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AN ACT
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relating to the administration of the Texas Water Development Board |
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and the funding of water projects by the board and other entities; |
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authorizing the issuance of revenue bonds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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ARTICLE 1. ADMINISTRATION OF THE TEXAS WATER DEVELOPMENT BOARD |
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SECTION 1.01. Sections 6.052(a) and (b), Water Code, are |
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amended to read as follows: |
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(a) The board is composed of three [six] members who are |
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appointed by the governor with the advice and consent of the senate. |
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One member must have experience in the field of engineering, one |
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member must have experience in the field of public or private |
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finance, and one member must have experience in the field of law or |
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business. |
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(b) The governor shall make the appointments in such a |
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manner that the members reflect the diverse geographic regions and |
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population groups of this state and do not have any conflicts [each
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member is from a different section of the state and has no conflict] |
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of interest prohibited by state or federal law. |
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SECTION 1.02. Section 6.053, Water Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) A person is not eligible for appointment to the board if |
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the person served on the board on or before January 1, 2013. |
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SECTION 1.03. Section 6.054, Water Code, is amended by |
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amending Subsection (c) and adding Subsection (d) to read as |
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follows: |
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(c) If the executive administrator or a member has knowledge |
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that a potential ground for removal exists, the executive |
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administrator shall notify the chairman of the board of the |
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potential ground. The chairman of the board shall then notify the |
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governor and the attorney general that a potential ground for |
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removal exists. If the potential ground for removal includes the |
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chairman of the board, the executive administrator or another |
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member of the board shall notify the member [next highest ranking
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officer] of the board with the most seniority, who shall then notify |
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the governor and the attorney general that a potential ground for |
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removal exists. |
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(d) The governor, with the advice and consent of the senate, |
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may remove a board member from office as provided by Section 9, |
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Article XV, Texas Constitution. |
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SECTION 1.04. Section 6.056, Water Code, is amended to read |
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as follows: |
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Sec. 6.056. TERMS OF OFFICE. (a) The members of the board |
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hold office for staggered terms of six years, with the term [terms] |
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of one member [two members] expiring February 1 of each |
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odd-numbered year [every two years]. Each member holds office |
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until a [his] successor is appointed and has qualified. |
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(b) A person appointed to the board may not serve for more |
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than two six-year terms. |
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SECTION 1.05. Section 6.059, Water Code, is amended to read |
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as follows: |
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Sec. 6.059. CHAIRMAN OF THE BOARD [OFFICERS]. [(a)] The |
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governor shall designate one member as chairman of the board to |
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serve at the will of the governor. |
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[(b)
The members of the board shall elect a vice-chairman
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every two years. The board shall fill a vacancy in the office of
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vice-chairman for the remainder of the unexpired term.] |
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SECTION 1.06. Sections 6.060(a) and (b), Water Code, are |
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amended to read as follows: |
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(a) The board shall hold regular meetings and all hearings |
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at times specified by a board order and entered in its minutes [meet
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at least once every other month on a day and at a place within the
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state selected by it, subject to recesses at the discretion of the
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board]. The [chairman or two] board [members] may hold special |
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meetings at the times and places in this state that the board |
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decides are appropriate for the performance of its duties. The |
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chairman of the board or the board member acting for the chairman |
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shall give the other members reasonable notice before holding a |
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special meeting [call a special meeting at any time by giving notice
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to the other members]. |
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(b) The chairman [or in his absence the vice-chairman] shall |
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preside at all meetings of the board. The chairman may designate |
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another board member to act for the chairman in the chairman's |
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absence. |
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SECTION 1.07. Section 6.061, Water Code, is amended to read |
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as follows: |
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Sec. 6.061. FULL-TIME SERVICE. Each member of the board |
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shall serve on a full-time basis. [COMPENSATION; EXPENSES.
A
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member is entitled to receive an amount as provided by the General
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Appropriations Act for each day he serves in the performance of his
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duties, together with travel and other necessary expenses.] |
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SECTION 1.08. Section 6.103, Water Code, is amended to read |
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as follows: |
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Sec. 6.103. EXECUTIVE ADMINISTRATOR. The board shall |
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appoint a person to be the executive administrator to serve at the |
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will of the board. A person is not eligible for appointment as the |
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executive administrator if the person served in that capacity on |
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January 1, 2013. |
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SECTION 1.09. (a) Not later than September 1, 2013, the |
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governor shall appoint the initial members of the Texas Water |
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Development Board under Section 6.052, Water Code, as amended by |
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this Act. In appointing the initial members of the board, the |
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governor shall appoint one person to a term expiring February 1, |
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2015, one to a term expiring February 1, 2017, and one to a term |
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expiring February 1, 2019. |
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(b) The terms of the current members of the board expire |
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September 1, 2013. |
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SECTION 1.10. (a) Not later than October 1, 2013, the Texas |
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Water Development Board shall appoint the executive administrator |
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of the board under Section 6.103, Water Code, as amended by this |
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Act. |
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(b) The person currently serving as the executive |
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administrator of the board ceases to serve in that capacity on the |
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date a new executive administrator is appointed under Subsection |
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(a) of this section. |
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ARTICLE 2. FUNDING OF WATER PROJECTS |
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SECTION 2.01. (a) The legislature recognizes the |
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importance of providing for this state's future water supply needs. |
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The purpose of this article is to ensure that proper funding in the |
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form of meaningful and adequate financial assistance is available |
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to provide an adequate water supply for the future of this state. |
