WATER CODE
SUBTITLE C. WATER DEVELOPMENT
CHAPTER 15. TEXAS WATER ASSISTANCE PROGRAM
SUBCHAPTER A. GENERAL PROVISIONS
§ 15.001. DEFINITIONS. In this chapter:
(1) "Board" means the Texas Water Development Board.
(2) "Commission" means the Texas Natural Resource
Conservation Commission.
(3) "Executive administrator" means the executive
administrator of the Texas Water Development Board.
(4) "Executive director" means the executive director
of the Texas Natural Resource Conservation Commission.
(5) "Political subdivision" means a city, county,
district or authority created under Article III, Section 52, or
Article XVI, Section 59, of the Texas Constitution, any other
political subdivision of the state, any interstate compact
commission to which the state is a party, and any nonprofit water
supply corporation created and operating under Chapter 67.
(6) "Project" means:
(A) any undertaking or work, including planning
activities and work to obtain regulatory authority at the local,
state, and federal level, to conserve, convey, and develop water
resources in the state, to provide for the maintenance and
enhancement of the quality of the water of the state, to provide
nonstructural and structural flood control, drainage, subsidence
control, recharge, chloride control, brush control, precipitation
enhancement, and desalinization, to provide for the acquisition of
water rights and the repair of unsafe dams, and to carry out other
purposes defined by board rules;
(B) any undertaking or work outside the state to
provide for the maintenance and enhancement of the quality of water
by eliminating saline inflow through well pumping and deep well
injection of brine; or
(C) any undertaking or work by Texas political
subdivisions or institutions of higher education to conserve,
convey, and develop water resources in areas outside Texas or to
provide for the maintenance and enhancement of the quality of the
water in areas adjoining Texas, if such undertaking or work will
result in water being available for use in or for the benefit of
Texas or will maintain and enhance the quality of water in Texas.
(7) "Fund" means the water assistance fund.
(8) "Loan fund" means the water loan assistance fund.
(9) "Conservation" means:
(A) the development of water resources; and
(B) those practices, techniques, and
technologies that will reduce the consumption of water, reduce the
loss or waste of water, improve the efficiency in the use of water,
or increase the recycling and reuse of water so that a water supply
is made available for future or alternative uses.
(10) "Federal agency" means any federal agency,
including the United States Secretary of State, that may act or that
is acting through the American Commissioner on the International
Boundary and Water Commission, United States and Mexico.
(11) "Economically distressed area" means:
(A) an area in which water supply or sewer
services are inadequate to meet minimal needs of residential users
as defined by board rules and in which financial resources are
inadequate to provide water supply or sewer services that will
satisfy those needs; or
(B) for purposes of any federal funds for
colonias deposited in the water assistance fund, an area that meets
the federal criteria for use of such funds.
(12) "Nonborder colonia" means a residential
community:
(A) located in an unincorporated area of a county
all parts of which are at least 150 miles from the international
border of this state;
(B) in which water or wastewater services are
inadequate to meet minimal needs of residential users as defined by
board rules; and
(C) in which the average household income is less
than the average household income for the county in which the
community is located.
(13) "Regionalization" means development of a water
supply or wastewater collection and treatment system that
incorporates multiple service areas into an areawide service
facility or any such system that serves an area that includes more
than a single county, city, special district, or other political
subdivision of the state.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 1.06;
Acts 1985, 69th Leg., ch. 133, § 2.01; Acts 1985, 69th Leg., ch.
795, § 1.038, eff. Sept. 1, 1985; Acts 1985, 69th Leg., ch. 821,
§ 1, eff. Sept. 1, 1985; Acts 1987, 70th Leg., ch. 977, § 8,
eff. June 19, 1987; Acts 1989, 71st Leg., ch. 624, § 2.01, eff.
Sept. 1, 1989; Acts 1991, 72nd Leg., 1st C.S., ch. 3, § 1.059,
eff. Aug. 12, 1991; Acts 1993, 73rd Leg., ch. 844, § 2, eff. Aug.
30, 1993; Acts 1997, 75th Leg., ch. 1010, § 4.07, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 62, § 18.54, eff. Sept. 1, 1999;
Acts 2001, 77th Leg., ch. 966, § 4.04, eff. Sept. 1, 2001; Acts
2001, 77th Leg., ch. 1367, § 11.01, eff. Sept. 1, 2001; Acts
2003, 78th Leg., ch. 1275, § 2(141), eff. Sept. 1, 2003.
§ 15.002. PURPOSE. (a) The legislature finds that it
is in the public interest and to the benefit of the general public
of the state to encourage and to assist in the planning and
construction of projects to develop and conserve the storm water
and floodwater as well as the ordinary flows of the rivers and
streams of the state, to maintain and enhance the quality of the
water of the state, to provide protection to the state's citizens
from the floodwater of the rivers and streams of the state, to
provide drainage, subsidence control, public beach nourishment,
recharge, chloride control, brush control, weather modification,
regionalization, and desalination, to provide for the management of
aquatic vegetation, and other purposes as provided by law or board
rule.
(b) The legislature finds that the conventional means of
financing projects are inadequate to meet current and anticipated
needs of the state. Therefore, it is the further intent of the
legislature to provide a means of coordinating the development of
projects through the board and to provide political subdivisions
the maximum opportunity to finance projects through programs
provided by this chapter. Projects may be in the state or outside
the state, provided that out-of-state projects must be funded
through a Texas political subdivision or an institution of higher
education and must result in water being available for use in or for
the benefit of Texas or maintain and enhance the quality of water in
Texas.
(c) The legislature finds that serious health and
sanitation problems face the citizens of this state from discharges
of untreated and treated waste water into the Rio Grande. It is the
intent of the legislature to provide a means of coordinating and
financing the development of waste water treatment projects through
cooperative efforts between this state, the United States, and the
Republic of Mexico to improve the quality of water being discharged
into the Rio Grande.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.02;
Acts 1989, 71st Leg., ch. 624, § 2.02, eff. Sept. 1, 1989; Acts
1991, 72nd Leg., ch. 295, § 41, eff. June 7, 1991; Acts 1997,
75th Leg., ch. 1010, § 4.08, eff. Sept. 1, 1997; Acts 1999, 76th
Leg., ch. 1461, § 3, eff. Sept. 1, 1999; Acts 2001, 77th Leg.,
ch. 966, § 4.05, eff. Sept. 1, 2001.
§ 15.003. POWER TO DEFINE PURPOSES. The board, by rule,
may define in greater detail the purposes enumerated in Section
15.002.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.004. TRANSBASIN DIVERSION. Money on deposit in a
fund created under Article III, Section 49-d-3, of the Texas
Constitution shall not be used to finance or in aid of any project
under this chapter that contemplates or results in the removal from
the basin of origin of any surface water necessary to supply the
reasonably foreseeable future water requirements for the next
ensuing 50-year period within the river basin of origin, except on a
temporary, interim basis.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.03.
§ 15.005. CONSIDERATION OF CERTAIN
APPLICATIONS. (a) On submission of a project application under
this chapter, the executive administrator shall determine if the
application includes a project that will have flood control as one
of its purposes and if the political subdivision submitting the
application includes all of the watershed in which the project is to
be located.
(b) If the executive administrator finds that the
application includes a project that has flood control as one of its
purposes and that the watershed in which the project is located is
partially located outside the political subdivision making the
application, the executive administrator shall require the
applicant to submit a written memorandum of understanding relating
to the management of the watershed in which the project is to be
located.
(c) The memorandum of understanding must be approved by all
governing bodies of political subdivisions located in the watershed
in which the project is to be located and must be signed by the
presiding officers of each of those political subdivisions.
(d) The board shall not consider any application for which a
memorandum of understanding must be filed under this section until
that memorandum of understanding is filed with the executive
administrator.
(e) The board shall adopt rules for carrying out this
section.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 795, § 1.039,
eff. Sept. 1, 1985; Acts 2003, 78th Leg., ch. 1057, § 2, eff.
June 20, 2003.
§ 15.006. OPEN MEETINGS AND OPEN RECORDS
LAWS. Nonprofit water supply corporations which receive any
assistance under this chapter are subject to Chapter 551,
Government Code, and to Chapter 552, Government Code.
Added by Acts 1985, 69th Leg., ch. 133, § 2.18. Amended by Acts
1995, 74th Leg., ch. 76, § 5.95(78), (90), eff. Sept. 1, 1995.
§ 15.007. CONSIDERATIONS FOR CERTAIN FINANCIAL
ASSISTANCE. (a) If financial assistance is provided under
Subchapter C or J of this chapter, any waste treatment facility to
be financed under the application must consider cost-effective
methods of treatment such as rock reed, root zone, ponding,
irrigation, or other nonconventional methods that may have been
developed by the National Aeronautics and Space Administration or
the Tennessee Valley Authority.
(b) Before granting an application for financial assistance
under Subchapter C or J of this chapter, the board must find that
any waste treatment facility to be financed under the application
will consider cost-effective innovative methods of treatment such
as rock reed, root zone, ponding, irrigation, or other
nonconventional methods that may have been developed by the
National Aeronautics and Space Administration or the Tennessee
Valley Authority.
Added by Acts 1989, 71st Leg., ch. 624, § 2.03, eff. Sept. 1,
1989.
§ 15.008. GRANT STANDARDS. The law regarding uniform
grants and contract management, Chapter 783, Government Code, does
not apply to a contract under Subchapter F, H, K, or P, or to a
contract relating to an economically distressed area or nonborder
colonia under Subchapter C.
Added by Acts 1991, 72nd Leg., ch. 422, § 4, eff. Sept. 1, 1991.
Amended by Acts 2001, 77th Leg., ch. 1234, § 13, eff. Sept. 1,
2001; Acts 2001, 77th Leg., ch. 1367, § 11.02, eff. Sept. 1,
2001.
SUBCHAPTER B. WATER ASSISTANCE FUND
§ 15.011. WATER ASSISTANCE FUND. (a) The water
assistance fund is created and shall be administered by the board
under this chapter and rules adopted by the board.
(b) After notice and hearing and subject to any limitations
established by the General Appropriations Act, the board may
transfer money from the fund to the loan fund created under
Subchapter C, the storage acquisition fund created under Subchapter
E, the research and planning fund created under Subchapter F, the
hydrographic survey account created under Subchapter M, provided
the hydrographic survey account transfer does not exceed $425,000,
the aquatic vegetation management fund created under Subchapter N,
the rural community water and wastewater loan fund created under
Subchapter O, the colonia self-help account created under
Subchapter P, and the rural water assistance fund created under
Subchapter R.
(c) The board may transfer money in the fund to the water
bank account to be used by the board for administration and
operation of the Texas Water Bank.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1990, 71st Leg., 5th C.S., ch. 3,
§ 2, eff. June 14, 1990; Acts 1991, 72nd Leg., 1st C.S., ch. 3,
§ 1.060, eff. Aug. 12, 1991; Acts 1991, 72nd Leg., 1st C.S., ch.
4, § 10.07, eff. Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 477,
§ 2, eff. Aug. 30, 1993; Acts 1993, 73rd Leg., ch. 647, § 3,
eff. Aug. 30, 1993; Acts 1999, 76th Leg., ch. 1461, § 4, eff.
Sept. 1, 1999; Acts 2001, 77th Leg., ch. 966, § 4.06, eff. Sept.
1, 2001; Acts 2001, 77th Leg., ch. 1234, § 14, eff. Sept. 1,
2001; Acts 2003, 78th Leg., ch. 1276, § 18.002, eff. Sept. 1,
2003.
§ 15.012. MANAGEMENT OF FUND. (a) The board may
invest, reinvest, and direct the investment of money accumulated in
the fund.
(b) Money appropriated by the legislature to the fund shall
be deposited in this fund. Gifts or grants from the United States
government, local or regional governments, private sources, or
other sources may be deposited in this fund.
(c) Money appropriated to the fund by the legislature for a
specific purpose stated in Subchapter C, E, F, M, N, O, or P of this
chapter shall be placed in the appropriate fund or account created
by that subchapter.
(d) The money held in the fund may be invested as provided by
law for investment of money under Section 404.024, Government Code.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1990, 71st Leg., 5th C.S., ch. 3,
§ 3, eff. June 14, 1990; Acts 1991, 72nd Leg., 1st C.S., ch. 3,
§ 1.061, eff. Aug. 12, 1991; Acts 1991, 72nd Leg., 1st C.S., ch.
4, § 10.08, eff. Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 477,
§ 3, eff. Aug. 30, 1993; Acts 1993, 73rd Leg., ch. 844, § 3,
eff. Aug. 30, 1993; Acts 1999, 76th Leg., ch. 1461, § 5, eff.
Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1234, § 15, eff. Sept.
1, 2001.
SUBCHAPTER C. WATER LOAN ASSISTANCE PROGRAM
§ 15.101. WATER LOAN ASSISTANCE FUND. (a) The water
loan assistance fund is created, to be funded by direct
appropriation and by the board at its discretion from the fund.
(b) Repayments of loans shall be deposited in the water
assistance fund.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.04.
§ 15.102. FINANCIAL ASSISTANCE. (a) The loan fund may
be used by the board to provide loans of financial assistance to
political subdivisions, federal agencies, or both political
subdivisions and federal agencies acting jointly for the
construction, acquisition, improvement, or enlargement of projects
involving water conservation, water development, or water quality
enhancement, providing nonstructural and structural flood control,
or drainage, project recreation lands and revenue-generating
recreational improvements within any watershed, or providing
recharge, chloride control, subsidence control, brush control,
weather modification, regionalization, or desalination as provided
by legislative appropriations, this chapter, and the board rules.
(b) The loan fund may also be used by the board to provide:
(1) grants or loans for projects that include
supplying water and wastewater services in economically distressed
areas or nonborder colonias as provided by legislative
appropriations, this chapter, and board rules, including projects
involving retail distribution of those services; and
(2) grants for:
(A) projects for which federal grant funds are
placed in the loan fund;
(B) projects, on specific legislative
appropriation for those projects; or
(C) desalination, brush control, weather
modification, regionalization, and projects providing regional
water quality enhancement services as defined by board rule,
including regional conveyance systems.
(c) A political subdivision may enter into an agreement with
a federal agency to submit a joint application for financial
assistance under this subchapter. Before the board may grant
financial assistance under a joint application, the board must find
that the project is designed to produce effluent that will meet
federal and state approved water quality standards.
(d) A grant or loan of financial assistance under a joint
application by the federal government and a political subdivision
may be made only for a project that is covered by an international
contract or treaty to which the United States government is a party,
and a grant or loan made under such a joint application is subject
to the provisions, terms, and conditions of the international
contract or treaty to which the United States government is a party.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.04;
Acts 1987, 70th Leg., ch. 977, § 9, eff. June 19, 1987; Acts
1987, 70th Leg., ch. 1103, § 2, eff. Sept. 1, 1987; Acts 1989,
71st Leg., ch. 624, § 2.04, eff. Sept. 1, 1989; Acts 2001, 77th
Leg., ch. 966, § 4.07, eff. Sept. 1, 2001; Acts 2001, 77th Leg.,
ch. 1234, § 16, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch.
1367, § 11.03, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch.
1276, § 18.003, eff. Sept. 1, 2003.
§ 15.103. APPLICATION FOR ASSISTANCE. (a) In an
application to the board for financial assistance from the loan
fund, the applicant shall include:
(1) the name of each political subdivision or federal
agency and its principal officers;
(2) a citation of the law under which each political
subdivision or federal agency operates and was created;
(3) the total cost of the project;
(4) the amount of state financial assistance
requested;
(5) the plan for repaying the total cost of the
project; and
(6) any other information the board requires in order
to perform its duties and to protect the public interest.
(b) The board may not accept an application for a loan or
grant of financial assistance from the loan fund unless it is
submitted in affidavit form by the officials of the political
subdivision or the chief administrator of the federal agency or
both these officers and the chief administrator under a joint
application. The board shall prescribe the affidavit form in its
rules.
(c) The rules shall not restrict or prohibit the board from
requiring additional factual material from an applicant.
(d) If an applicant has a program of water conservation, he
shall state in his application that he has such a program and shall
describe that program in the manner required by board rules.
(e) If the applicant claims an exemption under Subsection
(c), Section 15.106 of this code, he shall state the exemption in
his application and provide information relating to the exemption
as required by board rules.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 1.05,
2.04; Acts 1987, 70th Leg., ch. 977, § 9, eff. June 19, 1987;
Acts 1987, 70th Leg., ch. 1103, § 3, eff. Sept. 1, 1987; Acts
1989, 71st Leg., ch. 624, § 2.05, eff. Sept. 1, 1989.
§ 15.104. FINDINGS REGARDING PERMITS. (a) The board
shall not release funds for the construction of that portion of a
project that proposes surface water or groundwater development
until the executive administrator makes a written finding:
(1) that an applicant proposing surface-water
development has the necessary water right authorizing it to
appropriate and use the water that the project will provide; or
(2) that an applicant proposing groundwater
development has the right to use water that the project will
provide.
(b) The board may release funds for the costs of planning,
engineering, architectural, legal, title, fiscal, or economic
investigation, studies, surveys, or designs before making the
finding required under Subsection (a) if the executive
administrator determines that a reasonable expectation exists that
the finding will be made before the release of funds for
construction.
(c) If an applicant includes a proposal for a waste water
treatment plant, the board may not deliver funds for the waste water
treatment plant until the applicant has received a permit for
construction and operation of the waste water treatment plant and
approval of the plans and specifications from the commission. If
the applicant proposes a waste water treatment plant that is
located outside of the jurisdiction of this state and that is not
subject to the permitting authority of the commission, the board
must review the plans and specifications in coordination with the
commission and find that the waste water treatment plant is capable
of producing effluent that will meet federal and state-approved
water quality standards.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.04;
Acts 1985, 69th Leg., ch. 795, § 1.040, eff. Sept. 1, 1985; Acts
1987, 70th Leg., ch. 246, § 1, eff. Aug. 31, 1987; Acts 1987,
70th Leg., ch. 1103, § 4, eff. Sept. 1, 1987; Acts 1989, 71st
Leg., ch. 624, § 2.06, eff. Sept. 1, 1989; Acts 2001, 77th Leg.,
ch. 1234, § 17, eff. Sept. 1, 2001.
