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H.B. No. 3442
AN ACT
relating to certain expenditures, charges, and other financial
matters of certain governmental entities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. REDUCTION OF EXPENDITURES AND IMPOSITION OF
CHARGES GENERALLY. (a) This section applies to any state agency
that receives an appropriation under Article VI of the General
Appropriations Act.
(b) Notwithstanding any other statute of this state, each
state agency to which this section applies is authorized to reduce
or recover expenditures by:
(1) consolidating any reports or publications the
agency is required to make and filing or delivering any of those
reports or publications exclusively by electronic means;
(2) extending the effective period of any license,
permit, or registration the agency grants or administers;
(3) entering into a contract with another governmental
entity or with a private vendor to carry out any of the agency's
duties;
(4) adopting additional eligibility requirements for
persons who receive benefits under any law the agency administers
to ensure that those benefits are received by the most deserving
persons consistent with the purposes for which the benefits are
provided; and
(5) providing that any communication between the
agency and another person and any document required to be delivered
to or by the agency, including any application, notice, billing
statement, receipt, or certificate, may be made or delivered by
electronic mail or through the Internet.
SECTION 2. TEXAS ANIMAL HEALTH COMMISSION; DUTIES REGARDING
RIDING STABLES. (a) The Texas Animal Health Commission shall
reduce its expenditures of state money related to regulating equine
riding stables.
(b) Chapter 2053, Occupations Code, is repealed.
SECTION 3. ADMINISTRATIVE HEARINGS OF RAILROAD COMMISSION
OF TEXAS. Section 102.006, Utilities Code, is amended to read as
follows:
Sec. 102.006. [POWERS AND DUTIES OF STATE OFFICE OF]
ADMINISTRATIVE HEARINGS IN CONTESTED CASES. (a) The railroad
commission by rule shall provide for administrative hearings in
contested cases to be conducted by one or more members of the
railroad commission, by railroad commission hearings examiners, or
by the [The] utility division of the State Office of Administrative
Hearings. The rules must provide for a railroad commission
hearings examiner or the utility division of the State Office of
Administrative Hearings to [shall] conduct each hearing in a
contested case that is not conducted by one or more members of the
railroad commission. A hearing must be conducted in accordance
with the rules and procedures adopted by the railroad commission.
(b) The railroad commission may delegate to a railroad
commission hearings examiner or to the utility division of the
State Office of Administrative Hearings the authority to make a
final decision and to issue findings of fact, conclusions of law,
and other necessary orders in a proceeding in which there is not a
contested issue of fact or law.
(c) The railroad commission by rule shall define the
procedures by which it delegates final decision-making authority
under Subsection (b) to a railroad commission hearings examiner or
to the utility division of the State Office of Administrative
Hearings.
(d) For purposes of judicial review, the [an administrative
law judge's] final decision of a railroad commission hearings
examiner or an administrative law judge of the State Office of
Administrative Hearings in a matter delegated under Subsection (b)
has the same effect as a final decision of the railroad commission
unless a member of the commission requests formal review of the
decision.
(e) The State Office of Administrative Hearings shall
charge the railroad commission a fixed annual rate for hearings
conducted by the office under this section only if the legislature
appropriates money for that purpose. If the legislature does not
appropriate money for the payment of a fixed annual rate under this
section, the State Office of Administrative Hearings shall charge
the railroad commission an hourly rate of not more than $90 per hour
for hearings conducted by the office under this section.
SECTION 4. TEXAS DEPARTMENT OF AGRICULTURE. (a) Section
146.021, Agriculture Code, is amended to read as follows:
Sec. 146.021. DEPARTMENT FACILITIES. The department may
receive and hold for processing animals transported in
international trade and may establish and collect reasonable fees
for yardage, maintenance, feed, medical care, and other necessary
expenses incurred in the course of processing those animals.
Notwithstanding any other law, the department may use any portion
of fees collected under this section that remains after spending
the proceeds of the fees to meet other necessary expenses incurred
under this section for expenses related to maintenance of or
repairs to department facilities.
(b) Section 13.101(a), Agriculture Code, is amended to read
as follows:
(a) At least once every four [three] years, or more often as
required by the department, a weight or measure shall be inspected
and tested for correctness by a sealer if it:
(1) is kept for sale, sold, or used by a proprietor,
agent, lessee, or employee in proving the weight or measure,
including the size, quantity, extent, or area, of any item; or
(2) is purchased, offered, or submitted by a
proprietor, agent, lessee, or employee for sale, hire, or award.
(c) Section 9(d), Chapter 1033, Acts of the 71st
Legislature, Regular Session, 1989 (Article 8614, Vernon's Texas
Civil Statutes), is repealed.
(d) This section takes effect September 1, 2003.
SECTION 5. ANIMAL HEALTH COMMISSION. (a) Subchapter C,
Chapter 161, Agriculture Code, is amended by adding Section 161.060
to read as follows:
Sec. 161.060. INSPECTION FEES. The commission may charge a
fee, as provided by commission rule, for an inspection made by the
commission.
(b) This section takes effect September 1, 2003.
SECTION 6. TEXAS COMMISSION ON ENVIRONMENTAL QUALITY. (a)
Section 5.701, Water Code, is amended by adding Subsection (r) to
read as follows:
(r) The fee for processing a request for an expedited letter
from the executive director stating the total depth of surface
casing needed during the drilling of wells to protect usable ground
waters in the state and required for the processing of certain
permits from the Railroad Commission of Texas may not exceed $75.
(b) Section 26.35731(c), Water Code, is amended to read as
follows:
(c) Not later than the 90th day after the date on which the
commission receives a completed application for reimbursement from
the petroleum storage tank remediation account, the commission
shall send a fund payment report to the owner or operator of a
petroleum storage tank system that is seeking reimbursement, if
sufficient funds are available to make the payment.
(d) This section takes effect September 1, 2003.
SECTION 7. TEXAS PARKS AND WILDLIFE DEPARTMENT FEES. (a)
Section 11.032, Parks and Wildlife Code, is amended by amending
Subsection (b) and adding Subsection (c) to read as follows:
(b) The department shall deposit to the credit of the game,
fish, and water safety account all revenue, less allowable costs,
from the following sources:
(1) all types of fishing licenses and stamps and
shrimping licenses, except as provided by Section 77.120;
(2) all types of hunting licenses and stamps;
(3) trapping licenses and other licenses relating to
the taking, propagation, and sale of fur-bearing animals or their
pelts;
(4) sale of marl, sand, gravel, shell, and mudshell;
(5) oyster bed rentals and permits;
(6) federal funds received for fish and wildlife
research, management, development and conservation, resource
protection, and law enforcement, unless the funds are received for
the specific purposes of Subchapter F, Chapter 77;
(7) sale of property, less advertising costs,
purchased from this account or a special fund or account that is now
part of this account;
(8) fines and penalties collected for violations of a
law pertaining to the protection and conservation of wild birds,
wild fowl, wild animals, fish, shrimp, oysters, game birds and
animals, fur-bearing animals, alligators, and any other wildlife
resources of this state;
(9) sale of rough fish by the department;
(10) fees for importation permits;
(11) fees from supplying fish for or placing fish in
water located on private property;
(12) sale of seized pelts;
(13) sale or lease of grazing rights to and the
products from game preserves, sanctuaries, and management areas;
(14) contracts for the removal of fur-bearing animals
and reptiles from wildlife management areas;
(15) vessel [motorboat] registration fees;
(16) vessel [motorboat] manufacturer or dealer
licensing fees [registration fee];
(17) fines or penalties imposed by a court for
violation of water safety laws contained in Chapter 31 of this code;
(18) alligator hunter's or alligator buyer's licenses;
(19) sale of alligators or any part of an alligator by
the department;
(20) fees and revenue collected under Section
11.027(b) or (c) of this code that are associated with the
conservation of fish and wildlife; [and]
(21) any other source provided by law; and
(22) vessel and outboard motor titling fees.
(c) Not later than the 10th day of each month the department
shall transfer 15 percent of all amounts collected during the
previous month from sources described by Subsection (b)(15), (16),
or (22) to the state parks account.
(b) This section takes effect September 1, 2003.
SECTION 8. TEXAS PARKS AND WILDLIFE DEPARTMENT REGULATION
OF MARINE BUSINESSES. (a) Section 31.003, Parks and Wildlife Code,
is amended by amending Subdivision (7) and adding Subdivision (16)
to read as follows:
(7) "Dealer" means a person [customarily] engaged in
the business of buying, selling, selling on consignment, displaying
for sale, or exchanging at least five vessels, motorboats, or
outboard motors during a calendar year at an established or
permanent place of business in this state [and that at each place of
business there is a sign conspicuously displayed showing the name
of the dealership so that it may be located by the public and
sufficient space to maintain an office, service area, and display
of products].
(16) "Distributor" means a person who offers for sale,
sells, or processes for distribution new boats or outboard motors
to dealers in this state.
(b) Subchapter A, Chapter 31, Parks and Wildlife Code, is
amended by adding Section 31.007 to read as follows:
Sec. 31.007. DEALER REQUIREMENTS. A dealer shall:
(1) display in each of the dealer's places of business
a sign that:
(A) is conspicuous to the public; and
(B) shows the name of the dealership; and
(2) operate in a space sufficient to maintain an
office, service area, and display of products.
(c) Section 31.021, Parks and Wildlife Code, is amended to
read as follows:
Sec. 31.021. REQUIRED NUMBERING. (a) Each [undocumented]
vessel on the water of this state shall be numbered in accordance
with the provisions of this chapter unless specifically exempted.
The numbering system shall be in accord with the Federal Boating Act
of 1958 and subsequent federal legislation.
(b) No person may operate or give permission for the
operation of any vessel or may dock, moor, or store a vessel owned
by the person on the water of this state unless:
(1) the vessel is numbered as required by this
chapter;
(2) the certificate of number awarded to the vessel is
in full force and effect; and
(3) the identifying number set forth in the
certificate is properly displayed on each side of the bow of the
vessel as required by this chapter.
(d) Section 31.032, Parks and Wildlife Code, is amended to
read as follows:
Sec. 31.032. NUMBERING ON BOW. (a) The owner of a vessel
shall paint on or attach to each side of the vessel near the bow the
identification number and a validation decal in the manner
prescribed by the department. The number shall read from left to
right and shall be of block characters of good proportion of not
less than three inches in height. The numbers shall be of a color
which will contrast with the hull material of the vessel and so
maintained as to be clearly visible and legible.
(b) The owner of a vessel required to be numbered under this
subchapter and documented by the United States Coast Guard is not
required to attach an identification number as required by
Subsection (a).
(c) The commission shall adopt rules for the placement of
the validation decal in an alternate location for antique boats. In
this subsection, "antique boat" means a boat that:
(1) is used primarily for recreational purposes; and
(2) was manufactured before 1968.
(e) Section 31.039, Parks and Wildlife Code, is amended to
read as follows:
Sec. 31.039. PUBLIC RECORDS; FEES. (a) All ownership
records of the department made or kept under this chapter are public
records.