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(b) To accomplish that purpose, this article creates the |
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state water implementation fund for Texas. The fund is intended to |
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serve as a water infrastructure bank in order to enhance the |
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financing capabilities of the Texas Water Development Board under |
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constitutionally created programs and revenue bond programs. The |
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fund provides a source of revenue or security for those programs and |
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provides a cash flow mechanism under which money used in board |
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programs flows back to the fund to provide protection for the fund's |
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corpus. Money in the fund will be available immediately to provide |
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support for low-interest loans, longer repayment terms for loans, |
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incremental repurchase terms for projects in which the state owns |
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an interest, and deferral of loan payments. Money in the fund may |
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not be used to make grants. In addition, this article creates the |
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state water implementation revenue fund for Texas for use in |
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managing revenue bonds issued by the board that are supported by the |
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state water implementation fund for Texas. |
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SECTION 2.02. Chapter 15, Water Code, is amended by adding |
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Subchapters G and H to read as follows: |
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SUBCHAPTER G. STATE WATER IMPLEMENTATION FUND FOR TEXAS |
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Sec. 15.431. DEFINITIONS. In this subchapter: |
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(1) "Advisory committee" means the State Water |
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Implementation Fund for Texas Advisory Committee. |
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(2) "Fund" means the state water implementation fund |
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for Texas. |
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(3) "Historically underutilized business" has the |
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meaning assigned by Section 2161.001, Government Code. |
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(4) "Trust company" means the Texas Treasury |
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Safekeeping Trust Company. |
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Sec. 15.432. FUND. (a) The state water implementation fund |
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for Texas is a special fund in the state treasury outside the |
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general revenue fund to be used by the board, without further |
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legislative appropriation, for the purpose of implementing the |
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state water plan as provided by this subchapter. The board may |
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establish separate accounts in the fund. The fund and the fund's |
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accounts are kept and held by the trust company for and in the name |
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of the board. The board has legal title to money and investments in |
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the fund until money is disbursed from the fund as provided by this |
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subchapter and board rules. It is the intent of the legislature |
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that the fund will never be used: |
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(1) for a purpose other than the support of projects in |
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the state water plan; or |
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(2) to certify that appropriations from the treasury |
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are within the amount estimated to be available in a fund of the |
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treasury affected by the appropriation. |
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(b) Money deposited to the credit of the fund may be used |
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only as provided by this subchapter. |
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(c) The fund consists of: |
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(1) money transferred or deposited to the credit of |
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the fund by law, including money from any source transferred or |
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deposited to the credit of the fund at the board's discretion as |
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authorized by law; |
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(2) the proceeds of any fee or tax imposed by this |
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state that by statute is dedicated for deposit to the credit of the |
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fund; |
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(3) any other revenue that the legislature by statute |
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dedicates for deposit to the credit of the fund; |
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(4) investment earnings and interest earned on amounts |
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credited to the fund; and |
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(5) money transferred to the fund under a bond |
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enhancement agreement from another fund or account to which money |
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from the fund was transferred under a bond enhancement agreement, |
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as authorized by Section 15.435. |
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Sec. 15.433. MANAGEMENT AND INVESTMENT OF FUND. (a) The |
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trust company shall hold and invest the fund, and any accounts |
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established in the fund, for and in the name of the board, taking |
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into account the purposes for which money in the fund may be used. |
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The fund may be invested with the state treasury pool. |
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(b) The overall objective for the investment of the fund is |
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to maintain sufficient liquidity to meet the needs of the fund while |
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striving to preserve the purchasing power of the fund. |
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(c) The trust company has any power necessary to accomplish |
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the purposes of managing and investing the assets of the fund. In |
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managing the assets of the fund, through procedures and subject to |
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restrictions the trust company considers appropriate, the trust |
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company may acquire, exchange, sell, supervise, manage, or retain |
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any kind of investment that a prudent investor, exercising |
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reasonable care, skill, and caution, would acquire or retain in |
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light of the purposes, terms, distribution requirements, and other |
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circumstances of the fund then prevailing, taking into |
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consideration the investment of all the assets of the fund rather |
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than a single investment. |
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(d) The trust company may charge fees to cover its costs |
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incurred in managing and investing the fund. The fees must be |
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consistent with the fees the trust company charges other state and |
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local governmental entities for which it provides investment |
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management services. The trust company may recover fees it charges |
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under this subsection only from the earnings of the fund. |
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(e) The trust company annually shall provide a written |
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report to the board and to the advisory committee with respect to |
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the investment of the fund. The trust company shall contract with a |
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certified public accountant to conduct an independent audit of the |
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fund annually and shall present the results of each annual audit to |
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the board and to the advisory committee. This subsection does not |
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affect the state auditor's authority to conduct an audit of the fund |
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under Chapter 321, Government Code. |
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(f) The trust company shall adopt a written investment |
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policy that is appropriate for the fund. The trust company shall |
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present the investment policy to the investment advisory board |
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established under Section 404.028, Government Code. The investment |
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advisory board shall submit to the trust company recommendations |
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regarding the policy. |
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(g) The board annually shall provide to the trust company a |
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forecast of the cash flows into and out of the fund. The board shall |
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provide updates to the forecasts as appropriate to ensure that the |
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trust company is able to achieve the objective specified by |
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Subsection (b). |
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(h) The trust company shall disburse money from the fund as |
