By:  Madla                                                        S.B. No. 1084
	(In the Senate - Filed March 10, 2003; March 17, 2003, read 
first time and referred to Committee on Natural Resources; 
April 7, 2003, reported favorably by the following vote:  Yeas 10, 
Nays 0; April 7, 2003, sent to printer.)


A BILL TO BE ENTITLED

AN ACT


relating to interest-free loans from the Texas Water Development 
Board for water districts in economically distressed areas.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 17.933, Water Code, is amended by adding 
Subsection (b-1) to read as follows:
	(b-1) In providing financial assistance in the form of a loan 
under this subchapter to a conservation and reclamation district 
created under authority of Section 52(b)(1) or (2), Article III, or 
Section 59, Article XVI, Texas Constitution, the board shall make 
the loan to the district without charging interest.
	SECTION 2.  This Act applies only to a loan made by the Texas 
Water Development Board to a conservation and reclamation district 
created under authority of Subdivision (1) or (2), Subsection (b), 
Section 52, Article III, or Section 59, Article XVI, Texas 
Constitution, on or after the effective date of this Act.  A loan 
made to a district before the effective date of this Act is governed 
by the law in effect on the date the loan was made, and the former 
law is continued in effect for that purpose.
	SECTION 3.  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.



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