(b) The commission may by rule charge a fee for access to
ownership records and other records made or kept under this
chapter.
(f) Section 31.041, Parks and Wildlife Code, is amended to
read as follows:
Sec. 31.041. DEALER'S, DISTRIBUTOR'S, AND MANUFACTURER'S
LICENSE [NUMBER]. (a) A person may not engage in business in this
state as a dealer, distributor, or manufacturer unless the person
holds a license issued under this section. A dealer must have a
license for each place of business owned and operated by the person.
(b) The commission shall establish the form and manner for
display of a license issued under this section.
(c) The department shall issue a dealer, distributor, or
manufacturer number to each dealer, distributor, or manufacturer
licensed under this section in the manner provided by Section
31.031(b).
(d) A dealer, distributor, or manufacturer of vessels in
this state may use the [obtain a] dealer's, distributor's, or [and]
manufacturer's number for vessels the dealer, distributor, or
manufacturer wishes to show, demonstrate, or test on the water of
this state instead of securing a certificate of number for each
vessel. The number shall be attached to any vessel that the dealer,
distributor, or manufacturer sends temporarily on the water. For
purposes of this subsection, "show, demonstrate, or test" does not
include the use of a vessel for recreational purposes or for
participation in a contest or event.
(e) [(b)] The application for a license under this section
[number] must state that the applicant is a dealer, distributor, or
manufacturer within the meaning of this chapter, and the facts
stated on the application must be sworn before an officer
authorized to administer oaths. An [The] application submitted by
a dealer must be accompanied by photographs of the business
sufficient to show any sign the business is required to display and
the extent of the space the business is required to maintain. The
application must also be accompanied by a copy of the tax permit of
the dealer, distributor, or manufacturer issued by the comptroller
under Chapter 151, Tax Code, if the dealer, distributor, or
manufacturer has a tax permit. The two-year fee for a dealer's,
distributor's, or [and] manufacturer's number is $500 [$45 or an
amount set by the commission, whichever amount is more]. A license
[No number] may not be issued until the provisions of this section
have been satisfied.
(f) [(c)] A dealer, distributor, or manufacturer holding a
dealer's, distributor's, or [and] manufacturer's license [number]
may issue a reasonable temporary facsimile of the number issued
under Subsection (c), which may be used by any authorized person. A
person purchasing a vessel may use the dealer's number for a period
not to exceed 15 days prior to filing an application for a
certificate of number. The form of the facsimile and the manner of
display of the number shall be prescribed by the department.
(g) [(d)] A dealer, distributor, or manufacturer holding a
dealer's, distributor's, or [and] manufacturer's license [number]
may transfer a certificate of number or a certificate of title to a
vessel or outboard motor without securing a certificate of number
or certificate of title in the dealer's, distributor's, or
manufacturer's name if the vessel or outboard motor is sold in the
normal course of the dealer's, distributor's, or manufacturer's
business. [Any other person transferring a vessel or outboard
motor must secure a certificate of number or certificate of title in
the person's name before transferring the certificate of number or
the certificate of title.]
(g) Subchapter B, Chapter 31, Parks and Wildlife Code, is
amended by adding Sections 31.0411, 31.0412, and 31.0413 to read as
follows:
Sec. 31.0411. TERM OF LICENSE; TRANSFER. (a) Except as
provided by Subsection (b), a license issued under Section 31.041:
(1) is valid for two years from the date of issuance;
and
(2) may not be transferred to another person.
(b) A license issued under Section 31.041 in the name of a
business remains valid for the business location specified on the
license if a change of ownership or business name occurs.
(c) A license issued under Section 31.041 may be transferred
to a new address if:
(1) a business moves to another location; and
(2) a change of ownership has not occurred.
Sec. 31.0412. LICENSING RULES. The commission may adopt
rules regarding licenses issued under Section 31.041, including
rules:
(1) regarding license transfer procedures;
(2) prescribing application forms;
(3) regarding application and renewal procedures;
(4) prescribing reporting and recordkeeping
requirements for license holders; and
(5) setting fees to be charged for:
(A) a transferred license; or
(B) a replacement license.
Sec. 31.0413. EXEMPTION FROM DEALER LICENSING
REQUIREMENTS. The dealer licensing provisions of this subchapter
do not apply to the sale of a canoe, kayak, punt, rowboat, rubber
raft, paddleboat, or other vessel that is less than 12 feet in
length and has a horsepower rating of five horsepower or less or to
the sale of an outboard motor with a manufacturer's rating of five
horsepower or less.
(h) Section 31.042(b), Parks and Wildlife Code, is amended
to read as follows:
(b) Causes for cancellation of certificates and voiding of
numbers include:
(1) surrender of the certificate for cancellation;
(2) issuance of a new number for the same vessel;
(3) [issuance of a marine document by the Bureau of
Customs for the same vessel;
[(4)] false or fraudulent certification in an
application for number;
(4) [(5)] failure to pay the prescribed fee; and
(5) [(6)] dismantling, destruction, or other change
in the form or character of the vessel or outboard motor so that it
is no longer correctly described in the certificate or it no longer
meets the definition of a vessel or outboard motor.
(i) Subchapter B, Chapter 31, Parks and Wildlife Code, is
amended by adding Section 31.044 to read as follows:
Sec. 31.044. INSPECTIONS. A dealer, distributor, or
manufacturer may not refuse to allow the department or a peace
officer to inspect a vessel, outboard motor, or records relating to
the possession, origination, ownership, or transfer of a vessel or
outboard motor at a dealership or distributor's or manufacturer's
place of business during normal business hours.
(j) Subchapter B-1, Chapter 31, Parks and Wildlife Code, is
amended by adding Section 31.0465 to read as follows:
Sec. 31.0465. APPEAL REGARDING CERTIFICATE OF TITLE; BOND;
RULES. (a) An applicant for a certificate of title under Section
31.046 may appeal the department's refusal to issue the title by
filing a bond with the department as provided by this section.
(b) A bond filed under this section must be:
(1) in the form prescribed by the department;
(2) executed by the applicant;
(3) issued by a person authorized to act as a surety
business in this state;
(4) in an amount equal to 1-1/2 times the value of the
vessel or outboard motor as determined by the department; and
(5) conditioned to indemnify all prior owners and
lienholders and all subsequent purchasers of the vessel or outboard
motor or persons who acquire a security interest in the vessel or
outboard motor, and their successors in interest, against any
expense, loss, or damage, including reasonable attorney's fees,
resulting from:
(A) the issuance of the certificate of title for
the vessel or outboard motor; or
(B) a defect in or undisclosed security interest
in the right, title, or interest of the applicant to or in the
vessel or outboard motor.
(c) The department may issue the certificate of title to the
person filing the bond if the applicant proves to the satisfaction
of the department that:
(1) the vessel or outboard motor is not stolen; and
(2) issuance of a certificate of title would not
defraud the owner or a lienholder of the vessel or outboard motor.
(d) A person described by Subsection (b)(5) has a right of
action to recover on the bond for a breach of a condition of the bond
described by Subsection (b)(5). The aggregate liability of the
surety to all persons may not exceed the amount of the bond.
(e) A bond filed under this section expires on the third
anniversary of the date the bond became effective. The department
shall return an expired bond to the person who filed the bond unless
the department has been notified of a pending action to recover on
the bond.
(f) On return of a bond under Subsection (e), the department
shall issue a certificate of title to the person to whom the bond is
returned.
(g) In addition to the situation described by Subsection
(c), the commission by rule may define acceptable situations in
which certificates of title may be issued after the filing of a bond
under this section.
(k) Section 31.049(c), Parks and Wildlife Code, is amended
to read as follows:
(c) If there is a lien on the vessel or outboard motor, the
original certificate of title shall be sent to the first
lienholder[, a duplicate original certificate shall be sent to the
owner,] and a copy shall be retained by the department.
(l) Section 31.053, Parks and Wildlife Code, is amended by
adding Subsection (f) to read as follows:
(f) A person who is not licensed as a dealer, distributor,
or manufacturer under this chapter must obtain a certificate of
number or certificate of title to a vessel or outboard motor in the
person's name before transferring the certificate of number or
certificate of title.
(m) Section 31.127(a), Parks and Wildlife Code, is amended
to read as follows:
(a) A person who violates or fails to comply with any
provision of this chapter, or who violates or fails to comply with a
proclamation of the commission entered under this chapter or a city
ordinance or order of a commissioners court or a political
subdivision of the state made or entered under this chapter,
commits an offense that is a Class C Parks and Wildlife Code
misdemeanor.
(n) Not later than January 1, 2004, the Parks and Wildlife
Commission shall adopt any rules necessary to implement Subsections
(a)-(l) of this section.
(o) A person is not required to be licensed under Section
31.041, Parks and Wildlife Code, as amended by this section, until
March 1, 2004. Before that date, the person is governed by the law
as it existed immediately before the effective date of this
section, and that law is continued in effect for that purpose.
(p) This section takes effect September 1, 2003.
SECTION 9. TEXAS PARKS AND WILDLIFE DEPARTMENT: FRESHWATER
FISHING STAMP. (a) Chapter 43, Parks and Wildlife Code, is amended
by adding Subchapter U to read as follows:
SUBCHAPTER U. FRESHWATER FISHING STAMP
Sec. 43.801. DEFINITION. In this subchapter, "fresh water"
has the meaning provided by Section 66.001.
Sec. 43.802. FRESHWATER FISHING STAMP REQUIRED. (a)
Except as provided by Subsection (b) or (c), no person may engage in
fishing in fresh water for sporting purposes in this state unless
the person has acquired a freshwater fishing stamp issued to the
person by the department. The commission by rule may adopt
requirements relating to possessing a freshwater fishing stamp
required by this section.
(b) A person who is exempted from obtaining a fishing
license under Chapter 46 is not required to obtain a freshwater
fishing stamp.
(c) The commission by rule may exempt a person from the
freshwater fishing stamp requirement of this section.
Sec. 43.803. FISHING LICENSE REQUIRED. The acquisition of
a freshwater fishing stamp does not authorize a person to fish in
fresh water for sporting purposes without having acquired a fishing
license as provided by Chapter 46. The acquisition of a freshwater
fishing stamp does not authorize a person to fish at any time or by
any means not otherwise authorized by this code.
Sec. 43.804. DESIGN AND ISSUANCE OF STAMPS. (a) The
department may issue a freshwater fishing stamp to any person on the
payment to the department of $5. Except as provided by Subsection
(e), a stamp must be signed on its face by the person using it for
the stamp to be valid for fishing purposes.
(b) The department may issue a collectible freshwater
fishing stamp to any person on the payment to the department of $5.
A collectible freshwater fishing stamp does not authorize a person
to fish and is not valid for fishing purposes.