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directed by the board. The board shall direct disbursements from |
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the fund on a semiannual schedule specified by the board and not |
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more frequently than twice in any state fiscal year. |
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(i) An investment-related contract entered into under this |
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section is not subject to Chapter 2260, Government Code. |
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Sec. 15.434. USE OF FUND; PAYMENTS TO AND FROM OTHER FUNDS |
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OR ACCOUNTS. (a) At the direction of the board, the trust company |
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shall make disbursements from the fund to another fund or account |
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pursuant to a bond enhancement agreement authorized by Section |
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15.435 in the amounts the board determines are needed for debt |
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service payments on or security provisions of the board's general |
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obligation bonds or revenue bonds, after considering all other |
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sources available for those purposes in the respective fund or |
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account. |
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(b) Of the money disbursed from the fund during the |
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five-year period between the adoption of a state water plan and the |
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adoption of a new plan, the board shall undertake to apply not less |
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than: |
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(1) 10 percent to support projects described by |
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Section 15.435 that are for: |
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(A) rural political subdivisions as defined by |
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Section 15.992; or |
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(B) agricultural water conservation; and |
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(2) 20 percent to support projects described by |
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Section 15.435, including agricultural irrigation projects, that |
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are designed for water conservation or reuse. |
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Sec. 15.435. BOND ENHANCEMENT AGREEMENTS. (a) A bond |
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enhancement agreement entered into under this section is an |
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agreement for professional services. A bond enhancement agreement |
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must contain terms that are consistent with Section 15.433(h), and |
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the agreement, including the period covered by the agreement and |
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all other terms and conditions of the agreement, must be approved by |
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the board. An obligation to disburse money from the fund, or from a |
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special account established by the board, in accordance with a bond |
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enhancement agreement is a special obligation of the board payable |
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solely from designated income and receipts of the fund or of the |
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account, as determined by the board. An obligation to disburse |
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money from the fund, or from a special account established by the |
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board, in accordance with a bond enhancement agreement does not |
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constitute indebtedness of the state. |
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(b) To facilitate the use of the fund for the purposes of |
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this subchapter, the board may direct the trust company to enter |
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into bond enhancement agreements to provide a source of revenue or |
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security for the payment of the principal of and interest on general |
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obligation bonds, including bonds issued under Section 49-d-9 or |
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49-d-11, Article III, Texas Constitution, or revenue bonds issued |
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by the board to finance or refinance projects included in the state |
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water plan if the proceeds of the sale of the bonds have been or will |
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be deposited to the credit of: |
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(1) the state water implementation revenue fund for |
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Texas; |
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(2) the water infrastructure fund; |
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(3) the rural water assistance fund; |
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(4) the Texas Water Development Fund II state |
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participation account; or |
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(5) the agricultural water conservation fund. |
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(c) If the trust company enters into a bond enhancement |
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agreement under Subsection (b), the board may direct the trust |
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company to make disbursements from the fund to another fund or |
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account for the support of bonds the proceeds of which are used to |
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provide financial assistance in the form of: |
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(1) a loan bearing an interest rate of not less than 50 |
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percent of the then-current market rate of interest available to |
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the board; |
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(2) a loan to finance a facility under repayment terms |
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similar to the terms of debt customarily issued by the entity |
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requesting assistance but not to exceed the lesser of: |
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(A) the expected useful life of the facility; or |
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(B) 30 years; |
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(3) a deferral of loan repayment, including deferral |
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of the repayment of: |
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(A) principal and interest; or |
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(B) accrued interest; |
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(4) incremental repurchase terms for an acquired |
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facility, including terms for no initial repurchase payment |
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followed by progressively increasing incremental levels of |
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interest payment, repurchase of principal and interest, and |
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ultimate repurchase of the entire state interest in the facility |
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using simple interest calculations; or |
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(5) a combination of the methods of financing |
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described by Subdivisions (1)-(4). |
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(d) The board may direct the trust company to enter into |
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bond enhancement agreements with respect to bonds issued by the |
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board before September 1, 2013, only if: |
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(1) those bonds otherwise satisfy the requirements of |
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Subsections (b) and (c); |
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(2) the proceeds of those bonds were or are required to |
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be used only for the implementation of water projects recommended |
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through the state and regional water planning processes under |
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Sections 16.051 and 16.053; and |
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(3) general revenue of the state was appropriated |
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before September 1, 2013, for the payment of debt service on those |
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bonds. |
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(e) The board may direct the trust company to enter into |
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bond enhancement agreements with respect to refunding bonds issued |
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by the board to refund bonds issued by the board the proceeds of |
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which have been or are to be used for projects included in the state |
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water plan and which otherwise satisfied the requirements of |
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Subsections (b) and (c). |
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(f) The board may not direct the trust company to enter into |
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a bond enhancement agreement with respect to bonds issued by the |
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board the proceeds of which have been or are to be used to make |
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grants. |
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(g) The board may not direct the trust company to enter into |
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a bond enhancement agreement with respect to bonds issued by the |
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board the proceeds of which may be used to provide financial |
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assistance to an applicant if at the time of the request the |
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applicant has failed to: |
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(1) submit or implement a water conservation plan in |
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accordance with Section 11.1271; or |
