Bill Text: TX SB4 | 2013-2014 | 83rd Legislature | Engrossed

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Bill Title: Relating to the administration and functions of the Texas Water Development Board; authorizing the issuance of revenue bonds.

Sponsorship: Partisan Bill (Republican 4)

Status: (Engrossed - Dead) 2013-05-06 - Referred to Natural Resources [SB4 Detail]

Download: Texas-2013-SB4-Engrossed.html

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By: Fraser, et al. S.B. No. 4

A BILL TO BE ENTITLED
AN ACT
relating to the administration and functions of the Texas Water
Development Board; authorizing the issuance of revenue bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
ARTICLE 1. ADMINISTRATION OF THE TEXAS WATER DEVELOPMENT BOARD
SECTION 1.01. Subsections (a) and (b), Section 6.052, Water
Code, are amended to read as follows:
(a) The board is composed of three [six] members who are
appointed by the governor with the advice and consent of the senate.
One member must have experience in the field of engineering, one
member must have experience in the field of public or private
finance, and one member must have experience in the field of law or
business.
(b) The governor shall make the appointments in such a
manner that the members reflect the diverse geographic regions and
population groups of this state and do not have any conflicts [each
member is from a different section of the state and has no conflict]
of interest prohibited by state or federal law.
SECTION 1.02. Section 6.053, Water Code, is amended by
adding Subsection (d) to read as follows:
(d) A person is not eligible for appointment to the board if
the person served on the board on or before January 1, 2013.
SECTION 1.03. Section 6.054, Water Code, is amended by
amending Subsection (c) and adding Subsection (d) to read as
follows:
(c) If the executive administrator or a member has knowledge
that a potential ground for removal exists, the executive
administrator shall notify the chairman of the board of the
potential ground. The chairman of the board shall then notify the
governor and the attorney general that a potential ground for
removal exists. If the potential ground for removal includes the
chairman of the board, the executive administrator or another
member of the board shall notify the member [next highest ranking
officer] of the board with the most seniority, who shall then notify
the governor and the attorney general that a potential ground for
removal exists.
(d) The governor, with the advice and consent of the senate,
may remove a board member from office as provided by Section 9,
Article XV, Texas Constitution.
SECTION 1.04. Section 6.056, Water Code, is amended to read
as follows:
Sec. 6.056. TERMS OF OFFICE. (a) The members of the board
hold office for staggered terms of six years, with the term [terms]
of one member [two members] expiring February 1 of each
odd-numbered year [every two years]. Each member holds office
until a [his] successor is appointed and has qualified.
(b) A person appointed to the board may not serve for more
than two six-year terms.
SECTION 1.05. Section 6.059, Water Code, is amended to read
as follows:
Sec. 6.059. CHAIRMAN OF THE BOARD [OFFICERS]. [(a)] The
governor shall designate one member as chairman of the board to
serve at the will of the governor.
[(b) The members of the board shall elect a vice-chairman
every two years. The board shall fill a vacancy in the office of
vice-chairman for the remainder of the unexpired term.]
SECTION 1.06. Subsections (a) and (b), Section 6.060, Water
Code, are amended to read as follows:
(a) The board shall hold regular meetings and all hearings
at times specified by a board order and entered in its minutes [meet
at least once every other month on a day and at a place within the
state selected by it, subject to recesses at the discretion of the
board]. The [chairman or two] board [members] may hold special
meetings at the times and places in this state that the board
decides are appropriate for the performance of its duties. The
chairman of the board or the board member acting for the chairman
shall give the other members reasonable notice before holding a
special meeting [call a special meeting at any time by giving notice
to the other members].
(b) The chairman [or in his absence the vice-chairman] shall
preside at all meetings of the board. The chairman may designate
another board member to act for the chairman in the chairman's
absence.
SECTION 1.07. Section 6.061, Water Code, is amended to read
as follows:
Sec. 6.061. FULL-TIME SERVICE. Each member of the board
shall serve on a full-time basis. [COMPENSATION; EXPENSES. A
member is entitled to receive an amount as provided by the General
Appropriations Act for each day he serves in the performance of his
duties, together with travel and other necessary expenses.]
