WATER CODE
CHAPTER 17. PUBLIC FUNDING
SUBCHAPTER A. GENERAL PROVISIONS
§ 17.001. 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) "Development fund manager" means the development
fund manager of the Texas Water Development Board.
(6) "Political subdivision" means a state agency, a
county, city, or other body politic or corporate of the state,
including any district or authority created under Article III,
Section 52 or Article XVI, Section 59 of the Texas Constitution and
including any interstate compact commission to which the state is a
party and any nonprofit water supply corporation created and
operating under Chapter 76, Acts of the 43rd Legislature, 1st
Called Session, 1933 (Article 1434a, Vernon's Texas Civil
Statutes).
(7) "Water supply project" means:
(A) any engineering undertaking or work to
conserve and develop water resources of the state, including the
control, storage, and preservation of its storm water and
floodwater and the water of its rivers and streams for all useful
and lawful purposes by the acquisition, improvement, extension, or
construction of dams, reservoirs, brush control, precipitation
enhancement, desalinization, and other water storage and
conservation projects, which may include flood storage, including
underground storage projects, filtration and water treatment
plants, including any system necessary to transport water from
storage to points of distribution or from storage to filtration and
treatment plants, including facilities for transporting water
therefrom to wholesale purchasers or to retail purchasers as
authorized by Section 17.072(c) of this code, by the acquisition,
by purchase of rights in water, by the drilling of wells, or for any
one or more of these purposes or methods;
(B) any engineering 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 if such undertaking or work results
in water being available for use in or for the benefit of Texas;
(C) any undertaking or work by Texas political
subdivisions to conserve, convey, or develop water resources in
areas outside Texas if such undertaking or work results in water
being available for use in or for the benefit of Texas; or
(D) a channel storage reservoir located on an
international boundary between Texas and Mexico that develops the
water resources of Texas and the research, planning, and actions
necessary to obtain regulatory authority at the local, state, and
federal level.
(8) "Construction" means any one or more of the
following:
(A) preliminary planning to determine the
feasibility of a water supply project, treatment works, or flood
control measures;
(B) engineering, architectural, legal, title,
fiscal, or economic investigations or studies, surveys, designs,
plans, working drawings, specifications, procedures, or other
necessary actions;
(C) the expense of any condemnation or other
legal proceeding;
(D) erecting, building, acquiring, altering,
remodeling, improving, or extending a water supply project,
treatment works, or flood control measures; or
(E) the inspection or supervision of any of the
items listed in this subdivision.
(9) "Treatment works" means any devices and systems
used in the storage, treatment, recycling, and reclamation of waste
to implement this chapter or necessary to recycle or reuse water at
the most economical cost over the estimated life of the works,
including:
(A) intercepting sewers, outfall sewers,
pumping, power, and other equipment and their appurtenances;
(B) extensions, improvements, remodeling,
additions, and alterations of items listed in Paragraph (A) of this
subdivision;
(C) elements essential to provide a reliable
recycled supply such as standby treatment units and clear well
facilities;
(D) any works, including sites for works and
acquisition of the land that will be a part of or used in connection
with the treatment process or is used for ultimate disposal of
residues resulting from treatment;
(E) any plant, disposal field, lagoon, canal,
incinerator, area devoted to sanitary landfills, or other
facilities installed for the purpose of treating, neutralizing, or
stabilizing waste; or
(F) facilities to provide for the collection,
control, and disposal of waste heat.
(10) "Water quality enhancement" means the
construction of treatment works by political subdivisions with
loans provided by water quality enhancement funds.
(11) "Water quality enhancement funds" means the
proceeds from the sale of Texas Water Development Bonds issued
under the authority of Article III, Section 49-d-1, of the Texas
Constitution, and proceeds from the sale of bonds dedicated to
water quality enhancement purposes under Article III, Sections
49-d-2, 49-d-6, and 49-d-7, of the Texas Constitution.
(12) "Flood control funds" means the proceeds from the
sale of Texas Water Development Bonds issued under the authority of
Article III, Sections 49-d-2, 49-d-6, and 49-d-7, of the Texas
Constitution and reserved for flood control purposes.
(13) "Floodplain management plan" means a
comprehensive plan for flood control within a watershed, based on
analysis of alternative nonstructural and structural means of
reducing flood hazards, including assessments of costs, benefits,
and environmental effects and may include preliminary design of
structural flood control projects.
(14) "Nonstructural flood control" includes measures
such as:
(A) acquisition of floodplain land for use as
public open space;
(B) acquisition and removal of buildings located
in a floodplain; or
(C) relocation of residents of buildings removed
from a floodplain.
(15) "Structural flood control" includes measures
such as construction of storm water retention basins, enlargement
of stream channels, beach nourishment, and modification or
reconstruction of bridges.
(16) "Floodplain" means land subject to inundation by
the 100-year-frequency flood.
(17) "Financial assistance" means any loan of funds
from the water supply account, the water quality enhancement
account, or the flood control account to a political subdivision
for construction of a water supply project, including projects
referenced in the state water plan, treatment works, or flood
control measures through the purchase of bonds or other obligations
of the political subdivision, and any loan of funds the source of
which is the proceeds from water financial assistance bonds.
(18) "Bonds" means Texas Water Development Bonds
authorized by the Texas Constitution.
(19) "Waste" has the same meaning as provided in
Section 26.001 of this code.
(20) "Water development bonds" means the Texas Water
Development Bonds authorized by Article III, Sections 49-c and
49-d, of the Texas Constitution and bonds dedicated to use for the
purposes of those sections and for flood control purposes under
Article III, Sections 49-d-2, 49-d-6, and 49-d-7, of the Texas
Constitution.
(21) "Water quality enhancement bonds" means the Texas
Water Development Bonds authorized by Article III, Section 49-d-1,
of the Texas Constitution and bonds dedicated to use for the
purposes of that section by Article III, Sections 49-d-2, 49-d-6,
and 49-d-7, of the Texas Constitution.
Text of subd. (13) [renumbered as subd. (22) by Acts 1987, 70th
Leg., ch. 1103, § 1] as amended by Acts 1987, 70th Leg., ch. 7,
§ 1
(13) "Lending rate" means the rate of interest
determined by the board to be the lending rate.
Text of subd. (22) as amended by Acts 1987, 70th Leg., ch. 1103,
§ 1
(22) "Lending rate" means the rate of interest
established by the board as the lending rate.
(23) "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.
(24) "Regional facility" means a water supply,
wastewater collection and treatment, flood control, or other system
which incorporates multiple service areas or drainage areas into an
areawide service facility thereby reducing the number of required
facilities, or any system which serves an area that is other than a
single county, city, special district, or other political
subdivision of the state the specified size of which is determined
by:
(A) population;
(B) number of governmental entities served;
(C) service capacity; or
(D) any combination of the factors listed in
Paragraphs (A) through (C) of this subdivision.
(25) "Water financial assistance bonds" means the
Texas Water Development Bonds authorized to be issued by Section
49-d-8, Article III, Texas Constitution, and dedicated to use for
the purposes described in that section.
Regional wastewater treatment facilities may also include
those identified in the approved state water quality management
plan and the annual updates to that plan.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987; Acts 1987, 70th Leg., ch. 7, § 1, 3(2), (3), eff. March 24,
1987; Acts 1987, 70th Leg., ch. 167, § 5.01(a)(57) eff. Sept. 1,
1987; Acts 1987, 70th Leg., 2nd C.S., ch. 66, § 2; Acts 1989,
71st Leg., ch. 1062, § 2; Acts 1991, 72nd Leg., ch. 295, § 42,
eff. June 7, 1991; Acts 1991, 72nd Leg., 1st C.S., ch. 3, §
1.065, eff. Aug. 12, 1991; Acts 1997, 75th Leg., ch. 1010, §
5.04, eff. Sept. 1, 1997; Acts 1997, 75th Leg., ch. 1010, §
5.05.
§ 17.002. 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, § 2.20. Amended by Acts
1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1, 1987; Acts 1995,
74th Leg., ch. 76, § 5.95(78), (90), eff. Sept. 1, 1995.
§ 17.003. BOND REVIEW. (a) Bonds may not be issued
under this chapter after January 1, 1988, and proceeds of bonds
issued after January 1, 1988, may not be used to finance a project
unless the issuance or project, as applicable, has been reviewed
and approved by the bond review board.
(b) A member of the bond review board may not be held liable
for damages resulting from the performance of the members'
functions under this chapter.
Added by Acts 1987, 70th Leg., 2nd C.S., ch. 66, § 7.
SUBCHAPTER B. WATER DEVELOPMENT BONDS
§ 17.011. ISSUANCE OF WATER DEVELOPMENT
BONDS. (a) The board, by resolution, from time to time may
provide for the issuance of negotiable bonds in an aggregate amount
not to exceed $400 million pursuant to Article III, Section 49-c and
Section 49-d, of the Texas Constitution, and the issuance of
additional negotiable bonds in an aggregate amount not to exceed
$200 million pursuant to Article III, Section 49-d-1, of the Texas
Constitution, not to exceed $980 million pursuant to Article III,
Section 49-d-2, of the Texas Constitution, not to exceed $400
million pursuant to Article III, Section 49-d-6, of the Texas
Constitution, and not to exceed $500 million pursuant to Article
III, Section 49-d-7, of the Texas Constitution.