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(2) satisfactorily complete a request by the executive |
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administrator or a regional water planning group for information |
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relevant to the project for which the financial assistance is |
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sought, including a water infrastructure financing survey under |
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Section 16.053(q). |
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(h) The board may not direct the trust company to enter into |
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a bond enhancement agreement with respect to bonds issued by the |
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board the proceeds of which may be used to provide financial |
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assistance to an applicant unless at the time of the request the |
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applicant has acknowledged its legal obligation to comply with any |
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applicable requirements of: |
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(1) federal law relating to contracting with |
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disadvantaged business enterprises; and |
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(2) state law relating to contracting with |
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historically underutilized businesses. |
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(i) The board may not approve a bond enhancement agreement |
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with respect to bonds issued by the board unless the agreement |
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contains a provision to the effect that if the trust company makes a |
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disbursement under the bond enhancement agreement from the fund to |
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the credit of another fund or account as provided by Section |
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15.434(a), the board shall direct the comptroller to transfer an |
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amount not to exceed that amount from the fund or account receiving |
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the payment back to the fund if: |
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(1) money is available in the surplus balance in the |
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fund or account for that purpose; and |
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(2) the money transferred back to the fund will not |
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cause general obligation bonds that are payable from the fund or |
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account receiving the payment to no longer be self-supporting for |
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purposes of Section 49-j(b), Article III, Texas Constitution. |
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(j) For purposes of Subsection (i)(1), the surplus balance |
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of a fund or account that receives a disbursement from the fund |
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under a bond enhancement agreement is the amount of money on deposit |
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in the fund or account, as determined by the board, that is |
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attributable to the general obligation bonds or revenue bonds that |
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are the subject of the bond enhancement agreement, including money |
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received from the sale or other disposition of the board's rights to |
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receive repayment of financial assistance, money received from the |
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sale, transfer, or lease of an acquired facility, money received |
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from the sale of water associated with an acquired facility, and |
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related investment earnings, that exceeds the amount required to |
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pay annual debt service on the bonds and any other amounts specified |
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in the resolution or other proceedings authorizing the bonds and |
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any related obligations. |
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(k) The board shall submit each bond enhancement agreement |
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and the record relating to the agreement to the attorney general for |
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examination as to the validity of the agreement. If the attorney |
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general finds that the agreement has been made in accordance with |
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the constitution and other laws of this state, the attorney general |
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shall approve the agreement and the comptroller shall register the |
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agreement. If the agreement is not submitted at the same time that |
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the bonds to which it relates are submitted, the agreement shall be |
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treated as a public security solely for the purposes of Section |
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1202.004, Government Code. |
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(l) After a bond enhancement agreement has been approved and |
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registered as provided by Subsection (k), the agreement is valid |
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and is incontestable for any cause. |
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(m) At the direction of the board, the trust company shall |
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make disbursements from the fund, or from a special account |
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established by the board, in accordance with a bond enhancement |
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agreement in the amounts the board determines are needed for debt |
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service payments on, or for security provisions of, general |
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obligation bonds or revenue bonds issued by the board the proceeds |
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of the sale of which have been deposited in another fund |
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administered by the board, or in an account in that other fund, for |
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use in accordance with this subchapter, after the board considers |
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all other sources available for those purposes in that other fund or |
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account. Money transferred under this subsection may be deposited |
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into that other fund or into a special account established by the |
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trust company or a corporate trustee that is a trust company or a |
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bank that has the powers of a trust company, as determined by the |
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board. |
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Sec. 15.436. PRIORITIZATION OF PROJECTS BY REGIONAL WATER |
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PLANNING GROUPS. (a) Each regional water planning group shall |
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prioritize projects in its respective regional water plan for the |
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purposes of Section 15.435. At a minimum, a regional water planning |
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group must consider the following criteria in prioritizing each |
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project: |
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(1) the decade in which the project will be needed; |
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(2) the feasibility of the project, including the |
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availability of water rights for purposes of the project and the |
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hydrological and scientific practicability of the project; |
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(3) the viability of the project, including whether |
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the project is a comprehensive solution with a measurable outcome; |
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(4) the sustainability of the project, taking into |
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consideration the life of the project; and |
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(5) the cost-effectiveness of the project, taking into |
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consideration the expected unit cost of the water to be supplied by |
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the project. |
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(b) In prioritizing projects, each regional water planning |
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group shall include projects that meet long-term needs as well as |
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projects that meet short-term needs. |
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(c) The board shall create a stakeholders committee |
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composed of the presiding officer or a person designated by the |
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presiding officer of each regional water planning group to |
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establish uniform standards to be used by the regional water |
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planning groups in prioritizing projects under this section. |
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Uniform standards established under this subsection must be |
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approved by the board. The board shall consult the stakeholders |
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committee from time to time regarding regional prioritization of |
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projects. |
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(d) Each regional water planning group shall submit to the |
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board the prioritization developed by the group under this section |
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together with the group's respective regional water plan developed |
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and submitted under Section 16.053. |
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Sec. 15.437. PRIORITIZATION OF PROJECTS BY BOARD. (a) The |
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board shall prioritize projects included in the state water plan |