(c) The commission by rule shall prescribe the form, design,
and manner of issuance of the freshwater fishing stamp and the
collectible freshwater fishing stamp. The department retains all
reproduction rights to the design of the freshwater fishing stamp
and the collectible freshwater fishing stamp.
(d) The commission may contract with and pay a person for
designing and producing the freshwater fishing stamp or the
collectible freshwater fishing stamp.
(e) The commission by rule may prescribe alternate
requirements for identifying the purchaser of a freshwater fishing
stamp issued in an automated manner.
Sec. 43.805. DISPOSITION OF STAMP FEES. (a) After
deduction of any collection fee, the net receipts from freshwater
fishing stamp and collectible freshwater fishing stamp sales shall
be sent to the department.
(b) The net receipts from freshwater fishing stamp sales may
be spent only for:
(1) the repair, maintenance, renovation, or
replacement of freshwater fish hatcheries in this state; or
(2) the purchase of game fish that are stocked into the
public water of this state.
(c) The net receipts from collectible freshwater fishing
stamp sales may be spent only for the restoration, enhancement, or
management of freshwater fish habitats.
Sec. 43.806. EXPIRATION OF STAMP. (a) Except as provided
by Subsection (b) or (c), a freshwater fishing stamp is valid for
fishing only during the yearly period for which the stamp is issued,
without regard to the date on which the stamp is acquired. Each
yearly period begins on September 1 of the year in which the stamp
is issued or another date set by the commission and extends through
August 31 of the next year or another date set by the commission.
The commission by rule may set the amount of a stamp fee for a stamp
issued during a transition period at an amount lower than
prescribed in this subchapter and provide for a stamp term for a
transition period that is shorter or longer than one year.
(b) A freshwater fishing stamp issued before September 1 or
another date set by the commission that does not expire until August
31 of the next year or another date set by the commission is valid
from the date of issuance through August 31 of the next year or
another date set by the commission.
(c) A freshwater fishing stamp issued in conjunction with a
license issued under Section 46.005 or 46.0051 expires on the later
of the license expiration date or the date printed on the stamp.
Sec. 43.807. REFUSAL TO SHOW STAMP. A person fishing in
fresh water for sporting purposes who refuses on demand of any game
management officer or peace officer to show a freshwater fishing
stamp or proof that the person is exempt under Section 43.802(b) or
a rule adopted under that section is presumed to be in violation of
Section 43.802.
Sec. 43.808. PENALTY. A person who violates Section 43.802
is guilty of a Class C Parks and Wildlife Code misdemeanor.
Sec. 43.809. EXPIRATION OF SUBCHAPTER. This subchapter
expires September 1, 2014.
(b) Subchapters N and Q, Chapter 43, Parks and Wildlife
Code, are repealed.
(c) This section takes effect September 1, 2004.
SECTION 10. TRANSFER OF RAILROAD COMMISSION OF TEXAS
FUNCTIONS RELATED TO QUARRY AND PIT SAFETY. (a) On September 1,
2003:
(1) all powers, duties, functions, and activities
performed by the Railroad Commission of Texas under Chapter 133,
Natural Resources Code, immediately before that date are
transferred to the Texas Department of Transportation;
(2) all employees of the Railroad Commission of Texas
whose primary duties relate to the implementation of Chapter 133,
Natural Resources Code, become employees of the Texas Department of
Transportation;
(3) a rule, form, order, or procedure adopted by the
Railroad Commission of Texas for the implementation or enforcement
of Chapter 133, Natural Resources Code, is a rule, form, order, or
procedure of the Texas Department of Transportation and remains in
effect until changed by the Texas Department of Transportation;
(4) a reference in Chapter 133, Natural Resources
Code, to the Railroad Commission of Texas means the Texas
Department of Transportation;
(5) a permit or certification in effect under Chapter
133, Natural Resources Code, that was issued by the Railroad
Commission of Texas is continued in effect as a permit or
certification issued by the Texas Department of Transportation; and
(6) a complaint, investigation, or other proceeding
under Chapter 133, Natural Resources Code, pending before the
Railroad Commission of Texas is transferred without change in
status to the Texas Department of Transportation.
(b) This section takes effect September 1, 2003.
SECTION 11. RAILROAD COMMISSION OF TEXAS FUNCTIONS RELATED
TO RAILROAD SAFETY. (a) Article 6448a, Revised Statutes, is
amended to read as follows:
Art. 6448a. IMPLEMENTATION OF FEDERAL RAILROAD SAFETY ACT
OF 1970
Sec. 1. The Railroad Commission of Texas is hereby
authorized to perform any act and issue any rules and orders as
permitted by the Federal Railroad Safety Act of 1970 (45 U.S.C.A.
431 et seq.).
Sec. 2. (a) The Railroad Commission of Texas by rule shall
adopt reasonable fees to be assessed annually against railroads
operating within the state.
(b) The commission by rule shall establish the method by
which the fees are calculated and assessed.
(c) The total amount of fees estimated to be collected by
rules adopted by the commission under this section may not exceed
the amount estimated by the commission to be necessary to recover
the costs of administering the commission's rail safety program.
(d) In adopting a fee structure, the commission may consider
the gross ton miles for railroad operations within the State of
Texas for each railroad operating in the state to provide for the
equitable allocation among railroads of the cost of administering
the commission's rail safety program.
(e) A fee collected under this section shall be deposited to
the credit of the general revenue fund to be used for the rail
safety program.
(b) This section takes effect on September 1, 2003.
SECTION 12. RAILROAD COMMISSION OF TEXAS FUNCTIONS RELATED
TO PIPELINES. (a) Subchapter E, Chapter 121, Utilities Code, is
amended by adding Section 121.211 to read as follows:
Sec. 121.211. PIPELINE SAFETY FEES. (a) The railroad
commission by rule may adopt an inspection fee to be assessed
annually against operators of natural gas distribution pipelines
and their pipeline facilities and natural gas master metered
pipelines and their pipeline facilities subject to this chapter.
(b) The railroad commission by rule shall establish the
method by which the fee is calculated and assessed. In adopting a
fee structure, the railroad commission may consider any factors
necessary to provide for the equitable allocation among operators
of the costs of administering the railroad commission's pipeline
safety program under this chapter.
(c) The total amount of fees estimated to be collected under
rules adopted by the railroad commission under this section may not
exceed the amount estimated by the railroad commission to be
necessary to recover the costs of administering the railroad
commission's pipeline safety program under this chapter, excluding
costs that are fully funded by federal sources.
(d) The railroad commission may assess each investor-owned
and each municipally owned natural gas distribution system subject
to this chapter an annual inspection fee not to exceed 50 cents for
each service line reported by the system on the Distribution Annual
Report, Form RSPA F7100.1-1, due on March 15 of each year. The fee
is due March 15 of each year.
(e) The railroad commission may assess each operator of a
natural gas master metered system subject to this chapter an annual
inspection fee not to exceed $100 for each master metered system.
The fee is due June 30 of each year.
(f) The railroad commission may assess a late payment
penalty of 10 percent of the total assessment due under Subsection
(d) or (e) that is not paid within 30 days after the annual due date
established by the applicable subsection.
(g) Each investor-owned and municipally owned natural gas
distribution company and each natural gas master meter operator
shall recover as a surcharge to its existing rates the amounts paid
to the railroad commission under this section. Amounts collected
under this subsection by an investor-owned natural gas distribution
company shall not be included in the revenue or gross receipts of
the company for the purpose of calculating municipal franchise fees
or any tax imposed under Subchapter B, Chapter 182, Tax Code, or
under Chapter 122. Those amounts are not subject to a sales and use
tax imposed by Chapter 151, Tax Code, or Chapters 321 through 327,
Tax Code.
(h) A fee collected under this section shall be deposited to
the credit of the general revenue fund to be used for the pipeline
safety program.
(b) This section takes effect September 1, 2003.
SECTION 13. SOIL AND WATER CONSERVATION BOARD. (a) Section
201.011, Agriculture Code, is amended to read as follows:
Sec. 201.011. COMPOSITION. The State Soil and Water
Conservation Board is a state agency composed of seven [five]
members as follows:
(1) [, with] one member elected from each of the state
districts in accordance with this subchapter; and
(2) two members appointed by the governor, each of
whom is:
(A) actively engaged in the business of farming,
animal husbandry, or other business related to agriculture and who
wholly or partly owns or leases land used in connection with that
business; and
(B) not a member of the board of directors of a
conservation district.
(b) Section 201.015(b), Agriculture Code, is amended to
read as follows:
(b) The term of office of an elected [a] member of the state
board begins on the day after the day on which the member was
elected. The term of one member appointed by the governor expires
February 1 of each odd-numbered year, and the term of the other
member appointed by the governor expires February 1 of each
even-numbered year.
(c) Section 201.016, Agriculture Code, is amended to read as
follows:
Sec. 201.016. VACANCY. Vacancies on the state board for
state district positions are filled by election in the manner
provided by this subchapter for an unexpired term or for a full
term.
(d) Subchapter B, Chapter 201, Agriculture Code, is amended
by adding Sections 201.028 and 201.029 to read as follows:
Sec. 201.028. SEMIANNUAL REPORT. Not later than January 1
and July 1 of each year, the state board shall prepare and deliver a
report to the governor, the lieutenant governor, and the speaker of
the house of representatives relating to the status of the board's
budget areas of responsibility assigned to the board, including
outreach programs, grants made and received, federal funding
applied for and received, special projects, and oversight of water
conservation district activities.
Sec. 201.029. MANAGEMENT AUDIT. Not later than March 1,
2004, the state auditor, in coordination with the Legislative
Budget Board, shall conduct a management audit of the State Soil and
Water Conservation Board and deliver the audit report to the
governor, the lieutenant governor, and the speaker of the house of
representatives. The audit shall include an evaluation of the
administrative budget for the board. This section expires April 1,
2004.
(e) Sections 203.011-203.013, Agriculture Code, are amended
to read as follows:
Sec. 203.011. AUTHORITY OF BOARD. The board has
jurisdiction over and shall administer the brush control program
under this chapter with the assistance of local districts.
Sec. 203.012. RULES. The board shall adopt, after
consulting with local districts, reasonable rules that are
necessary to carry out this chapter.
Sec. 203.013. AUTHORITY OF DISTRICTS. Each district [in
which all or part of a critical area is located] may carry out the
responsibilities provided by Subchapter D of this code as delegated
by the board [in that critical area].
(f) Section 203.016, Agriculture Code, is amended to read as
follows:
Sec. 203.016. CONSULTATION. The board shall consult with:
(1) the department in regard to the effects of the
brush control program on agriculture;
(2) the Texas Water Development Board in regard to the
effects of the brush control program on water quantity; and
(3) the Parks and Wildlife Department in regard to the
effects of the brush control program on fish and wildlife.
(g) Section 203.051, Agriculture Code, is amended to read as
follows:
Sec. 203.051. STATE PLAN. The board shall prepare and adopt
a state brush control plan that shall:
(1) include a comprehensive strategy for managing
brush in all areas of the state where brush is contributing to a
substantial water conservation problem; and
(2) rank [designate] areas [of critical need] in the
state in need of a [which to implement the] brush control program.