(b) The board, by resolution, from time to time may provide
for the issuance of negotiable bonds in an aggregate amount of not
to exceed the total principal amount the board has obligated the
Texas Water Development Fund for the acquisition of storage
facilities by the execution of a contract with the United States or
any of its agencies under Article III, Section 49-d, of the Texas
Constitution, and to the extent the bond proceeds are utilized to
reduce the board's obligation under a contract with the United
States or any of its agencies under Article III, Section 49-d, of
the Texas Constitution, the bonds may not be considered in
determining the aggregate amount of bonds issued under Article III,
Sections 49-c, 49-d, 49-d-2, 49-d-6, and 49-d-7, of the Texas
Constitution, in addition to the contract with the United States or
any of its agencies.
(c) Notwithstanding any other provision of this section,
the board by resolution may issue water financial assistance bonds
for any one or more of the purposes described in Section 49-d-8,
Article III, Texas Constitution, in an aggregate principal amount
not to exceed the amount of bonds authorized by Section 49-d-8,
Article III, Texas Constitution, in accordance with the provisions
of Subchapter L.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1981, 67th Leg., p. 3150, ch. 828, § 1, eff.
June 17, 1981; Acts 1985, 69th Leg., ch. 133, § 2.07; Acts 1987,
70th Leg., ch. 1103, § 1, eff. Sept. 1, 1987; Acts 1987, 70th
Leg., 2nd C.S., ch. 66, § 3; Acts 1989, 71st Leg., ch. 1062, §
3; Acts 1997, 75th Leg., ch. 1010, § 5.06, eff. Sept. 1, 1997.
§ 17.0111. DEDICATION OF CERTAIN BONDS. No more than
$250 million in principal amount of bonds authorized by Article
III, Section 49-d-7, of the Texas Constitution, and issued under
either that section or Article III, Section 49-d-8, of the Texas
Constitution, may be dedicated to the purposes provided by
Subchapter K .
Added by Acts 1989, 71st Leg., ch. 624, § 2.14. Amended by Acts
1991, 72nd Leg., ch. 297, § 1; Acts 1997, 75th Leg., ch. 1010,
§ 5.07, eff. Sept. 1, 1997.
§ 17.0112. AUTHORIZATION OF CERTAIN BONDS FOR FINANCIAL
ASSISTANCE. (a) The board may issue not more than $25 million in
bonds dedicated under Section 17.0111 of this code during a fiscal
year to provide financial assistance for water supply and sewer
services as provided under Subchapter K of this chapter.
(b) On request of the board, the bond review board by
resolution may waive during any state fiscal year the limit
provided by Subsection (a) of this section and authorize the board
to issue an additional amount of bonds if the bond review board
finds that the amount of bonds authorized for that state fiscal year
has been exhausted or there is not a sufficient amount of bonds to
meet needs of the program during the state fiscal year and that the
public health and safety require immediate authorization of
additional bonds. Before the bond review board adopts such a
resolution, it shall give notice and hold a hearing to determine
whether the limits should be waived and the authorization given.
Added by Acts 1989, 71st Leg., ch. 624, § 2.14. Amended by Acts
1993, 73rd Leg., ch. 844, § 4, eff. Aug. 30, 1993.
§ 17.012. DESCRIPTION OF BONDS. The bonds shall be on a
parity and shall be called Texas Water Development Bonds. The board
may issue them in one or several installments and shall date the
bonds of each issue.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.013. SALE PRICE OF BONDS. The board may sell an
installment or series of bonds at prices determined by the board.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.014. INTEREST ON BONDS. (a) The bonds of each
issue shall bear interest payable annually or semiannually at the
option of the board.
(b) The board may authorize bonds or notes to bear interest
at a rate or rates not to exceed the maximum net effective interest
rate allowed by law.
(c) The interest rates under Subsection (b) of this section
may be fixed, variable, floating, adjustable, or otherwise, as
determined in accordance with the resolution authorizing the
issuance of the bonds or notes. The resolution may provide a
formula, index, or contractual arrangement for the periodic
determination of interest rates without the requirement of specific
approval of each determination by the board.
(d) The resolution under which the bonds or notes are issued
may delegate to one or more designated officers, employees, or
agents of the board the authority to act on behalf of the board,
while the bonds or notes remain outstanding, in fixing dates,
prices, interest rates, interest payment periods, and other
procedures specified in the resolution, so that, among other
things, the interest on the bonds or notes may be adjusted by the
officer, employee, or agent to permit the bonds or notes to be sold
or resold in conjunction with secondary market transactions.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.015. FORM, DENOMINATION, PLACE OF PAYMENT. The
board shall:
(1) determine the form of the bonds, including the
form of any interest coupons to be attached;
(2) fix the denomination of the bonds; and
(3) fix the places of payment of the principal and
interest.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.016. MATURITY OF BONDS. The bonds of each issue
shall mature, serially or otherwise, not more than 50 years from
their date of issuance.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.017. REDEMPTION BEFORE MATURITY. In the
resolution providing for the issuance of bonds, the board may fix
the price, terms, and conditions for redemption of bonds before
maturity.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.018. REGISTERED AND BEARER BONDS. The resolution
may provide for registration of the bonds as to ownership,
successive conversion and reconversion from registered to bearer
bonds, and successive conversion and reconversion from bearer to
registered bonds.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.019. NOTICE OF BOND SALE. After the board decides
to call for bids for the sale of bonds, the board shall publish an
appropriate notice of the sale at least one time in one or more
recognized financial publications of general circulation published
within the state and one or more recognized financial publications
published outside the state.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.020. COMPETITIVE BIDS. The board shall sell the
bonds only after competitive bidding to the highest and best
bidder. The board may reject any or all bids.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.021. SECURITY FOR BIDS. The board shall require
every bidder, except administrators of state funds, to include with
the bid an exchange or cashier's check for a sum the board considers
adequate as a forfeit guaranteeing acceptance of and payment for
all bonds covered by the bids and accepted by the board.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.022. APPROVAL OF BONDS; REGISTRATION. Before
bonds are delivered to the purchasers, the bonds and the record
pertaining to their issuance shall be submitted to the attorney
general for his approval. When the attorney general's approval is
obtained, the bonds shall be registered in the office of the state
comptroller.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.023. EXECUTION OF BONDS. The bonds shall be
executed on behalf of the board as general obligations of the state
in the following manner: the chairman of the board and the
development fund manager shall sign the bonds; the board shall
impress its seal on the bonds; the governor shall sign the bonds;
and the Secretary of State shall attest the bonds and impress on
them the state seal.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.024. FACSIMILE SIGNATURES AND SEALS. The
resolution authorizing the issuance of an installment or series of
bonds may prescribe the extent to which the board in executing the
bonds and appurtenant coupons may use facsimile signatures and
facsimile seals instead of manual signatures and manually impressed
seals. Interest coupons may be signed by the facsimile signatures
of the chairman of the board and the development fund manager.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.025. SIGNATURE OF FORMER OFFICER. If an officer
whose manual or facsimile signature appears on a bond or whose
facsimile signature appears on any coupon ceases to be an officer
before the bond is delivered, the signature is valid and sufficient
for all purposes as if he had remained in office until the delivery
had been made.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.026. BONDS INCONTESTABLE. After approval by the
attorney general, registration by the comptroller, and delivery to
the purchasers, the bonds are incontestable and constitute general
obligations of the state.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.027. PAYMENT BY COMPTROLLER. The comptroller
shall pay the principal of the bonds as they mature and the interest
as it becomes payable.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987; Acts 1997, 75th Leg., ch. 1423, § 20.05, eff. Sept. 1,
1997.
§ 17.028. PAYMENT ENFORCEABLE BY MANDAMUS. Payment of
the bonds and performance of official duties prescribed by Article
III, Sections 49-c, 49-d, 49-d-1, 49-d-2, 49-d-6, and 49-d-7, of
the Texas Constitution and by this subchapter may be enforced in any
court of competent jurisdiction by mandamus or other appropriate
proceeding.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1985, 69th Leg., ch. 133, § 2.07; Acts 1987,
70th Leg., ch. 1103, § 1, eff. Sept. 1, 1987; Acts 1987, 70th
Leg., 2nd C.S., ch. 66, § 4; Acts 1989, 71st Leg., ch. 1062, §
3.
§ 17.029. REFUNDING BONDS. The board may provide by
resolution for the issuance of refunding bonds to refund
outstanding bonds issued under this chapter and their accrued
interest. The board may sell the refunding bonds and use the
proceeds to retire the outstanding bonds issued under this chapter,
exchange the refunding bonds for the outstanding bonds, or refund
the bonds in the manner provided by any other applicable statute,
including Chapter 1207, Government Code.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987; Acts 2001, 77th Leg., ch. 1420, § 8.406, eff. Sept. 1,
2001.