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for the purpose of providing financial assistance under this |
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subchapter. |
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(b) The board shall establish a point system for |
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prioritizing projects for which financial assistance is sought from |
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the board. The system must include a standard for the board to |
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apply in determining whether a project qualifies for financial |
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assistance at the time the application for financial assistance is |
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filed with the board. |
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(c) The board shall give the highest consideration in |
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awarding points to projects that will have a substantial effect, |
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including projects that will: |
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(1) serve a large population; |
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(2) provide assistance to a diverse urban and rural |
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population; |
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(3) provide regionalization; or |
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(4) meet a high percentage of the water supply needs of |
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the water users to be served by the project. |
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(d) In addition to the criteria provided by Subsection (c), |
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the board must also consider at least the following criteria in |
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prioritizing projects: |
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(1) the local contribution to be made to finance the |
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project, including the up-front capital to be provided by the |
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applicant; |
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(2) the financial capacity of the applicant to repay |
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the financial assistance provided; |
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(3) the ability of the board and the applicant to |
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timely leverage state financing with local and federal funding; |
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(4) whether there is an emergency need for the |
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project, taking into consideration whether: |
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(A) the applicant is included at the time of the |
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application on the list maintained by the commission of local |
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public water systems that have a water supply that will last less |
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than 180 days without additional rainfall; and |
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(B) federal funding for which the project is |
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eligible has been used or sought; |
|
(5) if the applicant is applying for financial |
|
assistance for the project under Subchapter Q, whether the |
|
applicant is ready to proceed with the project at the time of the |
|
application, including whether: |
|
(A) all preliminary planning and design work |
|
associated with the project has been completed; |
|
(B) the applicant has acquired the water rights |
|
associated with the project; |
|
(C) the applicant has secured funding for the |
|
project from other sources; and |
|
(D) the applicant is able to begin implementing |
|
or constructing the project; |
|
(6) the demonstrated or projected effect of the |
|
project on water conservation, including preventing the loss of |
|
water, taking into consideration, if applicable, whether the |
|
applicant has filed a water audit with the board under Section |
|
16.0121 that demonstrates that the applicant is accountable with |
|
regard to reducing water loss and increasing efficiency in the |
|
distribution of water; and |
|
(7) the priority given the project by the applicable |
|
regional water planning group under Section 15.436. |
|
Sec. 15.438. ADVISORY COMMITTEE. (a) The State Water |
|
Implementation Fund for Texas Advisory Committee is composed of the |
|
following seven members: |
|
(1) the comptroller, or a person designated by the |
|
comptroller; |
|
(2) three members of the senate appointed by the |
|
lieutenant governor, including: |
|
(A) a member of the committee of the senate |
|
having primary jurisdiction over matters relating to finance; and |
|
(B) a member of the committee of the senate |
|
having primary jurisdiction over natural resources; and |
|
(3) three members of the house of representatives |
|
appointed by the speaker of the house of representatives, |
|
including: |
|
(A) a member of the committee of the house of |
|
representatives having primary jurisdiction over appropriations; |
|
and |
|
(B) a member of the committee of the house of |
|
representatives having primary jurisdiction over natural |
|
resources. |
|
(b) The following persons shall serve as staff support for |
|
the advisory committee: |
|
(1) the deputy executive administrator of the board |
|
who is responsible for water science and conservation or a person |
|
who holds an equivalent position at the agency, or a person |
|
designated by that person; |
|
(2) the deputy executive administrator of the board |
|
who is responsible for water resources planning and information or |
|
a person who holds an equivalent position at the agency, or a person |
|
designated by that person; and |
|
(3) the chief financial officer of the board, or a |
|
person who holds an equivalent position at the agency. |
|
(c) An appointed member of the advisory committee serves at |
|
the will of the person who appointed the member. |
|
(d) The lieutenant governor shall appoint a co-presiding |
|
officer of the advisory committee from among the members appointed |
|
by the lieutenant governor, and the speaker of the house of |
|
representatives shall appoint a co-presiding officer of the |
|
committee from among the members appointed by the speaker. |
|
(e) The advisory committee may hold public hearings, formal |
|
meetings, or work sessions. Either co-presiding officer of the |
|
advisory committee may call a public hearing, formal meeting, or |
|
work session of the advisory committee at any time. The advisory |
|
committee may not take formal action at a public hearing, formal |
|
meeting, or work session unless a quorum of the committee is |
|
present. |
|
(f) Except as otherwise provided by this subsection, a |
|
member of the advisory committee is not entitled to receive |
|
compensation for service on the committee or reimbursement for |
|
expenses incurred in the performance of official duties as a member |
|
of the committee. Service on the advisory committee by a member of |
|
the senate or house of representatives is considered legislative |
|
service for which the member is entitled to reimbursement and other |
|
benefits in the same manner and to the same extent as for other |
|
legislative service. |
|
(g) The advisory committee shall submit comments and |
|
recommendations to the board regarding the use of money in the fund |
|
for use by the board in adopting rules under Section 15.439 and in |
|
adopting policies and procedures under Section 15.441. The |
|
submission must include: |
|
(1) comments and recommendations on rulemaking |
|
related to the prioritization of projects in regional water plans |
|
and the state water plan in accordance with Sections 15.436 and |
|
15.437; |
|
(2) comments and recommendations on rulemaking |
|
related to establishing standards for determining whether projects |
|
meet the criteria provided by Section 15.434(b); |
|
(3) an evaluation of the available programs for |
|
providing financing for projects included in the state water plan |
|
and guidelines for implementing those programs, including |
|
guidelines for providing financing for projects included in the |
|
state water plan that are authorized under Subchapter Q or R of this |
|
chapter, Subchapter E or F, Chapter 16, or Subchapter J, Chapter 17; |
|
(4) an evaluation of the lending practices of the |
|
board and guidelines for lending standards; |
|
(5) an evaluation of the use of funds by the board to |
|
provide support for financial assistance for water projects, |
|
including support for the purposes described by Section 15.435(c); |
|
(6) an evaluation of whether premium financing |
|
programs should be established within the funds described by |
|
Section 15.435 to serve the purposes of this subchapter, especially |
|
in connection with projects described by Section 15.434(b); |
|
(7) an evaluation of methods for encouraging |
|
participation in the procurement process by companies domiciled in |
|
this state or that employ a significant number of residents of this |
|
state; and |
|
(8) an evaluation of the overall operation, function, |
|
and structure of the fund. |
|
(h) The advisory committee shall review the overall |
|
operation, function, and structure of the fund at least |
|
semiannually and may provide comments and recommendations to the |
|
board on any matter. |
|
(i) The advisory committee may adopt rules, procedures, and |
|
policies as needed to administer this section and implement its |
|
responsibilities. |
|
(j) Chapter 2110, Government Code, does not apply to the |
|
size, composition, or duration of the advisory committee. |
|
(k) The advisory committee is subject to Chapter 325, |
|
Government Code (Texas Sunset Act). Unless continued in existence |
|
as provided by that chapter, the advisory committee is abolished |
|
and this section expires September 1, 2023. |
|
(l) The advisory committee shall make recommendations to |
|
the board regarding information to be posted on the board's |
|
Internet website under Section 15.440(b). |
|
(m) The advisory committee shall evaluate and may provide |
|
comments or recommendations on the feasibility of the state owning, |
|
constructing, and operating water supply projects, including |
|
reservoirs and major water supply conveyance infrastructure, |
|
through existing financial assistance programs under Subchapter E |
|
of this chapter, Subchapter E or F, Chapter 16, or other mechanisms. |
|
(n) The executive administrator shall provide an annual |
|
report to the advisory committee on: |
|
(1) the board's compliance with statewide annual goals |
|
relating to historically underutilized businesses; and |
|
(2) the participation level of historically |
|
underutilized businesses in projects that receive funding related |
|
to a bond enhancement agreement under this subchapter. |
|
(o) If the aggregate level of participation by historically |
|
underutilized businesses in projects that receive funding related |
|
to a bond enhancement agreement under this subchapter does not meet |
|
statewide annual goals adopted under Chapter 2161, Government Code, |
|
the advisory committee shall make recommendations to the board to |
|
improve the participation level. |
|
Sec. 15.439. RULES. (a) The board shall adopt rules |
|
providing for the use of money in the fund that are consistent with |
|