SECTION 1.08. Section 6.103, Water Code, is amended to read
as follows:
Sec. 6.103. EXECUTIVE ADMINISTRATOR. The board shall
appoint a person to be the executive administrator to serve at the
will of the board. A person is not eligible for appointment as the
executive administrator if the person served in that capacity on
January 1, 2013.
SECTION 1.09. (a) Not later than September 1, 2013, the
governor shall appoint the initial members of the Texas Water
Development Board under Section 6.052, Water Code, as amended by
this Act. In appointing the initial members of the board, the
governor shall appoint one person to a term expiring February 1,
2015, one to a term expiring February 1, 2017, and one to a term
expiring February 1, 2019.
(b) The terms of the current members of the board expire
September 1, 2013.
SECTION 1.10. (a) Not later than October 1, 2013, the
Texas Water Development Board shall appoint the executive
administrator of the board under Section 6.103, Water Code, as
amended by this Act.
(b) The person currently serving as the executive
administrator of the board ceases to serve in that capacity on the
date a new executive administrator is appointed under Subsection
(a) of this section.
ARTICLE 2. FUNDING OF WATER PROJECTS
SECTION 2.01. (a) The legislature recognizes the
importance of providing for this state's future water supply needs.
The purpose of this article is to ensure that proper funding in the
form of meaningful and adequate financial assistance is available
to provide an adequate water supply for the future of this state.
(b) To accomplish that purpose, this article creates the
state water implementation fund for Texas. The fund is intended to
serve as a water infrastructure bank in order to enhance the
financing capabilities of the Texas Water Development Board under
constitutionally created programs and revenue bond programs. The
fund provides a source of revenue or security for those programs and
provides a cash flow mechanism under which money used in board
programs flows back to the fund to provide protection for the fund's
corpus. Money in the fund will be available immediately to provide
support for low-interest loans, longer repayment terms for loans,
incremental repurchase terms for projects in which the state owns
an interest, and deferral of loan payments. Money in the fund may
not be used to make grants. In addition, this article creates the
state water implementation revenue fund for Texas for use in
managing revenue bonds issued by the board that are supported by the
state water implementation fund for Texas.
SECTION 2.02. Section 15.301, Water Code, is amended to
read as follows:
Sec. 15.301. FUND CREATED. There is created a fund in the
state treasury to be known as the storage acquisition fund which is
to be funded by:
(1) direct appropriations;
(2) [and by] transfers from the fund at the discretion
of the board; and
(3) money disbursed to the fund from the state water
implementation fund for Texas as authorized by Section 15.434.
SECTION 2.03. Section 15.302, Water Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) The board may use the storage acquisition fund for
projects including the design, acquisition, lease, construction,
reconstruction, development, or enlargement in whole or part of any
existing or proposed water storage or conveyance project.
(c) The board shall transfer back to the state water
implementation fund for Texas any money disbursed to the storage
acquisition fund as described by Section 15.301(3) if the
requirements of Section 15.435 are satisfied.
SECTION 2.04. Chapter 15, Water Code, is amended by adding
Subchapters G and H to read as follows:
SUBCHAPTER G. STATE WATER IMPLEMENTATION FUND FOR TEXAS
Sec. 15.431. DEFINITIONS. In this subchapter:
(1) "Advisory committee" means the State Water
Implementation Fund for Texas Advisory Committee.
(2) "Fund" means the state water implementation fund
for Texas.
(3) "Historically underutilized business" has the
meaning assigned by Section 2161.001, Government Code.
(4) "Trust company" means the Texas Treasury
Safekeeping Trust Company.
(a) The state water implementation fund for Texas is a
special fund in the state treasury outside the general revenue fund
to be used by the board for the purpose of implementing the state
water plan as provided by this subchapter. The board may establish
separate accounts in the fund. The fund and the accounts in the
fund are managed by the trust company.
(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 15.435.
Sec. 15.433. 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. 15.434. 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
15.435 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, after considering all other
sources available for those purposes in the respective fund or
account.
(b) Of the money disbursed from the fund during the
five-year period between the adoption of a state water plan and the
adoption of a new plan, the board shall undertake to apply not less
than:
(1) 10 percent to support projects described by
Section 15.435 that are for:
(A) rural political subdivisions as defined by
Section 15.992; or
(B) agricultural water conservation; and
(2) 20 percent to support projects described by
Section 15.435, including agricultural irrigation projects, that
are designed for water conservation or reuse.
