85R4884 JXC-D
By: Wu H.B. No. 4230
A BILL TO BE ENTITLED
AN ACT
relating to the authority of the Texas Water Development Board to
provide financial assistance to political subdivisions for flood
control or mitigation projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 15.601(a), Water Code, is amended to
read as follows:
(a) The state water pollution control revolving fund shall
be administered by the board under this subchapter and rules
adopted by the board. The fund shall be used to provide financial
assistance to political subdivisions for construction of treatment
works and flood control or mitigation projects and to persons for
nonpoint source pollution control and abatement projects under
Section 15.603(h), in accordance with the capitalization grant
program established under the Federal Water Pollution Control Act
(33 U.S.C. Section 1251 et seq.).
SECTION 2. Section 15.603(a), Water Code, is amended to
read as follows:
(a) The revolving fund is held separately from other funds
by the board outside the State Treasury to provide financial
assistance to:
(1) political subdivisions for construction of
treatment works;
(2) political subdivisions for flood control or
mitigation projects;
(3) [and to] persons for estuary management projects;
and
(4) persons for nonpoint source pollution control and
abatement projects under Subsection (h).
SECTION 3. Section 15.604(a), Water Code, is amended to
read as follows:
(a) The board may use the revolving fund for financial
assistance only as provided by the federal act:
(1) to make loans, on the conditions that:
(A) those loans are made at or below market
interest rates, including interest-free loans, at terms not to
exceed 20 years;
(B) principal and interest payments will begin
not later than one year after completion of any treatment works and
all loans will be fully amortized not later than 20 years after
completion of the treatment works;
(C) the recipient of a loan will establish a
dedicated source of revenue for repayment of loans; and
(D) the revolving fund will be credited with all
payments of principal of and interest on all loans;
(2) to buy or refinance the debt obligation of
political subdivisions at or below market rates if the debt
obligations were incurred after March 7, 1985;
(3) to guarantee or purchase insurance for political
subdivisions if the guarantee or insurance would improve access to
market credit or reduce interest rates;
(4) as a source of revenue or security for the payment
of principal and interest on bonds issued by the state if the
proceeds of the sale of those bonds will be deposited in the
revolving fund;
(5) to provide loan guarantees to similar revolving
funds established by municipalities or intermunicipal agencies;
(6) to earn interest on revolving fund accounts;
(7) for the reasonable costs of administering the
revolving fund and conducting activities provided for by Title VI
of the federal act, except that those amounts may not exceed the
amount authorized under Title VI of the federal act;
(8) to provide financial assistance to persons for a
nonpoint source pollution control project under Section 319 of the
federal act or for an estuary management project under Section 320
of the federal act;
(9) for other purposes as provided by the federal act;
[and]
(10) to provide financial assistance to political
subdivisions for flood control or mitigation projects; and
(11) to provide linked deposits to eligible lending
institutions for loans to persons for nonpoint source pollution
control projects.
SECTION 4. Subchapter J, Chapter 15, Water Code, is amended
by adding Section 15.6065 to read as follows:
Sec. 15.6065. EXPEDITED PROCEDURE FOR ACTING ON APPLICATION
FOR FINANCIAL ASSISTANCE FOR FLOOD CONTROL OR MITIGATION PROJECT.
The board shall adopt rules providing an expedited procedure for
acting on an application by a political subdivision for financial
assistance from the revolving fund for a flood control or
mitigation project.
SECTION 5. This Act takes effect September 1, 2017.