this subchapter, including rules: |
|
(1) establishing standards for determining whether |
|
projects meet the criteria provided by Section 15.434(b); and |
|
(2) specifying the manner for prioritizing projects |
|
for purposes of Section 15.437. |
|
(b) The board shall give full consideration to the |
|
recommendations of the advisory committee before adopting rules |
|
under this subchapter. |
|
Sec. 15.440. REPORTING AND TRANSPARENCY REQUIREMENTS. (a) |
|
Not later than December 1 of each even-numbered year, the board |
|
shall provide a report to the governor, lieutenant governor, |
|
speaker of the house of representatives, and members of the |
|
legislature regarding the use of the fund, including the use of the |
|
fund to support projects that are for rural political subdivisions |
|
or agricultural water conservation or that are designed for water |
|
conservation or reuse as required by Section 15.434(b). |
|
(b) The board shall post the following information on the |
|
board's Internet website regarding the use of the fund and |
|
regularly update the information posted: |
|
(1) the progress made in developing needed water |
|
supply statewide and for the benefit of each regional water |
|
planning area; and |
|
(2) for each regional water planning area, a |
|
description of each project funded through bonds supported by a |
|
bond enhancement agreement entered into under Section 15.435, |
|
including: |
|
(A) the expected date of completion of the |
|
project; and |
|
(B) the current status of the project. |
|
Sec. 15.441. POLICIES AND PROCEDURES TO MITIGATE OR |
|
MINIMIZE ADVERSE EFFECTS OF CERTAIN FEDERAL LAWS. The board shall |
|
adopt, and may amend from time to time at the board's discretion, |
|
policies and procedures for the purpose of mitigating or minimizing |
|
the adverse effects, if any, of federal laws and regulations |
|
relating to income taxes, arbitrage, rebates, and related matters |
|
that may restrict the board's ability to freely invest all or part |
|
of the fund or to receive and retain all the earnings from the fund. |
|
SUBCHAPTER H. STATE WATER IMPLEMENTATION REVENUE FUND FOR TEXAS |
|
Sec. 15.471. DEFINITION. In this subchapter, "fund" means |
|
the state water implementation revenue fund for Texas. |
|
Sec. 15.472. FUND. (a) The state water implementation |
|
revenue fund for Texas is a special fund in the state treasury |
|
outside the general revenue fund to be used by the board, without |
|
further legislative appropriation, only for the purpose of |
|
providing financing for projects included in the state water plan |
|
that are authorized under Subchapter Q or R of this chapter, |
|
Subchapter E or F, Chapter 16, or Subchapter J, Chapter 17. The |
|
board may establish separate accounts in the fund. The board has |
|
legal title to money and investments in the fund until the money is |
|
disbursed as provided by this subchapter and board rules. It is the |
|
intent of the legislature that the fund will never be used: |
|
(1) for a purpose other than the support of projects in |
|
the state water plan; or |
|
(2) to certify that appropriations from the treasury |
|
are within the amount estimated to be available in a fund of the |
|
treasury affected by the appropriation. |
|
(b) Money deposited to the credit of the fund may be used |
|
only as provided by this subchapter. |
|
(c) The fund consists of: |
|
(1) money transferred or deposited to the credit of |
|
the fund by law, including money from any source transferred or |
|
deposited to the credit of the fund at the board's discretion as |
|
authorized by law; |
|
(2) the proceeds of any fee or tax imposed by this |
|
state that by statute is dedicated for deposit to the credit of the |
|
fund; |
|
(3) any other revenue that the legislature by statute |
|
dedicates for deposit to the credit of the fund; |
|
(4) investment earnings and interest earned on amounts |
|
credited to the fund; |
|
(5) the proceeds from the sale of bonds, including |
|
revenue bonds issued by the board under this subchapter, that are |
|
designated by the board for the purpose of providing money for the |
|
fund; |
|
(6) repayments of loans made from the fund; |
|
(7) money from the sale, transfer, or lease of a |
|
project acquired, constructed, reconstructed, developed, or |
|
enlarged with money from the fund; and |
|
(8) money disbursed to the fund from the state water |
|
implementation fund for Texas as authorized by Section 15.434. |
|
Sec. 15.473. MANAGEMENT AND INVESTMENT OF FUND. (a) Money |
|
deposited to the credit of the fund shall be invested as determined |
|
by the board. The fund may be invested with the state treasury |
|
pool. |
|
(b) The fund and any accounts established in the fund shall |
|
be kept and maintained by or at the direction of the board. |
|
(c) At the direction of the board, the fund and any accounts |
|
established in the fund may be managed by the comptroller or a |
|
corporate trustee that is a trust company or a bank that has the |
|
powers of a trust company for and on behalf of the board and pending |
|
their use for the purposes provided by this subchapter may be |
|
invested as provided by an order, resolution, or rule of the board. |
|
(d) The comptroller or corporate trustee shall manage the |
|
fund in strict accordance with this subchapter and the orders, |
|
resolutions, and rules of the board. |
|
Sec. 15.474. USE OF FUND. (a) Except as provided by |
|
Subsection (c), money in the fund may be used by the board only to |
|
provide financing or refinancing, under terms specified by the |
|
board, for projects included in the state water plan that are |
|
authorized under Subchapter Q or R of this chapter, Subchapter E or |
|
F, Chapter 16, or Subchapter J, Chapter 17, including water |
|
conservation or reuse projects designed to reduce the need for this |
|
state or political subdivisions of this state to develop additional |
|
water resources. |
|
(b) Financing or refinancing of projects described by |
|
Subsection (a) may be provided by using money in the fund to make |
|
loans to eligible political subdivisions or to purchase bonds or |
|
other obligations of eligible political subdivisions bearing |
|
interest at a rate or rates determined by the board, including a |
|
rate or rates below prevailing market rates. |
|
(c) The board may use money in the fund: |
|
(1) as a source of revenue or security for: |
|
(A) the payment of the principal of and interest |
|
on: |
|
(i) revenue bonds issued by the board under |
|
this subchapter; or |
|
(ii) other bonds issued by the board if the |
|
proceeds of the bonds will be deposited in the fund; or |
|
(B) a bond enhancement agreement; |
|
(2) to acquire loans or other assets from another fund |
|
or account administered by the board, including political |
|
subdivision bonds sold or disposed of under Section 15.978 or |
|
17.968; or |
|
(3) to pay the necessary and reasonable expenses of |
|
paying agents, bond counsel, and financial advisory services and |
|
similar costs incurred by the board in administering the fund. |
|
(d) The board, or comptroller or corporate trustee managing |
|
the fund at the direction of the board as provided by Section |
|
15.473(c), shall withdraw from the fund and forward to another |
|
person any amounts, as determined by the board, for timely payment |
|
of: |
|
(1) the principal of and interest on bonds described |
|
by Subsection (c)(1)(A) of this section that mature or become due; |
|
and |
|
(2) any cost related to bonds described by Subsection |
|
(c)(1)(A) of this section that become due, including payments under |
|
related credit agreements or bond enhancement agreements. |
|
Sec. 15.475. ISSUANCE OF REVENUE BONDS. (a) The board may |
|
issue revenue bonds for the purpose of providing money for the fund. |
|
(b) The board may issue revenue bonds to refund revenue |
|
bonds or bonds and obligations issued or incurred in accordance |
|
with other provisions of law. |
|
(c) Revenue bonds issued under this subchapter are special |
|
obligations of the board payable only from and secured by |
|
designated income and receipts of the fund, or of one or more |
|
accounts in the fund, including principal of and interest paid and |
|
to be paid on fund assets or income from accounts created within the |
|
fund by the board, as determined by the board. |
|
(d) Revenue bonds issued under this subchapter do not |
|
constitute indebtedness of the state as prohibited by the |
|
constitution. |
|
(e) The board may require fund participants to make charges, |
|
levy taxes, or otherwise provide for sufficient money to pay |
|
acquired obligations. |
|
(f) Revenue bonds issued under this subchapter must be |
|
authorized by resolution of the board and must have the form and |
|
characteristics and bear the designations as the resolution |
|
provides. |
|
(g) Revenue bonds issued under this subchapter may: |
|
(1) bear interest at the rate or rates payable |
|
annually or otherwise; |
|
(2) be dated; |
|
(3) mature at the time or times, serially, as term |
|
revenue bonds, or otherwise in not more than 50 years from their |
|
dates; |
|
(4) be callable before stated maturity on the terms |
|
and at the prices, be in the denominations, be in the form, either |
|
coupon or registered, carry registration privileges as to principal |
|
only or as to both principal and interest and as to successive |
|
exchange of coupon for registered bonds or one denomination for |
|
bonds of other denominations, and successive exchange of registered |
|
revenue bonds for coupon revenue bonds, be executed in the manner, |
|
and be payable at the place or places inside or outside the state, |
|
as provided by the resolution; |
|
(5) be issued in temporary or permanent form; |
|
(6) be issued in one or more installments and from time |
|
to time as required and sold at a price or prices and under terms |
|
determined by the board to be the most advantageous reasonably |
|
obtainable; and |
|
(7) be issued on a parity with and be secured in the |
|
manner as other revenue bonds authorized to be issued by this |
|
subchapter or may be issued without parity and secured differently |
|
than other revenue bonds. |
|
(h) Section 17.955 applies to revenue bonds issued under |
|
this subchapter in the same manner as that section applies to water |
|
financial assistance bonds. |
|
(i) All proceedings relating to the issuance of revenue |
|
bonds issued under this subchapter shall be submitted to the |
|
attorney general for examination. If the attorney general finds |
|
that the revenue bonds have been authorized in accordance with law, |
|
the attorney general shall approve the revenue bonds, and the |
|
revenue bonds shall be registered by the comptroller. After the |
|
approval and registration, the revenue bonds are incontestable in |
|
any court or other forum for any reason and are valid and binding |
|
obligations in accordance with their terms for all purposes. |
|
(j) The proceeds received from the sale of revenue bonds |
|
issued under this subchapter may be deposited or invested in any |
|
manner and in such investments as may be specified in the resolution |
|
or other proceedings authorizing those obligations. Money in the |
|
fund or accounts created by this subchapter or created in the |
|
resolution or other proceedings authorizing the revenue bonds may |
|
be invested in any manner and in any obligations as may be specified |
|
in the resolution or other proceedings. |
|
Sec. 15.476. SUBCHAPTER CUMULATIVE OF OTHER LAWS. (a) This |
|
subchapter is cumulative of other laws on the subject, and the board |
|
may use provisions of other applicable laws in the issuance of bonds |
|
and other obligations and the execution of bond enhancement |
|