(h) Sections 203.052(b), (c), and (d), Agriculture Code,
are amended to read as follows:
(b) Not less than 30 days before the date the hearing is to
be held, the board shall mail written notice of the hearing to each
district in the state. The notice must:
(1) include the date and place for holding the
hearing;
(2) include instructions for each district to submit
comments on the proposed plan; and
(3) [must] state the purpose for holding the hearing.
(c) At the hearing, representatives of a district and any
other person may appear and present testimony including information
and suggestions for any changes in the proposed plan. The board
shall:
(1) enter any written comments received on the
proposed plan into the record of the hearing; and
(2) consider all written comments and testimony before
taking final action on the proposed plan.
(d) After the conclusion of the hearing, the board shall
consider the testimony including the information and suggestions
made at the hearing and in written comments. After [and, after]
making any changes in the proposed plan that it finds necessary, the
board shall adopt the plan.
(i) Section 203.053, Agriculture Code, is amended to read as
follows:
Sec. 203.053. CRITERIA FOR EVALUATING BRUSH CONTROL
[DESIGNATING CRITICAL] AREAS. (a) In ranking [designating
critical] areas under the plan, the board shall consider:
(1) the location of various brush infestations;
(2) the type and severity of [various] brush
infestations;
(3) the various management methods that may be used to
control brush; [and]
(4) any other criteria that the board considers
relevant to assure that the brush control program can be most
effectively, efficiently, and economically implemented; and
(5) the amount of water produced by a project and the
severity of water shortage in the areas.
(b) In ranking [designating critical] areas, the board
shall give priority to areas with the most critical water
conservation needs and in which brush control and revegetation
projects will be most likely to produce substantial water
conservation.
(j) Section 203.055, Agriculture Code, is amended to read as
follows:
Sec. 203.055. APPROVED METHODS FOR BRUSH CONTROL. (a) The
board shall study and must approve all methods used to control brush
under this Act considering the overall impact the project will have
[within critical areas].
(b) The board may approve a method for use under the
cost-sharing program provided by Subchapter E of this chapter if
the board finds that the proposed method:
(1) has proven to be an effective and efficient method
for controlling brush;
(2) is cost efficient;
(3) will have a beneficial impact on the development
of water sources and wildlife habitat;
(4) will maintain topsoil to prevent erosion or
silting of any river or stream; and
(5) will allow the revegetation of the area after the
brush is removed with plants that are beneficial to stream flows,
groundwater levels, livestock, and wildlife.
(k) Section 203.101, Agriculture Code, is amended to read as
follows:
Sec. 203.101. GENERAL AUTHORITY. Each district may
administer the aspects of the brush control program [within any
critical area] located within the jurisdiction of that district.
(l) Section 203.154, Agriculture Code, is amended by
amending Subsections (a) and (c) and by adding Subsections (d) and
(e) to read as follows:
(a) Not more than 70 [80] percent of the total cost of a
single brush control project may be made available as the state's
share in cost sharing.
(c) The board may grant an exception to Subsection (b) of
this section if the board finds that joint participation of the
state brush control program and any federal brush control program
will:
(1) enhance the efficiency and effectiveness of a
project; [and]
(2) lessen the state's financial commitment to the
project; and
(3) not exceed 80 percent of the total cost of the
project.
(d) A political subdivision of this state is eligible for
cost sharing under the brush control program as long as the state's
share does not exceed 50 percent of any one project.
(e) Notwithstanding any other provision of this section,
100 percent of the total costs of a single project on public lands
may be made available as the state's share in cost sharing.
(m) Sections 203.156-203.158, Agriculture Code, are amended
to read as follows:
Sec. 203.156. APPLICATION FOR COST SHARING. A person,
including a political subdivision of this state, who desires to
participate with the state in a brush control project and to obtain
cost-sharing participation by the state shall file an application
with the district board in the district in which the land on which
the project is to be accomplished is located. The application must
be in the form provided by board rules.
Sec. 203.157. CONSIDERATIONS IN PASSING ON APPLICATION. In
passing on an application for cost sharing, the board shall
consider:
(1) the location of [whether] the project [is to be
carried out in a critical area];
(2) the method of control that is to be used by the
project applicant;
(3) the plans for revegetation;
(4) the total cost of the project;
(5) the amount of land to be included in the project;
(6) whether the applicant for the project is
financially able to provide his share of the money for the project;
(7) the cost-share percentage, if an applicant agrees
to a higher degree of financial commitment;
(8) any comments and recommendations submitted by a
local district, the department, the Texas Water Development Board,
or [of] the Parks and Wildlife Department; and
(9) any other pertinent information considered
necessary by the board.
Sec. 203.158. APPROVAL OF APPLICATION. The board may
approve an application if, after considering the factors listed in
Section 203.157 of this code and any other relevant factors, the
board finds:
(1) the owner of the land fully agrees to cooperate in
the project;
(2) the method of eradication is a method approved by
the board under Section 203.055 of this code; and
(3) the project ranks higher than other projects
submitted in accordance with [is to be carried out in a critical
area designated under] the board's plan.
(n) Sections 203.159(a) and (c), Agriculture Code, are
amended to read as follows:
(a) If the demand for funds under the cost-sharing program
is greater than funds available, the board shall [may] establish
priorities favoring the areas with the most critical water
conservation needs and projects that will be most likely to produce
substantial water conservation.
(c) The board shall consider quantity of stream flows, the
quantity of groundwater, and the amount of [land dedicated to the
project that will produce significant] water conservation from the
eradication of brush each to be [is] a priority.
(o) Sections 203.001(5) and 203.155, Agriculture Code, are
repealed.
(p) In making initial appointments to the State Soil and
Water Conservation Board under Section 201.011, Agriculture Code,
as amended by this section, the governor shall designate one member
to serve a term expiring February 1, 2004, and the other member to
serve a term expiring February 1, 2005.
(q) The State Soil and Water Conservation Board shall
prepare and deliver the first report required by Section 201.028,
Agriculture Code, as added by this section, not later than January
1, 2004.
(r) This section takes effect September 1, 2003.
SECTION 14. IMPOSITION OF CERTAIN FEES. (a) Subchapter B,
Chapter 1052, Occupations Code, is amended by adding Section
1052.0541 to read as follows:
Sec. 1052.0541. FEE INCREASE. (a) The fee for the issuance
of a certificate of registration under this chapter and the fee for
the renewal of a certificate of registration under this chapter is
increased by $200.
(b) Of each fee increase collected, $50 shall be deposited
in the foundation school fund and $150 shall be deposited in the
general revenue fund.
(b) Subchapter B, Chapter 1053, Occupations Code, is
amended by adding Section 1053.0521 to read as follows:
Sec. 1053.0521. FEE INCREASE. (a) The fee for the issuance
of a certificate of registration under this chapter and the fee for
the renewal of a certificate of registration under this chapter is
increased by $200.
(b) Of each fee increase collected, $50 shall be deposited
in the foundation school fund and $150 shall be deposited in the
general revenue fund.
(c) Subchapter D, Chapter 1071, Occupations Code, is
amended by adding Section 1071.1521 to read as follows:
Sec. 1071.1521. FEE INCREASE. (a) The fee for the issuance
of a certificate of registration to a registered professional land
surveyor under this chapter and the fee for the renewal of a
certificate of registration for a registered professional land
surveyor under this chapter is increased by $200.
(b) Of each fee increase collected, $50 shall be deposited
in the foundation school fund and $150 shall be deposited in the
general revenue fund.
(c) This section does not apply to state agency employees
who are employed by the state as land surveyors.
(d) Subchapter B, Chapter 1152, Occupations Code, is
amended by adding Section 1152.053 to read as follows:
Sec. 1152.053. FEE INCREASE. (a) The fee for the
registration of a person under this chapter and the fee for the
renewal of a registration under this chapter is increased by $200.
(b) Of each fee increase collected, $50 shall be deposited
in the foundation school fund and $150 shall be deposited in the
general revenue fund.
(e) The change in law made by this section applies only to
the issuance or renewal of a certificate of registration under
Chapter 1052, 1053, or 1071, Occupations Code, or the issuance or
renewal of a registration under Chapter 1152, Occupations Code, on
or after the effective date of this article. A certificate of
registration or registration issued or renewed before the effective
date of this section is governed by the law in effect on the date of
the issuance or renewal, and the former law is continued in effect
for that purpose.
SECTION 15. STATE AGENCY HUMAN RESOURCES STAFFING AND
FUNCTIONS. (a) Subtitle B, Title 6, Government Code, is amended by
adding Chapter 670 to read as follows:
CHAPTER 670. HUMAN RESOURCES STAFFING AND FUNCTIONS
Sec. 670.001. DEFINITIONS. In this chapter:
(1) "Human resources employee" does not include an
employee whose primary job function is enforcement of Title VI or
Title VII of the Civil Rights Act of 1964.
(2) "State agency" means a department, commission,
board, office, authority, council, or other governmental entity in
the executive branch of government that is created by the
constitution or a statute of this state and has authority not
limited to a geographical portion of the state. The term does not
include a university system or institution of higher education as
defined by Section 61.003, Education Code.
Sec. 670.002. HUMAN RESOURCES STAFFING FOR LARGE STATE
AGENCIES. A state agency with 500 or more full-time equivalent
employees shall adjust the agency's human resources staff to
achieve a human resources employee-to-staff ratio of not more than
one human resources employee for every 85 staff members.
Sec. 670.003. HUMAN RESOURCES STAFFING FOR MEDIUM-SIZED AND
SMALL STATE AGENCIES; OUTSOURCING. (a) The State Council on
Competitive Government shall determine the cost-effectiveness of
consolidating the human resources functions of or contracting with
private entities to perform the human resources functions of state
agencies that employ fewer than 500 full-time equivalent employees.
(b) If the council determines that contracting with private
entities is cost-effective, the council shall issue a request for
proposals for vendors to perform the human resources functions of
the agencies.
(c) The council shall determine which human resources
functions are subject to the contract and which functions the
agency may select to perform itself.
(d) Each agency shall pay for the contracts for human
resources functions out of the agency's human resources budget.
(b) Not later than January 1, 2004, each state agency with
500 or more full-time equivalent employees shall comply with the
human resources employee-to-staff ratio requirements in Section
670.002, Government Code, as added by this section.
(c) Not later than January 1, 2004, the State Council on
Competitive Government shall conduct an initial feasibility study
to determine the cost-effectiveness of consolidating the human
resources functions of or contracting with private entities to
perform human resources functions of state agencies under Section
670.003, Government Code, as added by this section.
SECTION 16. AGENCY STAFFING AND PRODUCTIVITY. (a)
Effective September 1, 2003, Section 651.004, Government Code, is
amended by adding Subsections (c-1) and (d) to read as follows:
(c-1) A state agency in the executive branch of state
government that employs more than 100 full-time equivalent
employees may not, after March 31, 2004, employ more than one
full-time equivalent employee in a management position for every
eight full-time equivalent employees that the agency employs in
nonmanagerial staff positions. This subsection expires September
1, 2005.