§ 17.030. BONDS NEGOTIABLE INSTRUMENTS. The bonds
issued under the provisions of this chapter are negotiable
instruments under the laws of this state.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.031. BONDS NOT TAXABLE. Bonds issued under this
chapter, the income from the bonds, and the profit made on their
sale are free from taxation within the state.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.032. AUTHORIZED INVESTMENTS. Bonds issued under
this chapter are legal and authorized investments for:
(1) banks;
(2) savings banks;
(3) trust companies;
(4) building and loan associations;
(5) insurance companies;
(6) fiduciaries;
(7) trustees;
(8) guardians; and
(9) sinking funds of cities, towns, villages,
counties, school districts, and other political subdivisions and
public agencies of the state.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.033. SECURITY FOR DEPOSIT OF FUNDS. Bonds issued
under this chapter when accompanied by all appurtenant unmatured
coupons are lawful and sufficient security for all deposits of
funds of the state or of a city, town, village, county, school
district, or any other agency or political subdivision of the state
at the par value of the bonds.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.034. MUTILATED, LOST, DESTROYED BONDS. The board
may provide for the replacement of any mutilated, lost, or
destroyed bond.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.035. SUBCHAPTER CUMULATIVE OF OTHER
LAWS. (a) This subchapter is cumulative of other laws on the
subject, and the board may use provisions of other applicable laws
in the issuance of its bonds and other obligations, but this
subchapter is wholly sufficient authority for the issuance of bonds
and the performance of all other acts and procedures authorized by
this subchapter.
(b) In addition to other authority granted by this
subchapter, the board may exercise the authority granted to the
governing body of an issuer with regard to issuance of obligations
under Chapter 1371, Government Code.
Added by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1, 1987.
Amended by Acts 2001, 77th Leg., ch. 1420, § 8.407, eff. Sept. 1,
2001.
SUBCHAPTER C. FUNDING PROVISIONS
§ 17.071. DISPOSITION OF MONEY RECEIVED. All money
received by the board shall be deposited in the State Treasury and
credited to the proper special fund as provided in this subchapter.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.072. DEVELOPMENT FUND. (a) The Texas Water
Development Fund, referred to as the "development fund," is a
special revolving fund in the State Treasury.
(b) Except as provided by Subsections (f), (h), (j), and (k)
of this section, proceeds from the sale of water development bonds,
together with all proceeds (excluding accrued interest which shall
be deposited into the interest and sinking fund) from the sale,
refunding, or prepayment of political subdivision bonds acquired in
carrying out the purposes set out in Article III, Sections 49-c,
49-d, 49-d-2, 49-d-6, and 49-d-7, of the Texas Constitution, shall
be deposited in a special account in the development fund
designated "water supply account," and other money for deposit
therein as provided in this chapter shall be credited to the water
supply account.
(c) The water supply account may be used for any water
supply project and in any manner consistent with the provisions of
the constitution, including retail distribution.
(d) Except as provided by Subsections (j) and (k) of this
section, proceeds from the sale of water quality enhancement bonds,
together with all proceeds (excluding accrued interest which shall
be deposited into the interest and sinking fund) from the sale,
refunding, or prepayment of political subdivision bonds acquired in
carrying out the purposes in Article III, Section 49-d-1, of the
Texas Constitution, shall be deposited in a special account in the
development fund designated "water quality enhancement account,"
and other money for deposit therein as provided in this chapter
shall be credited to the water quality enhancement account.
(e) The water quality enhancement account may be used for
construction of treatment works in any manner consistent with the
provisions of the constitution and this code.
(f) All proceeds from the sale of the $400 million in water
development bonds authorized by Article III, Section 49-d-2, of the
Texas Constitution for the purposes of state participation in the
acquisition and development of facilities, together with all
proceeds, excluding accrued interest, from the sale, refunding, or
prepayment of political subdivision bonds acquired in carrying out
the purposes of the state participation program, shall be deposited
in a special account designated as the state participation account
created in the development fund. Other money designated for
deposit in that account by this chapter and Chapter 16 of this code
shall be deposited in the state participation account. Accrued
interest from the proceeds of the sale, refunding, or prepayment of
political subdivision bonds shall be deposited in the interest and
sinking fund.
Text of subsec. (g) as amended by Acts 1987, 70th Leg., ch. 420,
§ 4
(g) The state participation account may be used for any
project authorized in Chapter 16 of this code and in any manner
consistent with the constitution and this code.
Text of subsec. (g) as amended by Acts 1987, 70th Leg., ch. 1103,
§ 1
(g) The state participation account may be used for any
project defined by Chapter 16 of this code and in any manner
consistent with the constitution and this code.
(h) All proceeds from the sale of the $300 million in water
development bonds authorized by Article III, Sections 49-d-2,
49-d-6, and 49-d-7, of the Texas Constitution for the purposes of
flood control, together with all proceeds, excluding accrued
interest, from the sale, refunding, or prepayment of political
subdivision bonds acquired in carrying out the purposes of the
flood control program, shall be deposited in a special account
designated as the flood control account created in the development
fund. Other money designated for deposit in that account by this
chapter shall be deposited in the flood control account. Accrued
interest from the proceeds of the sale, refunding, or prepayment of
political subdivision bonds shall be deposited in the interest and
sinking fund.
(i) The flood control account may be used for any project
and in any manner consistent with the constitution and this code.
(j) Proceeds from the sale of bonds pursuant to Section
17.0111 of this code, together with proceeds, other than accrued
interest, from the sale, refunding, or prepayment of political
subdivision bonds acquired in carrying out the purposes provided by
Subchapter K of this chapter, shall be deposited in a special
account in the development fund designated as the economically
distressed areas account, with other money for deposit in that
account as provided by this chapter, the General Appropriations
Act, or other law of this state. Money from gifts or grants from the
United States government, local or regional governments, private
sources, or other sources for the purposes of assisting
economically distressed areas also may be deposited in the
economically distressed areas account. Within the economically
distressed areas account, separate accounts may be created for
bonds issued for purposes of Article III, Section 49-c, of the Texas
Constitution, and bonds issued for purposes of Article III, Section
49-d-1, of the Texas Constitution.
(k) The economically distressed areas account may be used as
provided by Subchapter K of this chapter in a manner that is
consistent with the constitution and other law.
(l) Net proceeds from the sale of political subdivision
bonds owned by the board and deposited in the water development fund
may be used:
(1) to create reserve funds for revenue bonds issued
by the board pursuant to Subchapter I of this chapter;
(2) to create reserve funds for the water bond
insurance program authorized by Article III, Section 49-d-4, of the
Texas Constitution;
(3) for the purchase of insurance for reserve funds
created under this subsection; or
(4) for any purpose approved by the board.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1981, 67th Leg., p. 3155, ch. 828, § 5, eff.
June 17, 1981; Acts 1985, 69th Leg., ch. 133, § 2.17; Acts 1987,
70th Leg., ch. 420, § 4, eff. June 17, 1987; Acts 1987, 70th
Leg., ch. 1103, § 1, eff. Sept. 1, 1987; Acts 1987, 70th Leg.,
2nd C.S., ch. 66, § 5; Acts 1989, 71st Leg., ch. 309, § 1,
eff. Sept. 1, 1989; Acts 1989, 71st Leg., ch. 624, § 2.15; Acts
1989, 71st Leg., ch. 1062, § 4; Acts 1990, 71st Leg., 6th C.S.,
ch. 12, § 2(35), eff. Sept. 6, 1990; Acts 1993, 73rd Leg., ch.
844, § 5, eff. Aug. 30, 1993.
§ 17.073. WATER DEVELOPMENT AND ECONOMICALLY DISTRESSED
AREAS CLEARANCE FUNDS. (a) The Texas Water Development Clearance
Fund, referred to as the "clearance fund," is a special fund in the
State Treasury. Transfers shall be made from this fund as provided
by this subchapter.
(b) The Economically Distressed Areas Clearance Fund is a
special fund in the State Treasury. Transfers shall be made from
this fund as provided by this subchapter.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987; Acts 1989, 71st Leg., ch. 624, § 2.16.
§ 17.074. INTEREST AND SINKING FUND. The Texas Water
Development Bonds Interest and Sinking Fund, referred to as the
"interest and sinking fund," is a special fund in the State Treasury
into which there shall be paid, from sources specified in this
chapter, amounts other than amounts required to be paid into the
economically distressed areas interest and sinking fund sufficient
to:
(1) pay the interest coming due on all outstanding
bonds other than bonds covered by Sections 17.0111 and 17.0112 of
this code during the ensuing fiscal year;
(2) pay the principal on all bonds other than bonds
covered by Sections 17.0111 and 17.0112 of this code that mature
during the ensuing fiscal year, plus collection charges and
exchanges on the bonds; and
(3) establish a reserve equal to the average annual
principal and interest requirements on all outstanding bonds other
than bonds covered by Sections 17.0111 and 17.0112 of this code.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987; Acts 1989, 71st Leg., ch. 624, § 2.16.
