88R11087 JAM-F
 
  By: Perry S.B. No. 837
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to financial assistance provided and programs
  administered by the Texas Water Development Board.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 15, Water Code, is amended by adding
  Subchapter H-1 to read as follows:
  SUBCHAPTER H-1. WATER FOR TEXAS FUND
         Sec. 15.501.  DEFINITION. In this subchapter, "fund" means
  the water for Texas fund.
         Sec. 15.502.  FUND. (a) The water for Texas fund is a
  special fund in the state treasury outside the general revenue
  fund. The fund is administered by the board. The fund is not
  subject to legislative appropriation.
         (b)  The board may use the fund only to disburse money to
  another fund or account administered by the board, including a fund
  or account established by this chapter.
         (c)  The board has legal title to money and investments in
  the fund.
         (d)  The comptroller may not use the fund to certify under
  Section 49a, Article III, Texas Constitution, that an amount
  appropriated by a bill is with the amount estimated to be available
  in the affected funds.
         (e)  Money in the fund may be used only as provided by this
  subchapter.
         (f)  The fund consists of:
               (1)  money transferred or deposited to the credit of
  the fund by law, including money from any source transferred or
  deposited to the credit of the fund at the board's discretion as
  authorized by law;
               (2)  any other revenue that the legislature by statute
  dedicates for deposit to the credit of the fund;
               (3)  investment earnings and interest earned on amounts
  credited to the fund;
               (4)  money from gifts, grants, or donations to the
  fund; and
               (5)  the redeposit of money disbursed from the fund.
         (g)  The board may establish separate accounts in the fund as
  necessary or convenient to administer the fund.
         Sec. 15.503.  MANAGEMENT AND INVESTMENT OF FUND. (a) Money
  in the fund shall be invested as determined by the board. The fund
  may be invested with the state treasury pool.
         (b)  The fund and any accounts established in the fund shall
  be kept and maintained by or at the direction of the board.
         (c)  At the direction of the board, the fund and any accounts
  established in the fund may be managed by the comptroller or a
  corporate trustee that is a trust company or a bank that has the
  powers of a trust company for and on behalf of the board and pending
  their use for the purposes provided by this subchapter may be
  invested as provided by an order, resolution, or rule of the board.
         (d)  The comptroller or corporate trustee shall manage the
  fund in strict accordance with this subchapter and the orders,
  resolutions, and rules of the board.
         Sec. 15.504.  USE OF FUND. (a)  The board may make
  disbursements from the fund to another fund or account administered
  by the board, including a fund or account established by this
  chapter, in the amounts the board determines necessary. Legislative
  appropriation is not required for the board to disburse money from
  the fund.
         (b)  The board shall ensure that a portion of the money
  disbursed from the fund is used for:
               (1)  water infrastructure projects for:
                     (A)  rural political subdivisions, as defined by
  Section 15.992; and
                     (B)  municipalities with a population of less than
  150,000; and
               (2)  projects to develop new water supply sources.
         (c)  Projects funded under Subsection (b)(2) must be
  designed to develop water supply sources not currently available in
  this state.  A project may include:
               (1)  acquisition of water rights from another state;
               (2)  development of infrastructure to transport water
  from another state;
               (3)  a desalination project, including marine and
  brackish water desalination;
               (4)  a produced water treatment plant; and
               (5)  research into new technology that may lead to the
  development of a significant new water supply source, as determined
  by the board based on the amount of water the technology may
  produce.
         (d)  Money disbursed from the fund for the purposes described
  by Subsection (b) may be disbursed to other funds or accounts to be
  used to provide zero interest loans, negative interest loans, loan
  forgiveness, or grants for any purpose described by Subsection (b)
  under criteria developed by the board.
         Sec. 15.505.  REDEPOSIT OF MONEY PREVIOUSLY DISBURSED. The
  board may restore to the fund money disbursed from the fund and
  deposited to the credit of another fund or account. Legislative
  appropriation is not required for the board to restore money to the
  fund.
         Sec. 15.506.  ADVISORY COMMITTEE.  The State Water
  Implementation Fund for Texas Advisory Committee established under
  Section 15.438:
               (1)  shall submit comments and recommendations to the
  board regarding the use of money in the fund for use by the board in
  adopting rules under Section 15.507 and in adopting policies and
  procedures under Section 15.508;
               (2)  shall review the overall operation, function, and
  structure of the fund at least semiannually and may provide
  comments and recommendations to the board on any matter; and
               (3)  may adopt rules, procedures, and policies as
  needed to administer this section and implement its
  responsibilities.
         Sec. 15.507.  RULES. The board may adopt rules providing
  for the use of money in the fund that are consistent with this
  subchapter.
         Sec. 15.508.  POLICIES AND PROCEDURES TO MITIGATE OR
  MINIMIZE ADVERSE EFFECTS OF CERTAIN FEDERAL LAWS. The board shall
  adopt, and may amend from time to time at the board's discretion,
  policies and procedures for the purpose of mitigating or minimizing
  the adverse effects, if any, of federal laws and regulations
  relating to income taxes, arbitrage, rebates, and related matters
  that may restrict the board's ability to freely invest all or part
  of the fund or to receive and retain all the earnings from the fund.
         Sec. 15.509.  NEW WATER SUPPLY INITIATIVE.  The board shall
  undertake to acquire through projects funded under Section
  15.504(b)(2) seven million acre-feet of new water supplies from
  sources not previously available in this state by December 31,
  2033.
         SECTION 2.  Section 15.994(c), Water Code, is amended to
  read as follows:
         (c)  The board may use money in the fund to contract for
  outreach, financial, planning, and technical assistance to assist
  rural political subdivisions [in obtaining and using financing from
  any source] for a purpose described by this section.
         SECTION 3.  Section 16.0121, Water Code, is amended by
  adding Subsections (k) and (l) to read as follows:
         (k)  The board by rule shall establish a program to provide
  technical assistance to retail public utilities in conducting water
  audits required under Subsections (b) and (b-1) and in applying for
  financial assistance from the board to mitigate the utility
  system's water loss. Rules adopted under this section must provide
  for the prioritization of technical assistance to retail public
  utilities based on:
               (1)  water loss audits submitted to the board;
               (2)  the population served by the utility; and
               (3)  the integrity of the utility's system.
         (l)  The board shall submit to the legislature every fifth
  year a water loss report that:
               (1)  summarizes the information compiled under
  Subsection (f);
               (2)  summarizes the measures taken by retail public
  utilities to reduce water loss; and
               (3)  identifies the retail public utilities
  participating in the program established under Subsection (k) and
  details the use of financial assistance provided under that
  subsection.
         SECTION 4.  (a) Except as otherwise provided by this Act,
  this Act takes effect September 1, 2023.
         (b)  Section 1 of this Act takes effect January 1, 2024, but
  only if the constitutional amendment proposed by the 88th
  Legislature, Regular Session, 2023, creating the water for Texas
  fund to assist in financing water projects in this state is approved
  by the voters.  If that constitutional amendment is not approved by
  the voters, Section 1 of this Act has no effect.