Bill Text: TX SB1682 | 2021-2022 | 87th Legislature | Introduced

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Bill Title: Relating to the funding of utility reliability projects by the Texas Water Development Board and other entities; authorizing the issuance of revenue bonds, granting rulemaking authority, and making an appropriation.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2021-03-24 - Referred to Water, Agriculture, & Rural Affairs [SB1682 Detail]

Download: Texas-2021-SB1682-Introduced.html

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By: Hancock S.B. No. 1682

A BILL TO BE ENTITLED
AN ACT
relating to the funding of utility reliability projects by the
Texas Water Development Board and other entities; authorizing the
issuance of revenue bonds, granting rulemaking authority, and
making an appropriation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) The legislature recognizes the importance
of providing for the reliability of this state's public utilities.
The purpose of this Act is to ensure that proper funding in the form
of meaningful and adequate financial assistance is available to
enhance the reliability of water, electricity, natural gas and
broadband utilities for this state by supporting projects to
weatherize facilities and to provide adequate capacity during
periods of high demand.
(b) To accomplish that purpose, this Act creates the state
utilities reliability fund. The fund is intended to serve as a
utility infrastructure bank in order to enhance the financing
capabilities of the Texas Water Development Board under a
constitutionally created program and a revenue bond program. Money
in the fund will be available immediately to provide support for
market rate loans, low-interest loans, longer repayment terms for
loans, and deferral of loan payments. Money in the fund may not be
used to make grants. In addition, this Act creates the state
utilities reliability revenue fund for use in managing revenue
bonds issued by the board that are supported by the state utilities
reliability fund.
SECTION 2. Title 2, Water Code, is amended by adding
Subtitle G to read as follows:
SUBTITLE G. RELIABILITY OF STATE UTILITIES
CHAPTER 38 GENERAL PROVISIONS
Sec. 38.001. DEFINITIONS. In this subtitle:
(1) "Advisory committee" means the State Utilities
Reliability Fund Advisory Committee.
(2) "Board" means the Texas Water Development Board.
(3) "Broadband utility" means any person,
corporation, municipality, political subdivision or agency that
owns or operates for compensation in this state equipment or
facilities to provide broadband telecommunications capability and
Internet access in this state.
(4) "Electric utility" means any person, corporation,
municipality, political subdivision or agency that owns or operates
for compensation in this state equipment or facilities to produce,
generate, transmit, distribute, sell, or furnish electricity in
this state.
(5) "Executive administrator" means the executive
administrator of the Texas Water Development Board.
(6) "Facilities" means all of the plant and equipment
of an electric, natural gas, water, or broadband utility and
includes the tangible and intangible property, without limitation,
owned, operated, leased, licensed, used, controlled, or supplied
for, by, or in connection with the business of the electric, natural
gas, water or broadband utility in this state.
(7) "Fund" means the state utilities reliability fund.
(8) "Historically underutilized business" has the
meaning assigned by Section 2161.001, Government Code.
(9) "Natural gas utility" means any person,
corporation, municipality, political subdivision or agency that
owns or operates for compensation in this state equipment or
facilities to transmit or distribute combustible hydrocarbon
natural gas or synthetic natural gas for sale or resale in a manner
not subject to the jurisdiction of the Federal Energy Regulatory
Commission under the Natural Gas Act (15 U.S.C. Section 717 et
seq.).
(10) "Revenue fund" means the state utilities
reliability revenue fund.
(11) "Trust company" means the Texas Treasury
Safekeeping Trust Company.
(12) "Water utility" means any person, corporation,
municipality, political subdivision or agency operating,
maintaining, or controlling in this state facilities for providing
potable water service or sewer service, or both, for compensation.
CHAPTER 39. STATE UTILITIES RELIABILITY FUND
Sec. 39.001. FUND. (a) The state utilities reliability
fund is a special fund in the state treasury outside the general
revenue fund to be used by the board, without further legislative
appropriation, for the purpose of financing projects that enhance
the reliability of water, electricity, natural gas and broadband
utilities in this state by supporting projects to weatherize
facilities and to provide adequate capacity during periods of high
demand. The board may establish separate accounts in the fund. The
fund and the fund's accounts are kept and held by the trust company
for and in the name of the board. The board has legal title to money
and investments in the fund until money is disbursed from the fund
as provided by this chapter and board rules. It is the intent of the
legislature that the fund will never be used:
(1) for a purpose other than the support of projects
that enhance the reliability of water, electricity, natural gas and
broadband utilities in this state and to pay expenses authorized by
section 39.003; or
(2) to certify that appropriations from the treasury
are within the amount estimated to be available in a fund of the
treasury affected by the appropriation.
