By: Harris (Senate Sponsor - Taylor) H.B. No. 1905
(In the Senate - Received from the House April 19, 2021;
April 20, 2021, read first time and referred to Committee on Water,
Agriculture & Rural Affairs; May 4, 2021, reported favorably by the
following vote: Yeas 7, Nays 0; May 4, 2021, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to relieving regional water planning groups of certain
duties.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 15.435(g), Water Code, is amended to
read as follows:
(g) The board may not direct the trust company to enter into
a bond enhancement agreement with respect to bonds issued by the
board the proceeds of which may be used to provide financial
assistance to an applicant if at the time of the request the
applicant has failed to[:
[(1)] provide information regarding a water
conservation plan in accordance with Section 16.4021[; or
[(2) satisfactorily complete a request by the
executive administrator or a regional water planning group for
information relevant to the project for which the financial
assistance is sought, including a water infrastructure financing
survey under Section 16.053(q)].
SECTION 2. Section 15.437(d), Water Code, is amended to
read as follows:
(d) In addition to the criteria provided by Subsection (c),
the board must also consider at least the following criteria in
prioritizing projects:
(1) the local contribution to be made to finance the
project, including the up-front capital to be provided by the
applicant;
(2) the financial capacity of the applicant to repay
the financial assistance provided;
(3) the ability of the board and the applicant to
timely leverage state financing with local and federal funding;
(4) whether there is an emergency need for the
project, taking into consideration whether:
(A) the applicant is included at the time of the
application on the list maintained by the commission of local
public water systems that have a water supply that will last less
than 180 days without additional rainfall; and
(B) federal funding for which the project is
eligible has been used or sought;
(5) if the applicant is applying for financial
assistance for the project under Subchapter Q, whether the
applicant is ready to proceed with the project at the time of the
application, including whether:
(A) all preliminary planning and design work
associated with the project has been completed;
(B) the applicant has acquired the water rights
associated with the project;
(C) the applicant has secured funding for the
project from other sources; and
(D) the applicant is able to begin implementing
or constructing the project; and
(6) the demonstrated or projected effect of the
project on water conservation, including preventing the loss of
water, taking into consideration, if applicable, whether the
applicant has filed a water audit with the board under Section
16.0121 that demonstrates that the applicant is accountable with
regard to reducing water loss and increasing efficiency in the
distribution of water[; and
[(7) the priority given the project by the applicable
regional water planning group under Section 15.436].
SECTION 3. Section 15.438(g), Water Code, is amended to
read as follows:
(g) The advisory committee shall submit comments and
recommendations to the board regarding the use of money in the fund
for use by the board in adopting rules under Section 15.439 and in
adopting policies and procedures under Section 15.441. The
submission must include:
(1) comments and recommendations on rulemaking
related to the prioritization of projects in regional water plans
and the state water plan in accordance with Section [Sections
15.436 and] 15.437;
(2) comments and recommendations on rulemaking
related to establishing standards for determining whether projects
meet the criteria provided by Section 15.434(b);
(3) an evaluation of the available programs for
providing financing for projects included in the state water plan
and guidelines for implementing those programs, including
guidelines for providing financing for projects included in the
state water plan that are authorized under Subchapter Q or R of this
chapter, Subchapter E or F, Chapter 16, or Subchapter J, Chapter 17;
(4) an evaluation of the lending practices of the
board and guidelines for lending standards;
(5) an evaluation of the use of funds by the board to
provide support for financial assistance for water projects,
including support for the purposes described by Section 15.435(c);
(6) an evaluation of whether premium financing
programs should be established within the funds described by
Section 15.435 to serve the purposes of this subchapter, especially
in connection with projects described by Section 15.434(b);
(7) an evaluation of methods for encouraging
participation in the procurement process by companies domiciled in
this state or that employ a significant number of residents of this
state; and
(8) an evaluation of the overall operation, function,
and structure of the fund.
SECTION 4. Section 15.439(a), Water Code, is amended to
read as follows:
(a) The board shall adopt rules providing for the use of
money in the fund that are consistent with this subchapter,
including rules:
(1) establishing standards for determining whether
projects meet the criteria provided by Section 15.434(b); and
(2) specifying the manner for prioritizing projects
for purposes of Section [Sections 15.436 and] 15.437.
SECTION 5. Section 15.912(b), Water Code, is amended to
read as follows:
(b) The board may not accept an application for a loan or
grant of financial assistance from the fund for a project
recommended through the state and regional water planning processes
under Sections 16.051 and 16.053 if the applicant has failed to
satisfactorily complete a request by the executive administrator or
a regional planning group for information relevant to the project[,
including a water infrastructure financing survey under Section
16.053(q)].
SECTION 6. Section 15.975(d), Water Code, is amended to
read as follows:
(d) The board may not approve an application if the
applicant has failed to satisfactorily complete a request by the
executive administrator or a regional planning group for
information relevant to the project[, including a water
infrastructure financing survey under Section 16.053(q)].
SECTION 7. Section 16.131(b), Water Code, is amended to
read as follows:
(b) The board may not use the state participation account of
the development fund to finance a project recommended through the
state and regional water planning processes under Sections 16.051
and 16.053 if the applicant has failed to satisfactorily complete a
request by the executive administrator or a regional planning group
for information relevant to the project[, including a water
infrastructure financing survey under Section 16.053(q)].
SECTION 8. Sections 15.436 and 16.053(q), Water Code, are
repealed.
SECTION 9. This Act takes effect September 1, 2021.
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