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A BILL TO BE ENTITLED
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AN ACT
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relating to the composition and use of money in the flood |
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infrastructure fund. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 15.001, Water Code, is amended by adding |
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Subdivision (14) to read as follows: |
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(14) "Rural political subdivision" means: |
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(A) a nonprofit water supply or sewer service |
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corporation created and operating under Chapter 67 of this code or a |
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district or authority created under Section 52, Article III, or |
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Section 59, Article XVI, Texas Constitution, no part of the service |
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area of which is located in an urban area with a population of more |
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than 50,000; |
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(B) a municipality: |
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(i) with a population of 10,000 or less no |
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part of the service area of which is located in an urban area with a |
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population of 50,000 or more; or |
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(ii) located wholly in a county in which no |
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urban area has a population of more than 50,000; |
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(C) a county in which no urban area has a |
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population of more than 50,000; or |
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(D) an entity that: |
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(i) is a nonprofit water supply or sewer |
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service corporation created and operating under Chapter 67 of this |
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code, a district or authority created under Section 52, Article |
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III, or Section 59, Article XVI, Texas Constitution, municipality, |
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county, or other political subdivision of the state, or an |
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interstate compact commission to which the state is a party; and |
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(ii) demonstrates in a manner satisfactory |
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to the board that the entity is rural or the area to be served by the |
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project is a wholly rural area despite not otherwise qualifying |
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under Paragraph (A), (B), or (C). |
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SECTION 2. Section 15.534, Water Code, is amended by |
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amending Subsection (a) and adding Subsections (c) and (d) to read |
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as follows: |
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(a) The board may use the infrastructure fund only: |
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(1) to make a loan to an eligible political |
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subdivision at or below market interest rates for a flood project; |
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(2) to make a grant or loan at or below market interest |
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rates to an eligible political subdivision for a flood project to |
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serve a rural political subdivision [an area outside of a |
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metropolitan statistical area] in order to ensure that the flood |
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project is implemented; |
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(3) to make a loan at or below market interest rates |
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for planning and design costs, permitting costs, and other costs |
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associated with state or federal regulatory activities with respect |
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to a flood project; |
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(4) to make a grant to an eligible political |
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subdivision to provide matching funds to enable the eligible |
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political subdivision to participate in a federal program for a |
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flood project; |
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(5) to make a grant to an eligible political |
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subdivision for a flood project if the board determines that the |
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eligible political subdivision does not have the ability to repay a |
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loan; |
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(6) as a source of revenue or security for the payment |
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of principal and interest on bonds issued by the board if the |
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proceeds of the sale of the bonds will be deposited in the |
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infrastructure fund; |
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(7) to pay the necessary and reasonable expenses of |
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the board in administering the infrastructure fund; and |
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(8) to make transfers to the research and planning |
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fund created under Section 15.402 [of this chapter]. |
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(c) Except as provided by Subsections (a)(6)-(8), after the |
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adoption of the initial state flood plan, the board may use the |
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infrastructure fund to provide financing only for flood projects |
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included in the state flood plan. |
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(d) Money from the infrastructure fund may be awarded to |
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several eligible political subdivisions for a single flood project. |
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SECTION 3. Section 16.454(j), Water Code, is amended to |
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read as follows: |
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(j) This section expires September 1, 2031. The remaining |
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balance of the account on that date is transferred to the flood |
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infrastructure fund [plan implementation account]. |
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SECTION 4. (a) The following provisions of the Water Code |
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are repealed: |
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(1) Section 15.531(4); |
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(2) Section 15.5341; |
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(3) Section 15.992(4); and |
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(4) Section 16.4545. |
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(b) The following provisions of Chapter 947 (S.B. 7), Acts |
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of the 86th Legislature, Regular Session, 2019, are repealed: |
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(1) Section 2.03; and |
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(2) Section 3.06. |
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SECTION 5. This Act takes effect September 1, 2023. |
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* * * * * |