(b) Money deposited to the credit of the fund may be used
only as provided by this chapter.
(c) The fund consists of:
(1) money transferred or deposited to the credit of
the fund by law, including appropriations and money from any source
transferred or deposited to the credit of the fund at the board's
discretion as authorized by law;
(2) the proceeds of any fee or tax imposed by this
state that by statute is dedicated for deposit to the credit of the
fund;
(3) any other revenue that the legislature by statute
dedicates for deposit to the credit of the fund;
(4) investment earnings and interest earned on amounts
credited to the fund; and
(5) money transferred to the fund under a bond
enhancement agreement from another fund or account to which money
from the fund was transferred under a bond enhancement agreement,
as authorized by Section 39.004.
Sec. 39.002. MANAGEMENT AND INVESTMENT OF FUND. (a) The
trust company shall hold and invest the fund, and any accounts
established in the fund, for and in the name of the board, taking
into account the purposes for which money in the fund may be used.
The fund may be invested with the state treasury pool.
(b) The overall objective for the investment of the fund is
to maintain sufficient liquidity to meet the needs of the fund while
striving to preserve the purchasing power of the fund.
(c) The trust company has any power necessary to accomplish
the purposes of managing and investing the assets of the fund. In
managing the assets of the fund, through procedures and subject to
restrictions the trust company considers appropriate, the trust
company may acquire, exchange, sell, supervise, manage, or retain
any kind of investment that a prudent investor, exercising
reasonable care, skill, and caution, would acquire or retain in
light of the purposes, terms, distribution requirements, and other
circumstances of the fund then prevailing, taking into
consideration the investment of all the assets of the fund rather
than a single investment.
(d) The trust company may charge fees to cover its costs
incurred in managing and investing the fund. The fees must be
consistent with the fees the trust company charges other state and
local governmental entities for which it provides investment
management services. The trust company may recover fees it charges
under this subsection only from the earnings of the fund.
(e) The trust company shall provide an annual report to the
board and to the advisory committee with respect to the investment
of the fund. The trust company shall contract with a certified
public accountant to conduct an independent audit of the fund
annually and shall present the results of each annual audit to the
board and to the advisory committee. This subsection does not
affect the state auditor's authority to conduct an audit of the fund
under Chapter 321, Government Code.
(f) The trust company shall adopt a written investment
policy that is appropriate for the fund. The trust company shall
present the investment policy to the investment advisory board
established under Section 404.028, Government Code. The investment
advisory board shall submit to the trust company recommendations
regarding the policy.
(g) The board shall provide to the trust company -an
annualforecast of the cash flows into and out of the fund. The
board shall provide updates to the forecasts as appropriate to
ensure that the trust company is able to achieve the objective
specified by Subsection (b).
(h) The trust company shall disburse money from the fund as
directed by the board. The board shall direct disbursements from
the fund on a semiannual schedule specified by the board and not
more frequently than twice in any state fiscal year.
(i) An investment-related contract entered into under this
section is not subject to Chapter 2260, Government Code.
Sec. 39.003. USE OF FUND; PAYMENTS TO AND FROM OTHER FUNDS
OR ACCOUNTS. (a) At the direction of the board, the trust company
shall make disbursements from the fund to the state utilities
reliability revenue fund pursuant to a bond enhancement agreement
authorized by Section 39.004 in the amounts the board determines
are needed for debt service payments on or security provisions of
the board's revenue bonds, after considering all other sources
available for those purposes.
(b) The fund may be used only:
(1) to enhance the reliability of water, electricity,
natural gas and broadband utilities for this state by supporting
projects to weatherize facilities and to provide adequate capacity
to ensure continuous and adequate service during periods of high
demand; and
(2) to pay the necessary and reasonable expenses of
the board in administering the fund.
(c) notwithstanding any other provision in this chapter,
the use of the fund may be prioritized based on future legislative
directives, including any statewide utility reliability plan
required in the future.