agreements, but this subchapter is wholly sufficient authority for |
|
the issuance of bonds and other obligations, the execution of bond |
|
enhancement agreements, and the performance of all other acts and |
|
procedures authorized by this subchapter. |
|
(b) In addition to other authority granted by this |
|
subchapter, the board may exercise the authority granted to the |
|
governing body of an issuer with regard to the issuance of |
|
obligations under Chapter 1371, Government Code. |
|
SECTION 2.03. Section 15.973(b), Water Code, is amended to |
|
read as follows: |
|
(b) The fund consists of: |
|
(1) appropriations from the legislature; |
|
(2) any other fees or sources of revenue that the |
|
legislature may dedicate for deposit to the fund; |
|
(3) repayments of loans made from the fund; |
|
(4) interest earned on money credited to the fund; |
|
(5) depository interest allocable to the fund; |
|
(6) money from gifts, grants, or donations to the |
|
fund; |
|
(7) money from revenue bonds or other sources |
|
designated by the board; [and] |
|
(8) proceeds from the sale of political subdivision |
|
bonds or obligations held in the fund and not otherwise pledged to |
|
the discharge, repayment, or redemption of revenue bonds or other |
|
bonds, the proceeds of which were placed in the fund; and |
|
(9) money disbursed to the fund from the state water |
|
implementation fund for Texas as authorized by Section 15.434. |
|
SECTION 2.04. Section 15.974, Water Code, is amended by |
|
adding Subsection (b) to read as follows: |
|
(b) The board shall transfer back to the state water |
|
implementation fund for Texas any money disbursed to the fund as |
|
described by Section 15.973(b)(9) if the requirements of Section |
|
15.435 are satisfied. |
|
SECTION 2.05. Section 15.978(c), Water Code, is amended to |
|
read as follows: |
|
(c) Notwithstanding other provisions of this chapter, the |
|
board may sell to the Texas Water Resources Finance Authority or to |
|
the state water implementation revenue fund for Texas any political |
|
subdivision bonds purchased with money in the water infrastructure |
|
fund and may apply the proceeds of a sale in the manner provided by |
|
this section. |
|
SECTION 2.06. Section 15.993, Water Code, is amended to |
|
read as follows: |
|
Sec. 15.993. FUND. The rural water assistance fund is a |
|
special fund in the state treasury. The fund consists of: |
|
(1) money directly appropriated to the board for a |
|
purpose of the fund; |
|
(2) repayment of principal and interest from loans |
|
made from the fund not otherwise needed as a source of revenue |
|
pursuant to Section 17.9615(b); |
|
(3) money transferred by the board from any sources |
|
available; |
|
(4) interest earned on the investment of money in the |
|
fund and depository interest allocable to the fund; |
|
(5) money transferred to the fund from the water |
|
assistance fund in accordance with Section 15.011(b), including |
|
proceeds from the sale of political subdivision bonds by the board |
|
to the Texas Water Resources Finance Authority that are deposited |
|
in the water assistance fund as provided by Section 17.0871; |
|
(6) money from gifts, grants, or donations to the |
|
fund; |
|
(7) money disbursed to the fund from the state water |
|
implementation fund for Texas as authorized by Section 15.434; and |
|
(8) [(7)] any other fees or sources of revenue that |
|
the legislature may dedicate for deposit to the fund. |
|
SECTION 2.07. Section 15.994, Water Code, is amended by |
|
adding Subsection (i) to read as follows: |
|
(i) The board shall transfer back to the state water |
|
implementation fund for Texas any money disbursed to the fund as |
|
described by Section 15.993(7) if the requirements of Section |
|
15.435 are satisfied. |
|
SECTION 2.08. Section 17.183, Water Code, is amended to |
|
read as follows: |
|
Sec. 17.183. CONSTRUCTION CONTRACT REQUIREMENTS. (a) The |
|
governing body of each political subdivision receiving financial |
|
assistance from the board shall require in all contracts for the |
|
construction of a project: |
|
(1) that each bidder furnish a bid guarantee |
|
equivalent to five percent of the bid price; |
|
(2) that each contractor awarded a construction |
|
contract furnish performance and payment bonds: |
|
(A) the performance bond shall include without |
|
limitation guarantees that work done under the contract will be |
|
completed and performed according to approved plans and |
|
specifications and in accordance with sound construction |
|
principles and practices; and |
|
(B) the performance and payment bonds shall be in |
|
a penal sum of not less than 100 percent of the contract price and |
|
remain in effect for one year beyond the date of approval by the |
|
engineer of the political subdivision; [and] |
|
(3) that payment be made in partial payments as the |
|
work progresses; |
|
(4) that each partial payment shall not exceed 95 |
|
percent of the amount due at the time of the payment as shown by the |
|
engineer of the project, but, if the project is substantially |
|
complete, a partial release of the five percent retainage may be |
|
made by the political subdivision with approval of the executive |
|
administrator; |
|
(5) that payment of the retainage remaining due upon |
|
completion of the contract shall be made only after: |
|
(A) approval by the engineer for the political |
|
subdivision as required under the bond proceedings; |
|
(B) approval by the governing body of the |
|
political subdivision by a resolution or other formal action; and |
|
(C) certification by the executive administrator |
|
in accordance with the rules of the board that the work to be done |
|
under the contract has been completed and performed in a |
|
satisfactory manner and in accordance with approved plans and |
|
specifications [sound engineering principles and practices]; |
|
(6) that no valid approval may be granted unless the |
|
work done under the contract has been completed and performed in a |
|
satisfactory manner according to approved plans and |
|
specifications; [and] |
|
(7) that, if a political subdivision receiving |
|
financial assistance under Subchapter K of this chapter, labor from |
|
inside the political subdivision be used to the extent possible; |
|
and |
|
(8) that the contract include a requirement that iron |
|
and steel products and manufactured goods used in the project be |
|
produced in the United States, unless: |
|
(A) such products or goods are not: |
|
(i) available in sufficient quantities; |
|
(ii) readily available; or |
|
(iii) of a satisfactory quality; or |
|
(B) the use of such products or goods will |
|
increase the total cost of the project by more than 20 percent. |
|
(b) Plans and specifications submitted to the board in |
|
connection with an application for financial assistance must |
|
include a seal by a licensed engineer affirming that the plans and |
|
specifications are consistent with and conform to current industry |
|
design and construction standards. |
|
(c) For the purposes of Subsections (a)(8) and (d): |
|
(1) "Component" means any article, material, or |
|
supply, whether a manufactured good or raw material, that is |
|
directly incorporated into a manufactured good. |
|
(2) "Manufactured good" means an item produced as the |
|
result of a manufacturing process. |
|
(3) "Manufacturing process" means the application of a |
|
process to alter the form or function of materials or elements of a |
|
product in a manner that adds value and transforms the materials or |
|
elements so that a new end product is produced that is functionally |
|
different from the product that would result from simple assembly |
|
of the materials or elements. |
|
(4) "Produced in the United States" means: |
|
(A) in the case of iron and steel products, |
|
products for which all manufacturing processes, from initial |
|
melting through application of coatings, take place in the United |
|
States, except metallurgical processes that involve the refinement |
|
of steel additives; and |
|
(B) in the case of a manufactured good, a good for |
|
which: |
|
(i) all of the manufacturing process that |
|
produced the manufactured good takes place in the United States; |
|
and |
|
(ii) more than 60 percent of the components |
|
of the manufactured good, by cost, originate in the United States. |
|
(d) For the purposes of Subsection (c)(4)(B)(ii), if a |
|
component originates in the United States, the entire cost of that |
|
component contributes to the determination of the percentage of the |
|
components of the manufactured good that originate in the United |
|
States. |
|
(e) This section shall be applied in a manner consistent |
|
with this state's obligations under any international agreement. |
|
SECTION 2.09. Section 17.185(a), Water Code, is amended to |
|
read as follows: |
|
(a) The board may inspect the construction of a project at |
|
any time to assure that[:
|
|
[(1)] the contractor is substantially complying with |
|
the approved engineering plans and specifications of the project[;
|
|
and
|
|
[(2)
the contractor is constructing the project in
|
|
accordance with sound engineering principles]. |
|
SECTION 2.10. Section 17.187, Water Code, is amended to |
|
read as follows: |
|
Sec. 17.187. CERTIFICATE OF APPROVAL. The executive |
|
administrator may consider the following as grounds for refusal to |
|
give a certificate of approval for any construction contract: |
|
(1) failure to construct the project according to |
|
approved plans and specifications; or |
|
(2) [failure to construct the works in accordance with
|
|
sound engineering principles; or
|
|
[(3)] failure to comply with any term of the contract. |
|
SECTION 2.11. Section 17.276(c), Water Code, is amended to |
|
read as follows: |
|
(c) The board has the sole responsibility and authority for |
|
selecting the political subdivisions to whom financial assistance |
|
may be provided for treatment works and the amount of any such |
|
assistance. [In consultation with and pursuant to agreement with
|
|
the political subdivision, except as provided by Subsection (d) of
|
|
this section, the board shall determine the location, time, design,
|
|
scope, and all other aspects of the construction of a sewerage
|
|
system for which financial assistance is provided.] |
|
SECTION 2.12. Section 17.775(c), Water Code, is amended to |
|
read as follows: |
|
(c) The board has the sole responsibility and authority for |
|
selecting the political subdivisions to whom financial assistance |
|
may be provided and [,] the amount of any such assistance[, and in
|
|
consultation with and pursuant to agreement with the political
|
|
subdivision, the board shall determine the location, time, design,
|
|
scope, and all other aspects of the construction to be performed]. |
|
SECTION 2.13. Section 17.853(c), Water Code, is amended to |
|
read as follows: |
|
(c) The board may use the fund only: |
|
(1) to provide state matching funds for federal funds |
|
provided to the state water pollution control revolving fund or to |
|
any additional state revolving fund created under Subchapter J, |
|
Chapter 15; |
|
(2) to provide financial assistance from the proceeds |
|
of taxable bond issues to water supply corporations organized under |
|
Chapter 67, and other participants; |
|
(3) to provide financial assistance to participants |
|
for the construction of water supply projects and treatment works; |
|
(4) to provide financial assistance for an interim |
|
construction period to participants for projects for which the |
|
board will provide long-term financing through the water |
|
development fund; |
|
(5) to provide financial assistance for water supply |
|
and sewer service projects in economically distressed areas as |
|
