Bill Text: TX SB2437 | 2019-2020 | 86th Legislature | Introduced

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Bill Title: Relating to the authority of the Texas Water Development Board to establish, operate, and, through the issuance of general obligation bonds, finance a grant program to provide financial assistance to political subdivisions and the state for projects related to disaster recovery; disaster mitigation; or construct, repair, rehabilitate, or reconstruct state or local infrastructure.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2019-03-21 - Referred to Water & Rural Affairs [SB2437 Detail]

Download: Texas-2019-SB2437-Introduced.html

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By: Miles S.B. No. 2437

A BILL TO BE ENTITLED
AN ACT
relating to the authority of the Texas Water Development Board to
establish, operate, and, through the issuance of general obligation
bonds, finance a grant program to provide financial assistance to
political subdivisions and the state for projects related to
disaster recovery; disaster mitigation; or construct, repair,
rehabilitate, or reconstruct state or local infrastructure.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 70, Water Code, is amended by adding
Subchapter A to read as follows:
SUBCHAPTER A. TEXAS DISASTER MITIGATION, RECOVERY, RESPONSE AND
INFRASTRUCTURE GRANT PROGRAM
Sec. 70.001. DEFINITIONS. In this subchapter:
(1) "Advisory committee" means the Texas Disaster
Mitigation, Recovery, Response and Infrastructure Advisory
Committee.
(2) "Board" means the Texas Water Development Board.
(3) "Bonds" means bonds, notes, and other public
securities.
(4) "Credit agreement" has the meaning assigned by
Section 1371.001, Government Code.
(5) "Fund" means the Texas Disaster Mitigation,
Recovery, Response and Infrastructure.
(6) "Historically underutilized business" has the
meaning assigned by Section 2161.001, Government Code.
(7) "Qualifying political subdivision" means a
county, municipality, independent school district, or other
special district.
(8) "Qualifying project" means any of the following,
if undertaken by a qualifying political subdivision or the state in
order to provide:
(A) a project for disaster mitigation
(B) a project for disaster recovery;
(C) a project for disaster response; or
(D) a project to construct, repair,
rehabilitate, or reconstruct state or local infrastructure.
(9) "Trust company" means the Texas Treasury
Safekeeping Trust Company.
Sec. 70.002. TEXAS DISASTER MITIGATION, RECOVERY, RESPONSE
AND INFRASTRUCTURE GRANT PROGRAM. The Board by rule shall
establish a grant program to use the proceeds from the sale of bonds
issued under Section 70.004 and the interest earned on those bonds
to provide financial assistance to qualifying political
subdivisions and the state to finance qualifying projects in the
political subdivision and the state.
Sec. 70.003. APPLICATION FOR GRANT. The Board shall
develop and implement an application process for a grant under this
subchapter. At a minimum, the application must include:
(1) a description of the qualifying project for which
the applicant is requesting the grant;
(2) an estimate of the total cost of the project; and
(3) evidence that the applicant has staff, policies,
and procedures in place adequate to complete the project.
Sec. 70.004. TEXAS DISASTER MITIGATION, RECOVERY, RESPONSE
AND INFRASTRUCTURE BONDS. (a) The Board may issue general
obligation bonds for the purposes provided in this subchapter. The
aggregate principal amount of the bonds that are issued may not
exceed the amount specified by Section 2, Article XIV, Texas
Constitution.
(b) The Board may enter into credit agreements relating to
the bonds. A credit agreement entered into under this subchapter
may be secured by and payable from the same sources as the bonds.
(c) The bonds shall be executed in the form, on the terms,
and in the denominations, bear interest, and be issued as
prescribed by the Board. The bonds may be issued in multiple
series and issues and may have the provisions the Board determines
appropriate and in the interest of the state.
(d) The Board has all powers necessary or appropriate to
carry out this subchapter and to implement Section 2, Article XIV,
Texas Constitution, including the powers granted to other
bond-issuing governmental agencies and units and to nonprofit
corporations by Chapters 1201, 1207, and 1371, Government Code.