§ 15.105. CONSIDERATIONS IN PASSING ON
APPLICATION. (a) In passing on an application for financial
assistance from the loan fund, the board shall consider but is not
limited to:
(1) the needs of the area to be served by the project
and the benefit of the project to the area in relation to the needs
of other areas requiring state assistance in any manner and the
benefits of those projects to the other areas;
(2) the availability of revenue to the applicant from
all sources for the ultimate repayment of the cost of the project,
including all interest;
(3) the relationship of the project to overall
statewide needs;
(4) the ability of the applicant to finance the
project without state assistance;
(5) for applications for grants or loans for
economically distressed areas or nonborder colonias, the
regulatory efforts by the county in which the project is located to
control the construction of subdivisions that lack basic utility
services; and
(6) for applications for grants under Section
15.102(b)(2), the ability of the applicant to construct the project
without the grant and the benefits of the project to water and
wastewater needs of the state.
(b) The board by rule shall further define eligibility for
grants under this subchapter.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.04;
Acts 1987, 70th Leg., ch. 1103, § 5, eff. Sept. 1, 1987; Acts
1989, 71st Leg., ch. 624, § 2.07, eff. Sept. 1, 1989; Acts 2001,
77th Leg., ch. 966, § 4.08, eff. Sept. 1, 2001; Acts 2001, 77th
Leg., ch. 1367, § 11.04, eff. Sept. 1, 2001.
§ 15.106. APPROVAL OF APPLICATION. (a) The board, by
resolution, may approve an application for financial assistance if
after considering the factors listed in Section 15.105 of this code
and any other relevant factors, the board finds:
(1) that the public interest requires state
participation in the project; and
(2) that in its opinion the revenue or taxes pledged by
the political subdivision will be sufficient to meet all the
obligations assumed by the political subdivision.
(b) Before the board grants the application or provides any
financial assistance under an application, it shall require an
applicant to adopt or to have already implemented a program of water
conservation for the more efficient use of water that incorporates
the practices, techniques, or technology prescribed by Subdivision
(9)(B), Section 15.001, of this code and that the board determines
will meet reasonably anticipated local needs and conditions. The
program may include but is not limited to any or all of the
following:
(1) restrictions on discretionary water uses, such as
lawn watering;
(2) plumbing code standards for water conservation in
new building construction;
(3) retrofit programs to improve water-use efficiency
in existing buildings;
(4) educational programs;
(5) universal metering;
(6) conservation-oriented water rate structures;
(7) drought contingency plans; and
(8) distribution system leak detection and repair.
(b-1) Beginning May 1, 2005, all water conservation plans
required under this section must include specific, quantified
5-year and 10-year targets for water savings. The entity preparing
the plan shall establish the targets. Targets must include goals
for water loss programs and goals for municipal use in gallons per
capita per day.
(c) The board may not require a program of water
conservation to be adopted under Subsection (b) of this section if:
(1) an emergency exists as determined by the board;
(2) the amount of financial assistance to be provided
is $500,000 or less;
(3) the applicant demonstrates and the board finds
that the submission of such a program is not reasonably necessary to
facilitate conservation or conservation measures; or
(4) the project consists of construction outside the
jurisdiction of the State of Texas.
(d) To the extent funds are available, the board shall
establish an educational and technical assistance program to assist
political subdivisions in developing comprehensive water
conservation plans required by this section and other sections of
this code.
(e) If the political subdivision will utilize the project to
furnish water or services to another political subdivision that in
turn will furnish the water or services to the ultimate consumer,
the requirements of the board relative to water conservation can be
met through contractual agreements between the political
subdivisions providing for establishment of a water conservation
plan and other necessary measures.
(f) Rules adopted under this section must state the criteria
for preparation, review, and enforcement of an applicant's
conservation program.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 1.07;
Acts 1987, 70th Leg., ch. 977, § 10, eff. June 19, 1987; Acts
1989, 71st Leg., ch. 624, § 2.08, eff. Sept. 1, 1989; Acts 2001,
77th Leg., ch. 966, § 4.09, eff. Sept. 1, 2001; Acts 2003, 78th
Leg., ch. 688, § 2, eff. June 20, 2003.
§ 15.107. METHOD OF MAKING FINANCIAL ASSISTANCE
AVAILABLE. (a) The board may make financial assistance available
to successful applicants in any manner that it considers
economically feasible including:
(1) contracts or agreements with a political
subdivision for the payment of the principal of or interest on or
both the principal of and interest on bonds or other obligations
issued or to be issued by the political subdivision;
(2) contracts or agreements with a political
subdivision for the purpose of providing the political
subdivision's share of any cost-sharing required as a participant
in or local sponsor of any federal project;
(3) purchase of the bonds or other obligations of a
political subdivision for the purpose of completely or partially
financing the project for which the application is being submitted;
or
(4) contracts or agreements for the receipt of funds
and performance of obligations in relation to any grant of funds
provided by the board.
(b) Contracts or agreements entered into under Subdivision
(1) of Subsection (a) of this section may cover all or any part of
the debt service requirements in a given year and may cover debt
service requirements in as many years of an issue as the board
considers appropriate.
(c) In a determination on a loan for financial assistance,
the board may approve interest deferral or the capitalization of
interest costs and may approve periods of repayment for the loans of
up to 50 years.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.04;
Acts 1987, 70th Leg., ch. 1103, § 6, eff. Sept. 1, 1987; Acts
2001, 77th Leg., ch. 966, § 4.10, eff. Sept. 1, 2001.
§ 15.1071. SALE OF POLITICAL SUBDIVISION BONDS TO TEXAS
WATER RESOURCES FINANCE AUTHORITY. (a) Notwithstanding any other
provision of this chapter, the board may sell to the Texas Water
Resources Finance Authority any political subdivision bonds
purchased with money in the water loan assistance fund and may apply
the proceeds of a sale in the manner provided by this section.
(b) The board shall sell the political subdivision bonds at
the price and under the terms that it determines to be reasonable.
(c) The board may sell political subdivision bonds to the
Texas Water Resources Finance Authority without making a previous
offer to the political subdivisions and without advertising,
soliciting, or receiving bids for the sale.
(d) The board may enter into a contract with the Texas Water
Resources Finance Authority to sell to the authority political
subdivision bonds that are not owned by the board. For bonds sold
under this subsection, the contract may provide that the board will
receive from the authority the sales price for the political
subdivision bonds in exchange for the board's agreement to transfer
to the authority political subdivision bonds subsequently acquired
by the board and to pay to the authority from the investment income
received on the water assistance fund or the water loan assistance
fund any amounts considered appropriate including without
limitation an amount equal to the proportionate share of that
investment income attributable to the money used to purchase the
political subdivision bonds.
(e) Proceeds from the sale of bonds under this section shall
be deposited in the water assistance fund and used for the purposes
and in the manner provided by law.
(f) As part of a sales agreement with the Texas Water
Resources Finance Authority, the board by contract may agree to
perform the functions required to ensure that the political
subdivisions pay the debt service on political subdivision bonds
sold and observe the conditions and requirements stated in those
bonds.
(g) The board may exercise any powers necessary to carry out
the authority granted by this section including the authority to
contract with any person to accomplish the purposes of this
section.
Added by Acts 1987, 70th Leg., ch. 728, § 3, eff. June 20, 1987.
§ 15.108. RECOMMENDATIONS FOR FUNDING BY
LEGISLATURE. (a) If money is not available in the fund to provide
money for projects approved under this subchapter, the board shall
prepare and submit with its biennial budget request to the
Legislative Budget Board and to the presiding officers of each
house of the legislature a list of all projects approved by the
board under this subchapter.
(b) The list of projects submitted to the Legislative Budget
Board and to the presiding officers of each house of the legislature
shall include relevant information relating to each project and
recommendations relating to the terms under which loans of
financial assistance should be made to each applicant and projected
amounts of money that will be required each biennium to fund each
project to its completion.
Added by Acts 1985, 69th Leg., ch. 133, § 2.04.
§ 15.109. DELIVERY OF LOANS OF FINANCIAL
ASSISTANCE. (a) As money becomes available in the loan fund, the
board shall deliver the funds under the approved applications.
(b) The board shall deliver money in the fund that is
provided by legislative appropriation in the manner provided by and
subject to the restrictions of the legislative appropriation.
Added by Acts 1985, 69th Leg., ch. 133, § 2.04.
§ 15.110. REQUIREMENTS FOR POLITICAL SUBDIVISIONS AND
FEDERAL AGENCIES. (a) Subject only to constitutional
limitations, all contracting political subdivisions may issue and
execute those bonds, notes, or other obligations necessary to
conform to and comply with repayment obligations adopted by the
board.
(b) Loans of financial assistance under this subchapter
shall be repaid to the board, and the payments made to the board for
these loans of financial assistance shall be made in compliance
with terms and conditions established by the board.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.04;
Acts 1989, 71st Leg., ch. 624, § 2.09, 2.10, eff. Sept. 1, 1989.
§ 15.111. APPROVAL AND REGISTRATION. The board shall
not contract for the payment of the principal of or interest on or
both the principal of and interest on any bonds or other obligations
that have not been approved by the attorney general and registered
by the comptroller.
Formerly § 15.108, added by Acts 1981, 67th Leg., 1st C.S., p.
102, ch. 12, § 1, eff. Nov. 10, 1981. Renumbered by Acts 1985,
69th Leg., ch. 133, § 2.04.
§ 15.112. CONTRACTS INCONTESTABLE. Contracts entered
into by the board for the payment of the principal of or interest on
or both the principal of and interest on bonds or other obligations
issued by a political subdivision are valid, binding, and
incontestable after:
(1) approval of the bonds or other obligations by the
attorney general;
(2) registration of the bonds or other obligations by
the comptroller; and
(3) purchase by and delivery of the bonds or other
obligations to the purchaser.
Formerly § 15.109, added by Acts 1981, 67th Leg., 1st C.S., p.
102, ch. 12, § 1, eff. Nov. 10, 1981. Renumbered by Acts 1985,
69th Leg., ch. 133, § 2.04.
§ 15.113. INSPECTION OF PROJECTS. (a) The board may
inspect the construction of a project any time to assure that:
(1) the contractor is substantially complying with the
approved engineering plans of the project; and
(2) the contractor is constructing the project in
accordance with sound engineering principles.
(b) Inspection of a project by the board does not subject
the state to any civil liability.
Formerly § 15.110, added by Acts 1981, 67th Leg., 1st C.S., p.
102, ch. 12, § 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th
Leg., ch. 795, § 1.040, eff. Sept. 1, 1985. Renumbered by Acts
1985, 69th Leg., ch. 133, § 2.04. Amended by Acts 1987, 70th
Leg., ch. 977, § 11, eff. June 19, 1987.
§ 15.114. ALTERATION OF PLANS. After approval of
engineering plans, a political subdivision or federal agency shall
not make any substantial or material alteration in the plans unless
the executive administrator authorizes the alteration. For a waste
water treatment plant or other facility required to have commission
approval of plans and specifications, the commission must give its
approval before a substantial or material alteration is made in
those plans.
Formerly § 15.111, added by Acts 1981, 67th Leg., 1st C.S., p.
102, ch. 12, § 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th
Leg., ch. 795, § 1.040, eff. Sept. 1, 1985. Renumbered by Acts
1985, 69th Leg., ch. 133, § 2.04. Amended by Acts 1987, 70th
Leg., ch. 977, § 12, eff. June 19, 1987; Acts 1989, 71st Leg.,
ch. 624, § 2.11, eff. Sept. 1, 1989.
§ 15.115. 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 the
approved plans;
(2) failure to construct the works in accordance with
sound engineering principles; or
(3) failure to comply with any terms of the contract.
Formerly § 15.112, added by Acts 1981, 67th Leg., 1st C.S., p.
102, ch. 12, § 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th
Leg., ch. 795, § 1.040, eff. Sept. 1, 1985. Renumbered by Acts
1985, 69th Leg., ch. 133, § 2.04. Amended by Acts 1987, 70th
Leg., ch. 977, § 12, eff. June 19, 1987.
§ 15.116. SALE OF BONDS BY THE BOARD. The board may sell
or dispose of bonds or other obligations purchased with money in the
water loan assistance fund.
Added by Acts 1987, 70th Leg., ch. 1103, § 7, eff. Sept. 1, 1987.
SUBCHAPTER D. WATER BOND INSURANCE PROGRAM
§ 15.201. DEFINITIONS. (a) In this subchapter:
(1) "Program" means the water bond insurance program.
(2) "Bonds" means bonds or other obligations of a
political subdivision or water supply corporation issued to provide
funds for a project defined in Subsection (b) of this section.
(3) "Insured bonds" means bonds or other obligations
insured by the state under this subchapter.
(4) "Issuer" means a political subdivision or water
supply corporation issuing bonds or other obligations eligible to
be insured under the program.
(5) "Water supply corporation" means a nonprofit water
supply corporation created and operating under Chapter 67.
(b) Notwithstanding the definition in Subdivision (6),
Section 15.001, of this code, in this subchapter, "project" means
any undertaking or work to conserve, convey, and develop surface or
subsurface water resources of the state, to provide for the
maintenance and enhancement of the quality of the water of the
state, to provide for flood control and drainage, to provide
recharge or chloride control, or to provide for desalinization, and
to carry out other purposes defined by board rules.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05. Amended by Acts
1991, 72nd Leg., ch. 516, § 2, eff. Sept. 1, 1991; Acts 1999,
76th Leg., ch. 62, § 18.55, eff. Sept. 1, 1999.
§ 15.202. CREATION AND ADMINISTRATION OF
PROGRAM. (a) The water bond insurance program is created
pursuant to Article III, Section 49-d-4, of the Texas Constitution
to insure to holders of insured bonds that in the event of default
or impending default the state will pay, to the extent authorized by
this subchapter, the principal of or interest on or both principal
of and interest on the bonds.
(b) The board shall administer the program in the manner
provided by this subchapter and by rules of the board.
(c) The legislature, in accordance with authorization
provided by Article III, Section 49-d-4, of the Texas Constitution,
authorizes the existence of the program to continue beyond the
expiration date of the program provided by Subsection (g) of that
section.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05. Amended by Acts
1991, 72nd Leg., ch. 52, § 2, eff. May 1, 1991.
§ 15.203. ELIGIBLE BONDS. (a) Only revenue, general
obligation, tax, or combination bonds issued by a political
subdivision or a water supply corporation for a project qualifying
for assistance under this subchapter and board rules are eligible
to be insured under the program.
(b) Bonds issued for a term longer than 50 years are not
eligible to be insured under the program.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05.
§ 15.204. RULES. The board shall adopt necessary rules
to carry out this subchapter.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05.
§ 15.205. INSURANCE. The board may pledge the general
credit of the state, to the extent authorized by Article III,
Section 49-d-4, of the Texas Constitution, to insure the payment of
the principal of or interest on or both the principal of and
interest on eligible bonds issued by an issuer in the event of
default or impending default of the insured bonds.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05.
§ 15.206. APPLICATION FOR INSURANCE. (a) An issuer
may apply in writing to the board for the insurance of its bonds.
(b) The application must include the following information:
(1) the name of the issuer;
(2) citations of the laws under which the issuer is
created and operates and under which the bonds to be insured are to
be issued;
(3) the total amount of bonds for which insurance
coverage is sought and the anticipated interest rate on the bonds;
(4) the term for which the bonds are to be issued;
(5) the purpose or purposes for which the bonds are to
be issued;
(6) financial information relating to the issuance of
the bonds and to the financial stability and future of the issuer;
and
(7) any other information the board requires by its
rules or otherwise considers necessary in making a determination of
the application.
(c) The board by rule shall prescribe the form and procedure
for submitting and processing an application.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05.
§ 15.207. CONSIDERATIONS IN PASSING ON APPLICATION. In
addition to criteria established in its rules, the board in passing
on an application shall consider:
(1) the purpose or purposes for which the issuer is
issuing the bonds;
(2) the financial ability of the issuer to meet its
obligations under the bonds;
(3) the risk to the State of Texas in insuring the
bonds and the ability of the state to pay the insurance coverage;
and
(4) the needs of the area to be served by the project
and the benefit of the project to the area in relation to the needs
of other areas requiring similar state assistance and the benefits
of those projects to other areas.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05.
§ 15.208. APPROVAL OF APPLICATION. (a) After notice
and hearing, the board by resolution may approve an application if,
after considering the information in the application and presented
at the hearing, criteria established by this subchapter, and the
rules and other relevant factors, the board finds:
(1) that the bonds are being issued to finance a
project that serves the public interest;
(2) that there is strong evidence and a high degree of
certainty that the issuer will be able to meet its obligations under
the bonds; and
(3) that an applicant proposing surface water
development has the necessary water right authorizing it to
appropriate and use the water which the project will provide.
(b) If the board finds that an applicant is not using water
efficiently, the board may require the applicant to develop a
conservation program to provide for more efficient use of water.
(c) The board may establish an educational and technical
assistance program to assist political subdivisions in developing
comprehensive water conservation programs required by this section
and other sections of this code.
(d) If the issuer plans to utilize the project to furnish
water or services to a political subdivision that in turn plans to
furnish the water or services to the ultimate consumer, the
requirements of the board relative to water conservation can be met
through contractual agreements between the issuer and the political
subdivision providing for establishment of a water conservation
program and other necessary measures.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05.
§ 15.209. CONTRACTS, AGREEMENTS, AND OTHER
DOCUMENTS. (a) On approval of an application, the board shall
enter into a contract with the issuer for the insurance of the bonds
on terms and conditions agreed to by the parties. The terms and
conditions must comply with this subchapter and rules adopted by
the board.