(d) A state agency that believes that the minimum
management-to-staff ratios required by this section are
inappropriate for that agency may appeal to the Legislative Budget
Board. The Legislative Budget Board by rule shall adopt appeal
procedures.
(b) Effective September 1, 2004, Section 651.004,
Government Code, is amended by adding Subsection (c-2) to read as
follows:
(c-2) A state agency in the executive branch of state
government that employs more than 100 full-time equivalent
employees may not, after August 31, 2005, employ more than one
full-time equivalent employee in a management position for every
nine full-time equivalent employees that the agency employs in
nonmanagerial staff positions. This subsection expires September
1, 2006.
(c) Effective September 1, 2005, Section 651.004,
Government Code, is amended by adding Subsection (c-3) to read as
follows:
(c-3) A state agency in the executive branch of state
government that employs more than 100 full-time equivalent
employees may not, after August 31, 2006, employ more than one
full-time equivalent employee in a management position for every 10
full-time equivalent employees that the agency employs in
nonmanagerial staff positions. This subsection expires September
1, 2007.
(d) Effective September 1, 2006, Section 651.004,
Government Code, is amended by adding Subsection (c) to read as
follows:
(c) A state agency in the executive branch of state
government that employs more than 100 full-time equivalent
employees may not employ more than one full-time equivalent
employee in a management position for every 11 full-time equivalent
employees that the agency employs in nonmanagerial staff positions.
(e) A state agency in the executive branch of government
shall achieve the management-to-staff ratio required by Subsection
(c), Section 651.004, Government Code, as added by this section,
not later than August 31, 2007.
(f) Subchapter K, Chapter 659, Government Code, is amended
by adding Section 659.262 to read as follows:
Sec. 659.262. ADDITIONAL COMPENSATION FOR CERTAIN
CLASSIFIED STATE EMPLOYEES. (a) In this section, "state agency"
means an agency of any branch of state government that employs
individuals who are classified under Chapter 654.
(b) To enhance the recruitment of competent personnel for
certain classified employee positions, a state agency may provide
to a state employee, at the time of the employee's hiring for a
classified position, additional compensation in the form of a
one-time recruitment payment not to exceed $5,000. If the employee
discontinues employment with the state agency for any reason less
than three months after the date of receiving the recruitment
payment, the employee shall refund to the state agency the full
amount of the recruitment payment. If the employee discontinues
employment with the state agency for any reason three months or
longer but less than 12 months after the date of receiving the
recruitment payment, the employee shall refund to the state agency
an amount computed by:
(1) subtracting from 12 months the number of complete
calendar months the employee worked after the date of receiving the
recruitment payment;
(2) dividing the number of months computed under
Subdivision (1) by 12 months; and
(3) multiplying the fraction computed under
Subdivision (2) by the amount of the recruitment payment.
(c) To enhance the retention of employees who are employed
in certain classified positions that are identified by the chief
administrator of a state agency as essential for the state agency's
operations, a state agency may enter into a deferred compensation
contract with a classified employee to provide to the employee a
one-time additional compensation payment not to exceed $5,000 to be
added to the employee's salary payment the month after the
conclusion of the 12-month period of service under the deferred
compensation contract.
(d) To be eligible to enter into a contract for deferred
compensation under Subsection (c), a state employee must have
already completed at least 12 months of service in a classified
position.
(e) The chief administrator of a state agency shall
determine whether additional compensation is necessary under this
section on a case-by-case basis, considering:
(1) the criticality of the employee position in the
operations of the state agency;
(2) evidence of high turnover rates among employees
filling the position or an extended period during which the
position is or has in the past been vacant;
(3) evidence of a shortage of employees qualified to
fill the position or a shortage of qualified applicants; and
(4) other relevant factors.
(f) Before an agency provides or enters into a contract to
provide additional compensation to an employee under this section,
the chief administrator of the state agency must certify to the
comptroller in writing the reasons why the additional compensation
is necessary.
(g) Additional compensation paid to an employee under this
section is specifically exempted from any limitation on salary or
salary increases prescribed by this chapter.
(g) Subsection (b), Section 656.048, Government Code, is
repealed.
SECTION 17. Sections 81.116(b) and (d), Natural Resources
Code, are amended to read as follows:
(b) The fee is in addition to, and independent of any
liability for, the taxes imposed under Section 81.111 of this code
and Chapter 202, Tax Code.
(d) The comptroller shall suspend collection of the fee in
the manner provided by Section 91.111 of this code. The exemptions
and reductions set out in Sections 202.052, 202.054, 202.056,
202.057, and 202.059, Tax Code, do not affect the fee imposed by
this section.
SECTION 18. Sections 81.117(b) and (d), Natural Resources
Code, are amended to read as follows:
(b) The fee is in addition to, and independent of any
liability for, the tax imposed under Section 201.052, Tax Code.
(d) The comptroller shall suspend collection of the fee in
the manner provided by Section 91.111 of this code. The exemptions
and reductions set out in Sections 201.053, 201.057, and 201.058,
Tax Code, do not affect the fee imposed by this section.
SECTION 19. WATER POLLUTION AND CONSERVATION PROGRAMS
ADMINISTERED BY THE TEXAS WATER DEVELOPMENT BOARD. (a) Section
15.602, Water Code, is amended by adding Subdivision (5-a) to read
as follows:
(5-a) "Eligible lending institution" means a
financial institution that makes commercial loans, is either a
depository of state funds or an institution of the Farm Credit
System headquartered in this state, agrees to participate in a
linked deposit program established under Section 15.611 and to
provide collateral equal to the amount of linked deposits placed
with it, and meets any other requirements established by board
rule.
(b) Section 15.603, Water Code, is amended by adding
Subsection (i) to read as follows:
(i) In addition to authorized purposes under Subsection
(a), the revolving fund is held by the board to provide linked
deposits to eligible financial institutions for loans to persons
for nonpoint source pollution control projects.
(c) Subsection (a), Section 15.604, Water Code, is amended
to read as follows:
(a) The board may use the revolving fund for financial
assistance only as provided by the federal act:
(1) to make loans, on the conditions that:
(A) those loans are made at or below market
interest rates, including interest-free loans, at terms not to
exceed 20 years;
(B) principal and interest payments will begin
not later than one year after completion of any treatment works and
all loans will be fully amortized not later than 20 years after
completion of the treatment works;
(C) the recipient of a loan will establish a
dedicated source of revenue for repayment of loans; and
(D) the revolving fund will be credited with all
payments of principal of and interest on all loans;
(2) to buy or refinance the debt obligation of
political subdivisions at or below market rates if the debt
obligations were incurred after March 7, 1985;
(3) to guarantee or purchase insurance for political
subdivisions if the guarantee or insurance would improve access to
market credit or reduce interest rates;
(4) as a source of revenue or security for the payment
of principal and interest on bonds issued by the state if the
proceeds of the sale of those bonds will be deposited in the
revolving fund;
(5) to provide loan guarantees to similar revolving
funds established by municipalities or intermunicipal agencies;
(6) to earn interest on revolving fund accounts;
(7) for the reasonable costs of administering the
revolving fund and conducting activities provided for by Title VI
of the federal act, except that those amounts may not exceed the
amount authorized under Title VI of the federal act;
(8) to provide financial assistance to persons for a
nonpoint source pollution control project under Section 319 of the
federal act or for an estuary management project under Section 320
of the federal act; [and]
(9) for other purposes as provided by the federal act;
and
(10) to provide linked deposits to eligible lending
institutions for loans to persons for nonpoint source pollution
control projects.
(d) Subchapter J, Chapter 15, Water Code, is amended by
adding Sections 15.610 through 15.618 to read as follows:
Sec. 15.610. LINKED DEPOSIT. A linked deposit is a deposit
governed by a written deposit agreement between the board and an
eligible lending institution that provides that:
(1) the eligible lending institution pay interest on
the deposit at a rate determined by the board;
(2) the state not withdraw any part of the deposit
before the expiration of a period set by a written advance notice of
the intention to withdraw; and
(3) the eligible lending institution agree to lend the
value of the deposit to a person at a maximum rate that is the rate
paid by the eligible lending institution to the board plus a maximum
of four percent.
Sec. 15.611. LINKED DEPOSIT PROGRAM. (a) The board by
rule may establish a nonpoint source pollution control linked
deposit program in accordance with this subchapter.
(b) An eligible lending institution may participate in the
program established under this section as provided by this
subchapter.
Sec. 15.612. APPLICATION BY ELIGIBLE LENDING INSTITUTIONS
TO PARTICIPATE IN LINKED DEPOSIT PROGRAM. To participate in the
nonpoint source pollution control linked deposit program, an
eligible lending institution must:
(1) solicit loan applications, which must contain a
description of a proposed nonpoint source pollution control
project;
(2) review applications to determine if applicants are
eligible and creditworthy; and
(3) submit the applications of eligible and
creditworthy applicants to the executive administrator with a
certification:
(A) of the interest rate applicable to each
applicant by the eligible lending institution; and
(B) of the proposed project by the appropriate
person as required by Section 15.613.
Sec. 15.613. CERTIFICATION OF PROJECT. (a) An eligible
lending institution must obtain from a director of a soil and water
conservation district certification of an agricultural or
silvicultural nonpoint source pollution control project proposed
for the district. The certification must state that:
(1) the applicant of the proposed project has a water
quality management plan certified by the State Soil and Water
Conservation Board; and
(2) the project furthers or implements the plan.
(b) An eligible lending institution must obtain from the
executive director certification of a proposed nonpoint source
pollution control project that is not an agricultural or
silvicultural nonpoint source pollution control project. The
certification must state that the applicant's proposed project
implements the state's nonpoint source pollution management plan.
Sec. 15.614. APPROVAL OR REJECTION OF APPLICATION. The
board may approve or reject an application of an eligible lending
institution to participate in the program. The board may delegate
its authority to approve or reject an application to the executive
administrator.
Sec. 15.615. DEPOSIT AGREEMENT. If the board approves an
application of an eligible lending institution, the board and the
eligible lending institution shall enter into a written deposit
agreement. The agreement shall contain the conditions on which the
linked deposit is made. On execution of the agreement, the board
shall place a linked deposit from the revolving fund with the
eligible lending institution in accordance with the agreement. A
delay in payment or a default on a loan by an applicant does not
affect the validity of the deposit agreement.
Sec. 15.616. COMPLIANCE. (a) On accepting a linked
deposit, an eligible lending institution must lend money to an
approved applicant in accordance with the deposit agreement and
this subchapter. The eligible lending institution shall forward a
compliance report to the board in accordance with board rules. The
board shall adopt rules regarding the compliance report.
(b) The board shall monitor compliance with this subchapter
and inform the comptroller of noncompliance on the part of an
eligible lending institution.
