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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of the Texas Water Development Board to |
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provide financial assistance to political subdivisions for flood |
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control or mitigation projects. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 15.601(a), Water Code, is amended to |
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read as follows: |
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(a) The state water pollution control revolving fund shall |
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be administered by the board under this subchapter and rules |
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adopted by the board. The fund shall be used to provide financial |
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assistance to political subdivisions for construction of treatment |
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works and flood control or mitigation projects and to persons for |
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nonpoint source pollution control and abatement projects under |
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Section 15.603(h), in accordance with the capitalization grant |
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program established under the Federal Water Pollution Control Act |
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(33 U.S.C. Section 1251 et seq.). |
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SECTION 2. Section 15.603(a), Water Code, is amended to |
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read as follows: |
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(a) The revolving fund is held separately from other funds |
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by the board outside the State Treasury to provide financial |
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assistance to: |
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(1) political subdivisions for construction of |
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treatment works; |
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(2) political subdivisions for flood control or |
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mitigation projects; |
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(3) [and to] persons for estuary management projects; |
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and |
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(4) persons for nonpoint source pollution control and |
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abatement projects under Subsection (h). |
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SECTION 3. Section 15.604(a), Water Code, is amended to |
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read as follows: |
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(a) The board may use the revolving fund for financial |
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assistance only as provided by the federal act: |
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(1) to make loans, on the conditions that: |
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(A) those loans are made at or below market |
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interest rates, including interest-free loans, at terms not to |
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exceed 20 years; |
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(B) principal and interest payments will begin |
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not later than one year after completion of any treatment works and |
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all loans will be fully amortized not later than 20 years after |
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completion of the treatment works; |
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(C) the recipient of a loan will establish a |
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dedicated source of revenue for repayment of loans; and |
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(D) the revolving fund will be credited with all |
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payments of principal of and interest on all loans; |
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(2) to buy or refinance the debt obligation of |
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political subdivisions at or below market rates if the debt |
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obligations were incurred after March 7, 1985; |
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(3) to guarantee or purchase insurance for political |
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subdivisions if the guarantee or insurance would improve access to |
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market credit or reduce interest rates; |
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(4) as a source of revenue or security for the payment |
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of principal and interest on bonds issued by the state if the |
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proceeds of the sale of those bonds will be deposited in the |
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revolving fund; |
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(5) to provide loan guarantees to similar revolving |
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funds established by municipalities or intermunicipal agencies; |
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(6) to earn interest on revolving fund accounts; |
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(7) for the reasonable costs of administering the |
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revolving fund and conducting activities provided for by Title VI |
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of the federal act, except that those amounts may not exceed the |
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amount authorized under Title VI of the federal act; |
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(8) to provide financial assistance to persons for a |
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nonpoint source pollution control project under Section 319 of the |
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federal act or for an estuary management project under Section 320 |
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of the federal act; |
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(9) for other purposes as provided by the federal act; |
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[and] |
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(10) to provide financial assistance to political |
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subdivisions for flood control or mitigation projects; and |
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(11) to provide linked deposits to eligible lending |
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institutions for loans to persons for nonpoint source pollution |
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control projects. |
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SECTION 4. Subchapter J, Chapter 15, Water Code, is amended |
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by adding Section 15.6065 to read as follows: |
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Sec. 15.6065. EXPEDITED PROCEDURE FOR ACTING ON APPLICATION |
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FOR FINANCIAL ASSISTANCE FOR FLOOD CONTROL OR MITIGATION PROJECT. |
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The board shall adopt rules providing an expedited procedure for |
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acting on an application by a political subdivision for financial |
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assistance from the revolving fund for a flood control or |
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mitigation project. |
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SECTION 5. This Act takes effect September 1, 2017. |