§ 17.0741. ECONOMICALLY DISTRESSED AREAS INTEREST AND
SINKING FUND. (a) The Economically Distressed Areas Interest and
Sinking Fund is a special fund in the State Treasury to be used to
pay debt service on bonds issued for the purposes provided by
Subchapter K of this chapter. The fund is composed of:
(1) proceeds from the sale of political subdivision
bonds to the Texas Water Resources Finance Authority in amounts
provided by the General Appropriations Act;
(2) money provided by the federal government, the
state, counties, or other local governmental entities and by
private entities for the purpose of paying debt service on bonds
issued for purposes provided by Subchapter K of this chapter; and
(3) any other money deposited to the credit of the
fund.
(b) Money shall be paid into the economically distressed
areas interest and sinking fund from sources specified in
Subsection (a) of this section in amounts sufficient to:
(1) pay the interest coming due on all outstanding
bonds during the ensuing fiscal year;
(2) pay the principal on all bonds that mature during
the ensuing fiscal year, plus collection charges and exchanges on
bonds; and
(3) establish a reserve equal to the average annual
principal and interest requirements on all outstanding bonds.
Added by Acts 1989, 71st Leg., ch. 624, § 2.16.
§ 17.075. ADMINISTRATIVE FUND. The Texas Water
Development Board Administrative Fund, referred to as the
"administrative fund," is a special fund in the State Treasury.
From sources specified in this chapter, money shall be credited to
this fund in amounts sufficient to pay the administrative expenses
of the board as authorized by legislative appropriation.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.076. COMBINED FACILITIES OPERATION AND MAINTENANCE
FUND. (a) The Combined Facilities Operation and Maintenance Fund
is a special fund in the State Treasury.
(b) Money received from the sale of water, standby service,
and the lease of land needed for operation and maintenance of
facilities shall be credited to this fund. Any of the money which
is not needed for operation and maintenance of facilities may be
credited to the interest and sinking fund or used to meet
contractual obligations incurred by the board in acquiring
facilities.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.077. CREDITS TO CLEARANCE FUNDS. (a) Except as
provided by Subsection (b) of this section, and except for proceeds
from the sale of bonds and proceeds from the sale, refunding, or
prepayment, of political subdivision bonds acquired in carrying out
the purposes in Article III, Sections 49-c, 49-d, 49-d-1, 49-d-2,
49-d-6, and 49-d-7, of the Texas Constitution, and the proceeds
from the sale, refinancing, or other liquidation of the investments
made under Section 17.083 of this code which shall be deposited in
the fund that provided the money for the investment, all money
received by the board in any fiscal year, including all amounts
received as repayment of loans to political subdivisions and
interest on those loans, shall be credited to the clearance fund.
Money in the clearance fund may be transferred at any time to the
interest and sinking fund until the reserve in that fund is equal to
the average annual principal and interest requirements on all
outstanding bonds.
(b) Any amounts received as repayment of financial
assistance made to a political subdivision under Subchapter K of
this chapter and interest on that financial assistance shall be
deposited to the economically distressed areas clearance fund.
Money in the economically distressed areas clearance fund may be
transferred at any time to the economically distressed areas
interest and sinking fund until the reserve in that fund is equal to
the average annual principal and interest requirements on all
outstanding bonds.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1981, 67th Leg., p. 3150, ch. 828, § 1, eff.
June 17, 1981; Acts 1985, 69th Leg., ch. 133, § 2.07; Acts 1987,
70th Leg., ch. 1103, § 1, eff. Sept. 1, 1987; Acts 1987, 70th
Leg., 2nd C.S., ch. 66, § 6; Acts 1989, 71st Leg., ch. 624, §
2.17; Acts 1989, 71st Leg., ch. 1062, § 5.
§ 17.078. TRANSFERS AT END OF FISCAL YEAR. (a) Not
later than 15 days after the end of each fiscal year, any money
credited to the clearance fund at the end of the fiscal year shall
be transferred to the other special funds as prescribed by Sections
17.079 through 17.082 of this code.
(b) Not later than 15 days after the end of each fiscal year,
any money credited to the economically distressed areas clearance
fund shall be transferred to the other special funds as prescribed
by Sections 17.0791 through 17.082 of this code.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987; Acts 1989, 71st Leg., ch. 624, § 2.17.
§ 17.079. TRANSFERS TO INTEREST AND SINKING
FUND. (a) The board shall determine:
(1) the amount of interest coming due on all bonds
outstanding, except for those dedicated pursuant to Section 17.0111
of this code;
(2) the amount of principal of bonds maturing and
becoming payable during the fiscal year, except for those bonds
dedicated pursuant to Section 17.0111 of this code; and
(3) the average annual principal and interest
requirements on all outstanding bonds, except for those bonds
dedicated pursuant to Section 17.0111 of this code.
(b) The comptroller shall transfer to the interest and
sinking fund, after taking into account any money and securities on
deposit in the interest and sinking fund, an amount necessary to
pay:
(1) all principal and interest maturing on the bonds,
except for those bonds dedicated pursuant to Section 17.0111 of
this code, during the fiscal year;
(2) all collection charges and exchanges on the bonds
in Subsection (b)(1) of this section; and
(3) the money sufficient to establish and maintain an
additional reserve equal to the average annual principal and
interest requirements on all outstanding bonds, except for those
bonds dedicated pursuant to Section 17.0111 of this code.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987; Acts 1989, 71st Leg., ch. 624, § 2.17.
§ 17.0791. TRANSFERS TO ECONOMICALLY DISTRESSED AREAS
INTEREST AND SINKING FUND. (a) The board shall determine:
(1) the amount of interest coming due on all bonds
outstanding dedicated pursuant to Section 17.0111 of this code;
(2) the amount of principal of those bonds maturing
and becoming payable during the fiscal year; and
(3) the average annual principal and interest
requirements on all outstanding bonds.
(b) The comptroller shall transfer to the economically
distressed areas interest and sinking fund, after taking into
account any money and securities on deposit in the economically
distressed areas interest and sinking fund, an amount necessary to
pay:
(1) all principal and interest maturing on the bonds
dedicated pursuant to Section 17.0111 of this code during the
fiscal year;
(2) all collection charges and exchanges on those
bonds; and
(3) the money sufficient to establish and maintain an
additional reserve equal to the average annual principal and
interest requirements on all outstanding bonds.
Added by Acts 1989, 71st Leg., ch. 624, § 2.17.
§ 17.080. ADDITIONAL FUNDS FOR PAYMENT OF
BONDS. (a) If the amount transferred from the clearance fund plus
the money and securities in the interest and sinking fund are
insufficient to pay the interest coming due and the principal
maturing on the bonds during the fiscal year, then after the
transfer to the interest and sinking fund of as much money as is
available in the clearance fund, the comptroller shall transfer out
of the first money coming into the treasury, not otherwise
appropriated by the constitution, the amount required to pay
principal and interest on the bonds during the fiscal year, except
for those bonds dedicated pursuant to Section 17.0111 of this code.
(b) If the amount transferred from the economically
distressed areas clearance fund plus the money and securities in
the economically distressed areas interest and sinking fund are
insufficient to pay the interest coming due and the principal
maturing on the bonds dedicated pursuant to Section 17.0111 of this
code during the fiscal year, then after the transfer to the
economically distressed areas interest and sinking fund of as much
money as is available in the economically distressed areas
clearance fund, the comptroller shall transfer out of the first
money coming into the treasury, not otherwise appropriated by the
constitution, the amount required to pay principal and interest on
the bonds during the fiscal year.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987; Acts 1989, 71st Leg., ch. 624, § 2.17; Acts 1997, 75th
Leg., ch. 1423, § 20.06, eff. Sept. 1, 1997.
§ 17.081. TRANSFERS TO ADMINISTRATIVE FUND. If money
remains in the clearance fund or the economically distressed areas
clearance fund after making the transfers provided in Section
17.079 of this code, then to the extent possible the comptroller
shall transfer to the administrative fund an amount sufficient to
cover the legislative appropriation for administrative expenses of
the board for the fiscal year.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987; Acts 1989, 71st Leg., ch. 624, § 2.17.
§ 17.082. TRANSFERS TO DEVELOPMENT FUND. If money
remains in the clearance fund or the economically distressed areas
clearance fund after making the transfers provided in Sections
17.079, 17.0791, and 17.081 of this code, the comptroller shall
transfer the balance to the appropriate account in the development
fund at the end of each fiscal year to be used for any purpose for
which proceeds of bonds in such account may be used.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987; Acts 1989, 71st Leg., ch. 624, § 2.17.
§ 17.0821. TRANSFERS TO REVOLVING FUNDS. (a) In order
to meet requirements of Title VI of the Federal Water Pollution
Control Act, the board may direct the comptroller to transfer
amounts from the water quality enhancement account to the state
water pollution control revolving fund created by Section 15.601 of
this code to provide financial assistance pursuant to this chapter.