(e) The bonds and the record of proceedings authorizing the
bonds and any related credit agreements shall be submitted to the
attorney general for approval. If the attorney general finds that
they will be issued in accordance with this subchapter and other
applicable law, the attorney general shall approve them and deliver
them to the comptroller for registration. After approval by the
attorney general, registration by the comptroller, and payment by
the purchasers of the bonds in accordance with the terms of sale and
after execution and delivery of the related credit agreements, the
bonds and related credit agreements are incontestable for any
cause.
(f) The proceeds from the sale of the bonds must be used to
provide funding for the grant program established under Section
70.002. The Board may use a portion of the proceeds from the sale of
the bonds to pay the cost of the issuance of the bonds.
(g) The comptroller shall pay the principal of the bonds as
they mature and the interest as it becomes payable and shall pay any
cost related to the bonds that becomes due, including payments
under credit agreements.
Sec. 70.005 FEDERAL MATCHING FUNDS. (a) Bond proceeds
described in this subchapter can go towards federal matching funds
including those offered by the Federal Emergency Management Agency,
and United States Army Corps of Engineers; and
(b) bond proceeds described in this subchapter can be used
to reimburse matching payments made to the federal including those
offered by the Federal Emergency Management Agency, and United
States Army Corps of Engineers.
SECTION 2 Chapter 70, Water Code, is amended by adding
Subchapter B to read as follows:
Sec. 70.432. FUND. (a) The Texas Disaster Mitigation,
Recovery, Response and Infrastructure 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 implementing the Texas Disaster Mitigation, Recovery, Response
and Infrastructure Bonds as provided by this subchapter. 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 subchapter 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 in the Texas Disaster Mitigation, Recovery, Response and
Infrastructure Bonds; 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 subchapter.
(c) 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) 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 70.435.
Sec. 70.433. 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 annually shall provide a written
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 annually shall provide to the trust company a
forecast 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. 70.434. 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 another fund or account
pursuant to a bond enhancement agreement authorized by Section
70.435 in the amounts the board determines are needed for debt
service payments on or security provisions of the board's general
obligation bonds or revenue bonds, shall be paid out of the economic
stabilization fund.
Sec. 70.435. 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 70.433(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 subchapter, the board may direct the trust company to enter
into bond enhancement agreements to provide a source of revenue or
security for the payment of the principal of and interest on general
obligation bonds, including bonds issued under Section 2, Article
XIV, Texas Constitution, or revenue bonds issued by the board to
finance or refinance projects included in the state water plan if
the proceeds of the sale of the bonds have been or will be deposited
to the credit of the Texas Disaster Mitigation, Recovery, Response
and Infrastructure revenue fund.
(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 another fund or
account for the support of bonds the proceeds of which are used to
provide financial assistance 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;
(4) incremental repurchase terms for an acquired
facility, including terms for no initial repurchase payment
followed by progressively increasing incremental levels of
interest payment, repurchase of principal and interest, and
ultimate repurchase of the entire state interest in the facility
using simple interest calculations; or
(5) a combination of the methods of financing
described by Subdivisions (1)-(4).
(d) The board may direct the trust company to enter into
bond enhancement agreements with respect to bonds issued by the
board before September 1, 2019, only if:
(1) those bonds otherwise satisfy the requirements of
Subsections (b) and (c);
(2) the proceeds of those bonds were or are required to
be used only for the implementation of Texas Disaster Mitigation,
Recovery, Response and Infrastructure; and
(3) economic stabilization funds of the state was
appropriated before September 1, 2013, for the payment of debt
service on those bonds.
