By: Fraser S.B. No. 360
(In the Senate - Filed January 18, 2011; February 2, 2011,
read first time and referred to Committee on Natural Resources;
March 9, 2011, reported favorably by the following vote: Yeas 9,
Nays 0; March 9, 2011, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to the composition and use of money in the rural water
assistance fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 15.992, Water Code, is amended by
amending Subdivision (2) and adding Subdivision (3-a) to read as
follows:
(2) "Federal agency" means an agency or other entity
of the United States, including the United States Department of
Agriculture or an agency or entity that is acting through or on
behalf of that department.
(3-a) "Nonprofit water supply or sewer service
corporation" means a corporation operating under Chapter 67.
SECTION 2. Section 15.993, Water Code, is amended to read as
follows:
Sec. 15.993. FUND. The rural water assistance fund is a
special fund in the state treasury. The fund consists of:
(1) money directly appropriated to the board for a
purpose of the fund;
(2) repayment of principal and interest from loans
made from the fund not otherwise needed as a source of revenue
pursuant to Section 17.9615(b);
(3) money transferred by the board from any sources
available; [and]
(4) interest earned on the investment of money in the
fund and depository interest allocable to the fund;
(5) money transferred to the fund from the water
assistance fund in accordance with Section 15.011(b), including
proceeds from the sale of political subdivision bonds by the board
to the Texas Water Resources Finance Authority that are deposited
in the water assistance fund as provided by Section 17.0871;
(6) money from gifts, grants, or donations to the
fund; and
(7) any other fees or sources of revenue that the
legislature may dedicate for deposit to the fund.
SECTION 3. Section 15.994, Water Code, is amended by
amending Subsections (a), (b), (c), and (e) and adding Subsection
(h) to read as follows:
(a) The fund may be used to provide low-interest loans to
rural political subdivisions for:
(1) water or water-related projects and for water
quality enhancement projects, including:
(A) the construction of infrastructure
facilities for wholesale or retail water or sewer service;
(B) desalination projects;
(C) the purchase or lease of water well fields;
(D) property necessary for water well fields;
(E) [,] the purchase or lease of rights to
produce groundwater;
(F) [,] onsite or wetland wastewater treatment
facilities;[,] and
(G) the interim financing of construction
projects;
(2) water projects included in the state water plan or
a regional water plan;
(3) development of groundwater sources and
acquisition of water rights, including groundwater and surface
water rights;
(4) the acquisition of retail public utilities as
defined by Section 13.002;
(5) the acquisition of water supply or sewer service
facilities or systems owned by municipalities or other political
subdivisions;
(6) construction, acquisition, or improvement of
water and wastewater projects to provide service to an economically
distressed area;
(7) planning and design costs, permitting costs, and
other costs associated with state or federal regulatory activities
with respect to a project; and
(8) obtaining[.
[(b) The fund may be used to enable a rural political
subdivision to obtain] water or wastewater service supplied by
other [larger] political subdivisions or financing [to finance] the
consolidation or regionalizing of neighboring political
subdivisions, or both.
(b) The fund may be used to provide zero interest loans,
negative interest loans, loan forgiveness, or grants for any
purpose described by Subsection (a) under criteria developed by the
board.
(c) The board may use money in the [The] fund to contract for
[may be used to finance an] outreach, financial, and technical
assistance [program] to assist rural political subdivisions in
obtaining and using financing from [assistance through] the fund.
[The board may use money in the fund to contract for such outreach
and technical assistance.]
(e) A rural political subdivision may enter into an
agreement with a federal agency, [or] a state agency, or another
rural political subdivision to submit a joint application for
financial assistance under this subchapter.
(h) The board may coordinate its review of an application
submitted under this subchapter with a federal agency to avoid
duplication of efforts and costs.
SECTION 4. The heading to Section 15.995, Water Code, is
amended to read as follows:
Sec. 15.995. FINANCIAL ASSISTANCE IN GENERAL.
SECTION 5. Subchapter R, Chapter 15, Water Code, is amended
by adding Section 15.996 to read as follows:
Sec. 15.996. LOANS TO NONPROFIT WATER SUPPLY OR SEWER
SERVICE CORPORATIONS. (a) In addition to any other method of
providing financial assistance authorized by this subchapter, the
board may make financial assistance available to an applicant that
is a nonprofit water supply or sewer service corporation by
entering into a loan agreement with the applicant.
(b) To be eligible to receive financial assistance under
this section, the applicant must:
(1) execute a promissory note for the full amount of
the loan; and
(2) provide to the board an attorney's opinion stating
that the applicant has the authority to incur the debt.
(c) An applicant for financial assistance under this
section is not required to appoint or employ:
(1) a bond counsel; or
(2) a financial advisor.
SECTION 6. This Act takes effect September 1, 2011.
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