(b) In order to meet requirements of any federal legislation
or federal agency program under which an additional state revolving
fund, as defined in Section 15.602 of this code, has been
established, the board may direct the comptroller to transfer
amounts from the water supply account, the flood control account,
and the economically distressed areas account to such additional
state revolving fund to provide financial assistance pursuant to
this chapter.
(c) The board shall use the state water pollution control
revolving fund in accordance with Section 15.604(4) of this code
and the Federal Water Pollution Control Act, Section 603(d)(4), as
a source of revenue to be deposited in accordance with this chapter
for the payment of principal and interest on water quality
enhancement bonds issued by the state, the proceeds of which are
deposited into the state water pollution control revolving fund.
(d) In the event amounts are transferred to any additional
state revolving fund, as defined in Section 15.602 of this code,
pursuant to Subsection (b) of this section, the board shall, to the
extent permitted by the federal legislation or federal agency
program under which such additional state revolving fund was
established, use such additional state revolving fund as a source
of revenue to be deposited in accordance with this chapter for the
payment of principal and interest on water development bonds issued
by the state, the proceeds of which are deposited into such
additional state revolving fund.
Added by Acts 1987, 70th Leg., ch. 420, § 2, eff. June 17, 1987.
Amended by Acts 1993, 73rd Leg., ch. 184, § 5, eff. May 19, 1993.
§ 17.083. INVESTMENT OF RESERVE MONEY. The board may
invest any money credited to the development fund and not
immediately required for its intended use and money in the interest
and sinking fund and in the economically distressed areas interest
and sinking fund, including the reserve portions of the interest
and sinking fund and the economically distressed areas interest and
sinking fund, in investments authorized by law for state deposits
under Section 404.024, Government Code.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 7, § 2, eff. March 24,
1987; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1, 1987;
Acts 1989, 71st Leg., ch. 308, § 2, eff. June 14, 1989; Acts
1989, 71st Leg., ch. 624, § 2.17; Acts 1993, 73rd Leg., ch. 477,
§ 8, eff. Aug. 30, 1993.
§ 17.084. LIMITATION ON BOARD INVESTMENT. The board is
bound to the extent that the resolution authorizing the issuance of
the bonds further restricts the investment of money in bonds of the
United States.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.085. SALE OF SECURITIES. All of the bonds and
obligations owned in the interest and sinking fund, in the
economically distressed areas interest and sinking fund, or in the
development fund are defined as securities. The board may sell
securities owned in the interest and sinking fund, in the
economically distressed areas interest and sinking fund, or in any
account in the development fund at the governing market price.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987; Acts 1989, 71st Leg., ch. 624, § 2.17.
§ 17.086. TRANSFERS TO BE MADE BY COMPTROLLER. The
comptroller shall make the transfers required by this subchapter.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.0871. SALE OF POLITICAL SUBDIVISION BONDS TO THE
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 development fund or the agricultural
water conservation fund and may apply the proceeds of the 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 Texas Water Resources Finance 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
development fund or the agricultural water conservation fund, as
applicable, an amount equal to the proportionate share of the
investment income attributable to the money used to purchase the
political subdivision bonds.
(e) Proceeds from the sale excluding accrued interest may be
used by the board together with other available money including
money in the interest and sinking fund and reserve fund and other
amounts that are pledged to repayment of bonds to be discharged,
paid, or redeemed, to discharge, pay, or redeem, in whole or in
part, outstanding water development bonds, water quality
enhancement bonds, agricultural water conservation bonds, and
obligations of the board under contracts entered into under
Subchapter E of Chapter 16 of this code.
(f) Money to be used to make discharges, payments, or
redemptions under Subsection (e) of this section may be deposited
by the board with a paying agent or trustee selected by the board.
The board may enter into an escrow or similar agreement with the
paying agent or trustee with respect to the safekeeping,
investment, reinvestment, administration, and disposition of the
money on terms and conditions that the board considers reasonable.
(g) The accrued interest portion of proceeds from the sale
of political subdivision bonds shall be disposed of as otherwise
provided by this chapter. Money not applied to discharges,
payments, or redemptions shall be deposited in the development
fund, the administrative fund, the water assistance fund, or the
agricultural water conservation fund, as appropriate, to be used
for the purposes provided by law.
(h) As part of the 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 the political subdivision
bonds and observes the conditions and requirements stated in those
bonds.
Added by Acts 1987, 70th Leg., ch. 728, § 4, eff. June 20, 1987.
Amended by Acts 2001, 77th Leg., ch. 1234, § 28, eff. Sept. 1,
2001.
SUBCHAPTER D. ASSISTANCE TO POLITICAL SUBDIVISIONS FOR WATER SUPPLY
PROJECTS
§ 17.121. FINANCIAL ASSISTANCE. The water supply
account may be used by the board to provide financial assistance to
political subdivisions for the construction, acquisition, or
improvement of water supply projects, including those projects
initiated for the sole purpose of conservation as defined in
Section 17.001(23)(B) of this code.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1981, 67th Leg., p. 961, ch. 367, § 1, eff.
June 10, 1981; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987; Acts 1989, 71st Leg., ch. 1062, § 6.
§ 17.122. APPLICATION FOR ASSISTANCE. (a) In an
application to the board for financial assistance for a water
supply project, the applicant shall include:
(1) the name of the political subdivision and its
principal officers;
(2) a citation of the law under which the political
subdivision operates and was created;
(3) a description of the water supply project for
which the financial assistance will be used;
(4) the total cost of the water supply project;
(5) the amount of state financial assistance
requested;
(6) the plan for repaying the total cost of the water
supply project;
(7) the method for obtaining the financial assistance,
whether by purchase of bonds or purchase of other obligations of the
political subdivision; and
(8) any other information the board requires.
(b) 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.
(c) If the applicant claims an exemption under Subsection
(c), Section 17.125, of this code, he shall state the exemption in
his application and provide information relating to that exemption
as provided by board rules.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1985, 69th Leg., ch. 133, § 1.03; Acts 1987,
70th Leg., ch. 1103, § 1, eff. Sept. 1, 1987.
§ 17.123. 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 which the water supply project will
provide; or
(2) that an applicant proposing groundwater
development has the right to use water that the water supply 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.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1985, 69th Leg., ch. 795, § 1.053, eff.
Sept. 1, 1985; Acts 1987, 70th Leg., ch. 246, § 2, eff. Aug. 31,
1987; Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1, 1987;
Acts 2001, 77th Leg., ch. 1234, § 29, eff. Sept. 1, 2001.
§ 17.124. CONSIDERATIONS IN PASSING ON
APPLICATIONS. In passing on an application from a political
subdivision for financial assistance for a water supply project,
the board shall consider:
(1) the needs of the area to be served by the water
supply project, the benefit of the water supply project to the area,
the relationship of the water supply project to the overall,
statewide water needs, and the relationship of the water supply
project to the state water plan; and
(2) the availability of revenue to the political
subdivision, from all sources, for the ultimate repayment of the
cost of the water supply project, including interest.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1985, 69th Leg., ch. 133, § 2.12; Acts 1987,
70th Leg., ch. 1103, § 1, eff. Sept. 1, 1987; Acts 1993, 73rd
Leg., ch. 477, § 9, eff. Aug. 30, 1993.
§ 17.125. APPROVAL OF APPLICATION. (a) The board by
resolution may approve an application if, after considering the
factors listed in Section 17.124 of this code and any other relevant
factors, the board finds:
(1) that the public interest requires state assistance
in the water supply project;
(2) and 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 during the
succeeding period of not more than 50 years.
(b) Before the board grants the application or provides any
funds under an application, it shall require an applicant to adopt a
program of water conservation for the more efficient use of water
that incorporates the practices, techniques, or technology
prescribed by Subdivision (23)(B), Section 17.001, 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; or
(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.
(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 water
supply 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 measures.
(f) Rules adopted under this section must state the criteria
for preparation, review, and enforcement of an applicant's
conservation program.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1985, 69th Leg., ch. 133, § 1.04; Acts 1987,
70th Leg., ch. 1103, § 1, eff. Sept. 1, 1987; Acts 1993, 73rd
Leg., ch. 477, § 10, eff. Aug. 30, 1993; Acts 2003, 78th Leg.,
ch. 688, § 3, eff. June 20, 2003.
§ 17.127. LIMITATION ON USE OF FUNDS. If there is
insufficient money available to fund all applications under this
subchapter, the board shall give preference to applications for
political subdivisions that the board finds cannot reasonably
finance the project without assistance from the state.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.128. RECREATIONAL ACCESS. If the board is
providing financial assistance for a water storage project, it must
also find affirmatively that the applicant has a plan to provide
adequate public recreational access areas to suitable recreational
resources.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
SUBCHAPTER E. PROVISIONS GENERALLY APPLICABLE TO FINANCIAL
ASSISTANCE
§ 17.171. DEFINITION. In this subchapter, "project"
includes water supply projects, treatment works, and flood control
measures.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.172. APPLICABILITY. This subchapter applies to
financial assistance made available from the water supply account,
the water quality enhancement account, the flood control account,
and the economically distressed areas account under Subchapters D,
F, G, and K of this chapter.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987; Acts 1989, 71st Leg., ch. 624, § 2.18.