Sec. 15.435. 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 15.433(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 49-d-9 or
49-d-11, Article III, 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:
(1) the state water implementation revenue fund for
Texas;
(2) the storage acquisition fund;
(3) the water infrastructure fund;
(4) the rural water assistance fund;
(5) the Texas Water Development Fund II state
participation account; or
(6) the agricultural water conservation 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, 2013, 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 water projects recommended
through the state and regional water planning processes under
Sections 16.051 and 16.053; and
(3) general revenue 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:
(1) submit or implement a water conservation plan in
accordance with Section 11.1271; or
(2) satisfactorily complete a request by the executive
administrator or a regional water planning group for information
relevant to the project for which the financial assistance is
sought, including a water infrastructure financing survey under
Section 16.053(q).
(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
15.434(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 49-j(b), Article III, Texas Constitution.
(j) For purposes of Subsection (h)(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. 15.436. PRIORITIZATION OF PROJECTS BY REGIONAL WATER
PLANNING GROUPS. (a) Each regional water planning group shall
prioritize projects in its respective regional water plan for the
purposes of Section 15.435. At a minimum, a regional water planning
group must consider the following criteria in prioritizing each
project:
(1) the decade in which the project will be needed;
(2) the feasibility of the project, including the
availability of water rights for purposes of the project and the
hydrological and scientific practicability of the project;
(3) the sustainability of the project, taking into
consideration the life of the project; and
(4) the cost-effectiveness of the project, taking into
consideration the expected unit cost of the water to be supplied by
the project.
(b) In prioritizing projects, each regional water planning
group shall include projects that meet long-term needs as well as
projects that meet short-term needs.
(c) The board shall create a stakeholders committee
composed of the presiding officer or a person designated by the
presiding officer of each regional water planning group to
establish standards to be used by the regional water planning
groups in prioritizing projects under this section. The
stakeholders committee may establish different standards to be used
by different regional water planning groups as necessary to account
for different circumstances affecting each region. Standards
established under this subsection must be approved by the board.
The board shall consult the stakeholders committee from time to
time regarding regional prioritization of projects.
(d) Each regional water planning group shall submit to the
board the prioritization developed by the group under this section
together with the group's respective regional water plan developed
and submitted under Section 16.053.
Sec. 15.437. PRIORITIZATION OF PROJECTS BY BOARD. (a) The
board shall prioritize projects included in the state water plan
for the purpose of providing financial assistance under this
subchapter.
(b) The board shall establish a system for prioritizing
projects for which financial assistance is sought from the board.
The system must provide for giving priority to projects in the
following order:
(1) projects that develop new water supplies, provide
for the conservation or reuse of existing supplies, or provide for
the conveyance of new water supplies to a water supply system;
(2) projects for new or expanded water treatment
plants to treat newly developed water supplies; and
(3) projects that meet unidentified future water
supply needs.
(c) The system established under Subsection (b) must
incorporate the following prioritization criteria:
(1) the recommendation of the state water plan
regarding timing of implementation of the project;
(2) the scope of the regional benefits of the project,
considering the number of entities and the size of the population to
be served by the project or other factors;
(3) the type of state financial assistance sought for
the project;
(4) the percentage of the water supply needs of the
region served by the project that will be met by the project;
(5) the status of implementation of the project;
(6) the amount of local funds already used or to be
used to finance the project; and
(7) the priority given the project by the applicable
regional water planning group under Section 15.436.
Sec. 15.438. ADVISORY COMMITTEE. (a) The State Water
Implementation Fund for Texas 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) 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) The advisory committee shall select a nationally
recognized bond counsel and financial advisor to serve as the
advisory committee's independent legal counsel for the purpose of
advising the advisory committee in connection with the
administration of the advisory committee's duties under this
section. The board is responsible for paying the cost of retaining
a bond counsel and financial advisor and may pay the cost from the
fund.
(d) An appointed member of the advisory committee serves at
the will of the person who appointed the member.
(e) 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.
(f) 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.
(g) 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.
