88R18802 KBB-F

By: Schofield H.B. No. 4659

Substitute the following for H.B. No. 4659:

By: King of Uvalde C.S.H.B. No. 4659

A BILL TO BE ENTITLED

AN ACT

relating to a study of the financing of regional facilities that convert groundwater to surface water.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. DEFINITIONS. In this Act:

(1) "Board" means the Texas Water Development Board.

(2) "Facility" means a regional water facility that converts groundwater to surface water.

SECTION 2. WORKING GROUP. (a) A working group composed of representatives of the Texas Water Development Board and the Texas Public Finance Authority is formed to study, review, and report to the legislature on the methods used to finance or refinance regional water facilities that convert groundwater to surface water.

(b) The working group may include representatives of local governments of Harris and Fort Bend Counties that have borrowed money from the board for a facility.

(c) The chair of the board, or a designee of the chair of the board, shall serve as the chair of the working group.

(d) The working group shall convene at the call of the chair.

SECTION 3. STUDY. The working group shall study:

(1) the useful life of regional water facilities that convert groundwater to surface water, including associated improvements during a facility's useful life;

(2) the typical period of time necessary to pay the costs associated with developing a financed facility;

(3) the economic effect on current water users paying the cost of a facility that will provide service to future water users;

(4) the financing terms of current and anticipated facilities;

(5) the ability to distribute the costs associated with the development of a facility to the users who benefit from the facility, including:

(A) the fairness and equity benefits to water users of extending the financing of a facility compared to the potential increase in financing costs associated with an extension of financing;

(B) the ability to use methods of financing or refinancing to accomplish this distribution;

(C) policies and procedures of this state and the board that may be used to accomplish this distribution;

(D) whether the board's financing terms and conditions can be improved to better accomplish this distribution, including whether the board may forgive a loan or a portion of a loan to better accomplish this distribution;

(E) whether potential measures that could accomplish this distribution are precluded by state law; and

(F) what changes to state law may be necessary to accomplish this distribution;

(6) whether financial assistance administered by the board may be used to refinance or restructure existing financing of a facility; and

(7) whether a facility is eligible for grant funding.

SECTION 4. FINDINGS AND RECOMMENDATIONS. (a) The working group shall recommend any changes and improvements relating to the financing of regional facilities that convert groundwater to surface water that may be implemented by this state, the board, or another state agency without further legislative authorization.

(b) Not later than September 1, 2024, the working group shall report the working group's findings and recommendations to the lieutenant governor, the speaker of the house of representatives, and the governor.

(c) A member of the house or the senate may request to be kept informed of the working group's progress throughout the duration of the study.

SECTION 5. EXPIRATION. This Act expires September 1, 2025.

SECTION 6. EFFECTIVE DATE. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2023.