15. Section 15.3061(a), Water Code, is amended to
17-14 read as follows:
17-15 (a) If money is not available in the fund to provide money
17-16 for projects approved under this subchapter, the board shall
17-17 prepare and submit with its biennial budget request to the
17-18 Legislative Budget Board and to the presiding officers of each
17-19 house of the legislature a list of all projects approved by the
17-20 board under this subchapter or that could have been funded had
17-21 sufficient funds been available.
17-22 SECTION 16. Section 15.307, Water Code, is amended to read
17-23 as follows:
17-24 Sec. 15.307. Facilities Wanted by Political Subdivision.
17-25 The board shall not acquire any facility to the extent that the
17-26 board finds that the political subdivision:
17-27 (1) is willing and reasonably able to finance the
18-1 acquisition of the facility;
18-2 (2) has not qualified by obtaining the necessary
18-3 permit; however, the board may make a commitment to acquire a
18-4 facility contingent upon all needed permits being obtained by the
18-5 political subdivision or the board; and
18-6 (3) has proposals that are inconsistent with the
18-7 objectives of the state water plan.
18-8 SECTION 17. Section 15.308(a), Water Code, is amended to
18-9 read as follows:
18-10 (a) The board may execute contracts which include but are
18-11 not limited to the design, management, acquisition, lease,
18-12 construction, reconstruction, development, enlargement, operation,
18-13 or maintenance, singularly or in any combination, of any existing
18-14 or proposed [storage] project.
18-15 SECTION 18. Section 15.309, Water Code, is amended to read
18-16 as follows:
18-17 Sec. 15.309. Specific Contracts Authorized. Contracts
18-18 authorized by Section 15.308 of this code include but are not
18-19 limited to the following:
18-20 (1) federal grants or grants from other sources;
18-21 (2) contracts which may be fully or partially secured
18-22 by water purchase or repayment contracts executed by political
18-23 subdivisions of the state for purchase of water and facilities
18-24 necessary to supply present and future regional and local water
18-25 requirements;
18-26 (3) contracts for goods and services necessary for the
18-27 design, management, acquisition, lease, construction,
19-1 reconstruction, development, enlargement, implementation,
19-2 operation, or maintenance of any existing or proposed project or
19-3 portion of the project; and
19-4 (4) contracts secured by the pledge of all or any part
19-5 of funds in the facilities [storage] acquisition fund.
19-6 SECTION 19. Section 15.313(a), Water Code, is amended to
19-7 read as follows:
19-8 (a) The board may sell, transfer, or lease, to the extent of
19-9 its ownership, a project acquired, constructed, reconstructed,
19-10 developed, or enlarged with money from the facilities [storage]
19-11 acquisition fund.
19-12 SECTION 20. Sections 15.314 and 15.316, Water Code, are
19-13 amended to read as follows:
19-14 Sec. 15.314. Permit Required. Before the board grants the
19-15 application to buy, receive, or lease the facilities, the applicant
19-16 shall first secure all permits [a permit] for water use or other
19-17 permits for operation of the project from the commission. If the
19-18 facilities are to be leased, the permit may be for a term of years.
19-19 Sec. 15.316. PROJECT [RESERVOIR] LAND. The board may lease
19-20 acquired project [reservoir] land until construction of the project
19-21 [dam] is completed without the necessity of a permit issued by the
19-22 commission.
19-23 SECTION 21. Sections 15.317(a) and 15.318(a), Water Code,
19-24 are amended to read as follows:
19-25 (a) The price of the sale or transfer of a state facility
19-26 acquired on or subsequent to September 1, 1981, other than a
19-27 facility acquired under a contract with the United States, shall be
20-1 the sum of the direct cost of acquisition, plus an amount of
20-2 interest calculated by multiplying the lending rate in effect at
20-3 the date of acquisition by the amount of board money disbursed for
20-4 the acquisition times the number of years and fraction of a year
20-5 from the date or dates of the disbursement of funds to the date or
20-6 dates of the sale or transfer of the state facility, plus the
20-7 board's cost of operating and maintaining the facility from the
20-8 date of acquisition to the date of sale or transfer, plus a portion
20-9 of the board's cost of administering the facilities acquisition
20-10 program under this subchapter, less any payments received by the
20-11 board from the lease of the facility or the sale of water from it.
