Bill Text: TX SB28 | 2023-2024 | 88th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to financial assistance provided and programs administered by the Texas Water Development Board.
Spectrum: Slight Partisan Bill (Republican 36-12)
Status: (Passed) 2023-06-09 - See remarks for effective date [SB28 Detail]
Download: Texas-2023-SB28-Introduced.html
Bill Title: Relating to financial assistance provided and programs administered by the Texas Water Development Board.
Spectrum: Slight Partisan Bill (Republican 36-12)
Status: (Passed) 2023-06-09 - See remarks for effective date [SB28 Detail]
Download: Texas-2023-SB28-Introduced.html
88R16344 JAM-F | ||
By: Perry | S.B. No. 28 |
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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 G-1 to read as follows: | ||
SUBCHAPTER G-1. NEW WATER SUPPLY FOR TEXAS FUND | ||
Sec. 15.451. DEFINITION. In this subchapter, "fund" means | ||
the new water supply for Texas fund. | ||
Sec. 15.452. FUND. The new water supply for Texas fund is a | ||
special fund in the state treasury. The fund consists of: | ||
(1) money appropriated to the board for a purpose of | ||
the fund; | ||
(2) money the board transfers to the fund from an | ||
available source; | ||
(3) depository interest allocable to the fund and | ||
other investment returns on money in the fund; | ||
(4) money from gifts, grants, or donations to the | ||
fund; and | ||
(5) any other fees or sources of revenue that the | ||
legislature may dedicate for deposit to the fund. | ||
Sec. 15.453. USE OF FUND. (a) The board by rule shall | ||
undertake to finance projects through the fund that will lead to the | ||
acquisition or creation of seven million acre-feet of new water | ||
supplies by December 31, 2033. | ||
(b) The fund may be used only to provide low-interest loans | ||
to political subdivisions and wholesale water providers to develop | ||
water supply projects that create new water sources for the state | ||
including: | ||
(1) the acquisition of water from other states; | ||
(2) the development of infrastructure to transport | ||
water from other states; | ||
(3) desalination projects, including marine and | ||
brackish water desalination; | ||
(4) produced water treatment projects; and | ||
(5) research into new technology that may lead to the | ||
development of significant new water supply sources, as determined | ||
by the board based on the amount of water the technology may | ||
produce. | ||
(c) The fund may be used to provide zero interest loans, | ||
negative interest loans, or loan forgiveness for any purpose | ||
described by Subsection (b) under criteria developed by the board. | ||
Loans made under this subchapter may provide for repayment terms of | ||
up to 40 years, in the board's discretion. | ||
(d) Financial assistance described by Subsection (c) for a | ||
purpose described by Subsection (b) may be provided for a public | ||
works project that includes the participation of or a financial | ||
contribution from a nongovernmental entity, including a wholesale | ||
water provider, only if a political subdivision is a participant in | ||
the project. | ||
(e) The board may not provide financial assistance from the | ||
fund if the balance of the fund is less than $50 million. | ||
Sec. 15.454. FINANCIAL ASSISTANCE. (a) The board shall | ||
adopt rules necessary to administer this subchapter, including | ||
rules establishing procedures for the application for and award of | ||
loans, the distribution of loans, the investment of funds, and the | ||
administration of loans and the fund. | ||
(b) In passing on an application from a political | ||
subdivision or wholesale water provider for financial assistance, | ||
the board shall consider: | ||
(1) the needs of the area to be served by the project, | ||
the expected benefit of the project to the area, the relationship of | ||
the project to the water needs of this state overall, and the | ||
relationship of the project to the state water plan; | ||
(2) the amount of water expected to be produced by the | ||
project; and | ||
(3) the availability of revenue to the political | ||
subdivision or wholesale water provider from all sources for the | ||
ultimate repayment of the cost of the project, including all | ||
interest. | ||
(c) The board by resolution may approve an application if, | ||
after considering the factors listed in Subsection (b) and other | ||
relevant factors, the board finds that: | ||
(1) the public interest is served by state assistance | ||
for the project; and | ||
(2) the revenue or taxes pledged by the political | ||
subdivision or wholesale water provider will be sufficient to meet | ||
all the obligations assumed by the political subdivision or | ||