Sec. 15.617. STATE LIABILITY PROHIBITED. The state is not
liable to an eligible lending institution for payment of the
principal, interest, or any late charges on a loan made to an
approved applicant. A linked deposit is not an extension of the
state's credit within the meaning of any state constitutional
prohibition.
Sec. 15.618. LIMITATIONS ON PROGRAM. (a) The maximum
amount of a loan under the linked deposit program is $250,000.
(b) The board may withdraw linked deposits from an eligible
lending institution if the institution ceases to be either a state
depository or a Farm Credit System institution headquartered in
this state.
(e) Subdivisions (3) through (6), Section 17.871, Water
Code, are amended to read as follows:
(3) "Eligible lending institution" means a financial
institution that makes commercial loans, is either a depository of
state funds or an institution of the Farm Credit System
headquartered in this state, agrees to participate in a linked
deposit program established under Section 17.905 and to provide
collateral equal to the amount of linked deposits placed with it,
and meets any other requirements established by board rule
["Conservation loan" means a loan from the board to a borrower
district or from a lender district to an individual borrower].
(4) "Fund" means the agricultural water conservation
fund authorized by Section 50-d, Article III, of the Texas
Constitution.
(5) "Person" means an individual, corporation,
partnership, association, or other legal entity that is not a
political subdivision ["Individual borrower" means a person who
receives or is eligible to receive a conservation loan from a lender
district].
(6) "Political subdivision" includes a district or
authority created under Section 52, Article III, or Section 59,
Article XVI, of the Texas Constitution, a municipality, a county,
an institution of higher education as defined by Section 61.003,
Education Code, any interstate compact commission to which the
state is a party, and any nonprofit water supply corporation
created and operating under Chapter 67 ["Lender district" means a
political subdivision, including a soil and water conservation
district under Chapter 201, Agriculture Code, a groundwater
conservation district created under Article XVI, Section 59, of the
Texas Constitution, or a district or authority created under
Article III, Section 52(b)(1), or Article XVI, Section 59, of the
Texas Constitution authorized to supply water for irrigation
purposes, that is eligible to receive or that receives a loan from
the board for the purpose of making conservation loans to
individual borrowers].
(f) Subsections (c) and (d), Section 17.879, Water Code, are
amended to read as follows:
(c) By rule or in the resolution or order authorizing
issuance of bonds or other resolution or order of the board, the
board may establish an interest and sinking fund and may establish
accounts in the funds, including an interest and sinking account,
and may transfer money among the funds and accounts [fund].
(d) The board may invest and reinvest money in the fund, the
interest and sinking fund, and any account therein in any
obligations or securities as provided by bond resolutions, [and]
orders of the board, and Section 404.024, Government Code.
(g) Subsection (a), Section 17.880, Water Code, is amended
to read as follows:
(a) Loans, bonds of political subdivisions [borrower
districts or lender districts], and other obligations owned by the
state and deposited in the fund or in the interest and sinking fund
are considered to be securities under this subchapter.
(h) Subsection (b), Section 17.881, Water Code, is amended
to read as follows:
(b) The board shall sell the loans or bonds of political
subdivisions [borrower districts or lender districts] at the price
and under the terms that it determines to be reasonable.
(i) Section 17.883, Water Code, is amended to read as
follows:
Sec. 17.883. BOND REVIEW BOARD. Bonds may not be issued
under this subchapter unless the issuance of the bonds has been
reviewed and approved by the bond review board. Prior to issuance
of bonds, the board shall estimate demand for [agricultural water]
conservation programs or projects [loans] based on a survey of
[districts] eligible participants [to participate] in the program.
A summary of this information shall be furnished to the bond review
board.
(j) Section 17.894, Water Code, is amended to read as
follows:
Sec. 17.894. BOND ENHANCEMENT AGREEMENTS; PAYMENT OF
EXPENSES. (a) The board at any time and from time to time may
enter into one or more bond enhancement agreements that the board
determines to be necessary or appropriate to place the obligation
of the board, as represented by the bonds, in whole or in part, on
the interest rate, currency, cash flow, or other basis desired by
the board. A bond enhancement agreement is an agreement for
professional services and shall contain the terms and conditions
and be for the period that the board approves.
(b) The fees and expenses of the board in connection with
the issuance of the bonds and the providing of financial assistance
to political subdivisions may be paid from money in the fund,
provided that any payments due from the board under a bond
enhancement agreement, other than fees and expenses, that relate to
the payment of debt service on the bonds constitute payments of
principal of and interest on the bonds.
(c) Bond enhancement agreements may include, on terms and
conditions approved by the board, interest rate swap agreements;
currency swap agreements; forward payment conversion agreements;
agreements providing for payments based on levels of or changes in
interest rates or currency exchange rates; agreements to exchange
cash flows or a series of payments; agreements, including options,
puts, or calls, to hedge payment, currency, rate, spread, or other
exposure; or other agreements that further enhance the
marketability, security, or creditworthiness of water financial
assistance bonds [USE OF FUND. (a) The board may use money in the
fund to make conservation loans directly to borrower districts, to
make loans to lender districts, and to pay the cost of bond
issuance.
[(b) The board may use money in the fund:
[(1) to make loans to political subdivisions other
than lender districts for agricultural water conservation
projects;
[(2) to make grants to political subdivisions for
agricultural water conservation projects as provided by
legislative appropriation; or
[(3) to make grants to a state agency for the funding
of any agricultural water conservation program of that agency,
including a program in which the state agency provides funding to a
political subdivision or a person for agricultural water
conservation, as provided by legislative appropriation].
(k) Section 17.895, Water Code, is amended to read as
follows:
Sec. 17.895. SOURCES OF ASSETS. The fund is composed of:
(1) money and assets, including bond proceeds,
attributable to the bonds;
(2) investment income earned on money on deposit in
the fund and depository interest earned on money on deposit in the
state treasury;
(3) money appropriated by the legislature;
(4) repayments of principal and interest on loans made
under this subchapter;
(5) administrative fees charged by the board under the
bond program; and
(6) any other funds, regardless of their source, that
the board directs be deposited to the credit of the fund
[CONSERVATION LOANS. (a) This section applies only to a
conservation loan from a lender district that is:
[(1) a soil and water conservation district under
Chapter 201, Agriculture Code;
[(2) a groundwater conservation district created
under Section 59, Article XVI, Texas Constitution; or
[(3) a district or authority created under Section
52(b)(1), Article III, or Section 59, Article XVI, Texas
Constitution.
[(b) The board or a lender district may make conservation
loans for capital equipment or materials, labor, preparation costs,
and installation costs:
[(1) to improve water use efficiency of water delivery
and application on existing irrigation systems;
[(2) for preparing irrigated land to be converted to
dryland conditions; and
[(3) for preparing dryland for more efficient use of
natural precipitation.
[(c) Conservation loans for the purposes listed in
Subsection (b) may be made by lender districts to individual
borrowers for use on private property or by the board to borrower
districts.
[(d) The board may make conservation loans to borrower
districts for the cost of purchasing and installing devices, on
public or private property, designed to indicate the amount of
water withdrawn for irrigation purposes.
[(e) For purposes of this section, the board or lender
districts may seek the advice of the Department of Agriculture
regarding the feasibility of a project for which a conservation
loan is sought].
(l) Section 17.896, Water Code, is amended to read as
follows:
Sec. 17.896. REPAYMENT PROCEEDS. The board shall designate
a transfer of repayment of principal and interest on a loan made
under this subchapter to the fund, the interest and sinking fund, or
any account in the funds [INTEREST RATES AND FEES. (a) The board
shall establish the rate of interest it charges for loans to lender
districts or for conservation loans to borrower districts.
[(b) A lender district may charge individual borrowers an
interest rate not to exceed the interest rate the lender district is
charged by the board, plus one percent for administrative expenses.
[(c) A lender district may charge individual borrowers a
one-time application fee in an amount determined by the board to
cover costs of processing loan applications].
(m) Section 17.897, Water Code, is amended to read as
follows:
Sec. 17.897. CONSERVATION PROGRAM. (a) A conservation
program is:
(1) an agricultural water conservation technical
assistance program, including a program for an on-farm soil and
water conservation plan developed jointly by a landowner, an
operator, and a local soil and water conservation district as
provided by Subchapter H, Chapter 201, Agriculture Code;
(2) a research, demonstration, technology transfer,
or educational program relating to agricultural water use and
conservation;
(3) a precipitation enhancement program in an area of
the state where the program, in the board's judgment, would be most
effective; and
(4) any other agricultural water conservation program
defined by board rule.
(b) The costs of a conservation program eligible for
financial assistance under Section 17.899 are the costs of the
capital equipment, materials, labor, preparation, installation, or
administration directly associated with implementing and
completing the program [APPLICATION. A lender district that
desires to obtain loans or a borrower district that desires to
obtain conservation loans under this subchapter shall file with the
executive administrator an application in the manner and in the
form provided by board rules].
(n) Section 17.898, Water Code, is amended to read as
follows:
Sec. 17.898. CONSERVATION PROJECT. (a) A conservation
project is a project that:
(1) improves water use efficiency of water delivery
and application on existing irrigation systems;
(2) prepares irrigated land for conversion to dryland
conditions;
(3) prepares dryland for more efficient use of natural
precipitation;
(4) purchases and installs on public or private
property devices designed to indicate the amount of water withdrawn
for irrigation purposes;
(5) prepares and maintains land to be used for brush
control activities in areas of the state where those activities in
the board's judgment would be most effective, including activities
conducted under Chapter 203, Agriculture Code; or
(6) implements any other agricultural water
conservation project defined by board rule.
(b) The costs of a conservation project eligible for
financial assistance under Section 17.899 are the costs of the
capital equipment, materials, labor, preparation, installation, or
administration directly associated with implementing and
completing the project [CONSIDERATIONS IN PASSING ON AN
APPLICATION. (a) In passing on an application from a lender
district, the board shall consider the lender district's ability to
manage a loan program, ability to repay any loan defaults, and
overall conservation program.
[(b) In passing on an application from a borrower district,
the board shall consider the ability of the borrower district to
repay the conservation loan and whether the conservation loan will
further water conservation].
(o) Section 17.899, Water Code, is amended to read as
follows:
Sec. 17.899. ELIGIBLE FUND USES. (a) Money in the fund,
excluding money in the interest and sinking fund, may be used by the
board to:
(1) provide a grant to a state agency to fund a
conservation program or conservation project, including a
conservation program that provides funding to a political
subdivision or person for a conservation project;
(2) provide a grant or loan to a political subdivision
for a conservation program or conservation project;
(3) provide a linked deposit to an eligible financial
institution for a loan to a person for a conservation project;
(4) pay for a board conservation program;
(5) make a transfer to the interest and sinking fund;
(6) pay the costs of a bond issuance; and
(7) pay for a board expense in administering the
agricultural water conservation program under this subchapter.