§ 17.173. METHOD OF FINANCIAL ASSISTANCE. The board may
provide financial assistance by using money in the water supply
account, the water quality enhancement account, the flood control
account, and the economically distressed areas account to purchase
bonds or other obligations issued by the political subdivision to
finance the project. The board may purchase bonds or other
obligations that are secondary or subordinate to other bonds or
obligations issued by the political subdivision, including
outstanding prior lien bonds previously issued by the political
subdivision when this will avoid or reduce the necessity for
issuing junior lien bonds for subsequent sale to the board. The
board may purchase refunding bonds or obligations of a political
subdivision issued for the purpose of refunding bonds or other
obligations issued for the construction of any projects described
in this chapter.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987; Acts 1989, 71st Leg., ch. 624, § 2.18; Acts 1991, 72nd
Leg., ch. 516, § 5, eff. Sept. 1, 1991.
§ 17.174. CONDITIONAL APPROVAL. The board may make
binding commitments to provide financial assistance for any project
in accordance with this code conditioned on the future availability
of money in the appropriate account of the development fund.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.175. BOND MATURITY. The board may not purchase
bonds or other securities which have a maturity date more than 50
years from the date of issuance.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.176. INTEREST RATE. (a) Except as provided in
Subsection (b) of this section, bonds and securities purchased by
the board on or after September 1, 1977, with money derived from the
sale of bonds issued under this chapter shall bear interest at the
lending rate. The bonds shall bear coupons evidencing interest at a
rate or combination of rates that will approximate the lending rate
as nearly as the board deems practicable. The lending rate shall be
affected by the payment of premiums or the deduction of discounts as
necessary.
(b) Bonds and securities purchased by the board pursuant to
applications for financial assistance approved by the board prior
to September 1, 1977, shall bear interest at the rate prescribed by
Subsection (a) of this section prior to this amendment.
Outstanding prior lien bonds purchased by the board under Section
17.173 of this code need not bear the interest rate provided in
Subsection (a) of this section, but the board may pay such price or
prices for outstanding prior lien bonds which in its discretion
will accomplish the objective of that section.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.1765. CERTIFICATION OF APPLICATION. Before the
board may purchase bonds or other obligations issued by a political
subdivision, the political subdivision must certify to the board
that the application for financial assistance filed with the board
was approved in an open meeting.
Added by Acts 1997, 75th Leg., ch. 297, § 1, eff. Sept. 1, 1997.
§ 17.177. APPROVAL AND REGISTRATION. The board shall
not purchase any bonds or securities that have not been approved by
the attorney general and registered by the comptroller.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.178. BONDS INCONTESTABLE. The bonds or other
securities issued by a political subdivision are valid, binding,
and incontestable after:
(1) approval by the attorney general;
(2) registration by the comptroller; and
(3) purchase by and delivery to the board.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.179. SECURITY FOR BONDS. (a) Except as provided
by Subsection (c) of this section, bonds purchased by the board
shall be supported by:
(1) all or part of the net revenue from the operation
of the project;
(2) taxes levied by the political subdivision for the
purpose; or
(3) a combination of taxes and net revenue, and
revenue from other available sources.
(b) The board may require that the bonds be supported both
by taxes and by net revenue from the operation of the project in any
ratio the board considers necessary to fully secure the investment.
The board shall establish other conditions and requirements it
considers to be consistent with sound investment practices and in
the public interest.
(c) Bonds purchased by the board under Subchapter K of this
chapter may be additionally supported by money provided to the
political subdivision by the federal or state government and by
private donations.
(d) With respect to projects for which financial assistance
is made available under this chapter, the Texas Water Development
Board shall file semiannually with the Bond Review Board a report on
the performance of loans made by the Texas Water Development Board
in connection with the projects. The Bond Review Board shall review
the reports filed by the Texas Water Development Board under this
subsection to assess the adequacy of the security for the bonds
purchased. The filing dates and the contents of the reports must
comply with any rules adopted by the Bond Review Board.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987; Acts 1989, 71st Leg., ch. 624, § 2.18; Acts 1991, 72nd
Leg., 1st C.S., ch. 4, § 13.01, eff. Aug. 22, 1991; Acts 2001,
77th Leg., ch. 1420, § 8.408, eff. Sept. 1, 2001.
§ 17.180. DEFAULT. In the event of a default in payment
of the principal of or interest on bonds purchased by the board or
any other default as defined in the proceedings or indentures
authorizing the issuance of the bonds, the attorney general shall
institute appropriate proceedings by mandamus or other legal
remedies to compel the political subdivision or its officers,
agents, and employees to cure the default by performing those
duties which they are legally obligated to perform. These
proceedings shall be brought and venue shall be in a district court
of Travis County.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.181. SALE OF BONDS BY BOARD. The board may sell or
dispose of bonds purchased with money in the water supply account,
the water quality enhancement account, the flood control account,
or the economically distressed areas account.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987; Acts 1989, 71st Leg., ch. 624, § 2.18.
§ 17.182. PROCEEDS FROM SALE. Unless used to pay debt
service on bonds issued under this chapter, the proceeds from the
sale of political subdivision bonds held by the board either shall
be credited to the account from which financial assistance was made
to the political subdivision, except that accrued interest shall be
credited to the interest and sinking fund, or shall be deposited to
the credit of the Texas Water Development Fund II, established
within the state treasury pursuant to Section 49-d-8, Article III,
Texas Constitution. However, no such proceeds shall be deposited
to the credit of the Texas Water Development Fund II unless the
executive administrator certifies to the board that the transfer of
such proceeds into the Texas Water Development Fund II will not
cause the board, in the fiscal year the transfer is made, to direct
the comptroller to transfer out of the first money coming into the
state treasury during that fiscal year funds sufficient for the
payment of principal of or interest on water development bonds,
other than water development bonds issued for the purposes
described in Subsection (e), Section 49-d-7, Article III, Texas
Constitution, coming due in that fiscal year.
Amended by Acts 1997, 75th Leg., ch. 1010, § 5.08.
§ 17.183. CONSTRUCTION CONTRACT REQUIREMENTS. The
governing body of each political subdivision receiving financial
assistance from the board shall require in all contracts for the
construction of a project:
(1) that each bidder furnish a bid guarantee
equivalent to five percent of the bid price;
(2) that each contractor awarded a construction
contract furnish performance and payment bonds:
(A) the performance bond shall include without
limitation guarantees that work done under the contract will be
completed and performed according to approved plans and
specifications and in accordance with sound construction
principles and practices; and
(B) the performance and payment bonds shall be in
a penal sum of not less than 100 percent of the contract price and
remain in effect for one year beyond the date of approval by the
engineer of the political subdivision; and
(3) that payment be made in partial payments as the
work progresses;
(4) that each partial payment shall not exceed 95
percent of the amount due at the time of the payment as shown by the
engineer of the project, but, if the project is substantially
complete, a partial release of the five percent retainage may be
made by the political subdivision with approval of the executive
administrator;
(5) that payment of the retainage remaining due upon
completion of the contract shall be made only after:
(A) approval by the engineer for the political
subdivision as required under the bond proceedings;
(B) approval by the governing body of the
political subdivision by a resolution or other formal action; and
(C) certification by the executive administrator
in accordance with the rules of the board that the work to be done
under the contract has been completed and performed in a
satisfactory manner and in accordance with sound engineering
principles and practices;
(6) that no valid approval may be granted unless the
work done under the contract has been completed and performed in a
satisfactory manner according to approved plans and
specifications; and
(7) that, if a political subdivision receiving
financial assistance under Subchapter K of this chapter, labor from
inside the political subdivision be used to the extent possible.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987; Acts 1989, 71st Leg., ch. 309, § 2, eff. Sept. 1, 1989;
Acts 1989, 71st Leg., ch. 624, § 2.18; Acts 2003, 78th Leg., ch.
1057, § 6, eff. June 20, 2003.
§ 17.184. FILING CONSTRUCTION CONTRACT. The political
subdivision 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 shall contain or have attached to
it the specifications, plans, and details of all work included in
the contract.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.185. 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.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.186. ALTERATION OF PLANS. After the executive
administrator approves of engineering plans, a political
subdivision may not make any substantial or material alteration in
the plans unless the executive administrator authorizes the
alteration in accordance with rules of the board. 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.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.187. CERTIFICATE OF APPROVAL. The executive
administrator may consider the following as grounds for refusal to
give a certificate of approval for any construction contract:
(1) failure to construct the project according to
approved plans;
(2) failure to construct the works in accordance with
sound engineering principles; or
(3) failure to comply with any term of the contract.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.188. OBTAINING FINANCIAL ASSISTANCE. (a) To
obtain financial assistance under this chapter, a political
subdivision may authorize and issue revenue bonds for the purpose
of constructing projects and sell those bonds to the board in
amounts as determined by the governing body of the political
subdivision and approved by the board.