(e) 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 included in the state
water plan 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 (2) satisfactorily complete a request by
the Texas Disaster Mitigation, Recovery, Response and
Infrastructure Advisory Committee 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
with respect to bonds issued by the board 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 another fund or account as provided by Section
70.434(a), the board shall direct the comptroller to transfer an
amount not to exceed that amount from the fund or account receiving
the payment back to the fund if:
(1) money is available in the surplus balance in the
fund or account for that purpose; and
(2) the money transferred back to the fund will not
cause general obligation bonds that are payable from the fund or
account receiving the payment to no longer be self-supporting for
purposes of Section 2, Article XIV, Texas Constitution.
(j) For purposes of Subsection (i)(1), the surplus balance
of a fund or account that receives a disbursement from the fund
under a bond enhancement agreement is the amount of money on deposit
in the fund or account, as determined by the board, that is
attributable to the general obligation bonds or revenue bonds that
are the subject of the bond enhancement agreement, 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, transfer, or lease of an acquired facility, money received
from the sale of water associated with an acquired 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, general
obligation bonds or revenue bonds issued by the board the proceeds
of the sale of which have been deposited in another fund
administered by the board, or in an account in that other fund, for
use in accordance with this subchapter, after the board considers
all other sources available for those purposes in that other fund or
account. Money transferred under this subsection may be deposited
into that other 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. 70.437. PRIORITIZATION OF PROJECTS BY BOARD. (a) The
board shall prioritize projects for the purpose of providing
financial assistance under this subchapter.
(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) provide assistance to a diverse rural and urban
population.
(d) In addition to the criteria provided by Subsection (c),
the board must also consider at least the following criteria in
prioritizing projects:
(1) if the applicant is applying for financial
assistance for the project, 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; and
(B) the applicant has acquired the property
rights associated with the project; and
Sec. 15.438. ADVISORY COMMITTEE. (a) The Texas Disaster
Mitigation, Recovery, Response and Infrastructure Advisory
Committee is composed of the following seven members:
(1) the comptroller, or a person designated by the
comptroller;
(2) four 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 intergovernmental relations; and
(3) four 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 county affairs.
(b) The following persons shall serve as staff support for
the advisory committee:
(1) the deputy executive administrator of the board
who is responsible for water science and conservation or a person
who holds an equivalent position at the agency, or a person
designated by that person;
(2) the deputy executive administrator of the board
who is responsible for water resources planning and information or
a person who holds an equivalent position at the agency, or a person
designated by that person; and
(3) the chief financial officer of the board, or a
person who holds an equivalent position at the agency.
(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
for use by the board in adopting rules under Section 70.439 and in
adopting policies and procedures under Section 70.441. The
submission must include:
(1) comments and recommendations on rulemaking
related to the prioritization of projects in regional water plans
and the state water plan in accordance with Sections 70.437;
(2) comments and recommendations on rulemaking
related to establishing standards for determining whether projects
meet the criteria provided by Section 70.434(b);
(3) an evaluation of the available programs for
providing financing for projects;
(4) an evaluation of the granting practices of the
board and guidelines for granting standards;
(5) an evaluation of the use of funds by the board to
provide support for financial assistance for Disaster Mitigation,
Recovery, Response and Infrastructure projects;
(6) an evaluation of whether premium financing
programs should be established within the funds described by
Section XX.435 to serve the purposes of this subchapter, especially
in connection with projects described by Section 70.434(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, 2023.
(l) The advisory committee shall make recommendations to
the board regarding information to be posted on the board's
Internet website under Section 70.440(b).
(m) The advisory committee shall evaluate and may provide
comments or recommendations on the feasibility of the state owning,
constructing, and operating water supply projects, including
reservoirs and major water supply conveyance infrastructure,
through existing financial assistance programs under Subchapter A
of this chapter.
(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 subchapter.
(o) If the aggregate level of participation by historically
underutilized businesses in projects that receive funding related
to a bond enhancement agreement under this subchapter 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. 70.439. RULES. (a) The board shall adopt rules
providing for the use of money in the fund that are consistent with
this subchapter, including rules:
(1) establishing standards for determining whether
projects meet the criteria provided by Section 70.434(b); and
(2) specifying the manner for prioritizing projects
for purposes of Section 70.437.