(b) The insurance contract shall include:
(1) the extent of the insurance coverage;
(2) the terms and conditions of the insurance
coverage;
(3) rights in addition to those provided by law
reserved by the board against the issuer in the event the board must
pay all or part of the insurance coverage; and
(4) any other provision required in order to be in
compliance with the board's rules.
(c) The board shall execute any other documents necessary to
legally bind the state to insure payment to the bondholders on
default or impending default.
(d) For the insurance coverage of bonds to be effective, it
must be approved by the attorney general as to the legality of the
insurance coverage. Documents relating to the insurance of the
bonds shall be submitted to the attorney general for approval at the
same time as the bonds and records relating to the issuance of the
bonds are submitted for approval. The bonds issued by a political
subdivision or water supply corporation and the insurance coverage
approved by the board are valid, binding, and incontestable after:
(1) approval by the attorney general;
(2) registration by the comptroller; and
(3) payment by and delivery to the buyer.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05.
§ 15.210. LIMITATION ON INSURANCE
COVERAGE. (a) Except as provided by Subsection (c) of this
section, the total principal balance of all insurance coverage
issued by the board and outstanding may not exceed the dollar amount
that equals two times the maximum amount of money that the state is
authorized to pay under the program by the constitution.
(b) The board may not approve insurance coverage in any
state fiscal year that exceeds a total of $100 million for all
applicants.
(c) The legislature, by a two-thirds vote of each house, may
change the limitations provided by Subsections (a) and (b) of this
section.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05.
§ 15.211. INSURANCE FEES. (a) The board shall adopt a
schedule of fees to be charged an issuer for insurance coverage
provided under this subchapter.
(b) Fees charged by the board under this section shall be
calculated to provide a reasonable reserve against defaults and
impending defaults.
(c) Fees collected under this section shall be deposited in
a special reserve fund created in the state treasury for the purpose
of paying amounts on default or impending default of any bonds
without resorting to the general credit of the state. The board may
invest any money credited to the reserve fund in investments
authorized by law for state deposits.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05. Amended by Acts
1987, 70th Leg., ch. 1103, § 8, eff. Sept. 1, 1987; Acts 1989,
71st Leg., ch. 308, § 1, eff. June 14, 1989.
§ 15.212. PAYMENT BY STATE. (a) On receipt by the
executive administrator from the paying agent for any insured bond
of a written notice by registered or certified mail that a payment
on the bond is due but has not been made to the paying agent by the
issuer and that the issuer's reserves are insufficient to cover the
payment, the executive administrator shall have a deposit of funds
made with the paying agent sufficient to cover the payment due on
the bond less any amount already held by the paying agent to pay the
principal of and interest on the bond.
(b) On transfer of the payment to the paying agent under
Subsection (a) of this section and on receipt of the uncanceled bond
or coupon, the state becomes the owner of the bond or coupon and is
subrogated to the rights of the bondholder with respect to the
amount paid by the state.
(c) After making payment on the bonds under Subsection (a)
of this section, the board shall attempt to collect from the issuer
the amount paid by the state. The board may enter into agreements
for the issuer to pay those claims, may enforce any provisions of
the bonds relating to actions that may be taken by bondholders on
default, or may sue the issuer to collect amounts paid by the state.
The attorney general, at the request of the board, shall take all
necessary legal action to assist the board in carrying out this
subsection.
(d) Money collected under Subsection (c) of this section
shall be deposited in the special reserve fund up to the amount used
from that fund to pay the defaulted bonds. Any remaining money
collected and not deposited in that fund shall be deposited in the
general revenue fund.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05. Amended by Acts
1987, 70th Leg., ch. 977, § 13, eff. June 19, 1987.
§ 15.213. REFUNDING BONDS. Without the express written
consent of the board, insurance provided by the board under this
subchapter shall not extend to refunding bonds issued to replace
bonds that have been insured by the board. The board may give its
consent under procedures provided by its rules.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05.
§ 15.214. INSPECTION OF PROJECTS. (a) The board may
inspect at any time the construction of a project being constructed
with proceeds of revenue bonds insured by the board to assure that:
(1) the contractor is substantially complying with the
approved engineering plans of the project; and
(2) the contractor is constructing the project in
accordance with sound engineering principles.
(b) Inspection of a project by the board does not subject
the state to any civil liability.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05. Amended by Acts
1987, 70th Leg., ch. 977, § 14, eff. June 19, 1987.
§ 15.215. ALTERATION OF PLANS. After approval of
engineering plans, a political subdivision or water supply
corporation may not make any substantial or material alteration in
the plans unless the executive administrator authorizes the
alteration.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05. Amended by Acts
1987, 70th Leg., ch. 977, § 14, eff. June 19, 1987.
§ 15.216. CERTIFICATE OF APPROVAL. The board 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;
(2) failure to construct the project in accordance
with sound engineering principles; or
(3) failure to comply with any terms of the contract.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05. Amended by Acts
1987, 70th Leg., ch. 977, § 14, eff. June 19, 1987.
§ 15.217. OPEN RECORDS AND OPEN MEETINGS LAWS. Water
supply corporations receiving any assistance under this Act are
subject to Chapter 552, Government Code, and Chapter 551,
Government Code.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05. Amended by Acts
1995, 74th Leg., ch. 76, § 5.95(78), (90), eff. Sept. 1, 1995.
§ 15.218. REPORT. (a) Not later than January 1 of each
odd-numbered year, the board shall prepare and submit to the
governor, lieutenant governor, and speaker of the house a report
relating to the financial impact of the bond insurance program
during the immediately preceding biennium.
(b) The report shall include:
(1) the total amount of insurance coverage authorized
by the board during the biennium;
(2) the number of insurance coverage authorizations
granted by the board;
(3) a list of the issuers receiving insurance coverage
from the board during the biennium and the amount of insurance
coverage provided to each issuer;
(4) an analysis of the marketability of the bonds of
the issuers receiving insurance coverage during the biennium and
the effect that the insurance coverage had on interest rates and
bond ratings for those issuers;
(5) an analysis of the marketability of bonds issued
by the state and its agencies during the biennium and the effect
that the bond insurance program had on interest rates on state bonds
and the state's bond rating;
(6) an analysis of the impact on the commercial bond
market and bond interest rates generally during the biennium as a
result of the implementation of the bond insurance program with
particular emphasis on the impact on bonds of political
subdivisions and water supply corporations that did not participate
in the program;
(7) recommendations for changes in the bond issuance
program that will favorably affect marketability of state bonds and
issuer's bonds, bond ratings, and interest rates; and
(8) any other information, analyses, and
recommendations that the board considers necessary to give the
governor and the legislature a complete understanding of the
financial impact of the bond insurance program.
(c) The state comptroller on request shall provide to the
board all information and assistance necessary for the board to
prepare this report.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05. Amended by Acts
1987, 70th Leg., ch. 977, § 14, eff. June 19, 1987; Acts 1997,
75th Leg., ch. 1423, § 20.02, eff. Sept. 1, 1997.
SUBCHAPTER E. STORAGE ACQUISITION PROGRAM
§ 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 direct appropriations and by transfers from the fund
at the discretion of the board.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.06.
§ 15.302. AUTHORIZED PROJECTS. (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 project.
(b) In addition, the board may, at its discretion and in
accordance with its rules, contract with a political subdivision,
under terms and conditions established by the board, to pay the
principal of or interest on or both the principal of and interest on
bonds or other obligations issued or to be issued by a political
subdivision.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.303. JOINT VENTURES. The board may act singly or
in a joint venture in partnership with any political subdivision,
with the United States, or with any other state to the extent
permitted by law.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.304. PERMITS REQUIRED. Except as provided by
Section 15.3041 of this code, the board shall obtain permits from
the commission for the storage, transportation, and application to
beneficial use of water in reservoirs and associated works
constructed by the board.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 4.03.
§ 15.3041. RESERVATION AND APPROPRIATION FOR BAYS AND
ESTUARIES AND INSTREAM USES. (a) Five percent of the annual firm
yield of water in any reservoir and associated works constructed
with state financial participation under this chapter within 200
river miles from the coast, to commence from the mouth of the river
thence inland, is appropriated to the Parks and Wildlife Department
for use to make releases to bays and estuaries and for instream
uses, and the commission shall issue permits for this water to the
Parks and Wildlife Department under procedures adopted by the
commission.
(b) The Parks and Wildlife Department in cooperation with
the department shall manage this water for the purposes stated in
this section.
(c) The Parks and Wildlife Department shall adopt necessary
rules and shall enter into necessary memoranda of understanding
with the department to provide necessary rules and procedures for
managing the water and for release of the water for the purposes
stated in this section.
(d) This section does not limit or repeal any other
authority of or law relating to the department or the commission.
(e) Operating and maintenance costs for the percentage of
annual firm yield appropriated to the Parks and Wildlife Department
shall be paid by the local political subdivisions that are the
project owners.
Added by Acts 1985, 69th Leg., ch. 133, § 4.03.
§ 15.305. STORING WATER. The board may use any
reservoir acquired, leased, constructed, reconstructed, developed,
or enlarged by it under this chapter to store unappropriated state
water and other water acquired by the state.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.306. BOARD FINDINGS. Before the board may acquire
storage facilities in any reservoir, the board shall find
affirmatively that:
(1) it is reasonable to expect that the state will
recover its investment in the facilities;
(2) the cost of the facilities exceeds the current
financing capabilities of the area involved, and the facilities
cannot be reasonably financed by local interests without state
participation;
(3) the public interest will be served by acquisition
of the facilities; and
(4) the facilities to be constructed or reconstructed
contemplate the optimum development of the site which is reasonably
reserved under all existing circumstances of the site.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.3061. RECOMMENDATIONS FOR FUNDING BY
LEGISLATURE. (a) If money is not available in the fund to provide
money for projects approved under this subchapter, the board shall
prepare and submit with its biennial budget request to the
Legislative Budget Board and to the presiding officers of each
house of the legislature a list of all projects approved by the
board under this subchapter.
(b) The list of projects submitted to the Legislative Budget
Board and to the presiding officers of each house of the legislature
shall include relevant information relating to each project and
recommendations relating to the priorities for funding.
Added by Acts 1985, 69th Leg., ch. 133, § 2.06.
§ 15.307. FACILITIES WANTED BY POLITICAL
SUBDIVISION. The board shall not acquire any facility to the
extent that the board finds that the political subdivision:
(1) is willing and reasonably able to finance the
acquisition of the facility;
(2) has qualified by obtaining the necessary permit;
and
(3) has proposals that are inconsistent with the
objectives of the state water plan.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1987, 70th Leg., ch. 977, § 14,
eff. June 19, 1987.
§ 15.308. CONTRACTS: GENERAL AUTHORITY. (a) The
board may execute contracts which include but are not limited to the
design, management, acquisition, lease, construction,
reconstruction, development, enlargement, operation, or
maintenance, singularly or in any combination, of any existing or
proposed storage project.
(b) The board shall obtain the approval of the attorney
general as to the legality of all contracts authorized under this
subchapter to which the board is a party.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.309. SPECIFIC CONTRACTS AUTHORIZED. Contracts
authorized by Section 15.308 of this code include but are not
limited to the following:
(1) federal grants or grants from other sources;
(2) contracts which may be fully or partially secured
by water purchase or repayment contracts executed by political
subdivisions of the state for purchase of water and facilities
necessary to supply present and future regional and local water
requirements;
(3) contracts for goods and services necessary for the
design, management, acquisition, lease, construction,
reconstruction, development, enlargement, implementation,
operation, or maintenance of any existing or proposed project or
portion of the project; and
(4) contracts secured by the pledge of all or any part
of funds in the storage acquisition fund.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.310. CONTRACTS: FACILITIES ACQUIRED FOR A TERM OF
YEARS. If facilities are acquired for a term of years, the board
may include in the contract provisions for renewal that will
protect the state's investment.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.311. MAINTENANCE CONTRACTS. The board may execute
contracts for the operation and maintenance of the state's interest
in any project and may agree to pay reasonable operation and
maintenance charges allocable to the state interest.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.312. RECREATIONAL FACILITIES. The board may
execute contracts with the United States and with state agencies
and political subdivisions and with others to the extent authorized
for the development and operation of recreational facilities at any
project in which the state has acquired an interest. Income
received by the board under these contracts shall be deposited in
the water assistance fund.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.313. BOARD MAY SELL OR LEASE PROJECTS. (a) The
board may sell, transfer, or lease, to the extent of its ownership,
a project acquired, constructed, reconstructed, developed, or
enlarged with money from the storage acquisition fund.
(b) The board shall obtain the approval of the attorney
general as to the legality of all contracts authorized under this
subchapter to which the board is a party.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.314. PERMIT REQUIRED. Before the board grants the
application to buy, receive, or lease the facilities, the applicant
shall first secure a permit for water use from the commission. If
the facilities are to be leased, the permit may be for a term of
years.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.315. CONTRACT MUST BE NEGOTIATED. The commission
may issue a term permit until the applicant has executed a contract
with the board for acquisition of the facilities.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.316. RESERVOIR LAND. The board may lease acquired
reservoir land until construction of the dam is completed without
the necessity of a permit issued by the commission.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.317. PRICE OF SALE. (a) The price of the sale or
transfer of a state facility acquired on or subsequent to September
1, 1981, other than a facility acquired under a contract with the
United States, shall be the sum of the direct cost of acquisition,
plus an amount of interest calculated by multiplying the lending
rate in effect at the date of acquisition by the amount of board
money disbursed for the acquisition times the number of years and
fraction of a year from the date or dates of the disbursement of
funds to the date or dates of the sale or transfer of the state
facility, plus the board's cost of operating and maintaining the
facility from the date of acquisition to the date of sale or
transfer, less any payments received by the board from the lease of
the facility or the sale of water from it.
(b) The purchaser of the board's interest in a state
facility shall also assume, to the extent disclosed by the board at
or before the sale, any and all direct, conditional, or contingent
liabilities of the board attributed to the project in direct
relation to the percentage of the project acquired by the
purchaser.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.318. PRICE OF SALE: FACILITIES ACQUIRED UNDER
CONTRACTS WITH THE UNITED STATES. (a) The price of the sale or
transfer of a state facility acquired on or subsequent to September
1, 1981, under a contract with the United States shall be the sum of
the direct cost of acquisition, plus an amount of interest
calculated by multiplying the lending rate in effect at the time of
acquisition, by the amount of board money disbursed for the
acquisition of the facility times the number of years and fraction
of a year from the date or dates of disbursement of the money to the
date or dates of sale or transfer, plus the board's cost of
operating and maintaining the facility from the date of acquisition
to the date of the sale or transfer of the facility, less any
payments received by the board from the lease of the facility or the
sale of water from it.
(b) If, in transferring any contract, the board remains in
any way directly, conditionally, or contingently liable for the
performance of any part of the contract, then the transferee, in
addition to the payments prescribed by Subsection (a) of this
section, as applicable, shall pay to the board annually one-half of
one percent of the remaining amount owed to the other party to the
contract, and shall continue these payments until the board is
fully released from the contract.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.319. COSTS DEFINED. With reference to the sale of
a state facility, "direct cost of acquisition" means the principal
amount the board has paid plus the amounts the board has agreed to
pay under obligations not transferred to the purchaser for a
facility up to the date of sale, but does not include the board's
cost of operating and maintaining the facility from the date of
acquisition to the date of the sale or transfer of the facility.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.320. LEASE PAYMENTS. In leasing a state facility
for a term of years, the board shall require annual payments not
less than the total of:
(1) the annual principal and interest requirements
applicable to the debt incurred by the state in acquiring the
facility; and
(2) the state's annual cost for operation,
maintenance, and rehabilitation of the facility.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.321. SALE OR LEASE: CONDITION PRECEDENT. (a) No
sale, transfer, or lease of a state facility is valid unless the
board first makes the following affirmative findings:
(1) that the applicant has a permit granted by the
commission;
(2) that the sale, transfer, or lease serves the
public interest; and
(3) that the consideration for the sale, transfer, or
lease is fair, just, reasonable, and in full compliance with the
law.
(b) The consideration for a sale or transfer may be either
money or revenue bonds which for the purposes of this section shall
be deemed the same as money.
(c) The amount of money shall be equal to the price for
purchasing the facilities as prescribed by Sections 15.317-15.318
of this code, or if revenue bonds constitute the consideration, the
principal amount of revenue bonds shall be equal to the price for
purchasing the facilities as prescribed by the provisions of
Sections 15.317-15.318 of this code, and the revenue bonds shall
bear interest at the rate prescribed in Section 17.128 of this code
with regard to bonds purchased with the proceeds of the Texas water
development fund.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.322. DISPOSITION OF PROCEEDS. (a) The money
received from any sale, transfer, or lease of facilities, or in the
case of a sale or transfer involving revenue bonds, the money
received as matured interest or principal on the bonds shall be
placed in the general revenue fund.
(b) If money received from a sale, transfer, or lease of
facilities, or in the case of a sale or transfer involving revenue
bonds, if the money received as matured interest or principal on the
bonds, is money derived originally from the appropriation made in
Section 2, Chapter 12, Acts of the 67th Legislature, 1st Called
Session, 1981, or interest earned on that money, the money received
as matured interest or principal on the bonds shall be placed in a
special account in the water assistance fund.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.06.
§ 15.323. SALE OF STORED WATER. (a) The board may sell
any unappropriated public water of the state and other water
acquired by the state that is stored by or for it. The price shall
be determined by the board.
(b) Except as provided by Subsection (c) of this section,
money received from any sale shall be placed in the general revenue
fund.
(c) Money received from a sale of unappropriated public
water or other water acquired by the state and stored by it or for it
in a facility for which funds were provided from the appropriation
made in Section 2, Chapter 12, Acts of the 67th Legislature, 1st
Called Session, 1981, or interest earned on the money constituting
that appropriation, must be deposited in a special account in the
water assistance fund.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.06.