(h) 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 15.439 and in
adopting policies and procedures under Section 15.441. 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 15.436 and
15.437;
(2) comments and recommendations on rulemaking
related to establishing standards for determining whether projects
meet the criteria provided by Section 15.434(b);
(3) an evaluation of the available programs for
providing financing for projects included in the state water plan
and guidelines for implementing those programs, including
guidelines for providing financing for projects included in the
state water plan that are authorized under Subchapter E, Q, or R of
this chapter, Subchapter E or F, Chapter 16, or Subchapter J,
Chapter 17;
(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 water projects,
including support for the purposes described by Section 15.435(c);
(6) an evaluation of whether premium financing
programs should be established within the funds described by
Section 15.435 to serve the purposes of this subchapter, especially
in connection with projects described by Section 15.434(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.
(i) 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.
(j) The advisory committee may adopt rules, procedures, and
policies as needed to administer this section and implement its
responsibilities.
(k) Chapter 2110, Government Code, does not apply to the
size, composition, or duration of the advisory committee.
(l) 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.
(m) The advisory committee shall make recommendations to
the board regarding information to be posted on the board's
Internet website under Section 15.440(b).
(n) 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 E
of this chapter, Subchapter E or F, Chapter 16, or other mechanisms.
(o) 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.
(p) 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. 15.439. 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 15.434(b); and
(2) specifying the manner for prioritizing projects
for purposes of Section 15.437.
(b) The board shall give full consideration to the
recommendations of the advisory committee before adopting rules
under this subchapter.
Sec. 15.440. 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, including the use of the
fund to support projects that are for rural political subdivisions
or agricultural water conservation or that are designed for water
conservation or reuse as required by Section 15.434(b).
(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 developing needed water
supply statewide and for the benefit of each regional water
planning area; and
(2) for each regional water planning area, a
description of each project funded through bonds supported by a
bond enhancement agreement entered into under Section 15.435,
including:
(A) the expected date of completion of the
project; and
(B) the current status of the project.
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. STATE WATER IMPLEMENTATION REVENUE FUND FOR TEXAS
Sec. 15.471. DEFINITION. In this subchapter, "fund" means
the state water implementation revenue fund for Texas.
Sec. 15.472. FUND. (a) The state water implementation
revenue fund for Texas is a special fund in the state treasury
outside the general revenue fund to be used by the board only for
the purpose of providing financing for projects included in the
state water plan that are authorized under Subchapter E, Q or R of
this chapter, Subchapter E or F, Chapter 16, or Subchapter J,
Chapter 17. The board may establish separate accounts in the fund.
(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;
(7) money from the sale, transfer, or lease of a
project acquired, constructed, reconstructed, developed, or
enlarged with money from the fund; and
(8) money disbursed to the fund from the state water
implementation fund for Texas as authorized by Section 15.434.
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 otherwise
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 the state water
plan that are authorized under Subchapter E, Q, or R of this
chapter, Subchapter E or F, Chapter 16, or Subchapter J, Chapter 17.
(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 or to purchase bonds or
other obligations of eligible political subdivisions 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, including political
subdivision bonds sold or disposed of under Section 15.978 or
17.968; or
(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 the comptroller or corporate trustee
managing the fund at the direction of the board as provided by
Section 15.473(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. 15.475. ISSUANCE OF REVENUE BONDS. (a) The board may
issue revenue bonds for the purpose of providing money for the 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 subchapter are special
obligations of the board payable only from and secured by
designated income and receipts of the fund, or of one or more
accounts in the fund, including principal of and interest paid and
to be paid on fund assets or income from accounts created within the
fund by the board, as determined by the board.
(d) Revenue bonds issued under this subchapter do not
constitute indebtedness of the state as prohibited by the
constitution.
(e) The board may require fund participants to make charges,
levy taxes, or otherwise provide for sufficient money to pay
acquired obligations.
(f) Revenue bonds issued under this subchapter 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 subchapter 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
subchapter or may be issued without parity and secured differently
than other revenue bonds.
