1-1     By:  Brown                                             S.B. No. 897
 1-2           (In the Senate - Filed March 4, 1999; March 8, 1999, read
 1-3     first time and referred to Committee on Natural Resources;
 1-4     March 25, 1999, reported favorably by the following vote:  Yeas 6,
 1-5     Nays 0; March 25, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the eligibility of political subdivisions for loans
 1-9     under the agricultural water conservation bond program.
1-10           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-11           SECTION 1.  Subdivisions (2) and (6), Section 17.871, Water
1-12     Code, are amended to read as follows:
1-13                 (2)  "Borrower district" means a political subdivision,
1-14     including a district or authority created under Article III,
1-15     Sections 52(b)(1) and (2), or Article XVI, Section 59, of the Texas
1-16     Constitution, that receives or is eligible to receive a
1-17     conservation loan from the board for a purpose described by Section
1-18     17.895 or 17.8955 [improvement to district facilities].
1-19                 (6)  "Lender district" means a political subdivision,
1-20     including a soil and water conservation district under Chapter 201,
1-21     Agriculture Code, an underground water conservation district
1-22     created under Article XVI, Section 59, of the Texas Constitution,
1-23     or a district or authority created under Article III, Section
1-24     52(b)(1), or Article XVI, Section 59, of the Texas Constitution
1-25     authorized to supply water for irrigation purposes, that is
1-26     eligible to receive or that receives a loan from the board for the
1-27     purpose of making conservation loans to individual borrowers.
1-28           SECTION 2.  Subchapter J, Chapter 17, Water Code, is amended
1-29     by amending Section 17.895 and adding Section 17.8955 to read as
1-30     follows:
1-31           Sec. 17.895.  CONSERVATION LOANS.  (a)  This section applies
1-32     only to a conservation loan:
1-33                 (1)  from a lender district that is:
1-34                       (A)  a soil and water conservation district under
1-35     Chapter 201, Agriculture Code;
1-36                       (B)  an underground water conservation district
1-37     created under Section 59, Article XVI, Texas Constitution; or
1-38                       (C)  a district or authority created under
1-39     Section 52(b)(1), Article III, or Section 59, Article XVI, Texas
1-40     Constitution, authorized to supply water for irrigation purposes;
1-41     or
1-42                 (2)  to a borrower district that is a district or
1-43     authority created under Sections 52(b)(1) and (2), Article III, or
1-44     Section 59, Article XVI, Texas Constitution.
1-45           (b)  The board or a lender district [districts] may make
1-46     conservation loans for capital equipment or materials, labor,
1-47     preparation costs, and installation costs:
1-48                 (1)  to improve water use efficiency of water delivery
1-49     and application on existing irrigation systems;
1-50                 (2)  for preparing irrigated land to be converted to
1-51     dryland conditions; and
1-52                 (3)  for preparing dryland for more efficient use of
1-53     natural precipitation[;]
1-54                 [(4)  for preparing and maintaining land to be used for
1-55     brush control activities, including but not limited to activities
1-56     conducted pursuant to Chapter 203, Agriculture Code; or]
1-57                 [(5)  for implementing precipitation enhancement
1-58     activities in areas of the state where such activities would be, in
1-59     the board's judgment, most effective].
1-60           (c) [(b)]  Conservation loans for the purposes listed in
1-61     Subsection (b) [(a)] may be made by lender districts to individual
1-62     borrowers for use on private property or by the board to borrower
1-63     districts [for use on district facilities].
1-64           (d) [(c)]  The board may make conservation loans to borrower
 2-1     districts  for the cost of purchasing and installing devices, on
 2-2     public or private property, designed to indicate the amount of
 2-3     water withdrawn for irrigation purposes.
 2-4           Sec. 17.8955.  CONSERVATION LOANS FOR BRUSH CONTROL AND
 2-5     PRECIPITATION ENHANCEMENT.  (a)  The board or a lender district may
 2-6     make a conservation loan for capital equipment or materials, labor,
 2-7     preparation costs, and installation costs for:
 2-8                 (1)  preparing and maintaining land to be used for
 2-9     brush control activities, including activities conducted under
2-10     Chapter 203, Agriculture Code; or
2-11                 (2)  implementing precipitation enhancement activities
2-12     in areas of the state where those activities would be, in the
2-13     board's judgment, most effective.
2-14           (b)  A conservation loan for a purpose listed in Subsection
2-15     (a) may be made by a lender district to an individual borrower for
2-16     use on private property or by the board to a borrower district.
2-17           SECTION 3.  The change in law made by this Act applies only
2-18     to a conservation loan for which an application is filed on or
2-19     after the effective date of this Act.  A conservation loan for
2-20     which an application was filed before the effective date of this
2-21     Act is governed by the law in effect immediately before the
2-22     effective date, and that law is continued in effect for that
2-23     purpose.
2-24           SECTION 4.  The importance of this legislation and the
2-25     crowded condition of the calendars in both houses create an
2-26     emergency and an imperative public necessity that the
2-27     constitutional rule requiring bills to be read on three several
2-28     days in each house be suspended, and this rule is hereby suspended,
2-29     and that this Act take effect and be in force from and after its
2-30     passage, and it is so enacted.
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