§ 15.324. SALE CONTRACT: PROVISIONS,
LIMITATIONS. (a) The board may determine the consideration and
other provisions to be included in water sale contracts, but the
consideration and other provisions shall be fair, reasonable, and
nondiscriminatory. The board may include charges for standby
service, which means holding water and conservation storage space
for use and for actual delivery of water.
(b) The board shall make the same determinations with
respect to the sale of water as are required by Section 15.321 of
this code with respect to the sale or lease of facilities.
(c) The board shall not compete with any political
subdivisions in the sale of water when this competition jeopardizes
the ability of the political subdivision to meet obligations
incurred to finance its own water supply projects.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.325. EMERGENCY RELEASES OF WATER. (a) All water
owned by the board in any facility may be released at the discretion
of the board, with or without charge, to relieve any emergency
condition arising from drought, public calamity, or any other
reason causing a severe water shortage, if the commission first
determines the existence of the emergency and requests the board to
release water to alleviate the emergency condition.
(b) The executive administrator may authorize the release
of water owned by the state from any facility in which the state has
an interest under this subchapter for a period of not to exceed 72
hours from time of authorization to relieve an emergency condition
that poses an imminent threat of flooding. The commission must
approve any release of water that must be made beyond the 72-hour
period provided by this subsection.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 795, §
1.041, eff. Sept. 1, 1985.
§ 15.326. PREFERENCES. The board shall give political
subdivisions a preferential right, but not an exclusive right, to
purchase, acquire, or lease facilities and to purchase water from
facilities. Preferences shall be given in these respects in accord
with the provisions of Section 11.123 of this code. The board and
the commission shall coordinate their efforts to meet these
objectives and to assure that the public water of this state, which
is held in trust for the use and benefit of the public, will be
conserved, developed, and utilized in the greatest practicable
measure for the public welfare.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.327. LEASE OF LAND PRIOR TO PROJECT
CONSTRUCTION. The board may lease tracts of land acquired for
project purposes for a term of years for any purpose not
inconsistent with ultimate project construction. The lease shall
provide for expiration before initiation of project construction.
The money received from such leases shall be placed in the water
assistance fund.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.328. LEASE CONTRIBUTION EQUIVALENT TO TAXES. The
lease may provide for contribution by the lessee to units of local
government of amounts equivalent to ad valorem taxes or special
assessments.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.329. INSPECTION OF PROJECTS. (a) The board may
inspect the construction of a project any time to assure that:
(1) the contractor is substantially complying with the
approved engineering plans of the project; and
(2) the contractor is constructing the project in
accordance with sound engineering principles.
(b) Inspection of a project by the board does not subject
the state to any civil liability.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 795, §
1.042, eff. Sept. 1, 1985; Acts 1987, 70th Leg., ch. 977, § 14,
eff. June 19, 1987.
§ 15.330. ALTERATION OF PLANS. After approval of
engineering plans, a political subdivision shall not make any
substantial or material alteration in the plans unless the
executive administrator authorizes the alteration. For a waste
water treatment plant or other facility required to have commission
approval of the plans and specifications, the commission must give
its approval before a substantial or material alteration is made in
those plans.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 795, §
1.042, eff. Sept. 1, 1985; Acts 1987, 70th Leg., ch. 977, § 14,
eff. June 19, 1987.
§ 15.331. 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;
(2) failure to construct the works in accordance with
sound engineering principles; or
(3) failure to comply with any terms of the contract.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 795, §
1.042, eff. Sept. 1, 1985; Acts 1987, 70th Leg., ch. 977, § 14,
eff. June 19, 1987.
SUBCHAPTER F. RESEARCH AND PLANNING PROGRAM
§ 15.401. PROGRAM CREATION. The research and planning
program is created to provide money for research into and planning
of the proper conservation, management, and development of the
state's water resources, for regional planning by political
subdivisions, for facility engineering in economically distressed
areas, and for flood control planning by political subdivisions.
The program may also provide money for research and planning by
Texas political subdivisions related to the proper conservation,
management, and development of water resources of areas outside
Texas if such research or planning will result in water being
available for use in or for the benefit of Texas or will maintain
and enhance the quality of water in Texas.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1991, 72nd Leg., ch. 516, § 3,
eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1010, § 1.04, eff.
Sept. 1, 1997.
§ 15.402. RESEARCH AND PLANNING FUND. The research and
planning fund is created in the state treasury to be funded by
direct appropriation and at the discretion of the board from the
money in the fund.
Added by Acts 1981, 67th Leg. 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.13.
§ 15.403. RULES. The board shall adopt rules to carry
out this chapter.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.404. RESEARCH CONTRACTS. (a) The board may enter
into a contract with any person for research into any matter
relating to the conservation and development of the state's water
resources or for research by Texas political subdivisions related
to the proper conservation and development of water resources of
areas outside Texas if such research will result in water being
available for use in or for the benefit of Texas or will help
maintain and enhance the quality of water in Texas.
(b) Before a contract is awarded, the board may prepare
written specifications for the proposed contract and may require
each prospective contractor to prepare and submit to the board a
written proposal that includes:
(1) a description of the proposed research project;
(2) a detailed estimate of the cost of the proposed
research project;
(3) the estimated time required to complete the
research project; and
(4) any other information requested by the board or
required by the board's rules.
(c) At a regular or specially called meeting of the board,
the board may award a research contract to any person and may
provide money from the research and planning fund in any amount the
board considers adequate to carry out the research project under
the contract.
(d) The board shall adopt rules providing criteria for
research projects and for eligibility of persons to receive
contract awards under this section.
(e) A contract made by the board under this section shall
include:
(1) a detailed description of the research project;
(2) the time in which the research project is to be
completed;
(3) the total amount of money to be paid by the board
from the research and planning fund for the research project; and
(4) any other terms and conditions required by the
board's rules or agreed to by the contracting parties.
(f) The board may enter into a supplemental contract with a
contractor under this section to change any of the provisions of a
contract awarded under this section including extension of time to
complete the project, the award of more research funds, or changes
in the planned research.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1997, 75th Leg., ch. 1010, §
1.05, eff. Sept. 1, 1997.
§ 15.405. PLANNING CONTRACTS. (a) The board may enter
into contracts with political subdivisions to pay from the research
and planning fund all or part of the cost of developing flood
control plans for the political subdivision.
(b) A political subdivision that desires money from the
research and planning fund for flood control planning shall submit
a written application to the board in the manner and form required
by board rules.
(c) The application shall include:
(1) the name of the political subdivision;
(2) a citation to the laws under which the political
subdivision was created and is operating including specific
citation of all laws providing flood control authority;
(3) the amount requested from the board for flood
control planning; and
(4) any other information required by the board in its
rules or specifically requested by the board.
(d) After notice and hearing, the board may award the
applicant all or part of the requested funds that are considered
necessary by the board for the political subdivision to carry out
adequate flood control planning.
(e) If the board grants an application under this section
and awards funds for flood control planning, the board shall enter
into a contract with the political subdivision that includes:
(1) a detailed statement of the purpose for which the
money is to be used;
(2) the total amount of money to be paid from the
research and planning fund under the contract; and
(3) any other terms and conditions required by board
rules or agreed to by the contracting parties.
(f) The board shall adopt rules establishing criteria of
eligibility for flood control planning money that considers:
(1) the relative need of the political subdivision for
the money;
(2) the legal authority of the political subdivision
to plan for and control flooding; and
(3) the effect of flood control planning by the
political subdivision on overall flood control in the state and
within the area in which the political subdivision is located.
(g) The board shall require that flood control plans
developed under contracts entered into under this section be made
available to the commission.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 795, §
1.043, eff. Sept. 1, 1985.
§ 15.406. REGIONAL FACILITY PLANNING. (a) The board
may enter into contracts with political subdivisions to pay from
the research and planning fund all or part of the cost of developing
regional facility plans.
(b) A political subdivision that desires money from the
research and planning fund for regional facility planning shall
submit a written application to the board in the manner and form
required by board rules.
(c) The application shall include:
(1) the name of the political subdivision;
(2) a citation to the laws under which the political
subdivision was created and is operating including specific
citation of all laws providing authority to plan, develop, and
operate regional facilities;
(3) the amount requested from the board for regional
facility planning; and
(4) any other information required by the board in its
rules or specifically requested by the board.
(d) After notice and hearing, the board may award the
applicant all or part of the requested funds that are considered
necessary by the board for the political subdivision to carry out
adequate regional facility planning.
(e) If the board grants an application under this section
and awards funds for regional facility planning, the board shall
enter into a contract with the political subdivision that includes:
(1) a detailed statement of the purpose for which the
money is to be used;
(2) the total amount of money to be paid from the
research and planning fund under the contract; and
(3) any other terms and conditions required by board
rules or agreed to by the contracting parties.
(f) The board shall adopt rules establishing criteria of
eligibility for regional facility planning money that considers:
(1) the relative need of the political subdivision for
the money;
(2) the legal authority of the political subdivision
to plan, develop, and operate regional facilities;
(3) the effect of regional facility planning by the
political subdivision on overall regional facility planning,
development, and operation in the state and within the area in which
the political subdivision is located; and
(4) the degree to which the regional facility planning
by the political subdivision is consistent with an approved
regional water plan for the area in which the political subdivision
is located.
(g) The board may require that regional facility plans
developed under contracts entered into under this section be made
available to the commission as provided by board rules.
Added by Acts 1985, 69th Leg., ch. 133, § 2.13. Amended by Acts
1987, 70th Leg., ch. 977, § 15, eff. June 19, 1987; Acts 1997,
75th Leg., ch. 1010, § 1.06, eff. Sept. 1, 1997.
§ 15.4061. FUNDING FOR REGIONAL WATER PLANS. (a) The
board may enter into contracts with political subdivisions
designated as representatives of a regional water planning group
under Section 16.053(c) of this code to pay from the research and
planning fund all or part of the cost of developing or revising
regional water plans as defined in Section 16.053 of this code.
(b) A political subdivision may submit, either individually
or jointly with other political subdivisions, a written application
to the board for the purpose of funding regional water planning from
the research and planning fund.
(c) The application shall be in the manner and form required
by board rules and include:
(1) the name of the political subdivision or political
subdivisions;
(2) a citation to the laws under which the political
subdivision was created and is operating, including specific
citation of all laws providing authority to develop and implement a
regional water plan;
(3) the amount requested from the board for regional
water planning; and
(4) any other relevant information required by the
board in its rules or specifically requested by the board.
(d) After notice and hearing, the board may award the
applicant all or part of the requested funds that the board
considers necessary for the political subdivision to carry out
regional water planning.
(e) If the board grants an application under this section
and awards funds for regional water planning, the board shall enter
into a contract with the political subdivision or political
subdivisions that includes:
(1) a detailed statement of the purpose for which the
money is to be used;
(2) the total amount of money to be paid by the board
from the research and planning fund under the contract; and
(3) any other terms and conditions required by the
board's rules or agreed to by the contracting parties.
(f) The board shall adopt rules establishing criteria for
eligibility for regional water planning money that include:
(1) the relative need of the political subdivision for
the money;
(2) the legal authority of the political subdivision
to develop and implement a regional water plan; and
(3) the degree to which regional water planning by the
political subdivision or political subdivisions will address the
water supply needs in the regional water planning area.
(g) The board may not provide funds under this section for
activities for which existing information or data is sufficient for
the planning effort, including:
(1) detailed evaluation of cost of water supply
alternatives where recent information is available to evaluate the
cost associated with the alternative;
(2) evaluation of groundwater resources for which
current information is available from the board or other entity
sufficient for evaluation of the resource;
(3) determination of water savings resulting from
standard conservation practices for which current information is
available from the board;
(4) revision of board demand and population
projections;
(5) revision of environmental planning criteria for
new surface water supply projects as defined in the state water plan
guidelines established in Section 16.051(d) of this section; and
(6) collection of data describing groundwater or
surface water resources where information for evaluation of the
resource is currently available.
(h) The board shall require that regional water plans
developed or revised under contracts entered into under this
section be made available to the commission, the Department of
Agriculture, and the Parks and Wildlife Department.
Added by Acts 1997, 75th Leg., ch. 1010, § 1.07, eff. Sept. 1,
1997. Amended by Acts 1999, 76th Leg., ch. 456, § 1, eff. June
18, 1999; Acts 1999, 76th Leg., ch. 979, § 1, eff. June 18, 1999.
§ 15.407. FACILITY ENGINEERING IN ECONOMICALLY
DISTRESSED AREAS. (a) In this section, "economically distressed
area" and "political subdivision" have the meanings assigned by
Section 16.341 of this code.
(b) The board may enter into contracts with a political
subdivision to pay from the research and planning fund all or part
of the cost of facility engineering in economically distressed
areas, including preparation of plans and specifications.
(c) The selection process used by a political subdivision to
procure engineering services necessary for facility engineering is
subject to review by and approval of the executive administrator.
The executive administrator may assist a political subdivision in
the selection of the provider of engineering services necessary for
facility engineering in economically distressed areas.
(d) The board shall adopt rules governing the procurement of
facility engineering services by a political subdivision awarded
funds under this subchapter and may adopt other rules necessary to
carry out the board's powers and duties under this subchapter.
(e) A political subdivision that desires money from the
research and planning fund for facility engineering in an
economically distressed area shall submit a written application to
the board in the manner and form required by board rules.
(f) The application shall include:
(1) the name of the political subdivision;
(2) a citation to the laws under which the political
subdivision was created and is operating;
(3) the amount requested from the board for facility
engineering in an economically distressed area; and
(4) any other information required by the board in its
rules or specifically requested by the board.
(g) After notice and hearing, the board may award the
applicant all or part of the requested funds that are considered
necessary by the board for the political subdivision to carry out
adequate facility engineering in an economically distressed area.
(h) If the board grants an application under this section
and awards funds for facility engineering in an economically
distressed area, the board shall enter into a contract with the
political subdivision that includes:
(1) a detailed statement of the purpose for which the
money is to be used;
(2) the total amount of money to be paid from the
research and planning fund under the contract; and
(3) any other terms and conditions required by board
rules or agreed to by the contracting parties.
(i) If, after submission of an application under this
section, a county has an increase in average per capita income or a
decrease in unemployment rate average so that the county no longer
meets the definition of an affected county in Section 16.341, the
political subdivision that submits the application continues to be
eligible for the funds under this section, and the board shall
process the application for facility engineering and, if the
application is approved, shall provide funds for the facility
engineering plan to the political subdivision.
(j) If the board determines that planning activities
undertaken by a political subdivision for which the board has
committed funds under this subchapter have been inadequate or not
completed in a timely manner, the board may terminate the contract
with the political subdivision and on behalf of and in consultation
with the political subdivision may perform or contract for facility
engineering in the economically distressed area.
Added by Acts 1989, 71st Leg., ch. 624, § 2.12, eff. Sept. 1,
1989. Amended by Acts 1995, 74th Leg., ch. 649, § 1, eff. June
14, 1995; Acts 1999, 76th Leg., ch. 404, § 32, eff. Sept. 1,
1999.
SUBCHAPTER J. FINANCIAL ASSISTANCE FOR WATER POLLUTION CONTROL
§ 15.601. CREATION OF FUND. (a) The state water
pollution control revolving fund shall be administered by the board
under this subchapter and rules adopted by the board. The fund
shall be used to provide financial assistance to political
subdivisions for construction of treatment works and to persons for
nonpoint source pollution control and abatement projects under
Section 15.603(h), in accordance with the capitalization grant
program established under the Federal Water Pollution Control Act
(33 U.S.C. 1251 et seq.).
(b) The board may establish one or more additional state
revolving funds in accordance with other capitalization grant
programs hereafter established by federal agencies or otherwise
authorized by federal law. Such additional state revolving funds
shall be held and administered by the board in the same manner as
provided by Section 15.603 of this code for the administration of
the state water pollution control revolving fund, except that such
additional state revolving funds shall be held and administered in
accordance with the federal legislation or federal agency program
under which the additional state revolving fund was established and
shall be used to provide financial assistance to political
subdivisions for public works in accordance with such legislation
or program. In the administration of such additional state
revolving funds, the board shall have all rights and powers
authorized to the board pursuant to this subchapter in connection
with the administration of the state water pollution control
revolving fund, together with such additional rights and powers as
are necessary or appropriate in connection with the administration
of such additional state revolving funds.
(c) The board may, in its discretion, provide for the state
water pollution control revolving fund to be merged into any
additional state revolving fund hereafter created.
Added by Acts 1987, 70th Leg., ch. 420, § 1, eff. June 17, 1987.
Amended by Acts 1993, 73rd Leg., ch. 184, § 1, eff. May 19, 1993;
Acts 2001, 77th Leg., ch. 1234, § 19, eff. Sept. 1, 2001.
§ 15.602. DEFINITIONS. In this subchapter:
(1) "Additional state revolving fund" means any state
revolving fund hereafter established by the board to provide
financial assistance to political subdivisions for public works in
accordance with a capitalization grant program hereafter
established by a federal agency or otherwise authorized by federal
law.
(2) "Authorized investments" means any authorized
investments described in Section 404.024, Government Code.
(3) "Community water system" means a public water
system that:
(A) serves at least 15 service connections used
by year-round residents of the area served by the system; or
(B) regularly serves at least 25 year-round
residents.
(4) "Construction" shall have the meaning assigned by
the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.).
(5) "Disadvantaged community" means an area meeting
criteria established by board rule, which criteria shall be based
on measures that may include single-family residential property
valuation, income levels of residents of the area, or other
similarly appropriate measures.
(5-a) "Eligible lending institution" means a financial
institution that makes commercial loans, is either a depository of
state funds or an institution of the Farm Credit System
headquartered in this state, agrees to participate in a linked
deposit program established under Section 15.611 and to provide
collateral equal to the amount of linked deposits placed with it,
and meets any other requirements established by board rule.
(6) "Federal Act" means the Federal Water Pollution
Control Act, as amended (33 U.S.C. 1251 et seq.).
(7) "Nonprofit noncommunity water system" means a
public water system that is not operated for profit and that:
(A) is owned by a political subdivision or
nonprofit entity; and
(B) is not a community water system.
