Texas Senate Bill SB1415

Texas 2015 - 84th Regular

Caption

Relating to the purposes for which the assets of certain revolving funds administered by the Texas Water Development Board may be used.

Impact

The implementation of SB1415 is expected to provide the Texas Water Development Board with greater latitude in managing funds associated with state revolving loans for water infrastructure projects. By permitting cross-collateralization, the bill aims to bolster the financial mechanisms available for securing bonds, which could lead to more efficient funding of essential water projects. This could potentially improve the state’s ability to finance both immediate and long-term water needs without the need for additional tax revenues.

Summary

SB1415 proposes amendments to the Texas Water Code, specifically adding provisions regarding the purposes for which the assets of certain revolving funds administered by the Texas Water Development Board can be utilized. This bill introduces provisions for cross-collateralization of funds, allowing the board to use the assets of these revolving funds as a source of revenue or security for the payment obligations of state revolving fund bonds. The flexibility provided by this bill aims to enhance the usage of these funds in promoting better water management within the state.

Contention

While the bill presents financial benefits that can improve water management and project funding, potential concerns may arise regarding the oversight of how these funds are managed and allocated. Critics may argue that the increased flexibility in the use of these revolving funds could lead to misallocation or reduced accountability, especially if funds are diverted from their intended purposes. Additionally, discussions may ensue regarding the implications of altering the existing frameworks for funding state water infrastructure, calling for transparency and regulatory safeguards.