By: Johnson, Perry  S.B. No. 942
         (In the Senate - Filed February 21, 2019; March 1, 2019,
  read first time and referred to Committee on Water & Rural Affairs;
  March 20, 2019, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 7, Nays 0; March 20, 2019,
  sent to printer.)
Click here to see the committee vote
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 942 By:  Johnson
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the use of money in the state water pollution control
  revolving fund.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 15.601(a), Water Code, is amended to
  read as follows:
         (a)  The state water pollution control revolving fund shall
  be administered by the board under this subchapter and rules
  adopted by the board.  The fund shall be used to provide financial
  assistance [to political subdivisions for construction of
  treatment works and to persons for nonpoint source pollution
  control and abatement projects under Section 15.603(h),] in
  accordance with the capitalization grant program established under
  the Federal Water Pollution Control Act (33 U.S.C. Section 1251 et
  seq.) and Section 15.603 of this code.
         SECTION 2.  Section 15.603(a), Water Code, is amended to
  read as follows:
         (a)  The revolving fund is held separately from other funds
  by the board outside the State Treasury to provide financial
  assistance to persons for projects eligible for assistance under
  the federal act, including projects eligible under Section 603(c)
  of the federal act (33 U.S.C. Section 1383(c)), and to provide
  linked deposits to eligible lending institutions for loans to
  persons for nonpoint source pollution control projects [political
  subdivisions for construction of treatment works and to persons for
  estuary management projects and for nonpoint source pollution
  control and abatement projects under Subsection (h)].
         SECTION 3.  Section 15.604(a), Water Code, is amended to
  read as follows:
         (a)  The board may use the revolving fund for financial
  assistance only as provided by the federal act:
               (1)  to make loans, on the conditions that:
                     (A)  the loan is [those loans are] made at or below
  market interest rates, including an interest-free loan [loans, at
  terms not to exceed 20 years];
                     (B)  principal and interest payments will begin
  not later than one year after completion of the project to be
  financed [any treatment works] and the loan [all loans] will be
  fully amortized not later than the expiration date of the term of
  the loan [20 years after completion of the treatment works];
                     (C)  the recipient of the [a] loan will establish
  a dedicated source of revenue for repayment of the loan [loans]; and
                     (D)  the revolving fund will be credited with all
  payments of principal of and interest on the loan [all loans];
               (2)  to buy or refinance the debt obligation of
  political subdivisions at or below market rates if the debt
  obligations were incurred after March 7, 1985;
               (3)  to guarantee or purchase insurance for political
  subdivisions if the guarantee or insurance would improve access to
  market credit or reduce interest rates;
               (4)  as a source of revenue or security for the payment
  of principal and interest on bonds issued by the state if the
  proceeds of the sale of those bonds will be deposited in the
  revolving fund;
               (5)  to provide loan guarantees to similar revolving
  funds established by municipalities or intermunicipal agencies;
               (6)  to earn interest on revolving fund accounts;
               (7)  for the reasonable costs of administering the
  revolving fund and conducting activities provided for by Title VI
  of the federal act, except that those amounts may not exceed the
  amount authorized under Title VI of the federal act; and
               (8)  [to provide financial assistance to persons for a
  nonpoint source pollution control project under Section 319 of the
  federal act or for an estuary management project under Section 320
  of the federal act;
               [(9)]  for other purposes as provided by the federal
  act[; and
               [(10)     to provide linked deposits to eligible lending
  institutions for loans to persons for nonpoint source pollution
  control projects].
         SECTION 4.  Section 17.0821(c), Water Code, is amended to
  read as follows:
         (c)  The board shall use the state water pollution control
  revolving fund in accordance with Section 15.604(a)(4) [15.604(4)]
  of this code and the Federal Water Pollution Control Act, Section
  603(d)(4), as a source of revenue to be deposited in accordance with
  this chapter for the payment of principal and interest on water
  quality enhancement bonds issued by the state, the proceeds of
  which are deposited into the state water pollution control
  revolving fund.
         SECTION 5.  Section 15.603(i), Water Code, is repealed.
         SECTION 6.  This Act takes effect September 1, 2019.
 
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