By Lewis of Orange H.B. No. 622
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to financing rural water projects in the State of Texas.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Chapter 15, Water Code, is amended by adding new
1-5 Subchapter O to read as follows:
1-6 SUBCHAPTER O. TEXAS RURAL WATER ASSISTANCE FUND.
1-7 Sec. 15.901. PURPOSE. The legislature finds that the rural
1-8 areas, characterized by small populations extended over
1-9 disproportionately large service areas of the state, require a
1-10 means of financing water projects in addition to those established
1-11 by other provisions of this chapter.
1-12 Sec. 15.902. DEFINITIONS. In this subchapter:
1-13 (a) "Federal agency" means any agency or other entity of the
1-14 United States, including the United States Department of
1-15 Agriculture or any agency or entity that is acting through or on
1-16 behalf of the United States Department of Agriculture.
1-17 (b) "Fund" means the Rural Water Assistance Fund established
1-18 under this subchapter.
1-19 (c) "Political subdivision" means any nonprofit water supply
1-20 or sewer service corporation, district or municipality with a
1-21 service area of 10,000 or less in population or which otherwise
1-22 qualifies for financing from a federal agency, or any county in
2-1 which no urban area exceeds 50,000 in population.
2-2 (d) "State agency" means any agency or other entity of the
2-3 State, including the Texas Department of Agriculture, the Texas
2-4 Department of Housing and Community Affairs, or any agency or
2-5 authority that is acting through or on behalf of the Texas
2-6 Department of Agriculture or the Texas Department of Housing and
2-7 Community Affairs.
2-8 Sec. 15.903. CREATION OF FUND. The fund consists of:
2-9 (a) money directly appropriated to the board;
2-10 (b) repayment of principal and interest from loans made from
2-11 the fund;
2-12 (c) money transferred by the board from any and all sources
2-13 available; and
2-14 (d) interest earned on the investment of money in the fund.
2-15 Sec. 15.904. USE OF FUND. (a) The fund may be used to
2-16 provide low interest loans to political subdivisions for water or
2-17 water-related projects, including the purchase of well fields and
2-18 the purchase or lease of rights to produce groundwater, and interim
2-19 financing of construction projects.
2-20 (b) The fund may be used to enable political subdivisions as
2-21 defined by this subchapter to obtain water supplied from larger
2-22 political subdivisions, or to finance the consolidation or
2-23 regionalizing of neighboring political subdivisions, or both.
2-24 (c) The fund may be used to finance an outreach and
2-25 technical assistance program to assist political subdivisions in
2-26 obtaining assistance through the fund. The board may use monies in
3-1 the fund to contract for such outreach and technical assistance.
3-2 (d) The fund may be used to buy down interest rates on
3-3 loans.
3-4 (e) A political subdivision may enter into an agreement with
3-5 a federal agency or a state agency to submit a joint application
3-6 for financial assistance under this subchapter.
3-7 (f) A nonprofit water supply or sewer service corporation is
3-8 exempt from payment of any sales tax that may be incurred under
3-9 other law or ordinance for any project financed by the fund.
3-10 Sec. 15.905. The board shall adopt necessary rules to
3-11 administer this subchapter, including rules establishing procedures
3-12 for application for and award of loans, distribution of loans,
3-13 investment of funds, and administration of loans and the fund.
3-14 SECTION 2. Section 15.011, Subsection (b), Water Code, is
3-15 amended to read as follows:
3-16 (b) After notice and hearing and subject to any limitations
3-17 established by the General Appropriations Act, the board may
3-18 transfer money from the fund to the loan fund created under
3-19 Subchapter C of this chapter, the storage acquisition fund created
3-20 under Subchapter E of this chapter, the research and planning fund
3-21 created under Subchapter F of this chapter, the hydrographic survey
3-22 account created under Subchapter M of this chapter, provided the
3-23 hydrographic survey account transfer does not exceed $425,000,
3-24 [and] the aquatic vegetation management fund created under
3-25 Subchapter N of this chapter[.], and the rural water assistance
3-26 fund created under Subchapter O of this chapter.
4-1 SECTION 3. This Act takes effect September 1, 2001.
4-2 SECTION 4. The importance of this legislation and the
4-3 crowded condition of the calendars in both houses create an
4-4 emergency and an imperative public necessity that the
4-5 constitutional rule requiring bills to be read on three several
4-6 days in each houses be suspended, and this rule is hereby
4-7 suspended, and that this Act take effect and be in force according
4-8 to its terms and it is so enacted.