(h) Section 17.955 applies to revenue bonds issued under
this subchapter 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 subchapter 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 subchapter 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
fund or accounts created by this subchapter 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. 15.476. 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 2.05. Subsection (b), Section 15.973, Water Code,
is amended to read as follows:
(b) The fund consists of:
(1) appropriations from the legislature;
(2) any other fees or sources of revenue that the
legislature may dedicate for deposit to the fund;
(3) repayments of loans made from the fund;
(4) interest earned on money credited to the fund;
(5) depository interest allocable to the fund;
(6) money from gifts, grants, or donations to the
fund;
(7) money from revenue bonds or other sources
designated by the board; [and]
(8) proceeds from the sale of political subdivision
bonds or obligations held in the fund and not otherwise pledged to
the discharge, repayment, or redemption of revenue bonds or other
bonds, the proceeds of which were placed in the fund; and
(9) money disbursed to the fund from the state water
implementation fund for Texas as authorized by Section 15.434.
SECTION 2.06. Section 15.974, Water Code, is amended by
adding Subsection (b) to read as follows:
(b) The board shall transfer back to the state water
implementation fund for Texas any money disbursed to the fund as
described by Section 15.973(b)(9) if the requirements of Section
15.435 are satisfied.
SECTION 2.07. Subsection (c), Section 15.978, Water Code,
is amended to read as follows:
(c) Notwithstanding other provisions of this chapter, the
board may sell to the Texas Water Resources Finance Authority or to
the state water implementation revenue fund for Texas any political
subdivision bonds purchased with money in the water infrastructure
fund and may apply the proceeds of a sale in the manner provided by
this section.
SECTION 2.08. Section 15.993, Water Code, is amended to
read as follows:
Sec. 15.993. FUND. The rural water assistance fund is a
special fund in the state treasury. The fund consists of:
(1) money directly appropriated to the board for a
purpose of the fund;
(2) repayment of principal and interest from loans
made from the fund not otherwise needed as a source of revenue
pursuant to Section 17.9615(b);
(3) money transferred by the board from any sources
available;
(4) interest earned on the investment of money in the
fund and depository interest allocable to the fund;
(5) money transferred to the fund from the water
assistance fund in accordance with Section 15.011(b), including
proceeds from the sale of political subdivision bonds by the board
to the Texas Water Resources Finance Authority that are deposited
in the water assistance fund as provided by Section 17.0871;
(6) money from gifts, grants, or donations to the
fund;
(7) money disbursed to the fund from the state water
implementation fund for Texas as authorized by Section 15.434; and
(8) [(7)] any other fees or sources of revenue that
the legislature may dedicate for deposit to the fund.
SECTION 2.09. Section 15.994, Water Code, is amended by
adding Subsection (i) to read as follows:
(i) The board shall transfer back to the state water
implementation fund for Texas any money disbursed to the fund as
described by Section 15.993(7) if the requirements of Section
15.435 are satisfied.
SECTION 2.10. Section 17.183, Water Code, is amended to
read as follows:
Sec. 17.183. CONSTRUCTION CONTRACT REQUIREMENTS. (a) The
governing body of each political subdivision receiving financial
assistance from the board shall require in all contracts for the
construction of a project:
(1) that each bidder furnish a bid guarantee
equivalent to five percent of the bid price;
(2) that each contractor awarded a construction
contract furnish performance and payment bonds:
(A) the performance bond shall include without
limitation guarantees that work done under the contract will be
completed and performed according to approved plans and
specifications and in accordance with sound construction
principles and practices; and
(B) the performance and payment bonds shall be in
a penal sum of not less than 100 percent of the contract price and
remain in effect for one year beyond the date of approval by the
engineer of the political subdivision; [and]
(3) that payment be made in partial payments as the
work progresses;
(4) that each partial payment shall not exceed 95
percent of the amount due at the time of the payment as shown by the
engineer of the project, but, if the project is substantially
complete, a partial release of the five percent retainage may be
made by the political subdivision with approval of the executive
administrator;
(5) that payment of the retainage remaining due upon
completion of the contract shall be made only after:
(A) approval by the engineer for the political
subdivision as required under the bond proceedings;
(B) approval by the governing body of the
political subdivision by a resolution or other formal action; and
(C) certification by the executive administrator
in accordance with the rules of the board that the work to be done
under the contract has been completed and performed in a
satisfactory manner and in accordance with approved plans and
specifications [sound engineering principles and practices];
(6) that no valid approval may be granted unless the
work done under the contract has been completed and performed in a
satisfactory manner according to approved plans and
specifications; and
(7) that, if a political subdivision receiving
financial assistance under Subchapter K of this chapter, labor from
inside the political subdivision be used to the extent possible.
