81R23639 TRH-F By: Callegari H.B. No. 3526 Substitute the following for H.B. No. 3526: By: King of Zavala C.S.H.B. No. 3526 A BILL TO BE ENTITLED AN ACT relating to the adoption of rules by the Texas Water Development Board regarding supplemental funding resulting from federal economic recovery legislation. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 15.604(b), Water Code, is amended to read as follows: (b) The board shall adopt rules specifying the manner in which any additional state revolving fund hereafter established by the board, or any capitalization grant under the state water pollution control revolving fund, the safe drinking water revolving fund, or any additional state revolving fund, may be used to provide financial assistance to an eligible applicant [political subdivisions] for public works. Such rules shall require financial assistance to be provided for the purpose or purposes and on the terms authorized by the federal legislation or federal agency program under which the additional state revolving fund was established or the capitalization grant was awarded. SECTION 2. Subchapter J, Chapter 15, Water Code, is amended by adding Section 15.6055 to read as follows: Sec. 15.6055. RULEMAKING AUTHORITY FOR SPECIAL FEDERAL CAPITALIZATION GRANTS. (a) The board may adopt rules specifying the manner in which any special capitalization grant under the state water pollution control revolving fund, the safe drinking water revolving fund, or any additional state revolving fund received as a result of federal economic recovery legislation may be used to provide financial assistance to an eligible applicant for public works. The rules must require financial assistance to be provided for the purpose or purposes, and on the terms authorized by, the federal legislation or federal agency program under which the additional state revolving fund was established or the special capitalization grant was awarded. (b) If the board determines that it is necessary to adopt rules to comply with the terms of a special capitalization grant or other source of federal funding, and that the procedures prescribed by Subchapter B, Chapter 2001, Government Code, for adopting rules do not allow for the adoption of the rules in a sufficiently prompt manner, the procedures prescribed by that subchapter do not apply to the adoption of the rules. In that case, the board shall: (1) post notice of a meeting to adopt rules not later than 72 hours before the time the meeting is scheduled; and (2) adopt the necessary rules at the meeting. (c) The board shall file a rule adopted in the manner authorized by Subsection (b) and the board's written determinations made under that subsection in the office of the secretary of state for publication in the Texas Register in the manner prescribed by Chapter 2002, Government Code. (d) Not later than the 180th day after the date rules are adopted under Subsection (b), the board may readopt or amend the rules in accordance with the procedures prescribed by Subchapter B, Chapter 2001, Government Code. If the board does not readopt or amend the rules in that manner, the rules expire on the 180th day after the date the rules were adopted under Subsection (b). (e) This section expires September 1, 2011. SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.