By:  Brown                                             S.B. No. 897
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the eligibility of political subdivisions for loans
 1-2     under the agricultural water conservation bond program.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subdivisions (2) and (6), Section 17.871, Water
 1-5     Code, are amended to read as follows:
 1-6                 (2)  "Borrower district" means a political subdivision,
 1-7     including a district or authority created under Article III,
 1-8     Sections 52(b)(1) and (2), or Article XVI, Section 59, of the Texas
 1-9     Constitution, that receives or is eligible to receive a
1-10     conservation loan from the board for a purpose described by Section
1-11     17.895 or 17.8955 [improvement to district facilities].
1-12                 (6)  "Lender district" means a political subdivision,
1-13     including a soil and water conservation district under Chapter 201,
1-14     Agriculture Code, an underground water conservation district
1-15     created under Article XVI, Section 59, of the Texas Constitution,
1-16     or a district or authority created under Article III, Section
1-17     52(b)(1), or Article XVI, Section 59, of the Texas Constitution
1-18     authorized to supply water for irrigation purposes, that is
1-19     eligible to receive or that receives a loan from the board for the
1-20     purpose of making conservation loans to individual borrowers.
1-21           SECTION 2.  Subchapter J, Chapter 17, Water Code, is amended
1-22     by amending Section 17.895 and adding Section 17.8955 to read as
1-23     follows:
1-24           Sec. 17.895.  CONSERVATION LOANS.  (a)  This section applies
 2-1     only to a conservation loan:
 2-2                 (1)  from a lender district that is:
 2-3                       (A)  a soil and water conservation district under
 2-4     Chapter 201, Agriculture Code;
 2-5                       (B)  an underground water conservation district
 2-6     created under Section 59, Article XVI, Texas Constitution; or
 2-7                       (C)  a district or authority created under
 2-8     Section 52(b)(1), Article III, or Section 59, Article XVI, Texas
 2-9     Constitution, authorized to supply water for irrigation purposes;
2-10     or
2-11                 (2)  to a borrower district that is a district or
2-12     authority created under Sections 52(b)(1) and (2), Article III, or
2-13     Section 59, Article XVI, Texas Constitution.
2-14           (b)  The board or a lender district [districts] may make
2-15     conservation loans for capital equipment or materials, labor,
2-16     preparation costs, and installation costs:
2-17                 (1)  to improve water use efficiency of water delivery
2-18     and application on existing irrigation systems;
2-19                 (2)  for preparing irrigated land to be converted to
2-20     dryland conditions; and
2-21                 (3)  for preparing dryland for more efficient use of
2-22     natural precipitation[;]
2-23                 [(4)  for preparing and maintaining land to be used for
2-24     brush control activities, including but not limited to activities
2-25     conducted pursuant to Chapter 203, Agriculture Code; or]
2-26                 [(5)  for implementing precipitation enhancement
 3-1     activities in areas of the state where such activities would be, in
 3-2     the board's judgment, most effective].
 3-3           (c) [(b)]  Conservation loans for the purposes listed in
 3-4     Subsection (b) [(a)] may be made by lender districts to individual
 3-5     borrowers for use on private property or by the board to borrower
 3-6     districts [for use on district facilities].
 3-7           (d) [(c)]  The board may make conservation loans to borrower
 3-8     districts  for the cost of purchasing and installing devices, on
 3-9     public or private property, designed to indicate the amount of
3-10     water withdrawn for irrigation purposes.
3-11           Sec. 17.8955.  CONSERVATION LOANS FOR BRUSH CONTROL AND
3-12     PRECIPITATION ENHANCEMENT.  (a)  The board or a lender district may
3-13     make a conservation loan for capital equipment or materials, labor,
3-14     preparation costs, and installation costs for:
3-15                 (1)  preparing and maintaining land to be used for
3-16     brush control activities, including activities conducted under
3-17     Chapter 203, Agriculture Code; or
3-18                 (2)  implementing precipitation enhancement activities
3-19     in areas of the state where those activities would be, in the
3-20     board's judgment, most effective.
3-21           (b)  A conservation loan for a purpose listed in Subsection
3-22     (a) may be made by a lender district to an individual borrower for
3-23     use on private property or by the board to a borrower district.
3-24           SECTION 3.  The change in law made by this Act applies only
3-25     to a conservation loan for which an application is filed on or
3-26     after the effective date of this Act.  A conservation loan for
 4-1     which an application was filed before the effective date of this
 4-2     Act is governed by the law in effect immediately before the
 4-3     effective date, and that law is continued in effect for that
 4-4     purpose.
 4-5           SECTION 4.  The importance of this legislation and the
 4-6     crowded condition of the calendars in both houses create an
 4-7     emergency and an imperative public necessity that the
 4-8     constitutional rule requiring bills to be read on three several
 4-9     days in each house be suspended, and this rule is hereby suspended,
4-10     and that this Act take effect and be in force from and after its
4-11     passage, and it is so enacted.