(8) "Person" means an individual, corporation,
partnership, association, state, municipality, commission, or
political subdivision of a state or any interstate body, as defined
by Section 502 of the federal act, including a political
subdivision as defined by this subchapter, if the person is
eligible for financial assistance under federal law establishing
the revolving fund.
(9) "Political subdivision" means a municipality,
intermunicipal, interstate, or state agency, any other public
entity eligible for assistance under this subchapter, or a
nonprofit water supply corporation created and operating under
Chapter 67, if such entity is eligible for financial assistance
under federal law establishing the state revolving fund or an
additional state revolving fund.
(10) "Public water system" means a system that is
owned by any person and that meets the definition of public water
system in the Safe Drinking Water Act.
(11) "Public works" means any project to acquire,
construct, improve, repair, or otherwise provide any buildings,
structures, facilities, equipment, or other real or personal
property or improvements designed for public use, protection, or
enjoyment undertaken by a political subdivision and paid for, in
whole or in part, out of public funds.
(12) "Revolving fund" means the state water pollution
control revolving fund.
(13) "Safe Drinking Water Act" means Title XIV of the
federal Public Health Service Act, commonly known as the Safe
Drinking Water Act, as amended (42 U.S.C. Section 300f et seq.).
(14) "Safe drinking water revolving fund" means the
fund established by the board as an additional state revolving fund
to provide financial assistance in accordance with the federal
program established pursuant to the provisions of the Safe Drinking
Water Act.
(15) "Treatment works" has the meaning established by
the federal act and the eligible components of the management
programs established by Sections 319 and 320 of the federal act.
Added by Acts 1987, 70th Leg., ch. 420, § 1, eff. June 17, 1987.
Amended by Acts 1993, 73rd Leg., ch. 184, § 2, eff. May 19, 1993;
Acts 1993, 73rd Leg., ch. 477, § 6, eff. Aug. 30, 1993; Acts
1997, 75th Leg., ch. 1010, § 6.15, eff. Sept. 1, 1997; Acts
1999, 76th Leg., ch. 62, § 18.56, eff. Sept. 1, 1999; Acts 2001,
77th Leg., ch. 966, § 4.13, eff. Sept. 1, 2001; Acts 2003, 78th
Leg., ch. 200, § 19(a), eff. Sept. 1, 2003; Acts 2003, 78th
Leg., ch. 352, § 1, eff. Sept. 1, 2003.
§ 15.603. CREATION AND ADMINISTRATION OF
PROGRAM. (a) The revolving fund is held separately from other
funds by the board outside the State Treasury to provide financial
assistance to political subdivisions for construction of treatment
works and to persons for estuary management projects and for
nonpoint source pollution control and abatement projects under
Subsection (h).
(b) The board may execute agreements with the Environmental
Protection Agency or any other federal agency to establish and
administer the revolving fund and may discharge the duties and
responsibilities required for the administration of the revolving
fund.
(c) The revolving fund consists of money derived from
federal grants, direct appropriations, investment earnings on
amounts credited to the revolving fund, and, at the board's
discretion, from any and all sources available.
(d) The revolving fund shall remain available in perpetuity
for providing financial assistance in accordance with the federal
act.
(e) All payments of principal and interest and all proceeds
from the sale, refunding, or prepayment of bonds of political
subdivisions acquired in carrying out the purposes of the revolving
fund shall be deposited in the revolving fund.
(f) The board shall administer the revolving fund in the
manner provided by the federal act, state law, and the rules of the
board.
(g) The revolving fund and any accounts established in the
revolving fund shall be kept and maintained by or at the direction
of the board and do not constitute and are not a part of the State
Treasury. However, at the direction of the board, the revolving
fund or accounts in the revolving fund may be kept and held in
escrow and in trust by the comptroller for and on behalf of the
board, shall be used only as provided by this subchapter, and
pending such use shall be invested in authorized investments as
provided by any order, resolution, or rule of the board. Legal
title to money and investments in the revolving fund is in the board
unless or until paid out as provided by this subchapter, the federal
act, and the rules of the board. The comptroller, as custodian,
shall administer the funds strictly and solely as provided by this
subchapter and in the orders, resolutions, and rules, and the state
shall take no action with respect to the revolving fund other than
that specified in this subchapter, the federal act, and the rules of
the board.
(h) The board may establish a separate account in the
revolving fund to be used solely for providing financial assistance
to persons for nonpoint source pollution control and abatement
projects. The account shall be composed solely of funds
appropriated by the legislature, funds provided as gifts or grants
by the United States, interest earnings on amounts credited to the
account, and repayments of loans made from the account. The board
shall adopt rules establishing the criteria for eligibility and the
terms of assistance for persons that receive financial assistance
from the account.
(i) In addition to authorized purposes under Subsection
(a), the revolving fund is held by the board to provide linked
deposits to eligible financial institutions for loans to persons
for nonpoint source pollution control projects.
Added by Acts 1987, 70th Leg., ch. 420, § 1, eff. June 17, 1987.
Amended by Acts 1997, 75th Leg., ch. 1010, § 6.17, eff. Sept. 1,
1997; Acts 1997, 75th Leg., ch. 1423, § 20.03, eff. Sept. 1,
1997; Acts 2001, 77th Leg., ch. 966, § 4.14, eff. Sept. 1, 2001;
Acts 2001, 77th Leg., ch. 1234, § 20, eff. Sept. 1, 2001; Acts
2003, 78th Leg., ch. 200, § 19(b), eff. Sept. 1, 2003; Acts
2003, 78th Leg., ch. 352, § 2, eff. Sept. 1, 2003; Acts 2003,
78th Leg., ch. 1276, § 18.004, eff. Sept. 1, 2003.
§ 15.604. FINANCIAL ASSISTANCE UNDER THE REVOLVING
FUND. (a) The board may use the revolving fund for financial
assistance only as provided by the federal act:
(1) to make loans, on the conditions that:
(A) those loans are made at or below market
interest rates, including interest-free loans, at terms not to
exceed 20 years;
(B) principal and interest payments will begin
not later than one year after completion of any treatment works and
all loans will be fully amortized not later than 20 years after
completion of the treatment works;
(C) the recipient of a loan will establish a
dedicated source of revenue for repayment of loans; and
(D) the revolving fund will be credited with all
payments of principal of and interest on all loans;
(2) to buy or refinance the debt obligation of
political subdivisions at or below market rates if the debt
obligations were incurred after March 7, 1985;
(3) to guarantee or purchase insurance for political
subdivisions if the guarantee or insurance would improve access to
market credit or reduce interest rates;
(4) as a source of revenue or security for the payment
of principal and interest on bonds issued by the state if the
proceeds of the sale of those bonds will be deposited in the
revolving fund;
(5) to provide loan guarantees to similar revolving
funds established by municipalities or intermunicipal agencies;
(6) to earn interest on revolving fund accounts;
(7) for the reasonable costs of administering the
revolving fund and conducting activities provided for by Title VI
of the federal act, except that those amounts may not exceed the
amount authorized under Title VI of the federal act;
(8) to provide financial assistance to persons for a
nonpoint source pollution control project under Section 319 of the
federal act or for an estuary management project under Section 320
of the federal act;
(9) for other purposes as provided by the federal act;
and
(10) to provide linked deposits to eligible lending
institutions for loans to persons for nonpoint source pollution
control projects.
(b) The board shall adopt rules specifying the manner in
which any additional state revolving fund hereafter established by
the board may be used to provide financial assistance to political
subdivisions for public works. Such rules shall require financial
assistance to be provided for the purpose or purposes and on the
terms authorized by the federal legislation or federal agency
program under which the additional state revolving fund was
established.
Added by Acts 1987, 70th Leg., ch. 420, § 1, eff. June 17, 1987.
Amended by Acts 1993, 73rd Leg., ch. 184, § 3, eff. May 19, 1993;
Acts 2001, 77th Leg., ch. 966, § 4.15, eff. Sept. 1, 2001; Acts
2003, 78th Leg., ch. 200, § 19(c), eff. Sept. 1, 2003; Acts
2003, 78th Leg., ch. 352, § 3, eff. Sept. 1, 2003.
§ 15.6041. FINANCIAL ASSISTANCE UNDER THE SAFE DRINKING
WATER REVOLVING FUND. (a) The safe drinking water revolving fund
shall be administered by the board under this subchapter and rules
adopted by the board. The safe drinking water revolving fund shall
be held and administered by the board in the same manner as provided
by Section 15.603, except that the safe drinking water revolving
fund shall be held and administered in accordance with the Safe
Drinking Water Act and shall be used to provide financial
assistance in accordance with that act and in the manner provided by
rules adopted by the board:
(1) to political subdivisions for community water
systems and for nonprofit noncommunity water systems;
(2) to persons other than political subdivisions for
community water systems or nonprofit noncommunity water systems
from the account established by Subsection (b)(1);
(3) to persons, including political subdivisions, for
service to disadvantaged communities from the account established
by Subsection (b)(2); and
(4) for other purposes authorized by the Safe Drinking
Water Act.
(b) In addition to other accounts the board may establish in
the safe drinking water revolving fund, the board shall establish
the following separate accounts:
(1) the community/noncommunity water system financial
assistance account, to be used solely for providing financial
assistance to persons, other than political subdivisions,
providing services through a community water system or a nonprofit
noncommunity water system, which account shall be composed solely
of funds appropriated by the legislature, funds provided as gifts
or grants by the United States government, interest earnings on
amounts credited to the account, and repayments of loans made from
the account; and
(2) the disadvantaged community account, to be used
solely for providing financial assistance under the terms of
Subsections (c) and (d), which account shall be composed solely of
funds appropriated by the legislature, funds provided as gifts or
grants by the United States government, interest earnings on
amounts credited to the account, and repayments of loans made from
the account.
(c) The board may provide financial assistance from the
disadvantaged community account to:
(1) a political subdivision:
(A) that is a disadvantaged community; or
(B) for a project serving an area that:
(i) is located outside the boundaries of
the political subdivision; and
(ii) meets the definition of a
disadvantaged community; or
(2) an owner of a community water system that is
ordered by the commission to provide service to a disadvantaged
community, provided that the financial assistance is for the sole
purpose of providing service to a disadvantaged community.
(d) In providing financial assistance from the
disadvantaged community account, the board shall determine the
amount of a loan which the political subdivision cannot repay based
on affordability criteria established by the board by rule. The
board shall forgive repayment of that portion of the principal of
the loan which the board determines the political subdivision
cannot repay. Financial assistance from the disadvantaged
community account may not exceed the allowable percentage of the
amount of the capitalization grant received by the state pursuant
to the Safe Drinking Water Act.
Added by Acts 1997, 75th Leg., ch. 1010, § 6.16, eff. Sept. 1,
1997.
§ 15.605. RULES. The board shall adopt necessary rules
to carry out this subchapter.
Added by Acts 1987, 70th Leg., ch. 420, § 1, eff. June 17, 1987.
§ 15.606. LENDING RATE. The board shall determine and
provide for the lending rates to be charged on loans from the
revolving fund.
Added by Acts 1987, 70th Leg., ch. 420, § 1, eff. June 17, 1987.
§ 15.607. APPROVAL OF APPLICATION. On review of
recommendations by the executive administrator, the board by
resolution may approve an application if the board finds that in its
opinion the revenue or taxes or both revenue and taxes pledged by
the applicant will be sufficient to meet all the obligations
assumed by the applicant and that the application and assistance
applied for meet the requirements of the federal act and state law.
A program of water conservation for the more effective use of water
shall be required in the same manner as required for approval of an
application for financial assistance under Section 15.106 of this
code.
Added by Acts 1987, 70th Leg., ch. 420, § 1, eff. June 17, 1987.
Amended by Acts 2001, 77th Leg., ch. 966, § 4.16, eff. Sept. 1,
2001.
§ 15.608. APPROVAL AND REGISTRATION. The board may not
buy or refinance any bonds or securities or guarantee or purchase
insurance for bonds or securities of political subdivisions that
have not been approved by the attorney general and registered by the
comptroller.
Added by Acts 1987, 70th Leg., ch. 420, § 1, eff. June 17, 1987.
§ 15.609. RECOVERY OF ADMINISTRATIVE COSTS. (a) The
board may charge a recipient of financial assistance from the
revolving fund or an additional state revolving fund an origination
fee and an annual fee. The board by rule shall set the fees at
amounts it considers necessary to recover the costs incurred by the
board in administering the revolving fund or an additional state
revolving fund that are not paid from that fund.
(b) The board may establish one or more operating funds to
finance the administration of the revolving fund or an additional
state revolving fund. An operating fund must be held outside the
state treasury and separate from the fund to which it relates. The
board shall deposit to the credit of the appropriate operating fund
the fees collected under Subsection (a). The board shall use money
deposited to the credit of an operating fund to pay the board's
costs of administering the revolving fund or additional state
revolving fund to which the operating fund relates, including the
cost of servicing debt obligations of recipients of financial
assistance made available from the revolving fund or additional
state revolving fund.
(c) The board may not transfer money in the revolving fund
or an additional state revolving fund to an operating fund, but the
board may transfer money in an operating fund to the revolving fund
or additional state revolving fund to which the operating fund
relates.
(d) Money in an operating fund shall be invested in
authorized investments as provided by board order, resolution, or
rule.
(e) The board may agree with the holder of a bond the
proceeds of which will be deposited in the revolving fund or an
additional state revolving fund that the board will use money in an
operating fund only as provided by this section.
Added by Acts 1995, 74th Leg., ch. 281, § 1, eff. June 5, 1995.
§ 15.610. LINKED DEPOSIT. A linked deposit is a deposit
governed by a written deposit agreement between the board and an
eligible lending institution that provides that:
(1) the eligible lending institution pay interest on
the deposit at a rate determined by the board;
(2) the state not withdraw any part of the deposit
before the expiration of a period set by a written advance notice of
the intention to withdraw; and
(3) the eligible lending institution agree to lend the
value of the deposit to a person at a maximum rate that is the rate
paid by the eligible lending institution to the board plus a maximum
of four percent.
Added by Acts 2003, 78th Leg., ch. 200, § 19(d), eff. Sept. 1,
2003; Acts 2003, 78th Leg., ch. 352, § 4, eff. Sept. 1, 2003.
§ 15.611. LINKED DEPOSIT PROGRAM. (a) The board by
rule may establish a nonpoint source pollution control linked
deposit program in accordance with this subchapter.
(b) An eligible lending institution may participate in the
program established under this section as provided by this
subchapter.
Added by Acts 2003, 78th Leg., ch. 200, § 19(d), eff. Sept. 1,
2003; Acts 2003, 78th Leg., ch. 352, § 4, eff. Sept. 1, 2003.
§ 15.612. APPLICATION BY ELIGIBLE LENDING INSTITUTIONS
TO PARTICIPATE IN LINKED DEPOSIT PROGRAM. To participate in the
nonpoint source pollution control linked deposit program, an
eligible lending institution must:
(1) solicit loan applications, which must contain a
description of a proposed nonpoint source pollution control
project;
(2) review applications to determine if applicants are
eligible and creditworthy; and
(3) submit the applications of eligible and
creditworthy applicants to the executive administrator with a
certification:
(A) of the interest rate applicable to each
applicant by the eligible lending institution; and
(B) of the proposed project by the appropriate
person as required by Section 15.613.
Added by Acts 2003, 78th Leg., ch. 200, § 19(d), eff. Sept. 1,
2003; Acts 2003, 78th Leg., ch. 352, § 4, eff. Sept. 1, 2003.
§ 15.613. CERTIFICATION OF PROJECT. (a) An eligible
lending institution must obtain from a director of a soil and water
conservation district certification of an agricultural or
silvicultural nonpoint source pollution control project proposed
for the district. The certification must state that:
(1) the applicant of the proposed project has a water
quality management plan certified by the State Soil and Water
Conservation Board; and
(2) the project furthers or implements the plan.
(b) An eligible lending institution must obtain from the
executive director certification of a proposed nonpoint source
pollution control project that is not an agricultural or
silvicultural nonpoint source pollution control project. The
certification must state that the applicant's proposed project
implements the state's nonpoint source pollution management plan.
Added by Acts 2003, 78th Leg., ch. 200, § 19(d), eff. Sept. 1,
2003; Acts 2003, 78th Leg., ch. 352, § 4, eff. Sept. 1, 2003.
§ 15.614. APPROVAL OR REJECTION OF APPLICATION. The
board may approve or reject an application of an eligible lending
institution to participate in the program. The board may delegate
its authority to approve or reject an application to the executive
administrator.
Added by Acts 2003, 78th Leg., ch. 200, § 19(d), eff. Sept. 1,
2003; Acts 2003, 78th Leg., ch. 352, § 4, eff. Sept. 1, 2003.
§ 15.615. DEPOSIT AGREEMENT. If the board approves an
application of an eligible lending institution, the board and the
eligible lending institution shall enter into a written deposit
agreement. The agreement shall contain the conditions on which the
linked deposit is made. On execution of the agreement, the board
shall place a linked deposit from the revolving fund with the
eligible lending institution in accordance with the agreement. A
delay in payment or a default on a loan by an applicant does not
affect the validity of the deposit agreement.
Added by Acts 2003, 78th Leg., ch. 200, § 19(d), eff. Sept. 1,
2003; Acts 2003, 78th Leg., ch. 352, § 4, eff. Sept. 1, 2003.
§ 15.616. COMPLIANCE. (a) On accepting a linked
deposit, an eligible lending institution must lend money to an
approved applicant in accordance with the deposit agreement and
this subchapter. The eligible lending institution shall forward a
compliance report to the board in accordance with board rules. The
board shall adopt rules regarding the compliance report.
(b) The board shall monitor compliance with this subchapter
and inform the comptroller of noncompliance on the part of an
eligible lending institution.
Added by Acts 2003, 78th Leg., ch. 200, § 19(d), eff. Sept. 1,
2003; Acts 2003, 78th Leg., ch. 352, § 4, eff. Sept. 1, 2003.