Sec. 39.004. BOND ENHANCEMENT AGREEMENTS. (a) A bond
enhancement agreement entered into under this section is an
agreement for professional services. A bond enhancement agreement
must contain terms that are consistent with Section 39.002(h), and
the agreement, including the period covered by the agreement and
all other terms and conditions of the agreement, must be approved by
the board. An obligation to disburse money from the fund, or from a
special account established by the board, in accordance with a bond
enhancement agreement is a special obligation of the board payable
solely from designated income and receipts of the fund or of the
account, as determined by the board. An obligation to disburse
money from the fund, or from a special account established by the
board, in accordance with a bond enhancement agreement does not
constitute indebtedness of the state.
(b) To facilitate the use of the fund for the purposes of
this chapter, the board may direct the trust company to enter into
bond enhancement agreements to:
(1) provide a source of revenue or security for the
payment of the principal of and interest on revenue bonds issued by
the board to finance, or
(2) refinance projects authorized by chapter 40 of
this title.
(c) If the trust company enters into a bond enhancement
agreement under Subsection (b), the board may direct the trust
company to make disbursements from the fund to provide financial
assistance for a project authorized by this chapter or by chapter 40
of this title in the form of:
(1) a loan bearing an interest rate of not less than 50
percent of the then-current market rate of interest available to
the board;
(2) a loan to finance a facility under repayment terms
similar to the terms of debt customarily issued by the entity
requesting assistance but not to exceed the lesser of:
(A) the expected useful life of the facility; or
(B) 30 years;
(3) a deferral of loan repayment, including deferral
of the repayment of:
(A) principal and interest; or
(B) accrued interest; or
(4) a combination of the methods of financing
described by Subdivisions (1)-(3).
(d) The board may direct the trust company to enter into
bond enhancement agreements with respect to refunding bonds issued
by the board to refund bonds issued by the board the proceeds of
which have been or are to be used for projects authorized by this
chapter and which otherwise satisfied the requirements of
Subsections (b) and (c).
(f) The board may not direct the trust company to enter into
a bond enhancement agreement with respect to bonds issued by the
board the proceeds of which have been or are to be used to make
grants.
(g) The board may not direct the trust company to enter into
a bond enhancement agreement with respect to bonds issued by the
board the proceeds of which may be used to provide financial
assistance to an applicant if at the time of the request the
applicant has failed to satisfactorily complete a request by the
executive administrator for information relevant to the project for
which the financial assistance is sought.
(h) The board may not direct the trust company to enter into
a bond enhancement agreement with respect to bonds issued by the
board the proceeds of which may be used to provide financial
assistance to an applicant unless at the time of the request the
applicant has acknowledged its legal obligation to comply with any
applicable requirements of:
(1) federal law relating to contracting with
disadvantaged business enterprises; and
(2) state law relating to contracting with
historically underutilized businesses.
(i) The board may not approve a bond enhancement agreement
unless the agreement contains a provision to the effect that if the
trust company makes a disbursement under the bond enhancement
agreement from the fund to the credit of the state utilities
reliability revenue fund as provided by Section 39.003(a), the
board may direct the comptroller to transfer an amount not to exceed
that amount from the state utilities reliability revenue fund back
to the fund if:
(1) money is certified by the executive director to be
a surplus balance in the state utilities reliability revenue fund
for that purpose; and
(2) the money transferred back to the fund will not
cause bonds that are payable from the state utilities reliability
revenue fund to rate below the highest rating category for any
bonds outstanding.
(j) For purposes of Subsection (i)(1), the surplus balance
of the state utilities reliability revenue fund is the amount of
money on deposit in the fund, as determined by the board, that is
attributable to the revenue bonds, including money received from
the sale or other disposition of the board's rights to receive
repayment of financial assistance, money received from the sale of
utilities associated with a modified facility, and related
investment earnings, that exceeds the amount required to pay annual
debt service on the bonds and any other amounts specified in the
resolution or other proceedings authorizing the bonds and any
related obligations.
(k) The board shall submit each bond enhancement agreement
and the record relating to the agreement to the attorney general for
examination as to the validity of the agreement. If the attorney
general finds that the agreement has been made in accordance with
the constitution and other laws of this state, the attorney general
shall approve the agreement and the comptroller shall register the
agreement. If the agreement is not submitted at the same time that
the bonds to which it relates are submitted, the agreement shall be
treated as a public security solely for the purposes of Section
1202.004, Government Code.
(l) After a bond enhancement agreement has been approved and
registered as provided by Subsection (k),
the agreement is valid and is incontestable for any cause.
