87R7267 JAM-F
By: Harris H.B. No. 1904
A BILL TO BE ENTITLED
AN ACT
relating to the use of the water infrastructure fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 15.974(a), Water Code, is amended to
read as follows:
(a) The board may use the fund:
(1) to make loans to political subdivisions at or
below market interest rates for projects;
(2) to make grants, low-interest loans, or zero
interest loans to political subdivisions for projects to serve
areas outside metropolitan statistical areas in order to ensure
that the projects are implemented, or for projects to serve
economically distressed areas;
(3) to make loans at or below market interest rates for
planning and design costs, permitting costs, and other costs
associated with state or federal regulatory activities with respect
to a project;
(4) as a source of revenue or security for the payment
of principal and interest on bonds issued by the board if the
proceeds of the sale of the bonds will be deposited in the fund;
[and]
(5) to make transfers from the fund to the financial
assistance account of the Texas Water Development Fund II created
under Section 17.959 for the purposes described in Section 49-d-8,
Article III, Texas Constitution, other than for the purposes
described in Sections 17.957 and 17.958; and
(6) to pay the necessary and reasonable expenses of
the board in administering the fund.
SECTION 2. Section 17.9616(b), Water Code, is amended to
read as follows:
(b) The board shall use the water infrastructure fund as a
source of revenue to be deposited in accordance with this
subchapter for the payment of principal and interest on water
financial assistance bonds issued by the board, the proceeds of
which are to be deposited into the water infrastructure fund and to
be used to make payments under a bond enhancement agreement with
respect to principal or interest on the water financial assistance
bonds or for any other purpose authorized by Section 17.959(c).
SECTION 3. This Act takes effect September 1, 2021.