(b) Plans and specifications submitted to the board in
connection with an application for financial assistance must
include a seal by a licensed engineer affirming that the plans and
specifications are consistent with and conform to current industry
design and construction standards.
SECTION 2.11. Subsection (a), Section 17.185, Water Code,
is amended to read as follows:
(a) The board may inspect the construction of a project at
any time to assure that[:
[(1)] the contractor is substantially complying with
the approved engineering plans and specifications of the project[;
and
[(2) the contractor is constructing the project in
accordance with sound engineering principles].
SECTION 2.12. Section 17.187, Water Code, is amended to
read as follows:
Sec. 17.187. CERTIFICATE OF APPROVAL. The executive
administrator may consider the following as grounds for refusal to
give a certificate of approval for any construction contract:
(1) failure to construct the project according to
approved plans and specifications; or
(2) [failure to construct the works in accordance with
sound engineering principles; or
[(3)] failure to comply with any term of the contract.
SECTION 2.13. Subsection (c), Section 17.276, Water Code,
is amended to read as follows:
(c) The board has the sole responsibility and authority for
selecting the political subdivisions to whom financial assistance
may be provided for treatment works and the amount of any such
assistance. [In consultation with and pursuant to agreement with
the political subdivision, except as provided by Subsection (d) of
this section, the board shall determine the location, time, design,
scope, and all other aspects of the construction of a sewerage
system for which financial assistance is provided.]
SECTION 2.14. Subsection (c), Section 17.775, Water Code,
is amended to read as follows:
(c) The board has the sole responsibility and authority for
selecting the political subdivisions to whom financial assistance
may be provided and[,] the amount of any such assistance[, and in
consultation with and pursuant to agreement with the political
subdivision, the board shall determine the location, time, design,
scope, and all other aspects of the construction to be performed].
SECTION 2.15. Subsection (c), Section 17.853, Water Code,
is amended to read as follows:
(c) The board may use the fund only:
(1) to provide state matching funds for federal funds
provided to the state water pollution control revolving fund or to
any additional state revolving fund created under Subchapter J,
Chapter 15;
(2) to provide financial assistance from the proceeds
of taxable bond issues to water supply corporations organized under
Chapter 67, and other participants;
(3) to provide financial assistance to participants
for the construction of water supply projects and treatment works;
(4) to provide financial assistance for an interim
construction period to participants for projects for which the
board will provide long-term financing through the water
development fund;
(5) to provide financial assistance for water supply
and sewer service projects in economically distressed areas as
provided by Subchapter K, Chapter 17, to the extent the board can
make that assistance without adversely affecting the current or
future integrity of the fund or of any other financial assistance
program of the board; [and]
(6) to provide funds to the water infrastructure fund
created under Section 15.973; and
(7) to provide funds to the state water implementation
revenue fund for Texas.
SECTION 2.16. Section 17.895, Water Code, is amended to
read as follows:
Sec. 17.895. SOURCES OF ASSETS. The fund is composed of:
(1) money and assets, including bond proceeds,
attributable to the bonds;
(2) investment income earned on money on deposit in
the fund and depository interest earned on money on deposit in the
state treasury;
(3) money appropriated by the legislature;
(4) repayments of principal and interest on loans made
under this subchapter;
(5) administrative fees charged by the board under the
bond program;
(6) money disbursed to the fund from the state water
implementation fund for Texas as authorized by Section 15.434; and
(7) [(6)] any other funds, regardless of their source,
that the board directs be deposited to the credit of the fund.
SECTION 2.17. Section 17.899, Water Code, is amended by
adding Subsection (c) to read as follows:
(c) The board shall transfer back to the state water
implementation fund for Texas any money disbursed to the fund as
described by Section 17.895(6) if the requirements of Section
15.435 are satisfied.