(m) At the direction of the board, the trust company shall
make disbursements from the fund, or from a special account
established by the board, in accordance with a bond enhancement
agreement in the amounts the board determines are needed for debt
service payments on, or for security provisions of, revenue bonds
issued by the board the proceeds of the sale of which have been
deposited in the state utilities reliability revenue fund, or in an
account in that fund, for use in accordance with this chapter, after
the board considers all other sources available for those purposes
in that fund or account. Money transferred under this subsection
may be deposited into that fund or into a special account
established by the trust company or a corporate trustee that is a
trust company or a bank that has the powers of a trust company, as
determined by the board.
Sec. 39.005. PRIORITIZATION OF PROJECTS BY BOARD. (a) The
board, for the purpose of providing financial assistance under this
chapter, shall prioritize projects that enhance the reliability of
water, electricity, natural gas and broadband utilities for this
state.
(b) The board shall establish a point system for
prioritizing projects for which financial assistance is sought from
the board. The system must include a standard for the board to
apply in determining whether a project qualifies for financial
assistance at the time the application for financial assistance is
filed with the board.
(c) The board shall give the highest consideration in
awarding points to projects that will have a substantial effect,
including projects that will:
(1) weatherize facilities to protect against cold
weather; and
(2) create excess capacity that will be used during
periods of high demand to provide continuous and adequate electric,
natural gas, water and broadband service.
(d) In addition to the criteria provided by Subsection (c),
the board must also consider at least the following criteria in
prioritizing projects:
(1) other contributions to be made to finance the
project, including the up-front capital to be provided by the
applicant;
(2) the financial capacity of the applicant to repay
the financial assistance provided;
(3) the ability of the board and the applicant to
timely leverage state financing with local, federal or private
funding;
(4) whether there is an emergency need for the
project, taking into consideration whether federal funding for
which the project is eligible has been used or sought; and
(5) whether the applicant is ready to proceed with the
project at the time of the application, including whether:
(A) all preliminary planning and design work
associated with the project has been completed;
(B) the applicant has acquired any necessary
rights associated with the project;
(C) the applicant has secured funding for the
project from other sources; and
(D) the applicant is able to begin implementing
or constructing the project.
Sec. 39.006. ADVISORY COMMITTEE. (a) The State Utilities
Reliability Fund Advisory Committee is composed of the following
seven members:
(1) the comptroller, or a person designated by the
comptroller;
(2) three members of the senate appointed by the
lieutenant governor, including:
(A) a member of the committee of the senate
having primary jurisdiction over matters relating to finance; and
(B) a member of the committee of the senate
having primary jurisdiction over natural resources; and
(3) three members of the house of representatives
appointed by the speaker of the house of representatives,
including:
(A) a member of the committee of the house of
representatives having primary jurisdiction over appropriations;
and
(B) a member of the committee of the house of
representatives having primary jurisdiction over natural
resources.
(b) Board staff shall provide staff support for the advisory
committee.
(c) An appointed member of the advisory committee serves at
the will of the person who appointed the member.
(d) The lieutenant governor shall appoint a co-presiding
officer of the advisory committee from among the members appointed
by the lieutenant governor, and the speaker of the house of
representatives shall appoint a co-presiding officer of the
committee from among the members appointed by the speaker.
(e) The advisory committee may hold public hearings, formal
meetings, or work sessions. Either co-presiding officer of the
advisory committee may call a public hearing, formal meeting, or
work session of the advisory committee at any time. The advisory
committee may not take formal action at a public hearing, formal
meeting, or work session unless a quorum of the committee is
present.
(f) Except as otherwise provided by this subsection, a
member of the advisory committee is not entitled to receive
compensation for service on the committee or reimbursement for
expenses incurred in the performance of official duties as a member
of the committee. Service on the advisory committee by a member of
the senate or house of representatives is considered legislative
service for which the member is entitled to reimbursement and other
benefits in the same manner and to the same extent as for other
legislative service.