(b) The board shall give full consideration to the
recommendations of the advisory committee before adopting rules
under this subchapter.
Sec. 70.440. 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 information on the board's Internet
website regarding the use of the fund and regularly update the
information posted.
Sec. 15.441. 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.
SUBCHAPTER H. TEXAS DISASTER MITIGATION, RECOVERY, RESPONSE AND
INFRASTRUCTURE FUND
Sec. 15.471. DEFINITION. In this subchapter, "fund" means
the Texas Disaster Mitigation, Recovery, Response and
Infrastructure Fund.
Sec. 15.472. FUND. (a) Texas Disaster Mitigation,
Recovery, Response and Infrastructure Fund is a special fund in the
state treasury outside the general revenue fund to be used by the
board, without further legislative appropriation, only for the
purpose of providing financing for projects under subchapter J.
The board may establish separate accounts in the fund. The board
has legal title to money and investments in the fund until the money
is disbursed as provided by this subchapter 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 in
subchapter A; 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 subchapter.
(c) 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) 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;
(5) the proceeds from the sale of bonds, including
revenue bonds issued by the board under this subchapter, that are
designated by the board for the purpose of providing money for the
fund;
(6) repayments of loans made from the fund; and
(7) money from the sale, transfer, or lease of a
project acquired, constructed, reconstructed, developed, or
enlarged with money from the fund.
Sec. 15.473. MANAGEMENT AND INVESTMENT OF FUND. (a) Money
deposited to the credit of 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. 15.474. USE OF FUND. (a) Except as provided by
Subsection (c), money in the fund may be used by the board only to
provide financing or refinancing, under terms specified by the
board, for projects included in Subchapter A.
(b) Financing or refinancing of projects described by
Subsection (a) may be provided by using money in the fund to make
loans to eligible political subdivisions and the state or to
purchase bonds or other obligations of eligible political
subdivisions and the state bearing interest at a rate or rates
determined by the board, including a rate or rates below prevailing
market rates.
(c) The board may use money in the fund:
(1) as a source of revenue or security for:
(A) the payment of the principal of and interest
on:
(i) revenue bonds issued by the board under
this subchapter; or
(ii) other bonds issued by the board if the
proceeds of the bonds will be deposited in the fund; or
(B) a bond enhancement agreement;
(2) to acquire loans or other assets from another fund
or account administered by the board.
(3) 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 fund.
(d) The board, or comptroller or corporate trustee managing
the fund at the direction of the board as provided by Section
70.473(c), shall withdraw from the 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. 70.476. SUBCHAPTER CUMULATIVE OF OTHER LAWS. (a) This
subchapter 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 subchapter 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 subchapter.
(b) In addition to other authority granted by this
subchapter, 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. 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
Texas Disaster Mitigation, Recovery, Response and Infrastructure
Advisory Committee as provided by Section 70.438, Water Code, as
added by this Act.
SECTION 4. (a) Not later than September 1, 2014, the Texas
Disaster Mitigation, Recovery, Response and Infrastructure
Advisory Committee shall submit recommendations to the Texas Water
Development Board on the rules to be adopted by the board under
Sections 70.439(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, 2021, the
board shall adopt rules under Section 70.439, Water Code, as added
by this Act.
SECTION 5. The Texas Water Development Board shall post the
information described by Section 70.440(b), Water Code, as added by
this Act, on the board's Internet website not later than March 1,
2020.
SECTION 6. Sections 1 and 2 of this article take effect on
the date on which the constitutional amendment proposed by the 86th
Legislature, Regular Session, 2019, adding Sections 2, Article XIV,
Texas Constitution, creating the Texas Disaster Mitigation,
Recovery, Response and Infrastructure Fund. If that amendment is
not approved by the voters, those sections of this article have no
effect.
SECTION 7. Except as otherwise provided by this Act, this
Act takes effect September 1, 2019.