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A BILL TO BE ENTITLED
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AN ACT
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relating to the funding of certain water-related projects by the |
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Texas Water Development Board; authorizing the issuance of revenue |
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bonds. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. (a) The legislature recognizes the importance |
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of providing for this state's future water supply needs. The |
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purpose of this Act is to ensure that proper funding in the form of |
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meaningful and adequate financial assistance is available to |
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provide an adequate water supply for the future of this state. |
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(b) To accomplish that purpose, this Act creates the state |
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water implementation fund for Texas. The fund is intended to serve |
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as a water infrastructure bank in order to enhance the financing |
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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 revolving cash flow mechanism that recycles money used |
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in board programs back to the fund to provide protection for the |
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fund's corpus. Money in the fund will be available immediately to |
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provide support for low-interest loans, longer repayment terms for |
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loans, incremental repurchase terms for projects in which the state |
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owns an interest, and deferral of loan payments. In addition, this |
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Act creates the state water implementation revenue fund for Texas |
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for use in managing revenue bonds issued by the board that are |
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supported by the state water implementation fund for Texas. |
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SECTION 2. 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) "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 outside the state treasury to be used by |
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the board, without further legislative appropriation, for the |
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purpose of implementing the state water plan as provided by this |
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subchapter. The board may establish separate accounts in the fund. |
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The fund and the fund's accounts are kept and held by the trust |
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company in escrow and in trust for and in the name of the board. The |
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board has legal title to money and investments in the fund until |
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money is disbursed from the fund as provided by this subchapter and |
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board rules. |
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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 co-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 recover the costs incurred in |
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managing and investing the fund only from the earnings of the fund. |
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(e) The trust company annually shall report to the board and |
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to the advisory committee with respect to the investment of the |
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fund. The trust company shall contract with a certified public |
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accountant to conduct an independent audit of the fund annually and |
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shall present the results of each annual audit to the board and to |
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the advisory committee. This subsection does not affect the state |
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auditor's authority to conduct an audit of the fund under Chapter |
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321, Government Code. |
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(f) The trust company shall adopt an investment policy that |
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is appropriate for the fund. The trust company shall present the |
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investment policy to the investment advisory board established |
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under Section 404.028, Government Code. The investment advisory |
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board shall submit to the trust company recommendations regarding |
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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 designed to serve rural areas; and |
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(2) 20 percent to support projects described by |
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Section 15.435 that are 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 and the agreement, including |
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the period covered by the agreement and all other terms and |
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conditions of the agreement, must be approved by the board. |
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(b) The board may direct the trust company to enter into |
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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 or revenue bonds issued by the board to finance or |
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refinance projects included in the state water plan if the proceeds |
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of the sale of the bonds have been or will be deposited to the credit |
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of: |
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(1) the state water implementation revenue fund for |
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Texas to be used to provide financing for projects included in the |
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state water plan that are authorized under Subchapter Q or R of this |
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chapter, Subchapter E or F, Chapter 16, or Subchapter J, Chapter 17, |
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as authorized under Subchapter H of this chapter; |
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(2) the water infrastructure fund to be used to |
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provide financing for projects included in the state water plan as |
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authorized under Subchapter Q; |
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(3) the rural water assistance fund to be used to |
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provide financing for projects included in the state water plan as |
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authorized under Subchapter R; |
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(4) the Texas Water Development Fund II state |
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participation account to be used to provide financing for projects |
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included in the state water plan as authorized under Subchapter E, |
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Chapter 16; or |
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(5) the agricultural water conservation fund to be |
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used to provide financing for projects included in the state water |
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plan as authorized under Subchapter J, Chapter 17. |
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(c) The board may direct the trust company to enter into a |
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bond enhancement agreement obligating disbursements from the fund |
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to another fund or account as provided by Subsection (b) for the |
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support 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 has been appropriated for the |
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payment of debt service on those 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 unless at the time of the request: |
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(1) the applicant has submitted and implemented a |
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water conservation plan in accordance with Section 11.1271; and |
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(2) the applicable regional water planning group has |
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complied with Subsection (h). |
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(h) Each regional water planning group shall provide the |
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information described by Section 16.053(q) to the board at the time |
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it submits its adopted regional water plan to the board. |
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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 acquired facilities, money received |
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from the sale of water associated with the acquired facilities, and |
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related investment earnings, that exceeds the amount required to |
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pay current debt service on the bonds. |
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(k) The board may submit a bond enhancement agreement and |
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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. |
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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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Sec. 15.436. ADDITIONAL BONDING AUTHORITY. In addition to |
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issuing revenue bonds under Subchapter H of this chapter for the |
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purposes of this subchapter, the board may issue revenue bonds |
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under Subchapter I, Chapter 17, for those purposes. |
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Sec. 15.437. 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 planning area |
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for the purposes of Section 15.435. At a minimum, a regional water |
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planning group must consider the following criteria in prioritizing |
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each 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 the |
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prioritization developed by the group under this section together |
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with the group's respective regional water plan developed and |
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submitted under Section 16.053. |
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Sec. 15.438. 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; or |
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(3) provide regionalization. |
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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; |
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(5) if the applicant is applying for financial |
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assistance for the project under Subchapter Q, whether the |
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applicant is ready to proceed with the project at the time of the |
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application, including whether: |
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(A) all preliminary planning and design work |
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associated with the project has been completed; |
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(B) the applicant has acquired the water rights |
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associated with the project; |
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(C) the applicant has secured funding for the |
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project from other sources; and |
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(D) the applicant is able to begin implementing |
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or constructing the project; |
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(6) the demonstrated or projected effect of the |
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project on water conservation, including preventing the loss of |
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water, taking into consideration, if applicable, whether the |
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applicant has filed a water audit with the board under Section |
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16.0121 that demonstrates that the applicant is accountable with |
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regard to reducing water loss and increasing efficiency in the |
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distribution of water; and |
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(7) the priority given the project by the applicable |
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regional water planning group under Section 15.437. |
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Sec. 15.439. ADVISORY COMMITTEE. (a) The State Water |
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Implementation Fund for Texas Advisory Committee is composed of the |
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following seven members: |
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(1) the comptroller, or a person designated by the |
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comptroller; |
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(2) three members of the senate appointed by the |
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lieutenant governor, including: |
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(A) a member of the committee of the senate |
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having primary jurisdiction over matters relating to finance; and |
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(B) a member of the committee of the senate |
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having primary jurisdiction over natural resources; and |
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(3) three members of the house of representatives |
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appointed by the speaker of the house of representatives, |
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including: |
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(A) a member of the committee of the house of |
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representatives having primary jurisdiction over appropriations; |
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and |
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(B) a member of the committee of the house of |
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representatives having primary jurisdiction over natural |
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resources. |
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(b) The following persons shall serve as staff support for |
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the advisory committee: |
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(1) the deputy executive administrator of the board |
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who is responsible for water science and conservation, or a person |
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designated by that deputy executive administrator; |
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(2) the deputy executive administrator of the board |
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who is responsible for water resources planning and information, or |
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a person designated by that deputy executive administrator; and |
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(3) the chief financial officer of the board. |
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(c) An appointed member of the advisory committee serves at |
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the will of the person who appointed the member. |
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(d) The lieutenant governor shall appoint a co-presiding |
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officer of the advisory committee from among the members appointed |
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by the lieutenant governor, and the speaker of the house of |
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representatives shall appoint a co-presiding officer of the |
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committee from among the members appointed by the speaker. |
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(e) The advisory committee may hold public hearings, formal |
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meetings, or work sessions. Either co-presiding officer of the |
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advisory committee may call a public hearing, formal meeting, or |
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work session of the advisory committee at any time. The advisory |
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committee may not take formal action at a public hearing, formal |
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meeting, or work session unless a quorum of the committee is |
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present. |
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(f) A member of the advisory committee is not entitled to |
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receive compensation for service on the committee or reimbursement |
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for expenses incurred in the performance of official duties as a |
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member of the committee. |
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(g) The advisory committee shall submit comments and |
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recommendations to the board regarding the use of money in the fund |
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for use by the board in adopting rules under Section 15.440. The |
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submission must include: |
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(1) comments and recommendations on rulemaking |
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related to the prioritization of projects in regional water plans |
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and the state water plan in accordance with Sections 15.437 and |
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15.438; |
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(2) comments and recommendations on rulemaking |
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related to establishing standards for determining whether projects |
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meet the criteria provided by Section 15.434(b); |
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(3) an evaluation of the available programs for |
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providing financing for projects included in the state water plan |
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and guidelines for implementing those programs, including |
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guidelines for providing financing for projects included in the |
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state water plan that are authorized under Subchapter Q or R of this |
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chapter, Subchapter E or F, Chapter 16, or Subchapter J, Chapter 17; |
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(4) an evaluation of the lending practices of the |
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board and guidelines for lending standards; |
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(5) an evaluation of the use of funds by the board to |
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provide support for financial assistance for water projects, |
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including support for the purposes described by Section 15.435(c); |
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(6) an evaluation of whether premium financing |
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programs should be established within the funds described by |
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Section 15.435 to serve the purposes of this subchapter, especially |
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in connection with projects described by Section 15.434(b); |
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(7) an evaluation of methods of awarding contracts |
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that may be more effective than competitive bidding in promoting |
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competitive procurements and encouraging participation in the |
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procurement process by companies domiciled in this state; and |
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(8) an evaluation of the overall operation, function, |
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and structure of the fund. |
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(h) The advisory committee shall review the overall |
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operation, function, and structure of the fund at least |
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semiannually and may provide comments and recommendations to the |
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board on any matter. |
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(i) The advisory committee may adopt rules, procedures, and |
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policies as needed to administer this section and implement its |
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responsibilities. |
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(j) Chapter 2110, Government Code, does not apply to the |
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size, composition, or duration of the advisory committee. |
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(k) The advisory committee is subject to Chapter 325, |
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Government Code (Texas Sunset Act). Unless continued in existence |
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as provided by that chapter, the advisory committee is abolished |
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and this section expires September 1, 2023. |
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Sec. 15.440. RULES. (a) The board shall adopt rules |
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providing for the use of money in the fund that are consistent with |
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this subchapter, including rules: |
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(1) establishing standards for determining whether |
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projects meet the criteria provided by Section 15.434(b); and |
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(2) specifying the manner for prioritizing projects |
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for purposes of Section 15.438. |
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(b) The board shall give full consideration to the |
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recommendations of the advisory committee before adopting rules |
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under this subchapter. |
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Sec. 15.441. REPORT. Not later than December 1 of each |
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even-numbered year, the board shall provide a report to the |
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governor, lieutenant governor, speaker of the house of |
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representatives, and members of the legislature regarding the use |
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of the fund, including the use of the fund to satisfy the |
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requirements of Section 15.434(b). |
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SUBCHAPTER H. STATE WATER IMPLEMENTATION REVENUE FUND FOR TEXAS |
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Sec. 15.471. DEFINITION. In this subchapter, "fund" means |
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the state water implementation revenue fund for Texas. |
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Sec. 15.472. FUND. (a) The state water implementation |
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revenue fund for Texas is a special fund outside the state treasury |
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to be used by the board, without further legislative appropriation, |
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for the purpose of providing financing for projects included in the |
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state water plan that are authorized under Subchapter Q or R of this |
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chapter, Subchapter E or F, Chapter 16, or Subchapter J, Chapter 17. |
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The board may establish separate accounts in the fund. The board |
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has legal title to money and investments in the fund until the money |
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is disbursed as provided by this subchapter and board rules. |
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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 |
|
dedicates for deposit to the credit of the fund; |
|
(4) investment earnings and interest earned on amounts |
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credited to the fund; and |
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(5) the proceeds from the sale of bonds, including |
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revenue bonds issued by the board under this subchapter, that are |
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designated by the board for the purpose of providing money for the |
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fund. |
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Sec. 15.473. MANAGEMENT AND INVESTMENT OF FUND. (a) Money |
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deposited to the credit of the fund shall be invested as determined |
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by the board. The fund may be co-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 kept and held in escrow and in trust |
|
by the comptroller 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, as custodian, shall administer 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: |
|
(1) make loans to fund participants or to purchase |
|
bonds or other obligations of fund participants bearing interest at |
|
a rate or rates determined by the board, including rates below |
|
prevailing market rates; or |
|
(2) guarantee debt service payments on obligations of |
|
fund participants, or to purchase insurance guaranteeing such |
|
payments, if the board determines that the guarantee or purchase |
|
will: |
|
(A) improve access to the credit market; |
|
(B) reduce the interest cost of the obligations; |
|
or |
|
(C) enhance the value of the assets of the fund. |
|
(c) The board may use money in the fund: |
|
(1) as a source of revenue or security for the payment |
|
of the principal of and interest on revenue bonds issued by the |
|
board under this subchapter or other bonds issued by the board if |
|
the proceeds of the bonds will be deposited in the fund; or |
|
(2) 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. |
|
Sec. 15.475. TRANSFERS TO OR FROM OTHER FUNDS OR ACCOUNTS. |
|
(a) The board may direct the comptroller to transfer amounts, under |
|
terms specified by the board, from the fund to the credit of: |
|
(1) the water infrastructure fund to be used under |
|
Subchapter Q for the purposes provided by Section 15.434 related to |
|
projects included in the state water plan; |
|
(2) the rural water assistance fund to be used under |
|
Subchapter R for the purposes provided by Section 15.434 related to |
|
projects included in the state water plan; |
|
(3) the Texas Water Development Fund II state |
|
participation account to be used under Subchapter E or F, Chapter |
|
16, for the purposes provided by Section 15.434 related to projects |
|
included in the state water plan; or |
|
(4) the agricultural water conservation fund to be |
|
used under Subchapter J, Chapter 17, for the purposes provided by |
|
Section 15.434 related to projects included in the state water |
|
plan. |
|
(b) If the comptroller transfers an amount from the fund to |
|
the credit of another fund or account as provided by this section, |
|
the board may direct the comptroller to transfer an amount from the |
|
other fund or account to the fund if money is available in the other |
|
fund or account for that purpose. |
|
Sec. 15.476. 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 from and secured by designated |
|
income and receipts of 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) 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. |
|
(i) The proceeds received from the sale of revenue bonds |
|
issued under this subchapter may be deposited or invested in any |
|
manner and in the obligations 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. |
|
SECTION 3. 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 4. 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 5. 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 6. 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 7. 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. |
|
(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. |
|
SECTION 8. 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 9. 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 10. 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 11. 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 12. 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 13. 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 14. 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 transferred 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 15. 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 15.439, Water Code, as added by this Act. |
|
SECTION 16. (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 15.440(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 15.440, Water Code, as added |
|
by this Act. |
|
SECTION 17. (a) Each regional water planning group that has |
|
not previously provided the information to the Texas Water |
|
Development Board described by Section 16.053(q), Water Code, shall |
|
provide the information not later than September 1, 2014. |
|
(b) Section 15.435(h), 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 18. (a) Each regional water planning group shall |
|
prioritize the projects included in the regional water plan most |
|
recently adopted by the group in accordance with Section 15.437, |
|
Water Code, as added by this Act, and submit the prioritization of |
|
the projects to the Texas Water Development Board not later than |
|
September 1, 2014. |
|
(b) Section 15.437(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 19. This Act takes effect September 1, 2013. |