wholesale water provider during the succeeding period of not more | ||
than 30 years. | ||
(d) The repayment of principal or interest on a loan made | ||
under this subchapter must be deposited to the credit of the Texas | ||
water fund. | ||
(e) An application from a political subdivision or | ||
wholesale water provider for financial assistance under this | ||
subchapter must comply with the requirements of Section 16.4021. | ||
(f) Sections 17.183-17.187 apply to the construction of | ||
projects funded under this subchapter. | ||
SECTION 2. Chapter 15, Water Code, is amended by adding | ||
Subchapter H-1 to read as follows: | ||
SUBCHAPTER H-1. TEXAS WATER FUND | ||
Sec. 15.501. DEFINITION. In this subchapter, "fund" means | ||
the Texas water fund. | ||
Sec. 15.502. FUND. (a) The Texas water fund is a special | ||
fund in the state treasury outside the general revenue fund. The | ||
fund is administered by the board. | ||
(b) The board may use the fund only to disburse money to: | ||
(1) the water assistance fund established under | ||
Subchapter B; | ||
(2) the State Water Implementation Fund for Texas | ||
established under Subchapter G; | ||
(3) the new water supply for Texas fund established | ||
under Subchapter G-1; | ||
(4) a revolving fund established under Subchapter J; | ||
(5) the rural water assistance fund established under | ||
Subchapter R; and | ||
(6) the Texas Water Development Fund established under | ||
Subchapter C, Chapter 17. | ||
(c) The board has legal title to money and investments in | ||
the fund. | ||
(d) The comptroller may not use the fund for certification | ||
under Section 49a, Article III, Texas Constitution. | ||
(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 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. | ||
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) 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) Subject to legislative | ||
appropriation, the board may make disbursements from the fund to a | ||
fund described by Section 15.502(b) for an authorized purpose of | ||
the receiving fund. | ||
(b) The board may not disburse money to a fund described by | ||
Section 15.502(b) until the application for the project for which | ||
the money is to be used has been approved. | ||
(c) The board shall ensure that a portion of the money | ||
disbursed from the fund is used for: | ||
(1) water infrastructure projects, prioritized by | ||
risk or need, for: | ||
(A) rural political subdivisions, as defined by | ||
Section 15.992; and | ||
(B) municipalities with a population of less than | ||
150,000; | ||
(2) permit-ready water infrastructure projects; and | ||
(3) water conservation awareness programs. | ||
(d) Money disbursed from the fund for the purposes described | ||
by Subsection (c) may be disbursed to funds described by Section | ||
15.502(b) to be used to provide zero interest loans, negative | ||
interest loans, loan forgiveness, or grants for any purpose | ||
described by Subsection (c) under criteria developed by the board. | ||
(e) Money deposited to the credit of the fund as provided by | ||
Section 15.454(d) may be used only for the purposes described by | ||
Section 15.453(b). | ||
Sec. 15.505. 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 15.506; | ||
(2) shall review the overall operation, function, and | ||
structure of the fund at least annually 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. 15.506. RULES. (a) The board may adopt rules | ||
providing for the use of money in the fund that are consistent with | ||
this subchapter. | ||
(b) Rules adopted under this section must require each | ||
recipient of financial assistance administered through the fund to | ||
submit to the board a water conservation plan that complies with the | ||
requirements of Section 16.4021. | ||
SECTION 3. 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 [ |
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SECTION 4. 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 5. Section 16.4021(b), Water Code, is amended to | ||
read as follows: | ||
(b) This section applies to an application for financial | ||
assistance under: | ||
(1) Subchapters C, D, E, G, G-1, H, H-1, J, O, Q, and R, | ||
Chapter 15; | ||
(2) Subchapters E and F of this chapter; and | ||
(3) Subchapters D, F, I, K, and L, Chapter 17. | ||
SECTION 6. (a) Except as otherwise provided by this Act, | ||
this Act takes effect September 1, 2023. | ||
(b) Section 2 of this Act takes effect January 1, 2024, but | ||
only if the constitutional amendment proposed by the 88th | ||
Legislature, Regular Session, 2023, creating the Texas water 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 2 of this Act has no effect. |