20-12 (a) The price of the sale or transfer of a state facility
20-13 acquired on or subsequent to September 1, 1981, under a contract
20-14 with the United States shall be the sum of the direct cost of
20-15 acquisition, plus an amount of interest calculated by multiplying
20-16 the lending rate in effect at the time of acquisition, by the
20-17 amount of board money disbursed for the acquisition of the facility
20-18 times the number of years and fraction of a year from the date or
20-19 dates of disbursement of the money to the date or dates of sale or
20-20 transfer, plus the board's cost of operating and maintaining the
20-21 facility from the date of acquisition to the date of the sale or
20-22 transfer of the facility, plus a portion of the board's cost of
20-23 administering the facilities acquisition program under this
20-24 subchapter, less any payments received by the board from the lease
20-25 of the facility or the sale of water from it.
20-26 SECTION 22. Sections 15.319-15.324, 15.326, and 15.327,
20-27 Water Code, are amended to read as follows:
21-1 Sec. 15.319. Costs Defined. With reference to the sale of a
21-2 state facility, "direct cost of acquisition" means the principal
21-3 amount the board has paid plus the amounts the board has agreed to
21-4 pay under obligations not transferred to the purchaser for a
21-5 facility up to the date of sale, but does not include the board's
21-6 cost of operating and maintaining the facility from the date of
21-7 acquisition to the date of the sale or transfer of the facility nor
21-8 the board's cost of administering the facilities acquisition
21-9 program under this subchapter.
21-10 Sec. 15.320. Lease Payments. In leasing a state facility
21-11 for a term of years, the board shall require [annual] payments that
21-12 will recover over the lease period not less than the total of:
21-13 (1) the annual principal and interest requirements
21-14 applicable to the debt incurred by the state in acquiring the
21-15 facility; and
21-16 (2) the state's annual cost for operation,
21-17 maintenance, and rehabilitation of the facility, including a
21-18 portion of the board's cost of administering the facilities
21-19 acquisition program under this subchapter.
21-20 Sec. 15.321. Sale or Lease: Condition Precedent. (a) No
21-21 sale, transfer, or lease of a state facility is valid unless the
21-22 board first makes the following affirmative findings:
21-23 (1) that the applicant has a permit granted by the
21-24 commission if such permit is required for operation of the project;
21-25 (2) that the sale, transfer, or lease serves the
21-26 public interest; and
21-27 (3) that the consideration for the sale, transfer, or
22-1 lease is fair, just, reasonable, and in full compliance with the
22-2 law.
22-3 (b) The consideration for a sale or transfer may be either
22-4 money or [revenue] bonds which for the purposes of this section
22-5 shall be deemed the same as money.
22-6 (c) The amount of money shall be equal to the price for
22-7 purchasing the facilities as prescribed by Sections 15.317-15.318
22-8 of this code, or if [revenue] bonds constitute the consideration,
22-9 the principal amount of [revenue] bonds shall be equal to the price
22-10 for purchasing the facilities as prescribed by the provisions of
22-11 Sections 15.317-15.318 of this code, and the [revenue] bonds shall
22-12 bear interest at the rate prescribed in Section 17.128 of this code
22-13 with regard to bonds purchased with the proceeds of the Texas water
22-14 development fund.
22-15 Sec. 15.322. Disposition of Proceeds. (a) The money
22-16 received from any sale, transfer, or lease of facilities, or in the
22-17 case of a sale or transfer involving [revenue] bonds, the money
22-18 received as matured interest or principal on the bonds shall be
22-19 placed in the water facilities [general revenue] fund.
22-20 (b) If money received from a sale, transfer, or lease of
22-21 facilities, or in the case of a sale or transfer involving
22-22 [revenue] bonds, if the money received as matured interest or
22-23 principal on the bonds, is money derived originally from the
22-24 appropriation made in Section 2, Chapter 12, Acts of the 67th
22-25 Legislature, 1st Called Session, 1981, or interest earned on that
22-26 money, the money received as matured interest or principal on the
22-27 bonds shall be placed in a special account in the water assistance
23-1 fund.
23-2 Sec. 15.323. Sale of Stored Water. (a) The board may sell
23-3 any unappropriated public water of the state and other water
23-4 acquired by the state or board that is stored by or for it. The
23-5 price shall be determined by the board.
23-6 (b) Except as provided by Subsection (c) of this section,
23-7 money received from any sale shall be placed in the water
23-8 facilities [general revenue] fund.
23-9 (c) Money received from a sale of unappropriated public
23-10 water or other water acquired by the state or board and stored by
23-11 it or for it in a facility for which funds were provided from the
23-12 appropriation made in Section 2, Chapter 12, Acts of the 67th
23-13 Legislature, 1st Called Session, 1981, or interest earned on the
23-14 money constituting that appropriation, must be deposited in a
23-15 special account in the water assistance fund.
23-16 Sec. 15.324. Sale Contract: Provisions, Limitations.