(g) The advisory committee shall submit comments and
recommendations to the board regarding the use of money in the fund
and in the revenue fund for use by the board in adopting rules under
Section 39.007 and in adopting policies and procedures under
Section 39.009. The submission must include:
(1) comments and recommendations on rulemaking
related to the prioritization of projects in accordance with
Section 39.005;
(2) comments and recommendations on rulemaking
related to establishing standards for determining whether projects
meet the criteria provided by Section 39.003(b);
(3) an evaluation of the available programs for
providing financing for projects authorized by this chapter and
guidelines for implementing those programs;
(4) an evaluation of the lending practices of the
board and guidelines for lending standards;
(5) an evaluation of the use of funds by the board to
provide support for financial assistance for projects that enhance
the reliability of water, electricity, natural gas and broadband
utilities for this state, including support for the purposes
described by Section 39.004(c);
(6) an evaluation of whether premium financing
programs should be established within the funds described by
Section 39.004 to serve the purposes of this chapter, especially in
connection with projects described by Section 39.003(b);
(7) an evaluation of methods for encouraging
participation in the procurement process by companies domiciled in
this state or that employ a significant number of residents of this
state; and
(8) an evaluation of the overall operation, function,
and structure of the fund.
(h) The advisory committee 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.
(i) The advisory committee may adopt rules, procedures, and
policies as needed to administer this section and implement its
responsibilities.
(j) Chapter 2110, Government Code, does not apply to the
size, composition, or duration of the advisory committee.
(k) The advisory committee is subject to Chapter 325,
Government Code (Texas Sunset Act). Unless continued in existence
as provided by that chapter, the advisory committee is abolished
and this section expires September 1, 2035.
(l) The advisory committee shall make recommendations to
the board regarding information to be posted on the board's
Internet website under Section 39.008(b).
(m) The advisory committee shall evaluate and may provide
comments or recommendations on the feasibility of the state owning,
constructing, and operating water, electricity, natural gas or
broadband utilities.
(n) The executive administrator shall provide an annual
report to the advisory committee on:
(1) the board's compliance with statewide annual goals
relating to historically underutilized businesses; and
(2) the participation level of historically
underutilized businesses in projects that receive funding related
to a bond enhancement agreement under this chapter.
(o) If the aggregate level of participation by historically
underutilized businesses in projects that receive funding related
to a bond enhancement agreement under this chapter does not meet
statewide annual goals adopted under Chapter 2161, Government Code,
the advisory committee shall make recommendations to the board to
improve the participation level.
Sec. 39.007. RULES. (a) The board shall adopt rules
providing for the use of money in the fund that are consistent with
this chapter, including rules:
(1) establishing standards for determining whether
projects meet the criteria provided by Section 39.003(b); and
(2) specifying the manner for prioritizing projects
for purposes of Section 39.005.
(b) The board shall give full consideration to the
recommendations of the advisory committee before adopting rules
under this chapter.
Sec. 39.008. REPORTING AND TRANSPARENCY REQUIREMENTS. (a)
Not later than December 1 of each even-numbered year, the board
shall provide a report to the governor, lieutenant governor,
speaker of the house of representatives, and members of the
legislature regarding the use of the fund.
(b) The board shall post the following information on the
board's Internet website regarding the use of the fund and
regularly update the information posted:
(1) the progress made in enhancing the reliability of
water, electricity, natural gas and broadband utilities for this
state; and
(2) a description of each project funded through bonds
supported by a bond enhancement agreement entered into under
Section 39.004, including:
(A) the expected date of completion of the
project; and
(B) the current status of the project.
Sec. 39.009. 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.
CHAPTER 40. STATE UTILITIES RELIABILITY REVENUE FUND
Sec. 40.001. FUND. (a) The state utilities reliability
revenue fund is a special fund in the state treasury outside the
general revenue fund to be a revolving finance program used by the
board, without further legislative appropriation, only for the
purpose of providing financing for projects that enhance the
reliability of water, electricity, natural gas and broadband
utilities for this state by supporting projects to weatherize
facilities and to provide adequate capacity during periods of high
demand. The board may establish separate accounts in the revenue
fund. The board has legal title to money and investments in the
revenue fund until the money is disbursed as provided by this
chapter and board rules. It is the intent of the legislature that
the revenue fund will never be used:
(1) for a purpose other than the support of projects
that enhance the reliability of water, electricity, natural gas and
broadband utilities for this state; or
(2) to certify that appropriations from the treasury
are within the amount estimated to be available in a fund of the
treasury affected by the appropriation.
(b) Money deposited to the credit of the revenue fund may be
used only as provided by this chapter.