SECTION 2.18. Section 17.957, Water Code, is amended by
amending Subsection (b) and adding Subsection (d) to read as
follows:
(b) The state participation account is composed of:
(1) money and assets attributable to water financial
assistance bonds designated by the board as issued for projects
described in Section 16.131;
(2) money from the sale, transfer, or lease of a
project described in Subdivision (1) that was acquired,
constructed, reconstructed, developed, or enlarged with money from
the state participation account;
(3) payments received under a bond enhancement
agreement with respect to water financial assistance bonds
designated by the board as issued for projects described in Section
16.131;
(4) investment income earned on money on deposit in
the state participation account;
(5) money disbursed to the fund from the state water
implementation fund for Texas as authorized by Section 15.434; and
(6) [(5)] any other funds, regardless of their source,
that the board directs be deposited to the credit of the state
participation account.
(d) The board shall transfer back to the state water
implementation fund for Texas any money disbursed to the fund as
described by Subsection (b)(5) of this section if the requirements
of Section 15.435 are satisfied.
SECTION 2.19. Subchapter L, Chapter 17, Water Code, is
amended by adding Section 17.9617 to read as follows:
Sec. 17.9617. TRANSFERS TO STATE WATER IMPLEMENTATION
REVENUE FUND FOR TEXAS. (a) The board may direct the comptroller
to transfer money or other assets from an account in the fund,
including from the financial assistance account or from the state
participation account, to the state water implementation revenue
fund for Texas to provide financial assistance under this
subchapter and Subchapter H, Chapter 15.
(b) A transfer of money or other assets from an account in
the fund may not cause general obligation bonds that are payable
from the fund or from an account in the fund to no longer be
self-supporting for purposes of Section 49-j(b), Article III, Texas
Constitution, as determined by the board.
(c) The board shall use the state water implementation
revenue fund for Texas, or an account in that fund, as a source of
revenue to be deposited in accordance with this subchapter for the
payment of principal and interest on water financial assistance
bonds issued by the board, the proceeds of which are to be deposited
into the state water implementation revenue fund for Texas, or the
account in that fund, and to be used to make payments under a bond
enhancement agreement with respect to principal or interest on the
water financial assistance bonds.
SECTION 2.20. Section 17.968, Water Code, is amended by
amending Subsection (a) and adding Subsection (a-1) to read as
follows:
(a) The board may sell or dispose of political subdivision
bonds or other assets purchased with money in the fund to any
person, including the Texas Water Resources Finance Authority, or
to another fund administered by the board, including the state
water implementation revenue fund for Texas, and the board, in such
manner as it shall determine, may apply the proceeds of the sale of
political subdivision bonds or other assets held by the board to:
(1) pay debt service on water financial assistance
bonds issued under this subchapter; or
(2) provide financial assistance to political
subdivisions for any one or more of the purposes authorized by
Section 49-d-8, Article III, Texas Constitution.
(a-1) A sale or disposition of political subdivision bonds
or other assets may not cause general obligation bonds that are
payable from the fund or from an account in the fund to no longer be
self-supporting for purposes of Section 49-j(b), Article III, Texas
Constitution, as determined by the board.
SECTION 2.21. Subsection (e), Section 49.153, Water Code,
is amended to read as follows:
(e) Subsection (c) does not apply to:
(1) a note issued to and approved by [the]:
(A) the Farmers Home Administration;
(B) the United States Department of Agriculture;
(C) the Texas Water Development Board; [or]
(D) the North American Development Bank; or
(E) a federally chartered instrumentality of the
United States authorized under 12 U.S.C. Section 2128(f) to provide
financing for water and waste disposal facilities, provided that
the district that executes the note is located wholly in a county
that:
(i) does not contain a municipality that
has a population of more than 750,000; and
(ii) is not adjacent to a county described
by Subparagraph (i); or
(2) a district described by Section 49.181(h).
SECTION 2.22. Subsection (a), Section 49.181, Water Code,
is amended to read as follows:
(a) A district may not issue bonds unless the commission
determines that the project to be financed by the bonds is feasible
and issues an order approving the issuance of the bonds. This
section does not apply to:
(1) refunding bonds if the commission issued an order
approving the issuance of the bonds or notes that originally
financed the project;
(2) refunding bonds that are issued by a district
under an agreement between the district and a municipality allowing
the issuance of the district's bonds to refund bonds issued by the
municipality to pay the cost of financing facilities;
(3) bonds issued to and approved by:
(A) the Farmers Home Administration;
(B) [,] the United States Department of
Agriculture;
(C) [,] the North American Development Bank;
(D) [, or] the Texas Water Development Board; or
(E) a federally chartered instrumentality of the
United States authorized under 12 U.S.C. Section 2128(f) to finance
such a project, provided that the district that issues the bonds is
located wholly in a county that:
(i) does not contain a municipality that
has a population of more than 750,000; and
(ii) is not adjacent to a county described
by Subparagraph (i);
(4) refunding bonds issued to refund bonds described
by Subdivision (3); or
(5) bonds issued by a public utility agency created
under Chapter 572, Local Government Code, any of the public
entities participating in which are districts if at least one of
those districts is a district described by Subsection (h)(1)(E).