23-17 (a) The board may determine the consideration and other provisions
23-18 to be included in water sale contracts, or in contracts for
23-19 treatment of waste or any other use of any board facility, but the
23-20 consideration and other provisions shall be fair, reasonable, and
23-21 nondiscriminatory. The board may include charges for standby
23-22 service, which means holding water and conservation storage space
23-23 for use and for actual delivery of water or holding capacity for
23-24 waste treatment for use and actual treatment.
23-25 (b) The board shall make the same determinations with
23-26 respect to the sale of water or other use of board-owned facilities
23-27 as are required by Section 15.321 of this code with respect to the
24-1 sale or lease of facilities.
24-2 (c) The board shall not compete with any political
24-3 subdivisions in the sale of water or use of facilities when this
24-4 competition jeopardizes the ability of the political subdivision to
24-5 meet obligations incurred to finance its own [water supply]
24-6 projects.
24-7 Sec. 15.326. Preferences. The board shall give political
24-8 subdivisions a preferential right, but not an exclusive right, to
24-9 purchase, acquire, or lease facilities and to purchase water or
24-10 capacity from facilities. For water use, preferences [Preferences]
24-11 shall be given in these respects in accord with the provisions of
24-12 Section 11.123 of this code. The board and the commission shall
24-13 coordinate their efforts to meet these objectives and to assure
24-14 that the public water of this state, which is held in trust for the
24-15 use and benefit of the public, will be conserved, developed, and
24-16 utilized in the greatest practicable measure for the public
24-17 welfare.
24-18 Sec. 15.327. Lease of Land Prior to Project Construction.
24-19 The board may lease tracts of land acquired for project purposes
24-20 for a term of years for any purpose not inconsistent with ultimate
24-21 project construction. The lease shall provide for expiration
24-22 before completion [initiation] of project construction. The money
24-23 received from such leases shall be placed in the water facilities
24-24 [assistance] fund.
24-25 SECTION 23. Chapter 15, Water Code, is amended by adding
24-26 Subchapter N to read as follows:
25-1 SUBCHAPTER N. PILOT WEATHER MODIFICATION PROGRAM
25-2 Sec. 15.821. PROGRAM CREATION. The pilot weather
25-3 modification program is created to provide money for research into
25-4 the effectiveness of weather modification operations to augment
25-5 existing surface water and groundwater supplies to the benefit of
25-6 agricultural operations, surface water users, groundwater users, or
25-7 the general economy of the state. This research program operated
25-8 by the board shall be designed and operated for a sufficient number
25-9 of years to provide scientifically supportable determinations as to
25-10 the effectiveness of weather modification.
25-11 Sec. 15.822. PILOT WEATHER MODIFICATION FUND. The pilot
25-12 weather modification fund is created, to be funded by direct
25-13 appropriation and from money transferred to the fund under Section
25-14 15.010(f).
25-15 Sec. 15.823. FINANCIAL ASSISTANCE. The pilot weather
25-16 modification fund may be used by the board to provide grants to any
25-17 person for research into any matter related to determining the
25-18 effectiveness of weather modification as described in Section
25-19 15.821.
25-20 Sec. 15.824. REPORTS. The board, with the assistance of the
25-21 commission, shall provide reports to the legislature and the
25-22 governor each biennium on progress made in determining the
25-23 effectiveness of weather modification.
25-24 SECTION 24. Chapter 15, Water Code, is amended by adding
25-25 Subchapter O to read as follows:
25-26 SUBCHAPTER O. CONSERVATION AND RESTORATION PROGRAM
25-27 Sec. 15.841. PROGRAM CREATION. The conservation and
26-1 restoration program is established to provide money to assist in
26-2 meeting mitigation requirements and enhancing conservation benefits
26-3 of water projects, securing water rights for fish and wildlife, and
26-4 other necessary expenditures to assure that water projects may be
26-5 completed in a timely fashion and maximize the project's water and
26-6 conservation benefits.
26-7 Sec. 15.842. CONSERVATION AND RESTORATION FUND. The
26-8 conservation and restoration fund is created to be funded by direct
26-9 appropriation and from money directed to be transferred to the fund
26-10 under Section 15.010(f). The conservation and restoration fund
26-11 shall be administered by the Parks and Wildlife Department.
26-12 Sec. 15.843. FINANCIAL ASSISTANCE. The conservation and
26-13 restoration fund may be used by the Parks and Wildlife Department
26-14 to assist in meeting mitigation requirements and enhancing
26-15 conservation benefits of water projects, securing water rights for
26-16 fish and wildlife, and other necessary expenditures to assure that
26-17 water projects may be completed in a timely fashion and maximize
26-18 the project's water and conservation benefits.