(c) The revenue fund consists of:
(1) money transferred or deposited to the credit of
the revenue fund by law, including appropriations and money from
any source transferred or deposited to the credit of the revenue
fund at the board's discretion as authorized by law;
(2) the proceeds of any fee or tax imposed by this
state that by statute is dedicated for deposit to the credit of the
revenue fund;
(3) any other revenue that the legislature by statute
dedicates for deposit to the credit of the revenue fund;
(4) investment earnings and interest earned on amounts
credited to the revenue fund;
(5) the proceeds from the sale of revenue bonds,
issued by the board under this chapter, that are designated by the
board for the purpose of providing money for the revenue fund;
(6) repayments of loans made from the revenue fund;
and
(7) money disbursed to the revenue fund from the state
utilities reliability fund as authorized by Section 39.003.
Sec. 40.002. MANAGEMENT AND INVESTMENT OF REVENUE FUND.
(a) Money deposited to the credit of the revenue fund shall be
invested as determined by the board. The revenue fund may be
invested with the state treasury pool.
(b) The revenue fund and any accounts established in the
revenue fund shall be kept and maintained by or at the direction of
the board.
(c) At the direction of the board, the revenue fund and any
accounts established in the revenue 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 chapter may
be invested as provided by an order, resolution, or rule of the
board.
(d) The comptroller or corporate trustee shall manage the
revenue fund in strict accordance with this chapter and the orders,
resolutions, and rules of the board.
Sec. 40.003. USE OF REVENUE FUND. (a) Except as provided
by Subsection (c), money in the revenue fund may be used by the
board only to provide financing or refinancing, under terms
specified by the board, for projects that enhance the reliability
of water, electricity, natural gas and broadband utilities for this
state by weatherizing facilities or by providing adequate capacity
during periods of high demand.
(b) Financing or refinancing of projects described by
Subsection (a) may be provided by using money in the revenue fund to
make loans to eligible water, electric, natural gas and broadband
utilities or to purchase bonds or other obligations of eligible
water, electric, natural gas and broadband utilities bearing
interest at a rate or rates determined by the board, including a
rate at or rates below prevailing market rates.
(c) The board may use money in the revenue fund:
(1) as a source of revenue or security for:
(A) the payment of the principal of and interest
on revenue bonds issued by the board under this chapter; or
(B) a bond enhancement agreement; or
(2) to pay the necessary and reasonable expenses of
paying agents, bond counsel, and financial advisory services and
similar costs incurred by the board in administering the revenue
fund.
(d) The board, or comptroller or corporate trustee managing
the revenue fund at the direction of the board as provided by
Section 40.003(c), shall withdraw from the revenue fund and forward
to another person any amounts, as determined by the board, for
timely payment of:
(1) the principal of and interest on bonds described
by Subsection (c)(1)(A) of this section that mature or become due;
and
(2) any cost related to bonds described by Subsection
(c)(1)(A) of this section that become due, including payments under
related credit agreements or bond enhancement agreements.
Sec. 40.004. ISSUANCE OF REVENUE BONDS. (a) The board may
issue revenue bonds for the purpose of providing money for the
revenue fund.
(b) The board may issue revenue bonds to refund revenue
bonds or bonds and obligations issued or incurred in accordance
with other provisions of law.
(c) Revenue bonds issued under this chapter are special
obligations of the board payable only from and secured by
designated income and receipts of the revenue fund, or of one or
more accounts in the revenue fund, including principal of and
interest paid and to be paid on revenue fund assets or income from
accounts created within the revenue fund by the board, as
determined by the board.
(d) Revenue bonds issued under this chapter do not
constitute indebtedness of the state as prohibited by the
constitution.
(e) The board may require revenue fund participants to make
charges, levy taxes, or otherwise provide for sufficient money to
pay acquired obligations.
(f) Revenue bonds issued under this chapter must be
authorized by resolution of the board and must have the form and
characteristics and bear the designations as the resolution
provides.
(g) Revenue bonds issued under this chapter may:
(1) bear interest at the rate or rates payable
annually or otherwise;
(2) be dated;
(3) mature at the time or times, serially, as term
revenue bonds, or otherwise in not more than 50 years from their
dates;
(4) be callable before stated maturity on the terms
and at the prices, be in the denominations, be in the form, either
coupon or registered, carry registration privileges as to principal
only or as to both principal and interest and as to successive
exchange of coupon for registered bonds or one denomination for
bonds of other denominations, and successive exchange of registered
revenue bonds for coupon revenue bonds, be executed in the manner,
and be payable at the place or places inside or outside the state,
as provided by the resolution;
(5) be issued in temporary or permanent form;
(6) be issued in one or more installments and from time
to time as required and sold at a price or prices and under terms
determined by the board to be the most advantageous reasonably
obtainable; and
(7) be issued on a parity with and be secured in the
manner as other revenue bonds authorized to be issued by this
chapter or may be issued without parity and secured differently
than other revenue bonds.