(b) Money in the interest and sinking fund may be used for
the payment of bonds or, to the extent there are funds in excess of
bond payment requirements, for transfers to the fund, or any other
account in the funds [APPROVAL OF APPLICATIONS. (a) The board may
approve an application if, after considering the factors in Section
17.898 and other relevant factors, the board finds that:
[(1) the public interest would be served in granting
the application;
[(2) a lender district has the ability to make
conservation loans, manage a conservation loan program, and repay
the loan to the board;
[(3) a borrower district has the ability to repay the
conservation loan; and
[(4) granting the application will further water
conservation in the state.
[(b) The board by rule may delegate to the executive
administrator the authority to approve an application based on the
considerations in Section 17.898 and on the findings in Subsection
(a)].
(p) Section 17.900, Water Code, is amended to read as
follows:
Sec. 17.900. GRANT TO STATE AGENCY. (a) A state agency
seeking a grant for a conservation program or conservation project
must file an application with the board.
(b) In reviewing an application for a grant, the board shall
consider:
(1) the commitment of the state agency to water
conservation; and
(2) the benefits that will be gained by making the
grant.
(c) To approve the grant, the board must find that:
(1) the grant funds will supplement rather than
replace money of the state agency;
(2) the public interest is served by providing the
grant; and
(3) the grant will further water conservation in the
state.
(d) If a state agency is applying for funds that have been
provided by legislative appropriation for that state agency, the
board shall review the application according to the terms of the
legislative appropriation. To approve the grant, the board must
make the determination required by the legislative language.
(e) The board may make money available to a state agency in
any manner that it considers feasible, including a grant agreement
with the state agency [METHODS OF MAKING LOANS AND ENFORCING
OBLIGATIONS. (a) The board may make financial assistance
available to lender or borrower districts in any manner that it
considers economically feasible, including purchase of bonds or
securities of the lender or borrower district, or by entering into a
contract with the lender or borrower district. The board shall not
purchase bonds or securities that have not been approved by the
attorney general and registered by the comptroller.
[(b) In the event of default in payment of the principal of
or interest on bonds or securities purchased by the board or any
other default as defined in the proceedings or indentures
authorizing the issuance of the bonds or the default of any of the
terms of a contract, the attorney general shall institute legal
proceedings by mandamus or other legal remedies to compel the
lender or borrower district or its officers, agents, and employees
to cure the default by performing those duties which they are
legally obligated to perform. These proceedings shall be brought
and venue shall be in a district court in Travis County.
[(c) This section is cumulative of any other rights or
remedies to which the board may be entitled].
(q) Section 17.901, Water Code, is amended to read as
follows:
Sec. 17.901. GRANT OR LOAN TO POLITICAL SUBDIVISION. The
board may make a grant or loan to a political subdivision for a
conservation program or conservation project. A political
subdivision seeking a grant or loan must file an application with
the board [DEFAULT AND FORECLOSURE BY LENDER DISTRICTS. (a) In
the event of a default in payment of a conservation loan made by a
lender district or the failure of an individual borrower to perform
any of the terms or conditions of the conservation loan agreement,
the lender district shall pursue all remedies available under law,
including without limitation foreclosure under the conservation
loan agreement and liquidation of any collateral provided under the
conservation loan agreement. The lender district shall sell the
collateral on terms and subject to procedures that it follows in
liquidating other collateral.
[(b) Foreclosure under a conservation loan agreement shall
be accomplished in the manner provided by law for foreclosure of
similar loan agreements made by private lending institutions and by
the conservation loan agreement.
[(c) The state guarantees to each lender district that in
the event an individual borrower defaults on a conservation loan
made by the lender district with money from this program, the state
will assume 50 percent of the amount that remains due and payable
under the default after all collateral for the conservation loan is
liquidated.
[(d) The state is entitled to recover its pro rata share of
any money recovered on a defaulted conservation loan on which the
state has assumed liability under Subsection (c)].
(r) Section 17.902, Water Code, is amended to read as
follows:
Sec. 17.902. REVIEW OF APPLICATION FOR AND APPROVAL OF
GRANT. (a) In reviewing an application by a political subdivision
for a grant, the board shall consider:
(1) the degree to which the political subdivision has
used other available resources to finance the use for which the
application is being made;
(2) the willingness and ability of the political
subdivision to raise revenue;
(3) the commitment of the political subdivision to
water conservation; and
(4) the benefits that will be gained by making the
grant.
(b) To approve a grant to a political subdivision, the board
must find that:
(1) the grant funds will supplement rather than
replace money of the political subdivision;
(2) the public interest is served by providing the
grant; and
(3) the grant will further water conservation in the
state [AUTHORITY OF DISTRICTS. A lender or borrower district may
borrow and lend money for the purposes of this subchapter and may
adopt necessary rules to carry out this subchapter].
(s) Subchapter J, Chapter 17, Water Code, is amended by
adding Sections 17.9021 and 17.9022 to read as follows:
Sec. 17.9021. APPLICATION FOR AND APPROVAL OF LOAN.
(a) In reviewing an application by a political subdivision for a
loan, the board shall consider the ability of the political
subdivision to repay the loan and whether the loan will further
water conservation in this state.
(b) To approve a loan to a political subdivision, the board
must determine that:
(1) the public interest is served by providing the
loan;
(2) the political subdivision has the ability to repay
the loan; and
(3) the loan will further water conservation in the
state.
(c) The board by rule shall establish the rate of interest
it charges for a loan to a political subdivision.
Sec. 17.9022. FINANCING OF GRANT OR LOAN FOR POLITICAL
SUBDIVISION; DEFAULT; VENUE. (a) The board may make a loan or
grant available to a political subdivision in any manner the board
considers economically feasible, including purchase of bonds or
securities of the political subdivision or execution of a loan or
grant agreement with the political subdivision. The board may not
purchase bonds or securities that have not been approved by the
attorney general and registered by the comptroller.
(b) In the event of a default in payment of the principal of
or interest on bonds or securities purchased by the board, or any
other default as defined in the proceedings or indentures
authorizing the issuance of bonds, or a default of any of the terms
of a loan agreement, the attorney general shall seek a writ of
mandamus or other legal remedy to compel the political subdivision
or its officers, agents, and employees to cure the default by
performing the duties they are legally obligated to perform. The
proceedings shall be brought and venue is in a district court in
Travis County. This subsection is cumulative of any other rights or
remedies to which the board may be entitled.
(t) Section 17.903, Water Code, is amended to read as
follows:
Sec. 17.903. CONTRACT AUTHORITY. (a) A political
subdivision may borrow money for the purposes of this subchapter
and may adopt necessary rules to carry out this subchapter [RULES
AND CONTRACTS. (a) The board shall adopt rules necessary to carry
out this subchapter. The board by rule shall identify methods to be
used by lender districts to ensure the financial integrity of a loan
to an individual borrower, including an irrevocable letter of
credit or a lien on property in excess of value of improvements].
(b) [The board by rule may establish:
[(1) procedures for applying for a loan or grant under
Section 17.894(b);
[(2) procedures for considering and approving
applications and for making loans or grants under Section
17.894(b); and
[(3) the rate of interest the board charges, if any,
for loans under Section 17.894(b).
[(c)] The board shall have the power to enter into any
contracts to carry out the provisions of this subchapter.
(u) Subchapter J, Chapter 17, Water Code, is amended by
adding Sections 17.904 through 17.912 to read as follows:
Sec. 17.904. LINKED DEPOSIT. A linked deposit is a deposit
governed by a written deposit agreement between the board and an
eligible lending institution that provides that:
(1) the eligible lending institution pay interest on
the deposit at a rate determined by the board;
(2) the state not withdraw any part of the deposit
before the expiration of a period set by a written advance notice of
the intention to withdraw; and
(3) the eligible lending institution agree to lend the
value of the deposit to a person at a maximum rate that is the rate
paid by the eligible lending institution to the board plus a maximum
of four percent.
Sec. 17.905. LINKED DEPOSIT PROGRAM. (a) The board by
rule may establish an agricultural water conservation linked
deposit program in accordance with this subchapter.
(b) An eligible lending institution may participate in the
program established under this section as provided by this
subchapter.
Sec. 17.906. APPLICATION BY ELIGIBLE LENDING INSTITUTIONS
TO PARTICIPATE IN LINKED DEPOSIT PROGRAM. To participate in the
agricultural water conservation linked deposit program, an
eligible lending institution must:
(1) solicit loan applications, which must contain a
description of an agricultural water conservation project;
(2) review applications to determine if applicants are
eligible and creditworthy; and
(3) submit the applications of eligible and
creditworthy applicants to the executive administrator with a
certification:
(A) of the interest rate applicable to each
applicant by the eligible lending institution; and
(B) of the soil and water conservation district
in which an applicant is located by a director of the district that
states that:
(i) the applicant of the proposed project
has a soil and water conservation plan approved by the district; and
(ii) the project furthers or implements the
plan.
Sec. 17.907. APPROVAL OR REJECTION OF APPLICATION. The
board may approve or reject an application of an eligible lending
institution to participate in the program. The board may delegate
its authority to approve or reject applications to the executive
administrator.
Sec. 17.908. DEPOSIT AGREEMENT. If the board approves an
application of an eligible lending institution, the board and the
eligible lending institution shall enter into a written deposit
agreement. The agreement shall contain the conditions on which the
linked deposit is made. On execution of the agreement, the board
shall place a linked deposit from the fund with the eligible lending
institution in accordance with the agreement. A delay in payment or
a default on a loan by an applicant does not affect the validity of
the deposit agreement.
Sec. 17.909. COMPLIANCE. (a) On accepting a linked
deposit, an eligible lending institution must lend money to an
approved applicant in accordance with the deposit agreement and
this subchapter. The eligible lending institution shall forward a
compliance report to the board in accordance with board rules. The
board shall adopt rules regarding the compliance report.
(b) The board shall monitor compliance with this subchapter
and inform the comptroller of noncompliance on the part of an
eligible lending institution.
Sec. 17.910. STATE LIABILITY PROHIBITED. The state is not
liable to an eligible lending institution for payment of the
principal, interest, or any late charges on a loan made to an
approved applicant. A linked deposit is not an extension of the
state's credit within the meaning of any state constitutional
prohibition.
Sec. 17.911. LIMITATIONS ON PROGRAM. (a) The maximum
amount of a loan under the linked deposit program is $250,000.
(b) The board may withdraw linked deposits from an eligible
lending institution if the institution ceases to be either a state
depository or a Farm Credit System institution headquartered in
this state.
Sec. 17.912. RULES. The board shall adopt rules necessary
to carry out this subchapter. Applications shall be in the form and
manner as provided by board rules.
(v) The agricultural trust fund and the agricultural soil
and water conservation fund are abolished and all assets of those
funds are transferred to the agricultural water conservation fund.
(w) The following provisions of the Water Code are repealed:
(1) Subchapters G, H, and I, Chapter 15; and
(2) Subdivision (2), Section 17.871, Subdivision (7),
Section 17.871, and Section 17.8955.