(b) Notwithstanding the provisions of any general or
special law or charter provisions to the contrary, a political
subdivision may authorize, issue, and sell its revenue bonds as
provided by this section and create any encumbrance in connection
with those bonds by a majority vote of the governing body of the
political subdivision without the necessity of an election.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987; Acts 2001, 77th Leg., ch. 1420, § 8.409, eff. Sept. 1,
2001.
§ 17.189. CONSIDERATIONS FOR CERTAIN FINANCIAL
ASSISTANCE. (a) If financial assistance is provided under
Subchapter F, I, or K of this chapter, any treatment works to be
financed under the application must consider cost-effective
innovative, nonconventional methods of treatment such as rock reed,
root zone, ponding, irrigation, or other 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 F, I, or K of this chapter that includes financing
for treatment works, the board must find that any treatment works to
be financed under the application will consider cost-effective
innovative, nonconventional methods of treatment such as rock reed,
root zone, ponding, irrigation, or other 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, § 2.19.
SUBCHAPTER F. FINANCIAL ASSISTANCE FOR WATER QUALITY ENHANCEMENT
PURPOSES
§ 17.271. PURPOSE. The purpose of this subchapter is to
provide for making loans of water quality enhancement funds
authorized by Article III, Sections 49-d-1, 49-d-2, 49-d-6, and
49-d-7, of the Texas Constitution to political subdivisions of the
state for the construction of treatment works.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, § 1, eff.
Sept. 1, 1977; Acts 1985, 69th Leg., ch. 133, § 2.07; Acts 1987,
70th Leg., ch. 1103, § 1, eff. Sept. 1, 1987; Acts 1987, 70th
Leg., 2nd C.S., ch. 66, § 6; Acts 1989, 71st Leg., ch. 1062, §
5.
§ 17.272. FINANCIAL ASSISTANCE. The board may use water
quality enhancement funds to provide financial assistance to
political subdivisions for purposes of water quality enhancement.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.273. AUTHORITY OF POLITICAL SUBDIVISION. A
political subdivision may apply to the board for financial
assistance and may use water quality enhancement funds for
construction of treatment works in the manner provided in this
subchapter.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.274. APPLICATION FOR ASSISTANCE. (a) In an
application to the board for financial assistance for water quality
enhancement purposes, the applicant shall include:
(1) the name of the political subdivision and its
principal officers;
(2) a citation of the law under which the political
subdivision operates and was created;
(3) a description of the treatment works for which the
financial assistance will be used;
(4) the estimated total cost of construction of the
treatment works;
(5) the amount of state financial assistance
requested;
(6) the method for obtaining the financial assistance,
whether by purchase of bonds or purchase of other obligations of the
political subdivision;
(7) the plan for repaying the financial assistance;
and
(8) any other information the board requires.
(b) If the applicant has a program of water conservation,
the applicant shall state in the application that it has a water
conservation program and shall describe that program in the manner
required by board rules.
(c) If the applicant claims an exemption under Subsection
(d), Section 17.277, of this code, the applicant shall state the
exemption in the application and provide information relating to
that exemption as provided by board rules.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.275. CONSIDERATIONS IN PASSING ON APPLICATION. In
passing on an application from a political subdivision for
financial assistance for water quality enhancement purposes, the
board shall consider:
(1) the water quality needs of the waters into which
effluent from the treatment works will be discharged, the benefit
of the treatment works to such water quality needs, the
relationship of the treatment works to the overall, statewide water
quality needs; and the relationship of the treatment works to water
quality planning for the state;
(2) the availability of revenue to the political
subdivision, from all sources, for the ultimate repayment of the
cost of the treatment works, including interest; and
(3) whether the political subdivision has been
designated, pursuant to Section 26.082 of this code, to provide a
regional system to serve all or part of the waste disposal needs of
a defined area, the development of such systems being the declared
policy of the legislature.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987; Acts 1993, 73rd Leg., ch. 477, § 12, eff. Aug. 30, 1993.
§ 17.276. ACTION ON APPLICATION. (a) After an
application is received for financial assistance, the executive
administrator shall submit the application to the board together
with comments and recommendations concerning the best method of
making financial assistance available.
(b) The board may grant the application in whole or part or
may deny the application.
(c) The board has the sole responsibility and authority for
selecting the political subdivisions to whom financial assistance
may be provided for treatment works and the amount of any such
assistance. In consultation with and pursuant to agreement with
the political subdivision, except as provided by Subsection (d) of
this section, the board shall determine the location, time, design,
scope, and all other aspects of the construction of a sewerage
system for which financial assistance is provided.
(d) The board shall review and approve or disapprove plans
and specifications for all sewerage collection, treatment, and
disposal systems for which financial assistance is provided in any
amount from water quality enhancement funds or funds granted under
the Federal Water Pollution Control Act, as amended, in a manner
that will satisfy commission requirements for design criteria and
permit conditions that apply to construction activities.
(e) The deliberations, proposals, decisions, and other
actions of the board under this subchapter do not require the
concurrence or approval of any other governmental agency, board,
commission, council, political subdivision, or other governmental
entity.
(f) When bonds or other obligations are purchased by the
board, water quality enhancement funds shall be delivered to the
political subdivisions entitled to receive them and shall be used
only to pay construction costs of treatment works approved in this
subchapter.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987; Acts 1991, 72nd Leg., ch. 516, § 6, eff. Sept. 1, 1991;
Acts 1993, 73rd Leg., ch. 477, § 13, eff. Aug. 30, 1993; Acts
2003, 78th Leg., ch. 1057, § 7, eff. June 20, 2003.
§ 17.277. APPROVAL OF APPLICATION. (a) The board by
resolution may approve an application if, after considering the
factors listed in Section 17.275 of this code and any other relevant
factors, the board finds that the public interest will benefit from
state assistance in the financing of the treatment works.
(b) Before the board grants the application or provides any
funds under an application, it shall require an applicant to adopt a
program of water conservation for the more efficient use of water
that incorporates the practices, techniques, or technology
prescribed by Subdivision (23)(B), Section 17.001, 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; or
(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.
(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 measures.
(f) Rules adopted under this section must state the criteria
for preparation, review, and enforcement of an applicant's
conservation program.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987; Acts 1993, 73rd Leg., ch. 477, § 14, eff. Aug. 30, 1993;
Acts 2003, 78th Leg., ch. 688, § 4, eff. June 20, 2003.
§ 17.278. FINDINGS REGARDING PERMITS. If an
application includes a proposal for a wastewater treatment plant,
the board may not deliver funds for the wastewater treatment plant
until the applicant has obtained a permit for the construction and
operation of the plant and approval of the plans and specifications
for the plant from the commission. If an application includes a
proposal for a wastewater treatment plant that is located outside
the jurisdiction of this state and that is not subject to the
permitting authority of the commission, the board may not deliver
funds for the wastewater treatment plant until after the board
reviews the plans and specifications in coordination with the
commission and finds that the wastewater treatment plant is capable
of producing effluent that will meet federal and Texas-approved
water quality standards and if effluent produced will result in
water being available for use in or for the benefit of Texas.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987; Acts 1997, 75th Leg., ch. 1010, § 5.09, eff. Sept. 1,
1997.
§ 17.279. LIMITATION ON USE OF FUNDS. If there is
insufficient money available to fund all applications under this
subchapter, the board shall give preference to applications for
political subdivisions that the board finds cannot reasonably
finance the treatment works without assistance from the state.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
SUBCHAPTER G. FINANCIAL ASSISTANCE FOR FLOOD CONTROL
§ 17.771. PURPOSE. The purpose of this subchapter is to
provide for making loans of flood control funds authorized by
Article III, Sections 49-d-2, 49-d-6, and 49-d-7, of the Texas
Constitution, to political subdivisions of the state for the
development of floodplain management plans and for structural and
nonstructural flood control projects.
Added by Acts 1985, 69th Leg., ch. 133, § 2.21. Amended by Acts
1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1, 1987; Acts 1987,
70th Leg., 2nd C.S., ch. 66, § 6; Acts 1989, 71st Leg., ch. 1062,
§ 5.
§ 17.772. FINANCIAL ASSISTANCE. The board may use flood
control funds to provide financial assistance to political
subdivisions for purposes of structural and nonstructural flood
control and the development of floodplain management plans.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.773. APPLICATION FOR ASSISTANCE. In an
application to the board for financial assistance for flood control
purposes, the applicant shall include:
(1) the name of the political subdivision and its
principal officers;
(2) a citation of the law under which the political
subdivision operates and was created;
(3) a description of the flood control measures for
which the financial assistance will be used;
(4) the estimated total cost of the measures;
(5) the amount of state financial assistance
requested;
(6) the method for obtaining the financial assistance,
whether by purchase of bonds or purchase of other obligations of the
political subdivision;
(7) the plan for repaying the financial assistance;
and
(8) any other information the board requires.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.774. CONSIDERATIONS IN PASSING ON APPLICATION. In
passing on an application from a political subdivision for
financial assistance for flood control purposes, 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 political
subdivision, from all sources, for the ultimate repayment of the
cost of the project, including interest;
(3) the capacity of the watershed to accommodate
stormwater runoff;
(4) the impact of the project on watershed capacity
along the entire watershed and the degree to which that capacity was
considered in planning the project;
(5) whether the project will increase or decrease the
volume or rate of stormwater runoff into any channel in the
watershed;
(6) the effect of the project on surface water
elevations within the watershed and any downstream watershed;
(7) the relationship of the project to any floodplain
management plan for the watershed; and
(8) whether adequate consideration was given to the
effects of the project with regard to erosion and sediment control.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
§ 17.775. ACTION ON APPLICATION. (a) After an
application is received for financial assistance for flood control
purposes, the executive administrator shall submit the application
to the board together with comments and recommendations concerning
the best method of making financial assistance available.