SECTION 2.23. Sections 2.01-2.09, 2.15-2.18, and 2.24-2.28
of this article take effect on the date on which the constitutional
amendment proposed by the 83rd Legislature, Regular Session, 2013,
adding Sections 49-d-12 and 49-d-13, Article III, Texas
Constitution, creating the state water implementation fund for
Texas and the state water implementation revenue fund for Texas
takes effect. If that amendment is not approved by the voters,
those sections of this article have no effect.
SECTION 2.24. (a) 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 Water Implementation Fund for Texas
Advisory Committee as provided by Section 15.438, Water Code, as
added by this Act.
(b) Notwithstanding Subsection (a) of this section and
Section 15.438, Water Code, as added by this Act, if the lieutenant
governor and the speaker of the house of representatives do not
appoint the initial appointive members of the State Water
Implementation Fund for Texas Advisory Committee as provided by
Section 15.438, Water Code, as added by this Act, by December 1,
2013:
(1) the presiding officer of the committee of the
senate having primary jurisdiction over natural resources and the
presiding officer of the committee of the house of representatives
having primary jurisdiction over natural resources serve as initial
members of the advisory committee and as the initial co-presiding
officers of the advisory committee;
(2) the presiding officer of the committee of the
senate having primary jurisdiction over natural resources shall
appoint two members of the senate to serve as initial members of the
advisory committee, including a member who meets the requirements
of Paragraph (A), Subdivision (2), Subsection (a), Section 15.438,
Water Code, as added by this Act; and
(3) the presiding officer of the committee of the
house of representatives having primary jurisdiction over natural
resources shall appoint two members of the house of representatives
to serve as initial members of the advisory committee, including a
member who meets the requirements of Paragraph (A), Subdivision
(3), Subsection (a), Section 15.438, Water Code, as added by this
Act.
SECTION 2.25. (a) Not later than September 1, 2014, the
State Water Implementation Fund for Texas Advisory Committee shall
submit recommendations to the Texas Water Development Board on the
rules to be adopted by the board under Subdivisions (1) and (2),
Subsection (a), Section 15.439, 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, 2015, the
board shall adopt rules under Section 15.439, Water Code, as added
by this Act.
SECTION 2.26. As soon as practicable after the effective
date of this Act, the Texas Water Development Board shall create a
stakeholders committee under Subsection (c), Section 15.436, Water
Code, as added by this Act.
SECTION 2.27. Not later than December 1, 2013, the
stakeholders committee created by the Texas Water Development Board
under Subsection (c), Section 15.436, Water Code, as added by this
Act, shall submit the standards established by the committee under
that subsection to the board.
SECTION 2.28. (a) Each regional water planning group shall
prepare a draft prioritization of the projects included in the
regional water plan most recently adopted by the group in
accordance with Section 15.436, Water Code, as added by this Act,
and submit the draft prioritization of the projects to the Texas
Water Development Board not later than June 1, 2014. The board
shall provide comments to each regional water planning group on the
draft prioritization submitted by the group. Each regional water
planning group shall submit a final prioritization of the projects
to the board not later than September 1, 2014.
(b) Subsection (d), Section 15.436, Water Code, as added by
this Act, applies to a regional water plan beginning with the plan
that is required to be submitted to the Texas Water Development
Board by January 5, 2016.
SECTION 2.29. The Texas Water Development Board shall post
the information described by Subsection (b), Section 15.440, Water
Code, as added by this Act, on the board's Internet website not
later than March 1, 2014.
ARTICLE 3. EFFECTIVE DATE
SECTION 3.01. Except as otherwise provided by this Act,
this Act takes effect September 1, 2013.