§ 15.617. STATE LIABILITY PROHIBITED. The state is not
liable to an eligible lending institution for payment of the
principal, interest, or any late charges on a loan made to an
approved applicant. A linked deposit is not an extension of the
state's credit within the meaning of any state constitutional
prohibition.
Added by Acts 2003, 78th Leg., ch. 200, § 19(d), eff. Sept. 1,
2003; Acts 2003, 78th Leg., ch. 352, § 4, eff. Sept. 1, 2003.
§ 15.618. LIMITATIONS ON PROGRAM. (a) The maximum
amount of a loan under the linked deposit program is $250,000.
(b) The board may withdraw linked deposits from an eligible
lending institution if the institution ceases to be either a state
depository or a Farm Credit System institution headquartered in
this state.
Added by Acts 2003, 78th Leg., ch. 200, § 19(d), eff. Sept. 1,
2003; Acts 2003, 78th Leg., ch. 352, § 4, eff. Sept. 1, 2003.
SUBCHAPTER K. TEXAS WATER BANK
§ 15.701. DEFINITIONS. In this subchapter:
(1) "Deposit" means the placement of a water right or
the right to use water in the water bank for transfer.
(2) "Depositor" means a person who deposits or has on
deposit a water right in the water bank or trust.
(3) "Person" includes but is not limited to any
individual, corporation, organization, government, or governmental
subdivision or agency, including the board, business trust, estate,
trust, partnership, association, and any other legal entity.
(4) "Transfer" means the conveyance of a water right
or the right to use water under a water right in any of the following
manners:
(A) the conveyance of legal title to a water
right; or
(B) a contract or option contract to allow use of
a water right.
(5) "Trust" means the Texas Water Trust.
(6) "Water bank" or "bank" means the Texas Water Bank.
(7) "Water right" means a right acquired or authorized
under the laws of this state to impound, divert, or use state water,
underground water, or water from any source to the extent
authorized by law.
Added by Acts 1993, 73rd Leg., ch. 647, § 1, eff. Aug. 30, 1993.
Amended by Acts 1997, 75th Leg., ch. 1010, § 2.13, eff. Sept. 1,
1997; Acts 2001, 77th Leg., ch. 966, § 2.14, eff. Sept. 1, 2001.
§ 15.702. CREATION OF BANK. The Texas Water Development
Board shall establish the Texas Water Bank. The board shall
administer the water bank to facilitate water transactions to
provide sources of adequate water supplies for use within the State
of Texas.
Added by Acts 1993, 73rd Leg., ch. 647, § 1, eff. Aug. 30, 1993.
Amended by Acts 1997, 75th Leg., ch. 1010, § 2.14, eff. Sept. 1,
1997.
§ 15.703. OPERATION OF THE BANK; RULES. (a) The board
may take all actions necessary to operate the water bank and to
facilitate the transfer of water rights from the water bank for
future beneficial use including but not limited to:
(1) negotiating a sale price and terms acceptable to
the depositor and purchaser;
(2) maintaining a registry of water bank deposits and
those water users in need of additional supplies;
(3) informing water users in need of additional supply
of water rights available in the bank;
(4) encouraging water right holders to implement water
conservation practices and deposit the right to use the conserved
water into the bank;
(5) establishing requirements for deposit of a water
right into the water bank including minimum terms for deposit;
(6) purchasing, holding, and transferring water or
water rights in its own name;
(7) establishing regional water banks;
(8) acting as a clearinghouse for water marketing
information including water availability, pricing of water
transactions, environmental considerations, and potential buyers
and sellers of water rights;
(9) preparing and publishing a manual on structuring
water transactions;
(10) accepting and holding donations of water rights
to meet instream, water quality, fish and wildlife habitat, or bay
and estuary inflow needs;
(11) entering into contracts with persons to pay for
feasibility studies or the preparation of plans and specifications
relating to water conservation efforts or to estimate the amount of
water that would be saved through conservation efforts; and
(12) other actions to facilitate water transactions.
(b) The board may adopt rules necessary for implementation
of the Texas Water Bank.
(c) The board may contract with any person to achieve the
purposes of this subchapter.
Added by Acts 1993, 73rd Leg., ch. 647, § 1, eff. Aug. 30, 1993.
Amended by Acts 1997, 75th Leg., ch. 1010, § 2.15, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 61, § 1, eff. May 10, 1999.
§ 15.7031. TEXAS WATER TRUST. (a) The Texas Water
Trust is established within the water bank to hold water rights
dedicated to environmental needs, including instream flows, water
quality, fish and wildlife habitat, or bay and estuary inflows.
(b) The board, in consultation with the Parks and Wildlife
Department and the commission, shall adopt rules governing the
process for holding and transferring water rights.
(c) The dedication of any water rights placed in trust must
be reviewed and approved by the commission, in consultation with
the board and the Parks and Wildlife Department. In addition, the
Department of Agriculture may provide input to the commission, as
appropriate, during the review and approval process for dedication
of water rights.
(d) Water rights may be held in the trust for a term
specified by contractual agreement or in perpetuity.
Added by Acts 1997, 75th Leg., ch. 1010, § 2.16, eff. Sept. 1,
1997. Amended by Acts 1999, 76th Leg., ch. 456, § 2, eff. June
18, 1999; Acts 1999, 76th Leg., ch. 979, § 2, eff. June 18, 1999.
§ 15.704. TRANSFERS AND CONDITIONS. (a) A water right
may be deposited in the water bank for an initial term of up to 10
years, unless otherwise held in the Texas Water Trust as
established under Section 15.7031 of this code, during which time
the water right is exempt from cancellation by the commission under
the terms of Subchapter E of Chapter 11 of this code. A water right
is exempt from cancellation under this subsection only once even if
it has been transferred or redeposited.
(b) The commission may not bring a cancellation action under
Subchapter E of Chapter 11 of this code for a 10-year period
following commission approval of any necessary actions relating to
a water right which has been transferred while on deposit in the
water bank.
(c) A contract or option contract to allow use of a water
right under this subchapter:
(1) may include a requirement that the purchaser show
diligence in pursuing feasible and practicable alternative water
supplies; and
(2) does not vest any right in the purchaser beyond the
stated terms and conditions of the contract or option contract.
Added by Acts 1993, 73rd Leg., ch. 647, § 1, eff. Aug. 30, 1993.
Amended by Acts 1997, 75th Leg., ch. 1010, § 2.17, eff. Sept. 1,
1997.
§ 15.705. FEES. (a) The board may charge a transaction
fee per transfer not to exceed one percent of the value of the water
or water right received into or transferred from the water bank to
cover expenses of the board in operating the water bank.
(b) The board shall place the fees in the water bank account
of the water assistance fund where they shall be separately
accounted for and used, with interest, only for the administration
and operation of the water bank by the board.
Added by Acts 1993, 73rd Leg., ch. 647, § 1, eff. Aug. 30, 1993.
Amended by Acts 1999, 76th Leg., ch. 61, § 2, eff. May 10, 1999.
§ 15.706. REPORTS. The commission and the board shall
provide ready access by the other agency through manual or computer
capabilities to all water rights permits, final water rights
decisions, applications, amendments, contracts, computerized
files, computer programs, and other information related to water
rights and to the operation of the water bank. The commission shall
provide the board with all notices of proposed water rights
actions.
Added by Acts 1993, 73rd Leg., ch. 647, § 1, eff. Aug. 30, 1993.
§ 15.707. WATER BANK ACCOUNT. (a) The water bank
account is created as a special account in the water assistance fund
and is composed of:
(1) money appropriated to the board for the program;
(2) fees collected by the board under this subchapter;
(3) money transferred to the account from the water
assistance fund in Section 15.011(c) of this code;
(4) grants, contracts, gifts, or other such funds that
the board may receive relating to this subchapter;
(5) money received from the transfer of water or water
rights held in the board's name in the bank; and
(6) interest earned on the investment of money in the
account.
(b) The money in the account may be used only for the
administration and operation of the water bank by the board under
this subchapter.
Added by Acts 1993, 73rd Leg., ch. 647, § 1, eff. Aug. 30, 1993.
Amended by Acts 1999, 76th Leg., ch. 61, § 3, eff. May 10, 1999.
§ 15.708. OTHER TRANSFERS. Nothing in this subchapter
shall prevent the sale or purchase of water or water rights by or
through persons or entities outside of the water bank or the
creation and operation of water banks by other persons to the extent
allowed by law.
Added by Acts 1993, 73rd Leg., ch. 647, § 1, eff. Aug. 30, 1993.
SUBCHAPTER L. PLUMBING IMPROVEMENT LOANS
§ 15.731. DEFINITIONS. In this subchapter:
(1) "Fund" means the plumbing loan fund.
(2) "Plumbing assistance loan" means a loan provided
by the board to a political subdivision for the political
subdivision's plumbing improvement loan program.
(3) "Plumbing improvement loan" means a loan provided
by a political subdivision to an individual under this subchapter.
(4) "Political subdivision" means a county, a
municipality, a nonprofit member-owned, member-controlled water
supply corporation organized and operating under Chapter 67, or a
district or authority created and operating under Article III,
Section 52, or Article XVI, Section 59, of the Texas Constitution.
(5) "Water conservation" has the meaning assigned by
Section 17.921 of this code.
Added by Acts 1991, 72nd Leg., ch. 294, § 6, eff. June 7, 1991.
Amended by Acts 1999, 76th Leg., ch. 62, § 18.57, eff. Sept. 1,
1999.
§ 15.732. PLUMBING LOAN FUND. (a) The plumbing loan
fund is created.
(b) The fund is held separately from other funds outside the
state treasury. The board shall keep and maintain the fund and any
accounts established in the fund.
(c) At the direction of the board, the fund or accounts in
the fund may be kept and held in escrow and in trust by the
comptroller for and on behalf of the board. If the fund or accounts
in the fund are held in escrow and in trust by the comptroller, the
fund or accounts may be used only as provided by this subchapter
and, pending their use, shall be invested in authorized investments
as provided by any order, resolution, or rule of the board.
(d) Legal title to money and investments in the fund is in
the board unless or until paid out as provided by this subchapter or
rules of the board.
(e) The comptroller, as custodian, shall administer the
funds strictly and solely as provided by this subchapter and in the
orders, resolutions, and rules of the board, and the state shall
take no action with respect to the fund other than that specified in
this subchapter, an agreement made with the Environmental
Protection Agency or another federal agency, applicable federal
requirements, and the rules of the board.
Added by Acts 1991, 72nd Leg., ch. 294, § 6, eff. June 7, 1991.
Amended by Acts 1997, 75th Leg., ch. 1423, § 20.04, eff. Sept. 1,
1997.
§ 15.733. ADMINISTRATION AND OPERATION OF
FUND. (a) The board shall administer the fund in accordance with
state law, rules of the board, and any federal requirements imposed
because of a grant of money to the fund by an agency of the federal
government.
(b) The board may execute agreements with the Environmental
Protection Agency or any other federal agency to establish and
administer the fund and may discharge the duties and
responsibilities required for the administration of the fund.
(c) The fund consists of money derived from federal grants,
from earnings on the investment of money credited to the fund, and,
at the board's discretion, from any other available source.
(d) The board shall deposit money received for repayment of
a plumbing assistance loan made to a political subdivision in the
fund.
(e) At the direction of the governor, any money in the fund
may be transferred to the state water pollution control revolving
fund under Subchapter J of this chapter.
(f) The fund remains available in perpetuity for providing
loans under this subchapter, except to the extent that the fund may
be reduced or eliminated as provided by this subchapter.
Added by Acts 1991, 72nd Leg., ch. 294, § 6, eff. June 7, 1991.
§ 15.734. USE OF FUND. The board may use money in the
fund, unless prohibited by an agreement made with a federal agency
under this subchapter, to:
(1) make a plumbing assistance loan;
(2) administer the fund; and
(3) grant or lend money to a political subdivision to
defray the political subdivision's expenses incurred in
administering a plumbing improvement loan program.
Added by Acts 1991, 72nd Leg., ch. 294, § 6, eff. June 7, 1991.
§ 15.735. APPLICATION SUBMISSION AND APPROVAL. (a) A
political subdivision located in the county of Brewster, Cameron,
El Paso, Hidalgo, Hudspeth, Maverick, Presidio, Starr, Terrell, Val
Verde, Webb, or Zapata in which residences do not have water or
wastewater facilities that meet minimum standards established by
the commission or in any other area designated by federal law to
benefit from the fund may submit to the board an application for a
plumbing assistance loan in accordance with rules adopted by the
board. The application must include:
(1) the legal name of the political subdivision and a
citation to the law under which it operates and was created;
(2) a description of the water conservation methods to
be used in the provision of water and wastewater service in the area
the political subdivision proposes to affect by its plumbing
improvement loan program;
(3) a map showing the location of the area the
political subdivision proposes to affect by its plumbing
improvement loan program;
(4) a description of the subdivision's proposed
plumbing improvement loan program; and
(5) other information as required by board rule.
(b) The board may approve a plumbing assistance loan to a
political subdivision only if the political subdivision is in a
county that has adopted the model rules developed under Section
16.343 of this code. The board may approve a plumbing assistance
loan to a municipality only if the municipality has adopted the
model rules developed under Section 16.343 of this code.
(c) The board may approve a plumbing assistance loan to a
political subdivision only if the political subdivision is, or is
in an area within the jurisdiction of, an authorized agent of the
commission under Subchapter C, Chapter 366, Health and Safety Code.
(d) The board may not approve an application for a plumbing
assistance loan to a political subdivision unless the board finds
that the political subdivision is financially capable of managing a
plumbing improvement loan program and that the public interest will
be served by the plumbing assistance loan.
(e) The board shall set interest rates to be charged to
political subdivisions on plumbing assistance loans.
Added by Acts 1991, 72nd Leg., ch. 294, § 6, eff. June 7, 1991.
Amended by Acts 1995, 74th Leg., ch. 76, § 11.287, eff. Sept. 1,
1995.
§ 15.736. POLITICAL SUBDIVISION PLUMBING IMPROVEMENT
LOAN PROGRAM ADMINISTRATION; PLUMBING ASSISTANCE LOAN
REPAYMENT. (a) A political subdivision that receives a plumbing
assistance loan shall establish and administer a program to make
plumbing improvement loans to individuals at an interest rate lower
than the current market rate, including charging no interest.
(b) A political subdivision may use the proceeds from a
plumbing assistance loan to make a plumbing improvement loan to be
used to pay:
(1) costs to connect a residence to a water
distribution system;
(2) costs to provide yard service connections;
(3) costs to provide a residence with indoor plumbing
facilities and fixtures;
(4) costs of connecting a residence to a sewer
collection system or of providing a residence with a suitable
on-site wastewater disposal system for the residence to meet
applicable county or municipal code requirements;
(5) costs of building improvements or correction of
building deficiencies necessary to allow plumbing to be installed
in a residence;
(6) necessary connection fees and permit fees; or
(7) necessary costs of design related to plumbing
improvements.
(c) The political subdivision shall repay its plumbing
assistance loan from the money it receives as repayment of plumbing
improvement loans it has made. To the extent the political
subdivision is unable to collect the payments on its plumbing
improvement loans made from the proceeds of a plumbing assistance
loan, the political subdivision is not obligated to repay a
plumbing assistance loan.
(d) A political subdivision shall use all reasonable means
to collect payments on plumbing improvement loans. The board may
bring a mandamus action in a district court in Travis County or may
use any other legal means to compel a political subdivision to take
action to collect plumbing improvement loan payments.
Added by Acts 1991, 72nd Leg., ch. 294, § 6, eff. June 7, 1991.
§ 15.737. RULES. The board may adopt rules necessary to
carry out this subchapter.
Added by Acts 1991, 72nd Leg., ch. 294, § 6, eff. June 7, 1991.
SUBCHAPTER M. HYDROGRAPHIC SURVEY PROGRAM
§ 15.801. DEFINITIONS. In this subchapter:
(1) "Account" means the hydrographic survey account
established under Section 15.802 of this code.
(2) "Program" means the hydrographic survey program
established under this subchapter.
(3) "Survey" means a hydrographic survey performed by
the board under Section 15.804 of this code.
Added by Acts 1991, 72nd Leg., 1st C.S., ch. 3, § 1.062, eff.
Aug. 12, 1991.
§ 15.802. HYDROGRAPHIC SURVEY ACCOUNT. The
hydrographic survey account is created as a special account in the
water assistance fund and is composed of:
(1) money appropriated to the board for the program;
(2) fees collected by the board under this subchapter;
(3) money transferred to the account from the water
assistance fund under Section 15.011(b) of this code; and
(4) interest earned on the investment of money in the
account.
Added by Acts 1991, 72nd Leg., 1st C.S., ch. 3, § 1.062, eff.
Aug. 12, 1991.
§ 15.803. USE OF ACCOUNT. Money in the account may be
used only to pay the costs of surveys, the costs of insurance for
watercraft and capital equipment, and the costs of capital
equipment and personnel necessary to administer the program.
Added by Acts 1991, 72nd Leg., 1st C.S., ch. 3, § 1.062, eff.
Aug. 12, 1991. Amended by Acts 1993, 73rd Leg., ch. 477, § 7,
eff. Aug. 30, 1993.
§ 15.804. HYDROGRAPHIC SURVEYS. (a) On the request of
a political subdivision or agency of this state or a neighboring
state or a federal agency, the board may perform a hydrographic
survey in this state or outside of this state if the information
collected will benefit this state. The board may perform a survey
under this section:
(1) to determine:
(A) reservoir storage capacity;
(B) sedimentation levels;
(C) rates of sedimentation;
(D) projected water supply availability; or
(E) potential mitigative measures;
(2) to conduct other bathymetric studies; or
(3) to collect information relating to water-bearing
formations.
(b) The board by rule shall prescribe fees for surveys
performed under this section in an amount adequate to pay the
necessary and reasonable costs of the program.