(b) The board may grant the application in whole or part or
may deny the application.
(c) The board has the sole responsibility and authority for
selecting the political subdivisions to whom financial assistance
may be provided, the amount of any such assistance, and in
consultation with and pursuant to agreement with the political
subdivision, the board shall determine the location, time, design,
scope, and all other aspects of the construction to be performed.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987; Acts 1991, 72nd Leg., ch. 516, § 7, eff. Sept. 1, 1991.
§ 17.776. APPROVAL OF APPLICATION. The board by
resolution may approve an application if, after considering the
factors listed in Section 17.774 of this code and other relevant
information, the board finds:
(1) that the public interest requires state
participation in the project;
(2) that in its opinion the taxes or revenues pledged
by the political subdivision will be sufficient to meet all
obligations assumed by the political subdivision;
(3) if the project would increase the volume or rate of
stormwater runoff, that adequate consideration was given to
alternative approaches that would decrease or hold constant the
volume or rate of stormwater runoff;
(4) that the project proposed in the application will
not increase the peak water surface elevation of any portion of any
stream within the watershed or within any downstream watershed;
and
(5) that adequate consideration was given to the
effects of the project with regard to erosion and sediment control.
Amended by Acts 1987, 70th Leg., ch. 1103, § 1, eff. Sept. 1,
1987.
SUBCHAPTER I. REVENUE BOND PROGRAM
§ 17.851. PURPOSE. The purpose of this subchapter is to
provide for the benefit of the public additional methods for
financing the conservation and development of water resources of
this state including an additional method for making financial
assistance available to participants in the conservation and
development of water resources of this state. This financial
assistance is made available on terms and conditions prescribed by
this subchapter, and it is found and determined that this
subchapter is in furtherance of a public purpose.
Added by Acts 1987, 70th Leg., ch. 420, § 3, eff. June 17, 1987.
§ 17.852. DEFINITIONS. In this subchapter:
(1) "Acquired obligations" means obligations of
participants acquired under this subchapter.
(2) "Acquired obligations resolution" means the
resolution, order, ordinance, or similar instrument duly adopted or
passed by the governing body of a participant providing for
payments of principal and interest to be made by the participant to
the board and includes sufficient money to pay the principal of,
premium on, if any, and interest on the acquired obligations and to
maintain the funds established or required to be established by the
acquired obligations resolution.
(3) "Fund" means the Texas water resources fund.
(4) "Participant" means a political subdivision or
agency of the state or a nonprofit corporation organized pursuant
to Chapter 67, that is authorized to finance projects.
(5) "Project" includes water supply projects,
treatment works, and flood control projects.
Added by Acts 1987, 70th Leg., ch. 420, § 3, eff. June 17, 1987.
Amended by Acts 1999, 76th Leg., ch. 62, § 18.60, eff. Sept. 1,
1999.
§ 17.853. TEXAS WATER RESOURCES FUND. (a) The Texas
water resources fund is in the State Treasury.
(b) The fund shall be administered by the board in
accordance with this subchapter, and the board shall create
accounts within the fund that will facilitate the conservation of
water resources and the payment of revenue bonds issued for the
conservation of water resources.
(c) The board may use the fund only:
(1) to provide state matching funds for federal funds
provided to the state water pollution control revolving fund or to
any additional state revolving fund created under Subchapter J,
Chapter 15;
(2) to provide financial assistance from the proceeds
of taxable bond issues to water supply corporations organized under
Chapter 67, and other participants;
(3) to provide financial assistance to participants
for the construction of water supply projects and treatment works;
(4) to provide financial assistance for an interim
construction period to participants for projects for which the
board will provide long-term financing through the water
development fund;
(5) to provide financial assistance for water supply
and sewer service projects in economically distressed areas as
provided by Subchapter K, Chapter 17, to the extent the board can
make that assistance without adversely affecting the current or
future integrity of the fund or of any other financial assistance
program of the board; and
(6) to provide funds to the water infrastructure fund
created under Section 15.973.
(d) Money in the fund may be invested by the board as
permitted by this subchapter, other applicable law, or as provided
by resolutions authorizing the issuance of revenue bonds.
Added by Acts 1987, 70th Leg., ch. 420, § 3, eff. June 17, 1987.
Amended by Acts 1989, 71st Leg., ch. 624, § 2.20; Acts 1991,
72nd Leg., ch. 516, § 8, eff. Sept. 1, 1991; Acts 1993, 73rd
Leg., ch. 184, § 4, eff. May 19, 1993; Acts 1999, 76th Leg., ch.
62, § 18.61, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 966,
§ 4.18, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 1275, §
3(46), eff. Sept. 1, 2003.
§ 17.854. METHODS OF FINANCIAL ASSISTANCE. The board
may use the fund to acquire obligations of political subdivisions
in accordance with the purposes stated in Section 17.853 of this
code.
Added by Acts 1987, 70th Leg., ch. 420, § 3, eff. June 17, 1987.
§ 17.855. FINANCIAL ASSISTANCE BY ACQUISITION OF
ACQUIRED OBLIGATIONS. (a) In an application to the board for
financial assistance through the acquisition of acquired
obligations, the participant shall include:
(1) the name of the participant and its principal
officer or officers;
(2) a citation of the law under which the participant
was created, operates, and proposes to issue its obligations to be
acquired by the board;
(3) the total cost of the project;
(4) the amount of state financial assistance
requested;
(5) the plan for paying the principal of and interest
on its obligations to be acquired by the board; 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 financial
assistance unless it is submitted in writing and subscribed to in
affidavit form by an official representative of the participant.
The board shall prescribe the affidavit form in its rules.
(c) The board may require additional factual material from
an applicant.
Added by Acts 1987, 70th Leg., ch. 420, § 3, eff. June 17, 1987.
§ 17.856. CONSIDERATION IN PASSING ON APPLICATION FOR
FINANCIAL ASSISTANCE. In passing on an application for financial
assistance for a participant, the board shall consider:
(1) the needs of the area to be served by the project;
(2) the availability to the participant of revenues,
taxes, or a combination of revenues and taxes for payment of the
acquired obligations of the participant; and
(3) the costs to be incurred in the development,
construction, and operation of the project.
Added by Acts 1987, 70th Leg., ch. 420, § 3, eff. June 17, 1987.
§ 17.857. APPROVAL OF APPLICATION. (a) The board by
resolution may approve an application if the board finds:
(1) that the public interest requires state
participation in the project; and
(2) that, in its opinion, the revenue, taxes, or
combination of revenue and taxes pledged by the participant will be
sufficient to pay the principal of and interest on the acquired
obligations until the acquired obligations are fully paid.
(b) Before the board grants the application or provides any
funds under an application, it shall require an applicant to adopt a
program of water conservation for the more efficient use of water
that incorporates the practices, techniques, or technology
prescribed by Paragraph (B) of Subdivision (14) of Section 17.001
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; or
(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.
(d) 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 measures.
Added by Acts 1987, 70th Leg., ch. 420, § 3, eff. June 17, 1987.
Amended by Acts 2003, 78th Leg., ch. 688, § 5, eff. June 20,
2003.
§ 17.858. ACQUISITION OF ACQUIRED OBLIGATIONS. (a) If
the board approves an application for financial assistance under
this subchapter and is to purchase acquired obligations from a
participant, the acquired obligations resolution must:
(1) provide for development, construction, and
operation of the project by the participant or a person contracting
with the participant; and
(2) provide that the participant shall make sufficient
payments to the board to service the acquired obligations from:
(A) all or part of the revenues from the
ownership or operation of the project;
(B) all or part of any other revenues or funds
that may lawfully be pledged by the participant;
(C) taxes levied by the participant or other
users of the project; or
(D) any combination of Paragraphs (A), (B), and
(C) of this subdivision.
(b) The acquired obligations purchased by the board
pursuant to this subchapter shall bear rates of interest and mature
in amounts and at times as may be reasonably expected to provide
funds for orderly payment of the revenue bonds issued by the board.
Added by Acts 1987, 70th Leg., ch. 420, § 3, eff. June 17, 1987.
§ 17.859. ISSUANCE OF REVENUE BONDS BY THE
BOARD. (a) The board may issue its revenue bonds for the purpose
of providing money for the fund, and the money in the fund shall be
used for acquiring interests in projects and for providing
financial assistance to participants in accordance with this
subchapter.
(b) The board may issue reven