provided by Subchapter K, Chapter 17, to the extent the board can |
|
make that assistance without adversely affecting the current or |
|
future integrity of the fund or of any other financial assistance |
|
program of the board; [and] |
|
(6) to provide funds to the water infrastructure fund |
|
created under Section 15.973; and |
|
(7) to provide funds to the state water implementation |
|
revenue fund for Texas. |
|
SECTION 2.14. 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; |
|
(6) money disbursed to the fund from the state water |
|
implementation fund for Texas as authorized by Section 15.434; and |
|
(7) [(6)] any other funds, regardless of their source, |
|
that the board directs be deposited to the credit of the fund. |
|
SECTION 2.15. Section 17.899, Water Code, is amended by |
|
adding Subsection (c) to read as follows: |
|
(c) The board shall transfer back to the state water |
|
implementation fund for Texas any money disbursed to the fund as |
|
described by Section 17.895(6) if the requirements of Section |
|
15.435 are satisfied. |
|
SECTION 2.16. Section 17.957, Water Code, is amended by |
|
amending Subsection (b) and adding Subsection (d) to read as |
|
follows: |
|
(b) The state participation account is composed of: |
|
(1) money and assets attributable to water financial |
|
assistance bonds designated by the board as issued for projects |
|
described in Section 16.131; |
|
(2) money from the sale, transfer, or lease of a |
|
project described in Subdivision (1) that was acquired, |
|
constructed, reconstructed, developed, or enlarged with money from |
|
the state participation account; |
|
(3) payments received under a bond enhancement |
|
agreement with respect to water financial assistance bonds |
|
designated by the board as issued for projects described in Section |
|
16.131; |
|
(4) investment income earned on money on deposit in |
|
the state participation account; |
|
(5) money disbursed to the fund from the state water |
|
implementation fund for Texas as authorized by Section 15.434; and |
|
(6) [(5)] any other funds, regardless of their source, |
|
that the board directs be deposited to the credit of the state |
|
participation account. |
|
(d) The board shall transfer back to the state water |
|
implementation fund for Texas any money disbursed to the fund as |
|
described by Subsection (b)(5) of this section if the requirements |
|
of Section 15.435 are satisfied. |
|
SECTION 2.17. Subchapter L, Chapter 17, Water Code, is |
|
amended by adding Section 17.9617 to read as follows: |
|
Sec. 17.9617. TRANSFERS TO STATE WATER IMPLEMENTATION |
|
REVENUE FUND FOR TEXAS. (a) The board may direct the comptroller to |
|
transfer money or other assets from an account in the fund, |
|
including from the financial assistance account or from the state |
|
participation account, to the state water implementation revenue |
|
fund for Texas to provide financial assistance under this |
|
subchapter and Subchapter H, Chapter 15. |
|
(b) A transfer of money or other assets from an account in |
|
the fund may not cause general obligation bonds that are payable |
|
from the fund or from an account in the fund to no longer be |
|
self-supporting for purposes of Section 49-j(b), Article III, Texas |
|
Constitution, as determined by the board. |
|
(c) The board shall use the state water implementation |
|
revenue fund for Texas, or an account in that fund, as a source of |
|
revenue to be deposited in accordance with this subchapter for the |
|
payment of principal and interest on water financial assistance |
|
bonds issued by the board, the proceeds of which are to be deposited |
|
into the state water implementation revenue fund for Texas, or the |
|
account in that fund, and to be used to make payments under a bond |
|
enhancement agreement with respect to principal or interest on the |
|
water financial assistance bonds. |
|
SECTION 2.18. Section 17.968, Water Code, is amended by |
|
amending Subsection (a) and adding Subsection (a-1) to read as |
|
follows: |
|
(a) The board may sell or dispose of political subdivision |
|
bonds or other assets purchased with money in the fund to any |
|
person, including the Texas Water Resources Finance Authority, or |
|
to another fund administered by the board, including the state |
|
water implementation revenue fund for Texas, and the board, in such |
|
manner as it shall determine, may apply the proceeds of the sale of |
|
political subdivision bonds or other assets held by the board to: |
|
(1) pay debt service on water financial assistance |
|
bonds issued under this subchapter; or |
|
(2) provide financial assistance to political |
|
subdivisions for any one or more of the purposes authorized by |
|
Section 49-d-8, Article III, Texas Constitution. |
|
(a-1) A sale or disposition of political subdivision bonds |
|
or other assets may not cause general obligation bonds that are |
|
payable from the fund or from an account in the fund to no longer be |
|
self-supporting for purposes of Section 49-j(b), Article III, Texas |
|
Constitution, as determined by the board. |
|
SECTION 2.19. Section 49.153(e), Water Code, is amended to |
|
read as follows: |
|
(e) Subsection (c) does not apply to: |
|
(1) a note issued to and approved by [the]: |
|
(A) the Farmers Home Administration; |
|
(B) the United States Department of Agriculture; |
|
(C) the Texas Water Development Board; [or] |
|
(D) the North American Development Bank; or |
|
(E) a federally chartered instrumentality of the |
|
United States authorized under 12 U.S.C. Section 2128(f) to provide |
|
financing for water and waste disposal facilities, provided that |
|
the district that executes the note is located wholly in a county |
|
that: |
|
(i) does not contain a municipality that |
|
has a population of more than 750,000; and |
|
(ii) is not adjacent to a county described |
|
by Subparagraph (i); or |
|
(2) a district described by Section 49.181(h). |
|
SECTION 2.20. Section 49.181(a), Water Code, is amended to |
|
read as follows: |
|
(a) A district may not issue bonds unless the commission |
|
determines that the project to be financed by the bonds is feasible |
|
and issues an order approving the issuance of the bonds. This |
|
section does not apply to: |
|
(1) refunding bonds if the commission issued an order |
|
approving the issuance of the bonds or notes that originally |
|
financed the project; |
|
(2) refunding bonds that are issued by a district |
|
under an agreement between the district and a municipality allowing |
|
the issuance of the district's bonds to refund bonds issued by the |
|
municipality to pay the cost of financing facilities; |
|
(3) bonds issued to and approved by: |
|
(A) the Farmers Home Administration; |
|
(B) [,] the United States Department of |
|
Agriculture; |
|
(C) [,] the North American Development Bank; |
|
(D) [, or] the Texas Water Development Board; or |
|
(E) a federally chartered instrumentality of the |
|
United States authorized under 12 U.S.C. Section 2128(f) to finance |
|
such a project, provided that the district that issues the bonds is |
|
located wholly in a county that: |
|
(i) does not contain a municipality that |
|
has a population of more than 750,000; and |
|
(ii) is not adjacent to a county described |
|
by Subparagraph (i); |
|
(4) refunding bonds issued to refund bonds described |
|
by Subdivision (3); or |
|
(5) bonds issued by a public utility agency created |
|
under Chapter 572, Local Government Code, any of the public |
|
entities participating in which are districts if at least one of |
|
those districts is a district described by Subsection (h)(1)(E). |
|
SECTION 2.21. As soon as practicable after the effective |
|
date of this Act, the lieutenant governor and the speaker of the |
|
house of representatives shall appoint the initial appointive |
|
members of the State Water Implementation Fund for Texas Advisory |
|
Committee as provided by Section 15.438, Water Code, as added by |
|
this Act. |
|
SECTION 2.22. (a) Not later than September 1, 2014, the |
|
State Water Implementation Fund for Texas Advisory Committee shall |
|
submit recommendations to the Texas Water Development Board on the |
|
rules to be adopted by the board under Sections 15.439(a)(1) and |
|
(2), Water Code, as added by this Act. |
|
(b) Not later than the later of the 90th day after the date |
|
the Texas Water Development Board receives the recommendations |
|
described by Subsection (a) of this section or March 1, 2015, the |
|
board shall adopt rules under Section 15.439, Water Code, as added |
|
by this Act. |
|
SECTION 2.23. As soon as practicable after the effective |
|
date of this Act, the Texas Water Development Board shall create a |
|
stakeholders committee under Section 15.436(c), Water Code, as |
|
added by this Act. |
|
SECTION 2.24. Not later than December 1, 2013, the |
|
stakeholders committee created by the Texas Water Development Board |
|
under Section 15.436(c), Water Code, as added by this Act, shall |
|
submit the standards established by the committee under that |
|
subsection to the board. |
|
SECTION 2.25. (a) Each regional water planning group shall |
|
prepare a draft prioritization of the projects included in the |
|
regional water plan most recently adopted by the group in |
|
accordance with Section 15.436, Water Code, as added by this Act, |
|
and submit the draft prioritization of the projects to the Texas |
|
Water Development Board not later than June 1, 2014. The board |
|
shall provide comments to each regional water planning group on the |
|
draft prioritization submitted by the group. Each regional water |
|
planning group shall submit a final prioritization of the projects |
|
to the board not later than September 1, 2014. |
|
(b) Section 15.436(d), Water Code, as added by this Act, |
|
applies to a regional water plan beginning with the plan that is |
|
required to be submitted to the Texas Water Development Board by |
|
January 5, 2016. |
|
SECTION 2.26. The Texas Water Development Board shall post |
|
the information described by Section 15.440(b), Water Code, as |
|
added by this Act, on the board's Internet website not later than |
|
March 1, 2014. |
|
SECTION 2.27. Sections 2.01-2.07, 2.13-2.18, and 2.21-2.26 |
|
of this article take effect on the date on which the constitutional |
|
amendment proposed by the 83rd Legislature, Regular Session, 2013, |
|
adding Sections 49-d-12 and 49-d-13, Article III, Texas |
|
Constitution, creating the state water implementation fund for |
|
Texas and the state water implementation revenue fund for Texas |
|
takes effect. If that amendment is not approved by the voters, |
|
those sections of this article have no effect. |
|
ARTICLE 3. EFFECTIVE DATE |
|
SECTION 3.01. Except as otherwise provided by this Act, |
|
this Act takes effect September 1, 2013. |
|
|
|
______________________________ |
______________________________ |
|
President of the Senate |
Speaker of the House |
|
|
|
I certify that H.B. No. 4 was passed by the House on March 27, |
|
2013, by the following vote: Yeas 146, Nays 2, 1 present, not |
|
voting; that the House refused to concur in Senate amendments to |
|
H.B. No. 4 on May 3, 2013, 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. 4 on May 20, 2013, by the following vote: Yeas 141, |
|
Nays 4, 2 present, not voting. |
|
|
|
______________________________ |
|
Chief Clerk of the House |
|
|
I certify that H.B. No. 4 was passed by the Senate, with |
|
amendments, on April 29, 2013, by the following vote: Yeas 30, |
|
Nays 1; 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. 4 on May 20, 2013, by the following vote: Yeas 30, Nays |
|
1. |
|
|
|
______________________________ |
|
Secretary of the Senate |
|
APPROVED: __________________ |
|
Date |
|
|
|
__________________ |
|
Governor |