Texas 2011 - 82nd Regular

Texas House Bill HB865 Compare Versions

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1	1	82R11650 ACP-D
2	2	By: Creighton, et al. H.B. No. 865
3	3	Substitute the following for H.B. No. 865:
4	4	By: Keffer C.S.H.B. No. 865
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the composition and use of money in the rural water
10	10	assistance fund.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 15.992, Water Code, is amended by
13	13	amending Subdivision (2) and adding Subdivision (3-a) to read as
14	14	follows:
15	15	(2) "Federal agency" means an agency or other entity
16	16	of the United States, including the United States Department of
17	17	Agriculture or an agency or entity that is acting through or on
18	18	behalf of that department.
19	19	(3-a) "Nonprofit water supply or sewer service
20	20	corporation" means a corporation operating under Chapter 67.
21	21	SECTION 2. Section 15.993, Water Code, is amended to read as
22	22	follows:
23	23	Sec. 15.993. FUND. The rural water assistance fund is a
24	24	special fund in the state treasury. The fund consists of:
25	25	(1) money directly appropriated to the board for a
26	26	purpose of the fund;
27	27	(2) repayment of principal and interest from loans
28	28	made from the fund not otherwise needed as a source of revenue
29	29	pursuant to Section 17.9615(b);
30	30	(3) money transferred by the board from any sources
31	31	available; [and]
32	32	(4) interest earned on the investment of money in the
33	33	fund and depository interest allocable to the fund;
34	34	(5) money transferred to the fund from the water
35	35	assistance fund in accordance with Section 15.011(b), including
36	36	proceeds from the sale of political subdivision bonds by the board
37	37	to the Texas Water Resources Finance Authority that are deposited
38	38	in the water assistance fund as provided by Section 17.0871;
39	39	(6) money from gifts, grants, or donations to the
40	40	fund; and
41	41	(7) any other fees or sources of revenue that the
42	42	legislature may dedicate for deposit to the fund.
43	43	SECTION 3. Section 15.994, Water Code, is amended by
44	44	amending Subsections (a), (b), (c), and (e) and adding Subsection
45	45	(h) to read as follows:
46	46	(a) The fund may be used to provide low-interest loans to
47	47	rural political subdivisions for:
48	48	(1) water or water-related projects and for water
49	49	quality enhancement projects, including:
50	50	(A) the construction of infrastructure
51	51	facilities for wholesale or retail water or sewer service;
52	52	(B) desalination projects;
53	53	(C) the purchase or lease of water well fields;
54	54	(D) property necessary for water well fields;
55	55	(E) [,] the purchase or lease of rights to
56	56	produce groundwater;
57	57	(F) [,] onsite or wetland wastewater treatment
58	58	facilities;[,] and
59	59	(G) the interim financing of construction
60	60	projects;
61	61	(2) water projects included in the state water plan or
62	62	a regional water plan;
63	63	(3) development of groundwater sources and
64	64	acquisition of water rights, including groundwater and surface
65	65	water rights;
66	66	(4) the acquisition of retail public utilities as
67	67	defined by Section 13.002;
68	68	(5) the acquisition of water supply or sewer service
69	69	facilities or systems owned by municipalities or other political
70	70	subdivisions;
71	71	(6) construction, acquisition, or improvement of
72	72	water and wastewater projects to provide service to an economically
73	73	distressed area;
74	74	(7) planning and design costs, permitting costs, and
75	75	other costs associated with state or federal regulatory activities
76	76	with respect to a project; and
77	77	(8) obtaining[.
78	78	[(b) The fund may be used to enable a rural political
79	79	subdivision to obtain] water or wastewater service supplied by
80	80	other [larger] political subdivisions or financing [to finance] the
81	81	consolidation or regionalizing of neighboring political
82	82	subdivisions, or both.
83	83	(b) The fund may be used to provide zero interest loans,
84	84	negative interest loans, loan forgiveness, or grants for any
85	85	purpose described by Subsection (a) under criteria developed by the
86	86	board.
87	87	(c) The board may use money in the [The] fund to contract for
88	88	[may be used to finance an] outreach, financial, and technical
89	89	assistance [program] to assist rural political subdivisions in
90	90	obtaining and using financing from [assistance through] the fund.
91	91	[The board may use money in the fund to contract for such outreach
92	92	and technical assistance.]
93	93	(e) A rural political subdivision may enter into an
94	94	agreement with a federal agency, [or] a state agency, or another
95	95	rural political subdivision to submit a joint application for
96	96	financial assistance under this subchapter.
97	97	(h) The board may coordinate its review of an application
98	98	submitted under this subchapter with a federal agency to avoid
99	99	duplication of efforts and costs.
100	100	SECTION 4. The heading to Section 15.995, Water Code, is
101	101	amended to read as follows:
102	102	Sec. 15.995. FINANCIAL ASSISTANCE IN GENERAL.
103	103	SECTION 5. Subchapter R, Chapter 15, Water Code, is amended
104	104	by adding Section 15.996 to read as follows:
105	105	Sec. 15.996. LOANS TO NONPROFIT WATER SUPPLY OR SEWER
106	106	SERVICE CORPORATIONS. (a) In addition to any other method of
107	107	providing financial assistance authorized by this subchapter, the
108	108	board may make financial assistance available to an applicant that
109	109	is a nonprofit water supply or sewer service corporation by
110	110	entering into a loan agreement with the applicant.
111	111	(b) To be eligible to receive financial assistance under
112	112	this section, the applicant must:
113	113	(1) execute a promissory note for the full amount of
114	114	the loan; and
115	115	(2) provide to the board an attorney's opinion stating
116	116	that the applicant has the authority to incur the debt.
117	117	(c) An applicant for financial assistance under this
118	118	section is not required to appoint or employ:
119	119	(1) a bond counsel; or
120	120	(2) a financial advisor.
121	121	SECTION 6. This Act takes effect September 1, 2011.