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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of money in the state water pollution control |
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revolving fund. |
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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
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treatment works and to persons for nonpoint source pollution
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control and abatement projects under Section 15.603(h),] in |
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accordance with the capitalization grant program established under |
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the Federal Water Pollution Control Act (33 U.S.C. Section 1251 et |
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seq.) and Section 15.603 of this code. |
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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 persons for projects eligible for assistance under |
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the federal act, including projects eligible under Section 603(c) |
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of the federal act (33 U.S.C. Section 1383(c)), and to provide |
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linked deposits to eligible lending institutions for loans to |
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persons for nonpoint source pollution control projects [political
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subdivisions for construction of treatment works and to persons for
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estuary management projects and for nonpoint source pollution
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control and 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) the loan is [those loans are] made at or below |
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market interest rates, including an interest-free loan [loans, at
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terms not to 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 the project to be |
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financed [any treatment works] and the loan [all loans] will be |
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fully amortized not later than the expiration date of the term of |
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the loan [20 years after completion of the treatment works]; |
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(C) the recipient of the [a] loan will establish |
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a dedicated source of revenue for repayment of the loan [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 the loan [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; and |
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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 |
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act[; and
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[(10)
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. Section 17.0821(c), Water Code, is amended to |
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read as follows: |
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(c) The board shall use the state water pollution control |
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revolving fund in accordance with Section 15.604(a)(4) [15.604(4)] |
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of this code and the Federal Water Pollution Control Act, Section |
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603(d)(4), as a source of revenue to be deposited in accordance with |
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this chapter for the payment of principal and interest on water |
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quality enhancement bonds issued by the state, the proceeds of |
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which are deposited into the state water pollution control |
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revolving fund. |
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SECTION 5. Section 15.603(i), Water Code, is repealed. |
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SECTION 6. This Act takes effect September 1, 2019. |
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