(h) Section 17.955 applies to revenue bonds issued under
this chapter in the same manner as that section applies to water
financial assistance bonds.
(i) All proceedings relating to the issuance of revenue
bonds issued under this chapter shall be submitted to the attorney
general for examination. If the attorney general finds that the
revenue bonds have been authorized in accordance with law, the
attorney general shall approve the revenue bonds, and the revenue
bonds shall be registered by the comptroller. After the approval
and registration, the revenue bonds are incontestable in any court
or other forum for any reason and are valid and binding obligations
in accordance with their terms for all purposes.
(j) The proceeds received from the sale of revenue bonds
issued under this chapter may be deposited or invested in any manner
and in such investments as may be specified in the resolution or
other proceedings authorizing those obligations. Money in the
revenue fund or accounts created by this chapter or created in the
resolution or other proceedings authorizing the revenue bonds may
be invested in any manner and in any obligations as may be specified
in the resolution or other proceedings.
Sec. 40.005. CHAPTER CUMULATIVE OF OTHER LAWS. (a) This
chapter is cumulative of other laws on the subject, and the board
may use provisions of other applicable laws in the issuance of bonds
and other obligations and the execution of bond enhancement
agreements, but this chapter is wholly sufficient authority for the
issuance of bonds and other obligations, the execution of bond
enhancement agreements, and the performance of all other acts and
procedures authorized by this chapter.
(b) In addition to other authority granted by this chapter,
the board may exercise the authority granted to the governing body
of an issuer with regard to the issuance of obligations under
Chapter 1371, Government Code.
SECTION 3. Section 15.978, Water Code, is amended by adding
subsection (c-1) to read as follows:
(c-1) Notwithstanding other provisions of this chapter, the
board may sell to the Texas Water Resources Finance Authority or to
the state utilities reliability fund any political subdivision
bonds purchased with money in the state utilities reliability
revenue fund and may apply the proceeds of a sale in the manner
provided by Chapter 40 of this title.
SECTION 4. CONTINGENCY APPROPRIATION. (a) Contingent on
passage and adoption by an election of the voters of legislation
relating to proposing constitutional amendments creating the State
Utilities Reliability Fund and the State Utilities Reliability
Revenue Fund by the 87th Legislature, Regular Session, 2021,
$2,000,000,000 is appropriated out of the economic stabilization
fund to the state utilities reliability fund to implement the
provisions of the legislation.
(b) The appropriation made in this section shall be
available to the Water Development Board for the purposes described
in legislation to finance projects that enhance the reliability of
water, electricity, natural gas and broadband utilities for this
state according to the provisions of the legislation.
SECTION 5. As soon as practicable after the effective date
of this Act, the lieutenant governor and the speaker of the house of
representatives shall appoint the initial appointive members of the
State Utilities Reliability Fund Advisory Committee as provided by
Section 39.006, Water Code, as added by this Act.
SECTION 6. (a) Not later than September 1, 2022, the State
Utilities Reliability Fund Advisory Committee shall submit
recommendations to the Texas Water Development Board on the rules
to be adopted by the board under Sections 39.007(a)(1) and (2),
Water Code, as added by this Act.
(b) Not later than the later of the 90th day after the date
the Texas Water Development Board receives the recommendations
described by Subsection (a) of this section or March 1, 2023, the
board shall propose rules under Section 39.007, Water Code, as
added by this Act.
SECTION 7. The Texas Water Development Board shall post the
information described by Section 39.008(b), Water Code, as added by
this Act, on the board's Internet website not later than March 1,
2022.
SECTION 8. This Act takes effect on the date on which the
constitutional amendment proposed by the 87th Legislature, Regular
Session, 2021, adding Sections 49-d-15 and 49-d-16, Article III,
Texas Constitution, creating the state utilities reliability fund
and the state utilities reliability revenue fund takes effect. If
that amendment is not approved by the voters, this Act has no
effect.