26-19 Sec. 15.844. BENEFICIAL USE OF WATER RIGHTS. The use of any
26-20 state water right by the Parks and Wildlife Department under this
26-21 program for conservation purposes shall be classified as a
26-22 beneficial use as defined in Section 11.002.
26-23 SECTION 25. Section 17.077(a), Water Code, is amended to
26-24 read as follows:
26-25 (a) Except as provided by Subsection (b) of this section,
26-26 and except for proceeds from the sale of bonds and proceeds from
26-27 the sale, refunding, or prepayment, of political subdivision bonds
27-1 acquired in carrying out the purposes in Article III, Sections
27-2 49-c, 49-d, 49-d-1, 49-d-2, 49-d-6, and 49-d-7, of the Texas
27-3 Constitution, and the proceeds from the sale, refinancing, or other
27-4 liquidation of the investments made under Section 17.083 of this
27-5 code which shall be deposited in the fund that provided the money
27-6 for the investment, all money received by the board in any fiscal
27-7 year, including all amounts received as repayment of loans to
27-8 political subdivisions and interest on those loans and transfers
27-9 thereto by the board from any and all sources available to it,
27-10 shall be credited to the clearance fund. Money in the clearance
27-11 fund may be transferred at any time to the interest and sinking
27-12 fund until the reserve in that fund is equal to the average annual
27-13 principal and interest requirements on all outstanding bonds.
27-14 SECTION 26. Section 17.853(c), Water Code, is amended to
27-15 read as follows:
27-16 (c) The board may use the fund only:
27-17 (1) to provide state matching funds for federal funds
27-18 provided to the state water pollution control revolving fund or to
27-19 any additional state revolving fund created under Subchapter J of
27-20 Chapter 15 of this code;
27-21 (2) to provide financial assistance from the proceeds
27-22 of taxable bond issues to water supply corporations organized under
27-23 Chapter 76, Acts of the 43rd Legislature, 1st Called Session, 1933
27-24 (Article 1434a, Vernon's Texas Civil Statutes), and other
27-25 participants;
27-26 (3) to provide financial assistance to participants
27-27 for the construction of [water supply] projects authorized by
28-1 Section 15.102(a) of this code [and treatment works];
28-2 (4) to provide financial assistance for an interim
28-3 construction period to participants for projects for which the
28-4 board will provide long-term financing through the water
28-5 development fund; and
28-6 (5) to provide financial assistance for water supply
28-7 and sewer service projects in economically distressed areas as
28-8 provided by Subchapter K of Chapter 17 of this code to the extent
28-9 the board can make that assistance without adversely affecting the
28-10 current or future integrity of the fund or of any other financial
28-11 assistance program of the board.
28-12 SECTION 27. Section 17.859(a), Water Code, is amended to
28-13 read as follows:
28-14 (a) The board may issue its revenue bonds for the purpose of
28-15 providing money for the fund[,] and may deposit into the fund all
28-16 money authorized by law to be placed in the fund. Money [the
28-17 money] in the fund shall be used for acquiring interests in
28-18 projects and for providing financial assistance to participants in
28-19 accordance with this subchapter.
28-20 SECTION 28. Section 16.001(7), Water Code, is amended to
28-21 read as follows:
28-22 (7) "Political subdivision" means a county, city, or
28-23 other body politic or corporate of the state, including any
28-24 district or authority created under Article III, Section 52 or
28-25 Article XVI, Section 59 of the Texas Constitution and including any
28-26 interstate compact commission to which the state is a party and any
28-27 [nonprofit] water supply or sewer service corporation as defined by
29-1 Section 13.002 [created and operating under Chapter 76, Acts of the
29-2 43rd Legislature, 1st Called Session, 1933 (Article 1434a, Vernon's
29-3 Texas Civil Statutes)].
29-4 SECTION 29. Section 17.001(6), Water Code, is amended to
29-5 read as follows:
29-6 (6) "Political subdivision" means a state agency, a
29-7 county, city, or other body politic or corporate of the state,
29-8 including any district or authority created under Article III,
29-9 Section 52 or Article XVI, Section 59 of the Texas Constitution and
29-10 including any interstate compact commission to which the state is a
29-11 party and any [nonprofit] water supply or sewer service corporation
29-12 as defined by Section 13.002 [created and operating under Chapter
29-13 76, Acts of the 43rd Legislature, 1st Called Session, 1933 (Article
29-14 1434a, Vernon's Texas Civil Statutes)].
29-15 SECTION 30. Section 5.235(n), Water Code, is repealed.
29-16 SECTION 31. The importance of this legislation and the
29-17 crowded condition of the calendars in both houses create an
29-18 emergency and an imperative public necessity that the
29-19 constitutional rule requiring bills to be read on three several
29-20 days in each house be suspended, and this rule is hereby suspended.