(x) The Texas Water Development Board shall continue to
administer a loan made before September 1, 2003, under the pilot
program for low-interest loans for agricultural water conservation
equipment until the loan is fully repaid. Subchapter I, Chapter 15,
Water Code, is continued in effect for the limited purpose of
allowing the board to administer those loans and to pursue remedies
if a loan recipient defaults on a loan or otherwise violates the
terms of the loan or of any loan guarantee instrument.
(y) The Texas Water Development Board shall continue to
administer a conservation loan made before September 1, 2003, under
Subchapter J, Chapter 17, Water Code. Subchapter J, Chapter 17,
Water Code, as it existed immediately before September 1, 2003, is
continued in effect for the limited purpose of allowing the board to
administer those loans and to pursue remedies if a loan recipient
defaults on a loan or otherwise violates the terms of the loan or of
any loan guarantee.
(z) This section takes effect September 1, 2003.
SECTION 20. (a) In this section, "district" shall mean the
Hudspeth County Underground Water Conservation District No. 1.
(b) In order to reduce property taxes for the residents of
Hudspeth County, Texas, and to reduce the expenditures of the
district by excluding territory from the district that overlies
aquifers not regulated by the district, the boundaries of the
district are modified to include only the territory contained in
the following described area:
BEGINNING at the northwest corner of Section 3, Block A,
University, Hudspeth County, Texas, and being a point in the state
line between Texas and New Mexico, for the northwest corner of the
survey;
THENCE south with the west boundary line of Section 3, Block A,
University, to its southwest corner;
THENCE east with the south boundary line of Section 3, Block A,
University, to its southeast corner, which point is also the
northeast corner of Section 10, Block A, University;
THENCE south with the west boundary line of Section 11, Block A,
University, to its southwest corner;
THENCE east with the south boundary line of Section 11, Block A,
University, and continuing east with the south boundary line of
Section 12, Block A, University, to the southeast corner of Section
12, Block A, University;
THENCE south with the east boundary of Section 13, Block A,
University, to the southeast corner of Section 13, Block A,
University, which point is also the northeast corner of Section 24,
Block A, University;
THENCE east with the north boundary line of Section 19, Block B,
University, and continuing east with the north boundary line of
Section 20, Block B, University, to the northeast corner of Section
20, Block B, University;
THENCE south with the east boundary line of Section 20, Block B,
University, to the southeast corner of Section 20, Block B,
University, which point is also the northeast corner of Section 29,
Block B; University;
THENCE east with the north boundary line of Section 28, Block B,
University, to the northeast corner of Section 28, Block B,
University, which point is also the southeast corner of Section 21,
Block B, University;
THENCE south with east boundary line of Section 28, Block B,
University, to the southeast corner of Section 28, Block B,
University, which point is also the northeast corner of Section 33,
Block B, University;
THENCE east with the north boundary line of Section 34, Block B,
University, and continuing east with the north boundary line of
Section 35, Block B, University, to the northeast corner of Section
35, Block B, University;
THENCE south with east boundary line of Section 35, Block B,
University, to its southeast corner, which point is also the
northeast corner of Section 38, Block B, University;
THENCE east with the north boundary line of Section 37, Block B,
University, and continuing east with the north boundary line of
Section 48, Block C, University, to its northeast corner, which
point is also the northwest corner of Section 47, Block C,
University;
THENCE south with the east boundary line of Section 48, Block C,
University, to its southeast corner;
THENCE east with the north boundary line of Section 50, Block C,
University, to its northeast corner;
THENCE south with the east boundary line of Section 50, Block C,
University, to its southeast corner;
THENCE east with the north boundary line of Section 4, Block D,
University, and continuing east along the north boundary line of
Section 3, Block D, University, to the northeast corner of Section
3;
THENCE south with the east boundary line of Section 3, Block D,
University, to its southeast corner;
THENCE east with the north boundary line of Section 11, Block D,
University, and continuing east along the north boundary line of
Section 12, Block D, University, to its northeast corner;
THENCE south with the east boundary line of Section 12, Block D,
University, to its southeast corner;
THENCE east with the north boundary line of Section 18, Block 72,
Township 2, T & P, to its northeast corner;
THENCE south with the east boundary line of Section 18, Block 72,
Township 2, T & P, to its southeast corner;
THENCE east with the north boundary line of Section 20, Block 72,
Township 2, T & P, and continuing east along the north boundary line
of Section 21, Block 72, Township 2, T & P, to the northeast corner
of Section 21;
THENCE south with the east boundary line of Section 21, Block 72,
Township 2, T & P, to its southeast corner;
THENCE east with the north boundary line of Section 27, Block 72,
Township 2, T & P, and continuing east with the north boundary lines
of Sections 26 and 25, Block 72, Township 2, T & P, and Section 30,
Block 71, Township 2, T & P, to the northeast corner of Section 30;
THENCE south with the east boundary line of Section 30, Block 71,
Township 2, T & P, to its southeast corner;
THENCE east with the north boundary line of Section 32, Block 71,
Township 2, T & P, and continuing east with the north boundary line
of Section 33, Block 71, Township 2, T & P, to the northeast corner
of Section 33;
THENCE south with the east boundary line of Section 33, Block 71,
Township 2, T & P, to its southeast corner;
THENCE east with the north boundary line of Section 39, Block 71,
Township 2, T & P, to the northeast corner of Section 39;
THENCE south with the east boundary line of Section 39, Block 71,
Township 2, T & P, to its southeast corner;
THENCE east with the north boundary line of Section 47, Block 71,
Township 2, T & P, to the northeast corner of Section 47;
THENCE south with the east boundary line of Section 47, Block 71,
Township 2, T & P, to the southeast corner of Section 47;
THENCE east with the south boundary line of Section 48, Block 71,
Township 2, T & P, and continuing east with the south boundary line
of Section 43, Block 70, Township 2, T & P, to the southeast corner
of Section 43;
THENCE south with the east boundary lines of Section 7, Block JKL,
P.S.L., and Section 6, Block K, University, to the southeast corner
of Section 6;
THENCE east with the north boundary line of Section 8, Block K,
University, and continuing east with the north boundary line of
Section 9, Block K, University, to the northeast corner of Section
9;
THENCE south with the east boundary line of Section 9, Block K,
University, to its southeast corner;
THENCE east with the north boundary line of Section 15, Block K,
University, to its northeast corner;
THENCE south with the east boundary line of Section 15, Block K,
University, and continuing south with the east boundary line of
Section 22, Block K, University, to the southeast corner of Section
22;
THENCE east with the north boundary line of Section 26, Block K,
University, to its northeast corner;
THENCE south with the east boundary line of Section 26, Block K,
University, to its southeast corner;
THENCE east with the north boundary line of Section 36, Block K,
University, to its northeast corner;
THENCE south with the east boundary line of Section 36, Block K,
University, to its southeast corner;
THENCE east with the north boundary line of Section 42, Block L,
University, to its northeast corner;
THENCE south with the east boundary line of Section 42, Block L,
University, and continuing south with the east boundary line of
Section 43, Block L, University, to the southeast corner of Section
43;
THENCE east with the north boundary line of Section 5, Block N,
University, and continuing east with the north boundary line of
Section 4, Block N, University, to the northeast corner of Section
4;
THENCE south with the east boundary line of Section 4, Block N,
University, to its southeast corner;
THENCE east with the north boundary line of Section 22, Block N,
University, to its northeast corner;
THENCE south with the east boundary line of Section 22, Block N,
University, to its southeast corner;
THENCE east with the north boundary line of Section 26, Block N,
University, and continuing east with the north boundary line of
Section 25, Block N, University, to the northeast corner of Section
25;
THENCE south with the east boundary line of Section 25, Block N,
University, to its southeast corner;
THENCE east with the north boundary line of Section 19, Block 68,
Township 4, T & P, to its northeast corner;
THENCE south with the east boundary line of Section 19, Block 68,
Township 4, T & P, to its southeast corner;
THENCE east with the north boundary line of Section 29, Block 68,
Township 4, T & P, and continuing east with the north boundary line
of Section 28, Block 68, Township 4, T & P, to the northeast corner
of Section 28;
THENCE south with the east boundary line of Section 28, Block 68,
Township 4, T & P, to its southeast corner;
THENCE east with the south boundary line of Section 27, Block 68,
Township 4, T & P, and continuing east with the south boundary lines
of Sections 26 and 25, Block 68, Township 4, T & P, to the
intersection of the south boundary line of Section 25, Block 68,
Township 4, T & P, with the east boundary line of Section 3, Block
30, P.S.L.;
THENCE south with the east boundary line of Section 3, Block 30,
P.S.L., to its southeast corner;
THENCE east with the south boundary line of Section 2, Block 30,
P.S.L., and continuing east with the south boundary lines of
Section 1, Block 30, P.S.L., and Sections 5, 4, 3, and 2, Block 31,
P.S.L., to the southeast corner of Section 2;
THENCE north with the east boundary line of Section 2, Block 31,
P.S.L., and continuing north with the east boundary lines of
Sections 26, 23, 14, 11, 2, Block 67, Township 4, T & P, and Sections
46, 37, 34, 25, 22, 13, 10, 5, Block 67, Township 3, T & P;
THENCE continuing north with the east boundary lines of Sections
43, 34, 33, 24, 23, 14, 11, 2, Block 67, Township 2, T & P, and
Sections 47, 38, 35, 26, 23, 14, 11, 2, Block 67, Township 1, T & P,
to the northeast corner of Section 2, being a point in the Texas-New
Mexico State line forming the north boundary line of Hudspeth
County, Texas;
THENCE west with the Texas-New Mexico State Line to the Point of
Beginning.
(c) The legislature finds that the boundaries and field
notes of the district under Subsection (b) form a closure. If a
mistake is made in the field notes or in copying the field notes in
the legislative process, the mistake does not affect in any way:
(1) the organization, existence, or validity of the
district;
(2) the right of the district to impose taxes; or
(3) the legality or operation of the district or the
board.
(d) As a result of the change to the boundaries of the
district made by Subsection (b) or if otherwise required by law, the
board may:
(1) adjust the precinct boundaries for the election of
directors as necessary to provide for proper representation of the
residents of the district; and
(2) call and hold election under Chapter 36, Water
Code, or other law to ensure the lawful representation and taxation
of the residents of the district.
SECTION 21. EFFECTIVE DATE. 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.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3442 was passed by the House on May
10, 2003, by the following vote: Yeas 131, Nays 0, 1 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 3442 on May 30, 2003, and requested the appointment of a
conference committee to consider the differences between the two
houses; and that the House adopted the conference committee report
on H.B. No. 3442 on June 1, 2003, by the following vote: Yeas 144,
Nays 1, 1 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3442 was passed by the Senate, with
amendments, on May 28, 2003, by the following vote: Yeas 31, Nays
0; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
3442 on June 1, 2003, by a viva-voce vote.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor