83R3722 SMH-D
 
  By: Ritter H.B. No. 4
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation and funding of the state water
  implementation fund for Texas to assist the Texas Water Development
  Board in the funding of certain water-related projects.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 15, Water Code, is amended by adding
  Subchapter G to read as follows:
  SUBCHAPTER G. STATE WATER IMPLEMENTATION FUND FOR TEXAS
         Sec. 15.431.  DEFINITIONS. In this subchapter:
               (1)  "Advisory committee" means the State Water
  Implementation Fund for Texas Advisory Committee.
               (2)  "Fund" means the state water implementation fund
  for Texas.
         Sec. 15.432.  STATE WATER IMPLEMENTATION FUND FOR TEXAS.
  (a)  The state water implementation fund for Texas is a special fund
  outside the state treasury to be administered without further
  appropriation by the board under this subchapter and rules adopted
  by the board under this subchapter.
         (b)  The fund consists of:
               (1)  money transferred or deposited to the credit of
  the fund by law;
               (2)  the proceeds of any fee or tax imposed by this
  state that the legislature by statute dedicates 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; and
               (4)  interest earned on the balance of the fund.
         Sec. 15.433.  USE OF FUND. (a)  The board may use money in
  the fund only to provide financing for:
               (1)  projects included in the state water plan that are
  authorized under Subchapter Q or R of this chapter, Subchapter E,
  Chapter 16, or Subchapter J or K, 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; or
               (2)  education projects developed or approved by the
  board that are related to the development of water resources, the
  conservation of existing water resources, or water reuse.
         (b)  Not less than 20 percent of the money from the fund used
  by the board in any state fiscal biennium must be used to finance
  projects described by Subsection (a) for water conservation or
  reuse or education.
         (c)  The board shall undertake to use money from the fund in
  an amount sufficient to provide adequate financing for projects
  described by Subsection (a) in each regional water planning area in
  this state. The board shall prioritize projects in each regional
  water planning area for purposes of this subsection.
         Sec. 15.434.  TRANSFERS TO OTHER ACCOUNTS OR FUNDS. The
  board may direct the comptroller to transfer amounts from the fund
  to the credit of:
               (1)  the water infrastructure fund to be used for the
  purposes provided by Section 15.433 related to projects included in
  the state water plan that are authorized under Subchapter Q;
               (2)  the rural water assistance fund to be used for the
  purposes provided by Section 15.433 related to projects included in
  the state water plan that are authorized under Subchapter R;
               (3)  the Texas Water Development Fund II state
  participation account to be used for the purposes provided by
  Section 15.433 related to projects included in the state water plan
  that are authorized under Subchapter E, Chapter 16;
               (4)  the agricultural water conservation fund to be
  used for the purposes provided by Section 15.433 related to
  projects included in the state water plan that are authorized under
  Subchapter J, Chapter 17; or
               (5)  the Texas Water Development Fund II economically
  distressed areas program account to be used for the purposes
  provided by Section 15.433 related to projects included in the
  state water plan that are authorized under Subchapter K, Chapter
  17.
         Sec. 15.435.  ADVISORY COMMITTEE. (a) The State Water
  Implementation Fund for Texas Advisory Committee is composed of
  members appointed by the speaker of the house of representatives,
  the lieutenant governor, and the governor.
         (b)  The advisory committee shall submit recommendations to
  the board regarding the use of money in the fund for use by the board
  in adopting rules under Section 15.436.
         Sec. 15.436.  RULES. (a) The board shall adopt rules
  providing for the use of money in the fund consistent with this
  subchapter, including rules:
               (1)  establishing standards for the eligibility of
  water conservation and reuse and education projects for financing
  under Sections 15.433(a) and (b); and
               (2)  specifying the manner for prioritizing projects
  for purposes of Section 15.433(c).
         (b)  The board shall give appropriate consideration to the
  recommendations of the advisory committee before adopting rules
  under this section.
         SECTION 2.  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 transferred from the state water
  implementation fund for Texas as authorized by Section 15.434.
         SECTION 3.  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;
               (6-a) money transferred from the state water
  implementation fund for Texas as authorized by Section 15.434; and
               (7)  any other fees or sources of revenue that the
  legislature may dedicate for deposit to the fund.
         SECTION 4.  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;
               (5-a) money transferred from the state water
  implementation fund for Texas as authorized by Section 15.434; and
               (6)  any other funds, regardless of their source, that
  the board directs be deposited to the credit of the fund.
         SECTION 5.  Section 17.957(b), Water Code, is amended 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;
               (4-a) money transferred from the state water
  implementation fund for Texas as authorized by Section 15.434; and
               (5)  any other funds, regardless of their source, that
  the board directs be deposited to the credit of the state
  participation account.
         SECTION 6.  Section 17.958(b), Water Code, is amended to
  read as follows:
         (b)  The economically distressed areas program account is
  composed of:
               (1)  money and assets attributable to water financial
  assistance bonds designated by the board as issued for projects
  described in Subchapter K;
               (2)  money provided by the federal government, the
  state, political subdivisions, and private entities for the purpose
  of paying debt service on water financial assistance bonds issued
  for purposes provided by Subchapter K;
               (3)  payments received under a bond enhancement
  agreement with respect to water financial assistance bonds
  designated by the board as issued for purposes provided by
  Subchapter K;
               (4)  investment income earned on money on deposit in
  the economically distressed areas program account;
               (4-a)  money transferred from the state water
  implementation fund for Texas as authorized by Section 15.434; and
               (5)  any other funds, regardless of their source, that
  the board directs be deposited to the credit of the economically
  distressed areas program account.
         SECTION 7.  As soon as practicable after the effective date
  of this Act, the speaker of the house of representatives, the
  lieutenant governor, and the governor shall appoint the initial
  members of the State Water Implementation Fund for Texas Advisory
  Committee created under Section 15.435, Water Code, as added by
  this Act.
         SECTION 8.  Not later than December 1, 2013, the Texas Water
  Development Board shall adopt rules under Section 15.436, Water
  Code, as added by this Act.
         SECTION 9.  This Act takes effect September 1, 2013.