By:  Wise                                                         H.B. No. 1875


A BILL TO BE ENTITLED
AN ACT
relating to the water infrastructure fund, rural water assistance fund, rural community water and wastewater loan fund, and colonia self-help account, and to certain notes and bonds of water districts. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 15.903, Water Code, as added by Chapter 966, Acts of the 77th Legislature, Regular Session, 2001, is amended to read as follows: Sec. 15.903. WATER INFRASTRUCTURE FUND. (a) The water infrastructure fund is a special fund [account] in the state treasury [general revenue fund] to be administered by the board under this subchapter and rules adopted by the board under this subchapter. Money in the fund may be used to pay for the implementation of water projects recommended through the state and regional water planning processes under Sections 16.051 and 16.053. (b) The fund consists of: (1) appropriations from the legislature; (2) any other fees or sources of revenue that the legislature may dedicate for deposit to the fund; (3) repayments of loans made from the fund; (4) interest earned on money credited to the fund; (5) depository interest allocable to the fund [in the general revenue fund]; (6) money from gifts, grants, or donations to the fund; (7) money from revenue bonds or other sources designated by the board; and (8) proceeds from the sale of political subdivision bonds or obligations held in the fund and not otherwise pledged to the discharge, repayment, or redemption of revenue bonds or other bonds, the proceeds of which were placed in the fund. SECTION 2. Subsection (e), Section 15.903, Water Code, as added by Chapter 1234, Acts of the 77th Legislature, Regular Session, 2001, is amended to read as follows: (e) A loan provided under this subchapter may not exceed a [$250,000 for each project, and the] term of [a loan may not exceed] 20 years. SECTION 3. Section 15.951, Water Code, as added by Chapter 966, Acts of the 77th Legislature, Regular Session, 2001, is amended to read as follows: Sec. 15.951. PURPOSE. The legislature finds that the rural areas of the state, characterized by small populations extended over disproportionately large service areas, require a means of financing water and water quality enhancement projects in addition to those established by other provisions of this chapter. SECTION 4. Section 15.953, Water Code, as added by Chapter 966, Acts of the 77th Legislature, Regular Session, 2001, is amended to read as follows: Sec. 15.953. FUND. The rural water assistance fund is a special fund [account] in the state treasury [general revenue fund]. The fund consists of: (1) money directly appropriated to the board; (2) repayment of principal and interest from loans made from the fund not otherwise needed as a source of revenue pursuant to Section 17.9615(b); (3) money transferred by the board from any sources available; and (4) interest earned on the investment of money in the fund and depository interest allocable to the fund [in the general revenue fund]. SECTION 5. Sections 15.954(a) and (b), Water Code, as added by Chapter 966, Acts of the 77th Legislature, Regular Session, 2001, are amended to read as follows: (a) The fund may be used to provide low-interest loans to rural political subdivisions for water or water-related projects and for water quality enhancement projects, including the purchase of well fields, the purchase or lease of rights to produce groundwater, onsite or wetland wastewater treatment facilities, and interim financing of construction projects. (b) The fund may be used to enable a rural political subdivision to obtain water or wastewater service supplied by larger political subdivisions or to finance the consolidation or regionalizing of neighboring political subdivisions, or both. SECTION 6. Sections 15.952(a) and (b), Water Code, as added by Chapter 1234, Acts of the 77th Legislature, Regular Session, 2001, are amended to read as follows: (a) The colonia self-help account is an account in the water assistance fund [general revenue fund] that may be used by the board [appropriated] only for the purposes of this subchapter. (b) The account consists of: (1) money transferred by the legislature directly to the account; (2) money transferred at the board's discretion from the fund; and (3) gifts, grants, or donations to the account[; and [(4) interest earned on money credited to the account]. SECTION 7. Section 49.153(e), Water Code, is amended to read as follows: (e) Subsection (c) does not apply to: (1) a note issued to and approved by the: (A) Farmers Home Administration; (B) United States Department of Agriculture; [or] (C) Texas Water Development Board; or (D) North American Development Bank; or (2) a district described by Section 49.181(h). SECTION 8. Section 49.181(a), Water Code, is amended to read as follows: (a) A district may not issue bonds unless the commission determines that the project to be financed by the bonds is feasible and issues an order approving the issuance of the bonds. This section does not apply to refunding bonds or bonds issued to and approved by the Farmers Home Administration, the United States Department of Agriculture, the North American Development Bank, or the Texas Water Development Board. SECTION 9. Sections 49.183(a) and (b), Water Code, are amended to read as follows: (a) Except for refunding bonds, or bonds sold to a state or federal agency or to the North American Development Bank, bonds issued by a district shall be sold after advertising for and receiving competitive sealed bids and shall be awarded to the bidder whose bid produces the lowest net effective interest rate to the district. (b) Except for refunding bonds, or bonds sold to a state or federal agency or to the North American Development Bank, before any bonds are sold by a district, the board shall publish an appropriate notice of the sale: (1) at least one time not less than 10 days before the date of sale in a newspaper of general circulation in the county or counties in which the district is located; and (2) at least one time in one or more recognized financial publications of general circulation in the state as approved by the state attorney general. SECTION 10. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2003.