Added by Acts 1991, 72nd Leg., 1st C.S., ch. 3, § 1.062, eff.
Aug. 12, 1991. Amended by Acts 2001, 77th Leg., ch. 1234, § 21,
eff. Sept. 1, 2001.
§ 15.805. RULES. The board may adopt any rules
reasonably necessary to administer the program.
Added by Acts 1991, 72nd Leg., 1st C.S., ch. 3, § 1.062, eff.
Aug. 12, 1991.
SUBCHAPTER N. AQUATIC VEGETATION MANAGEMENT FUND
§ 15.851. DEFINITIONS. In this subchapter:
(1) "Approved local plan" means a local plan
authorized by Section 11.083, Parks and Wildlife Code, that has
been approved by the Parks and Wildlife Commission, the Texas
Natural Resource Conservation Commission, and the Department of
Agriculture as required by Section 11.083, Parks and Wildlife Code.
(2) Notwithstanding Section 15.001, "fund" means the
aquatic vegetation management fund established under this
subchapter.
(3) Notwithstanding Section 15.001, "political
subdivision" means a municipality, a county, a water district, or a
state agency.
(4) "Water district" means a conservation and
reclamation district or an authority created under authority of
Section 52(b)(1) or (2), Article III, or Section 59, Article XVI,
Texas Constitution, that has jurisdiction over a public body of
surface water. The term does not include a navigation district or a
port authority.
Added by Acts 1999, 76th Leg., ch. 1461, § 2, eff. Sept. 1, 1999.
§ 15.852. CREATION OF FUND. (a) The aquatic
vegetation management fund is a special account in the water
assistance fund.
(b) The fund consists of:
(1) money appropriated to the board for the program
established under this subchapter and Subchapter G, Chapter 11,
Parks and Wildlife Code;
(2) money transferred by the board from other accounts
in the water assistance fund under Section 15.011(b); and
(3) interest earned on the investment of money in the
fund.
Added by Acts 1999, 76th Leg., ch. 1461, § 2, eff. Sept. 1, 1999.
§ 15.853. USE OF FUND. (a) Money in the fund may be
used only for the following purposes, in the following order of
priority:
(1) grants to the Parks and Wildlife Department:
(A) to develop a state aquatic vegetation
management plan in coordination with the Texas Natural Resource
Conservation Commission, the Department of Agriculture, water
districts and other political subdivisions with jurisdiction over
public bodies of surface water, and public drinking water
providers, as required by Section 11.082, Parks and Wildlife Code;
or
(B) for research, outreach, and educational
activities that relate to vegetation control;
(2) grants to political subdivisions to develop local
aquatic vegetation management plans that conform to the state
aquatic vegetation management plan, as authorized by Section
11.083, Parks and Wildlife Code; and
(3) grants to political subdivisions to manage aquatic
vegetation infestations under the state plan or the approved local
plan adopted by the political subdivision.
(b) The amount of funding for the purposes authorized by
Subsection (a) may not exceed amounts equal to the following
percentages of any biennial appropriation to the board for use
under this subchapter:
(1) 30 percent, for purposes authorized by Subsection
(a)(1); and
(2) 70 percent, for purposes authorized by Subsections
(a)(2) and (3), of which not more than 35 percent may be used for
purposes authorized by Subsection (a)(3) using chemical
treatments.
Added by Acts 1999, 76th Leg., ch. 1461, § 2, eff. Sept. 1, 1999.
§ 15.854. RULES. The board shall adopt rules necessary
to administer this subchapter, including rules establishing
procedures for application for and award of grants, distribution of
grants, and administration of grants and the grant program
established under this subchapter.
Added by Acts 1999, 76th Leg., ch. 1461, § 2, eff. Sept. 1, 1999.
SUBCHAPTER O. PILOT PROGRAM FOR WATER AND WASTEWATER LOANS FOR
RURAL COMMUNITIES
§ 15.901. DEFINITIONS. In this subchapter:
(1) "Fund" means the rural community water and
wastewater loan fund.
(2) "Political subdivision" means a municipality, a
county, or a district or authority created under Section 52,
Article III, or Section 59, Article XVI, Texas Constitution.
(3) "Rural community" means:
(A) a municipality or county with a population of
less than 5,000; or
(B) a district or authority created under Section
52, Article III, or Section 59, Article XVI, Texas Constitution,
with a population of less than 5,000 that is located outside the
boundaries or extraterritorial jurisdiction of a municipality.
Added by Acts 2001, 77th Leg., ch. 1234, § 22, eff. Sept. 1,
2001.
§ 15.902. RURAL COMMUNITY WATER AND WASTEWATER LOAN
FUND. (a) The rural community water and wastewater loan fund is
an account in the water assistance fund.
(b) The fund consists of:
(1) money transferred to the fund from the water
assistance fund under Section 15.011(b);
(2) proceeds from the sale of political subdivision
bonds by the board to the Texas Water Resources Finance Authority as
provided by Section 17.0871; and
(3) repayments of loans made from the fund.
Added by Acts 2001, 77th Leg., ch. 1234, § 22, eff. Sept. 1,
2001.
§ 15.903. FINANCIAL ASSISTANCE. (a) The fund may be
used by the board to provide loans of financial assistance to rural
communities for the construction, acquisition, or improvement of
water and wastewater projects.
(b) The board may make financial assistance available to a
rural community by entering into a loan agreement and promissory
note with the rural community, as provided by this subchapter. A
rural community may apply for and accept the financial assistance.
(c) The loan agreement must provide for the payment of
principal and interest on the debt incurred for the project at a
rate to be determined by the board.
(d) The loan agreement must provide for the issuance of a
promissory note payable to the board to evidence the obligation of
the rural community to repay the loan made in accordance with the
terms of the loan agreement.
(e) A loan provided under this subchapter may not exceed a
term of 20 years.
Added by Acts 2001, 77th Leg., ch. 1234, § 22, eff. Sept. 1,
2001. Amended by Acts 2003, 78th Leg., ch. 608, § 2, eff. June
20, 2003.
§ 15.904. USE OF SALES TAX AS LOAN SECURITY. (a) A
rural community that is a municipality or county may pledge a
percentage of the sales and use tax revenue received under Chapter
321 or 323, Tax Code, as applicable, to the payment of debt incurred
under a loan agreement entered into with the board under this
subchapter if a majority of the voters voting at an election called
and held for that purpose authorize the municipality or county to
pledge a portion of that revenue for that purpose.
(b) Sections 321.506, 321.507, and 323.505, Tax Code, do not
apply to taxes pledged under this subchapter.
Added by Acts 2001, 77th Leg., ch. 1234, § 22, eff. Sept. 1,
2001.
§ 15.905. REVIEW AND APPROVAL OF LOAN AGREEMENT BY
ATTORNEY GENERAL. (a) Before a loan agreement may become
effective, a record of the proceedings of the board and the rural
community authorizing the execution of the loan agreement, the loan
agreement, the promissory note, and any contract providing revenue
or security to pay the promissory note must be submitted to the
attorney general for review and approval.
(b) If the attorney general finds that the loan agreement
and the promissory note are valid and binding obligations of the
rural community, the attorney general shall approve the documents
and deliver them to the comptroller, the board, and the rural
community, together with a copy of the attorney general's legal
opinion stating that approval.
Added by Acts 2001, 77th Leg., ch. 1234, § 22, eff. Sept. 1,
2001.
§ 15.906. REGISTRATION. On receipt of the documents
required by Section 15.905(b), the comptroller shall register the
record of the proceedings relating to the execution of a loan
agreement.
Added by Acts 2001, 77th Leg., ch. 1234, § 22, eff. Sept. 1,
2001.
§ 15.907. VALIDITY AND INCONTESTABILITY. On approval
by the attorney general and registration by the comptroller, the
loan agreement, the promissory note, a contract providing revenue
or security, and any other obligation evidencing the debt are
incontestable in a court and are valid, binding, and enforceable
according to their terms.
Added by Acts 2001, 77th Leg., ch. 1234, § 22, eff. Sept. 1,
2001.
§ 15.908. ENFORCEMENT BY MANDAMUS. Payment of
obligations incurred under a loan agreement and other requirements
of this subchapter may be enforced in a court by mandamus or other
appropriate proceedings.
Added by Acts 2001, 77th Leg., ch. 1234, § 22, eff. Sept. 1,
2001.
§ 15.909. RULES. The board shall adopt necessary rules
to administer this subchapter, including rules establishing
procedures for application for and award of loans.
Added by Acts 2001, 77th Leg., ch. 1234, § 22, eff. Sept. 1,
2001.
§ 15.910. APPLICATION FOR ASSISTANCE. (a) In an
application to the board for financial assistance from the fund,
the rural community must include:
(1) the name of the rural community and its principal
officers;
(2) a citation of the law under which the rural
community operates and was created;
(3) a description of the water or wastewater project
for which the financial assistance will be used;
(4) the total cost of the project;
(5) the amount of state financial assistance
requested;
(6) the plan for repaying the total cost of the
project; and
(7) any other information the board requires in order
to perform its duties and to protect the public interest.
(b) The board may not accept an application for a loan of
financial assistance from the fund unless it is submitted in
affidavit form by the officials of the rural community. The board
shall prescribe the affidavit form in its rules.
(c) If a rural community has a program of water
conservation, the rural community shall state in the application
that the rural community has such a program.
Added by Acts 2001, 77th Leg., ch. 1234, § 22, eff. Sept. 1,
2001.
§ 15.911. FINDINGS REGARDING PERMITS. (a) The board
may not release funds for the construction phase of that portion of
a project that proposes surface water or groundwater development
until the executive administrator makes a written finding:
(1) that a rural community proposing surface water
development has the necessary water right authorizing it to
appropriate and use the water that the project will provide; or
(2) that a rural community proposing groundwater
development has the right to use water that the project will
provide.
(b) If a rural community includes a proposal for a
wastewater treatment project, the board may not release funds for
the project construction until the rural community has received a
permit for the construction and operation of the project and
approval of the plans and specifications for the project in a manner
that will satisfy commission requirements for design criteria and
permit conditions that apply to construction activities.
Added by Acts 2001, 77th Leg., ch. 1234, § 22, eff. Sept. 1,
2001.
§ 15.912. CONSIDERATIONS IN ACTING ON APPLICATION. In
acting on an application for financial assistance, the board shall
consider:
(1) the needs of the area to be served by the project
and the benefit of the project to the area in relation to the needs
of other areas requiring state assistance in any manner and the
benefits of those projects to the other areas;
(2) the availability of revenue to the rural community
from all sources for the ultimate repayment of the cost of the
project, including all interest;
(3) the relationship of the project to overall
statewide needs; and
(4) any other factors that the board considers
relevant.
Added by Acts 2001, 77th Leg., ch. 1234, § 22, eff. Sept. 1,
2001.
§ 15.913. APPROVAL OF APPLICATION. The board by
resolution may approve an application for a loan if, after
considering the factors listed in Section 15.912 and any other
relevant factors, the board finds that:
(1) the public interest requires state participation
in the project; and
(2) the revenue or taxes pledged by the rural
community will be sufficient to meet all the obligations assumed by
the rural community during the succeeding period of not more than 20
years.
Added by Acts 2001, 77th Leg., ch. 1234, § 22, eff. Sept. 1,
2001.
§ 15.914. CONSTRUCTION CONTRACT REQUIREMENTS. The
governing body of each rural community receiving financial
assistance from the board under this subchapter shall require in
all contracts for the construction of a project that:
(1) each bidder furnish a bid guarantee equivalent to
five percent of the bid price;
(2) each contractor awarded a construction contract
furnish performance and payment bonds as follows:
(A) the performance bond must include 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 must be in
a penal sum of not less than 100 percent of the contract price and
remain in effect for one year after the date of approval by the
engineer of the political subdivision;
(3) payment be made in partial payments as the work
progresses;
(4) each partial payment 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 rural
community with approval of the executive administrator;
(5) payment of the retainage remaining due on
completion of the contract be made only after:
(A) approval by the engineer for the rural
community as required under the bond proceedings;
(B) approval by the governing body of the rural
community 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 sound engineering
principles and practices;
(6) no valid approval 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) labor from inside the rural community be used to
the extent possible.
Added by Acts 2001, 77th Leg., ch. 1234, § 22, eff. Sept. 1,
2001.
§ 15.915. FILING CONSTRUCTION CONTRACT. The rural
community shall file with the board a certified copy of each
construction contract it enters into for the construction of all or
part of a project. Each contract must contain or have attached to
it the specifications, plans, and details of all work included in
the contract.
Added by Acts 2001, 77th Leg., ch. 1234, § 22, eff. Sept. 1,
2001.
§ 15.916. INSPECTION OF PROJECTS. (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 of the project; and
(2) the contractor is constructing the project in
accordance with sound engineering principles.
(b) Inspection of a project by the board does not subject
the state to any civil liability.
Added by Acts 2001, 77th Leg., ch. 1234, § 22, eff. Sept. 1,
2001.
§ 15.917. ALTERATION OF PLANS. After the executive
administrator approves the engineering plans, a rural community may
not make any substantial or material alteration in the plans unless
the executive administrator authorizes the alteration. The board
shall review and approve or disapprove plans and specifications for
all sewage collection, treatment, and disposal systems for which
financial assistance is provided from the fund in a manner that will
satisfy commission requirements for design criteria and permit
conditions that apply to construction activities.
Added by Acts 2001, 77th Leg., ch. 1234, § 22, eff. Sept. 1,
2001.
§ 15.918. 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 the
approved plans;
(2) failure to construct the works in accordance with
sound engineering principles; or
(3) failure to comply with any term of the contract.
Added by Acts 2001, 77th Leg., ch. 1234, § 22, eff. Sept. 1,
2001.
§ 15.919. REPORT TO LEGISLATURE. (a) Not later than
January 1, 2005, the board shall report to the legislature on the
program established under this subchapter.
(b) The report must include:
(1) the number of applications received;
(2) the number of loans funded;
(3) the types of projects funded;
(4) the total funds allocated;
(5) available performance measures; and
(6) the expected feasibility of and demand for an
expanded rural community water and wastewater loan program.
Added by Acts 2001, 77th Leg., ch. 1234, § 22, eff. Sept. 1,
2001.
§ 15.920. AUTHORITY OF RURAL COMMUNITIES. Rural
communities that receive financial assistance from the fund are
granted all necessary authority to enter into loan agreements and
issue promissory notes in connection with the financial assistance
granted under this subchapter.
Added by Acts 2001, 77th Leg., ch. 1234, § 22, eff. Sept. 1,
2001.
SUBCHAPTER P. COLONIA SELF-HELP PROGRAM
§ 15.951. DEFINITIONS. In this subchapter:
(1) "Account" means the colonia self-help account.
(2) "Colonia" means a geographic area that:
(A) is an economically distressed area as defined
by Section 17.921; and
(B) is located in a county any part of which is
within 50 miles of an international border.
(3) "Program" means the colonia self-help program
established under this subchapter.
(4) "Retail public utility" has the meaning assigned
by Section 13.002.
(5) "Self-help project" means a project in which the
people who will benefit from the project actively participate.
Added by Acts 2001, 77th Leg., ch. 1234, § 23, eff. Sept. 1,
2001.
§ 15.952. CREATION OF ACCOUNT. (a) The colonia
self-help account is an account in the water assistance fund that
may be used by the board only for the purposes of this subchapter.
(b) The account consists of:
(1) money transferred by the legislature directly to
the account;
(2) money transferred at the board's discretion from
the fund; and
(3) gifts, grants, or donations to the account.
(c) Sections 403.095 and 404.071, Government Code, do not
apply to the account.
Added by Acts 2001, 77th Leg., ch. 1234, § 23, eff. Sept. 1,
2001. Amended by Acts 2003, 78th Leg., ch. 608, § 6, eff. June
20, 2003.
§ 15.953. USE OF ACCOUNT. (a) The board may use funds
in the account only to reimburse nonprofit organizations eligible
under Section 15.954 for expenses incurred in a self-help project
that results in the provision of adequate water or wastewater
services to a colonia. Expenses that may be reimbursed include:
(1) construction expenses;
(2) facility planning expenses;
(3) platting expenses;
(4) surveying expenses;
(5) engineering expenses;
(6) equipment expenses; and
(7) other expenses necessary to provide water or
wastewater services to the colonia, as determined appropriate by
the board.
(b) The board may award a grant under the program directly
to a nonprofit organization to reimburse the organization for
expenses incurred in a self-help project described by Subsection
(a).
Added by Acts 2001, 77th Leg., ch. 1234, § 23, eff. Sept. 1,
2001.
§ 15.954. ELIGIBLE NONPROFIT ORGANIZATIONS. To be
eligible to receive a grant under the program, an organization
must:
(1) apply for the grant;
(2) qualify for an exemption from federal income taxes
under Section 501(c)(3), Internal Revenue Code of 1986, as amended;
and
(3) as of January 1, 2001, have a demonstrated record
of completing in coordination with a retail public utility
construction of self-help projects described by Section 15.953(a).
Added by Acts 2001, 77th Leg., ch. 1234, § 23, eff. Sept. 1,
2001.
§ 15.955. GRANT APPLICATION. An eligible nonprofit
organization must apply to the board for a grant under the program
before incurring any expense associated with a self-help project
described by Section 15.953(a). The application must include:
(1) the name of the nonprofit organization, the names
of the organization's principal officers, and verification of the
organization's 501(c)(3) status;
(2) a description of the project area, the anticipated
number of water and wastewater connections to be made, and the
anticipated number of colonia residents to be served;
(3) a description of the existing water and wastewater
facilities in the colonia;
(4) a description of the project and the aspect of the
project for which the grant will be used;
(5) a description of the anticipated participation in
the project by residents of the colonia;
(6) the estimated total cost of both the project and
the aspect of the project for which the grant will be used;
(7) the amount of the grant that is requested from the
account and the sources of funding for the entire project;
(8) from a retail public utility authorized to provide
water or wastewater services to the colonia, a resolution in which
the retail public utility:
(A) agrees to inspect the project during and
after construction to ensure the adequacy of the project; and
(B) commits to provide the water or wastewater
services that the project intends to use; and
(9) any other information required by the board.
Added by Acts 2001, 77th Leg., ch. 1234, § 23, eff. Sept. 1,
2001.
§ 15.956. BOARD CONSIDERATIONS IN EVALUATING GRANT
APPLICATION. In evaluating an application for a grant under the
program, the board shall consider:
(1) the number, quality, and character of projects
previously completed by the applicant; and
(2) the capability of the retail public utility to
provide water or wastewater services to the colonia on completion
of the project.
Added by Acts 2001, 77th Leg., ch. 1234, § 23, eff. Sept. 1,
2001.
§ 15.957. ACTION ON GRANT APPLICATION. (a) Not later
than the 60th day after the date the board receives a complete
application for a grant under the program, the board by written
resolution shall:
(1) approve the application; or
(2) disapprove the application.
(b) On approval of an application, the board shall authorize
the executive administrator of the board to execute a contract with
the applicant for a grant to reimburse eligible expenses. The
contract may provide a budget, schedule, terms for payment of
funds, and any other terms the board or its executive administrator
considers appropriate.
Added by Acts 2001, 77th Leg., ch. 1234, § 23, eff. Sept. 1,
2001.
§ 15.958. RULES. The board shall adopt rules necessary
to administer the program established under this subchapter.
Added by Acts 2001, 77th Leg., ch. 1234, § 23, eff. Sept. 1,
2001.
§ 15.959. CO-ADMINISTRATION. The program shall be
co-administered by the office of the secretary of state until the
second anniversary of the date on which the program begins
operations under this subchapter.
Added by Acts 2001, 77th Leg., ch. 1234, § 23, eff. Sept. 1,
2001.
SUBCHAPTER Q. WATER INFRASTRUCTURE FUND
§ 15.971. DEFINITIONS. In this subchapter:
(1) "Eligible political subdivision" means:
(A) a municipality;
(B) a county;
(C) a river authority or special law district
that is listed in Section 9.010(b);
(D) a water improvement district;
(E) an irrigation district;
(F) a water control and improvement district;
and
(G) a groundwater district with a groundwater
management plan certified by the board under Section 36.1072.
(2) "Fund" means the water infrastructure fund.
(3) "Metropolitan statistical area" means an area so
designated by the United States Office of Management and Budget.
(4) "Political subdivision bonds" means bonds or other
obligations issued by a political subdivision to fund a project and
purchased by the board from money in the fund.
(5) "Project" means any undertaking or work, including
planning and design activities and work to obtain regulatory
authority, to conserve, mitigate, convey, and develop water
resources of the state, including any undertaking or work done
outside the state that the board determines will result in water
being available for use in or for the benefit of the state.
Added by Acts 2001, 77th Leg., ch. 966, § 4.01, eff. Sept. 1,
2001. Renumbered from V.T.C.A., Water Code § 15.901 by Acts
2003, 78th Leg., ch. 1275, § 2(142), eff. Sept. 1, 2003.
§ 15.972. FINDINGS. The legislature finds that:
(1) the creation of the fund and the administration of
the fund by the board will encourage the conservation and
development of the water resources of the state;
(2) the use of the fund is in furtherance of the public
purpose of conserving and developing the water resources of the
state; and
(3) the use of the fund for the purposes provided by
this subchapter is for the benefit of both the state and the
political subdivisions to which the board makes financial
assistance available in accordance with this subchapter and
constitutes a program under, and is in furtherance of the public
purposes set forth in, Section 52-a, Article III, Texas
Constitution.
Added by Acts 2001, 77th Leg., ch. 966, § 4.01, eff. Sept. 1,
2001. Renumbered from V.T.C.A., Water Code § 15.902 by Acts
2003, 78th Leg., ch. 1275, § 2(142), eff. Sept. 1, 2003.
§ 15.973. WATER INFRASTRUCTURE FUND. (a) The water
infrastructure fund is a special fund in the state treasury to be
administered by the board under this subchapter and rules adopted
by the board under this subchapter. Money in the fund may be used to
pay for the implementation of water projects recommended through
the state and regional water planning processes under Sections
16.051 and 16.053.
(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.
Added by Acts 2001, 77th Leg., ch. 966, § 4.01, eff. Sept. 1,
2001. Amended by Acts 2003, 78th Leg., ch. 608, § 1, eff. June
20, 2003. Renumbered from V.T.C.A., Water Code § 15.903 by Acts
2003, 78th Leg., ch. 1275, § 2(142), eff. Sept. 1, 2003.
§ 15.974. USE OF WATER INFRASTRUCTURE FUND. (a) The
board may use the fund:
(1) to make loans to political subdivisions at or
below market interest rates for projects;
(2) to make grants, low-interest loans, or zero
interest loans to political subdivisions for projects to serve
areas outside metropolitan statistical areas in order to ensure
that the projects are implemented, or for projects to serve
economically distressed areas;
(3) to make loans at or below market interest rates for
planning and design costs, permitting costs, and other costs
associated with state or federal regulatory activities with respect
to a project;
(4) as a source of revenue or security for the payment
of principal and interest on bonds issued by the board if the
proceeds of the sale of the bonds will be deposited in the fund; and
(5) to pay the necessary and reasonable expenses of
the board in administering the fund.
(b) Funding under Subsection (a)(2) or under Subsection
(a)(3) may not exceed 10 percent of the amount of financial
assistance budgeted by the board to be made available from the fund
in a fiscal year.
(c) Principal and interest payments on loans made under
Subsection (a)(3) may be deferred for a maximum of 10 years or until
construction of the project is completed, whichever is earlier.
Added by Acts 2001, 77th Leg., ch. 966, § 4.01, eff. Sept. 1,
2001. Renumbered from V.T.C.A., Water Code § 15.904 by Acts
2003, 78th Leg., ch. 1275, § 2(142), eff. Sept. 1, 2003.
§ 15.975. APPROVAL OF APPLICATIONS. (a) On review and
recommendation by the executive administrator, the board by
resolution may approve an application if the board finds that:
(1) the application and the assistance applied for
meet the requirements of this subchapter and board rules;
(2) the revenue or taxes, or both the revenue and
taxes, pledged by the applicant will be sufficient to meet all the
obligations assumed by the political subdivision; and
(3) the project will meet water needs in a manner
consistent with the state and regional water plans as required by
Section 16.053(j), unless otherwise specified by an act of the
legislature.
(b) For an application under this subchapter, a program of
water conservation through a more effective use of water shall be
required in the same manner as for approval of an application for
financial assistance under Section 15.106.
(c) The board may deliver funds for the part of a loan or
grant for a project relating to surface water development, other
than for planning and design costs, permitting costs, and other
costs associated with federal and state regulatory activities with
respect to a project, only if the executive administrator makes a
written finding that the applicant:
(1) has the necessary water rights authorizing the
applicant to appropriate and use the water that the project will
provide, if the applicant is proposing surface water development;
or
(2) has the right to use water that the project will
provide, if the applicant is proposing groundwater development.
Added by Acts 2001, 77th Leg., ch. 966, § 4.01, eff. Sept. 1,
2001. Renumbered from V.T.C.A., Water Code § 15.905 by Acts
2003, 78th Leg., ch. 1275, § 2(142), eff. Sept. 1, 2003.
§ 15.976. APPLICABLE LAW. Subchapter E, Chapter 17,
applies to financial assistance made available from the fund,
except that the board may also execute contracts as necessary to
evidence grant agreements.
Added by Acts 2001, 77th Leg., ch. 966, § 4.01, eff. Sept. 1,
2001. Renumbered from V.T.C.A., Water Code § 15.906 by Acts
2003, 78th Leg., ch. 1275, § 2(142), eff. Sept. 1, 2003.
§ 15.977. RULES. The board shall adopt rules necessary
to carry out this subchapter, including rules establishing
procedures for application for and for the award of financial
assistance, for the investment of funds, and for the administration
of the fund.
Added by Acts 2001, 77th Leg., ch. 966, § 4.01, eff. Sept. 1,
2001. Renumbered from V.T.C.A., Water Code § 15.907 by Acts
2003, 78th Leg., ch. 1275, § 2(142), eff. Sept. 1, 2003.
§ 15.978. SALE OF POLITICAL SUBDIVISION
BONDS. (a) The board may sell or dispose of political subdivision
bonds at the price and under the terms that the board determines to
be reasonable.
(b) The board may sell political subdivision bonds without
making a previous offer to the political subdivision that issued
the bonds and without advertising, soliciting, or receiving bids
for sale.
(c) Notwithstanding other provisions of this chapter, the
board may sell to the Texas Water Resources Finance Authority any
political subdivision bonds purchased with money in the fund and
may apply the proceeds of a sale in the manner provided by this
section.
(d) Proceeds from the sale of political subdivision bonds
under this section shall be deposited in the fund for use as
provided by Section 15.974.
(e) As part of a sales agreement with the Texas Water
Resources Finance Authority, the board by contract may agree to
perform the functions required to ensure that the political
subdivision pays the debt service on political subdivision bonds
sold and observes the conditions and requirements stated in those
bonds.
(f) The board may exercise any powers necessary to carry out
the authority granted by this section, including the authority to
contract with any person to accomplish the purposes of this
section.
Added by Acts 2001, 77th Leg., ch. 966, § 4.01, eff. Sept. 1,
2001. Renumbered from V.T.C.A., Water Code, § 15.908 and
amended by Acts 2003, 78th Leg., ch. 1275, § 2(142), 3(42), eff.
Sept. 1, 2003.
§ 15.979. FUNDING FOR LOCAL ECONOMIC
DEVELOPMENT. (a) The board may use the fund to provide financial
assistance to an eligible political subdivision to enable the
political subdivision to fund loans and grants for projects that
conserve and develop the water resources of the political
subdivision for the ultimate benefit of the public, and that
develop and diversify its local economy, consistent with the terms
and conditions set forth in a program adopted by the governing body
of the political subdivision under authority granted by Section
15.980 .
(b) The board may not purchase political subdivision bonds
issued for the purposes described by Subsection (a) that are
secured in whole or in part by a pledge of ad valorem taxes unless
the political subdivision submits evidence satisfactory to the
board that the issuance of the bonds has been approved by the
citizens of the political subdivision voting at an election held
for the purposes described in Section 15.980 .
Added by Acts 2001, 77th Leg., ch. 966, § 4.01, eff. Sept. 1,
2001. Renumbered from V.T.C.A., Water Code § 15.909 and amended
by Acts 2003, 78th Leg., ch. 1275, § 2(142), 3(43), eff. Sept. 1,
2003.
§ 15.980. AUTHORITY TO ESTABLISH ECONOMIC DEVELOPMENT
PROGRAMS. (a) An eligible political subdivision may establish
economic development programs and make loans and grants of public
funds to assist in providing projects within the political
subdivision that conserve and develop the water resources of the
political subdivision for the ultimate benefit of the public. The
authority granted to a political subdivision to make loans and
grants in accordance with this section constitutes a program in
furtherance of the public purposes provided by Section 52-a,
Article III, Texas Constitution.
(b) Financial assistance received from the fund may be used
by an eligible political subdivision to make loans or grants to
persons for projects that the political subdivision finds will
conserve and develop the water resources of the political
subdivision for the ultimate benefit of the public and assist in
diversifying and developing the economy of the political
subdivision and the state.
(c) In exercising the authority granted by this section, the
governing body of an eligible political subdivision may determine
the terms and conditions governing the loan or grant of money and
determine whether to approve an agreement with a person who
receives a loan or grant.
Added by Acts 2001, 77th Leg., ch. 966, § 4.01, eff. Sept. 1,
2001. Renumbered from V.T.C.A., Water Code § 15.910 by Acts
2003, 78th Leg., ch. 1275, § 2(142), eff. Sept. 1, 2003.
§ 15.981. CERTAIN OBLIGATIONS RESTRICTED. An eligible
political subdivision may not sell or incur obligations to fund an
economic development program established under authority granted
by Section 15.980 that are payable in whole or in part from ad
valorem taxes unless the residents of the political subdivision,
voting at an election held for the purpose, approve the issuance of
obligations to fund an economic development program for the
provision of loans or grants to persons to construct projects that
will conserve and develop the water resources of the political
subdivision for the ultimate benefit of the public and assist in
developing and diversifying the local economy.
Added by Acts 2001, 77th Leg., ch. 966, § 4.01, eff. Sept. 1,
2001. Renumbered from V.T.C.A., Water Code § 15.911 and amended
by Acts 2003, 78th Leg., ch. 1275, § 2(142), 3(44), eff. Sept. 1,
2003.
SUBCHAPTER R. RURAL WATER ASSISTANCE FUND
§ 15.991. PURPOSE. The legislature finds that the rural
areas of the state, characterized by small populations extended
over disproportionately large service areas, require a means of
financing water and water quality enhancement projects in addition
to those established by other provisions of this chapter.
Added by Acts 2001, 77th Leg., ch. 966, § 4.02, eff. Sept. 1,
2001. Amended by Acts 2003, 78th Leg., ch. 608, § 3, eff. June
20, 2003. Renumbered from V.T.C.A., Water Code § 15.951 by Acts
2003, 78th Leg., ch. 1275, § 2(143), eff. Sept. 1, 2003.
§ 15.992. DEFINITIONS. In this subchapter:
(1) "District" means a conservation or reclamation
district created under Section 52, Article III, or Section 59,
Article XVI, Texas Constitution.
(2) "Federal agency" means an agency or other entity
of the United States Department of Agriculture or an agency or
entity that is acting through or on behalf of that department.
(3) "Fund" means the rural water assistance fund.
(4) "Rural political subdivision" means:
(A) a nonprofit water supply or sewer service
corporation, district, or municipality with a service area of
10,000 or less in population or that otherwise qualifies for
financing from a federal agency; or
(B) a county in which no urban area exceeds
50,000 in population.
(5) "State agency" means an agency or other entity of
the state, including the Department of Agriculture and the Texas
Department of Housing and Community Affairs and any agency or
authority that is acting through or on behalf of the Department of
Agriculture or the Texas Department of Housing and Community
Affairs.
Added by Acts 2001, 77th Leg., ch. 966, § 4.02, eff. Sept. 1,
2001. Renumbered from V.T.C.A., Water Code § 15.952 by Acts
2003, 78th Leg., ch. 1275, § 2(143), eff. Sept. 1, 2003.
§ 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;
(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; and
(4) interest earned on the investment of money in the
fund and depository interest allocable to the fund.
Added by Acts 2001, 77th Leg., ch. 966, § 4.02, eff. Sept. 1,
2001. Amended by Acts 2003, 78th Leg., ch. 608, § 4, eff. June
20, 2003. Renumbered from V.T.C.A., Water Code § 15.953 by Acts
2003, 78th Leg., ch. 1275, § 2(143), eff. Sept. 1, 2003.
§ 15.994. USE OF FUND. (a) The fund may be used to
provide low-interest loans to rural political subdivisions for
water or water-related projects and for water quality enhancement
projects, including the purchase of well fields, the purchase or
lease of rights to produce groundwater, onsite or wetland
wastewater treatment facilities, and interim financing of
construction projects.
(b) The fund may be used to enable a rural political
subdivision to obtain water or wastewater service supplied by
larger political subdivisions or to finance the consolidation or
regionalizing of neighboring political subdivisions, or both.
(c) The fund may be used to finance an outreach and
technical assistance program to assist rural political
subdivisions in obtaining assistance through the fund. The board
may use money in the fund to contract for such outreach and
technical assistance.
(d) The fund may be used to buy down interest rates on loans.
(e) A rural political subdivision may enter into an
agreement with a federal agency or a state agency to submit a joint
application for financial assistance under this subchapter.
(f) A nonprofit water supply or sewer service corporation is
exempt from payment of any sales tax that may be incurred under
other law or ordinance for any project financed by the fund.
(g) The fund may be used as a source of revenue for the
payment of principal and interest on water financial assistance
bonds issued by the board if the proceeds of the sale of these bonds
will be deposited into the rural water assistance fund.
Added by Acts 2001, 77th Leg., ch. 966, § 4.02, eff. Sept. 1,
2001. Amended by Acts 2003, 78th Leg., ch. 608, § 5, eff. June
20, 2003. Renumbered from V.T.C.A., Water Code § 15.954 by Acts
2003, 78th Leg., ch. 1275, § 2(143), eff. Sept. 1, 2003.
§ 15.995. 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) The board may not release from the fund money for the
construction phase of parts of projects proposing surface water or
groundwater development until the executive administrator makes a
written finding that a rural political subdivision:
(1) has the necessary water right authorizing it to
appropriate and use the water that the project will provide, if the
rural political subdivision is proposing surface water
development; or
(2) has the right to use water that the project will
provide, if the rural political subdivision is proposing
groundwater development.
(c) In passing on an application from a rural political
subdivision for financial assistance, the board shall consider:
(1) the needs of the area to be served by the project,
the benefit of the project to the area, the relationship of the
project to the overall state water needs, and the relationship of
the project to the state water plan; and
(2) the availability of revenue to the rural political
subdivision from all sources for the ultimate repayment of the cost
of the water supply project, including all interest.
(d) The board by resolution may approve an application if,
after considering the factors listed in Subsection (c) 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 rural
political subdivision will be sufficient to meet all the
obligations assumed by the rural political subdivision during the
succeeding period of not more than 50 years.
(e) A program of water conservation for the more efficient
use of water shall be required in the same manner as is required for
approval of an application for financial assistance under Section
15.106.
(f) Sections 17.183-17.187 apply to the construction of
projects funded pursuant to this subchapter.
Added by Acts 2001, 77th Leg., ch. 966, § 4.02, eff. Sept. 1,
2001. Renumbered from V.T.C.A., Water Code § 15.955 by Acts
2003, 78th Leg., ch. 1275, § 2(143), eff. Sept. 1, 2003.
