Texas Senate Bill SB531

Texas 2021 - 87th Regular

Caption

Relating to the use of the water infrastructure fund.

Impact

The amendments made by SB531 to the Water Code enhance the board's ability to issue financial assistance which, in turn, could lead to improved water infrastructure across the state. By allowing for grants, low-interest, and zero-interest loans, the legislation aims to incentivize investment in necessary water-related projects. This could lead to significant improvements in public health and local economies as communities upgrade their water infrastructure to meet both current and future demands.

Summary

Senate Bill 531 focuses on the use of the water infrastructure fund in Texas, establishing new guidelines for how these funds can be disbursed. The bill aims to streamline the financial assistance process, allowing the board to provide loans at or below the market interest rate for various projects and initiatives. Specifically, the bill emphasizes support for communities outside metropolitan areas and economically distressed regions, ensuring that funding is accessible to those who need it most.

Contention

Discussions surrounding SB531 largely center on the allocation of the water infrastructure fund and its implications for state versus local control over financial decisions. Some concerns have been raised regarding whether the fund’s restricted uses might limit local governments' flexibility in addressing unique infrastructural needs. However, supporters argue that the new framework will streamline processes, making it easier for smaller and rural communities to access much-needed funding without the burden of high-interest rates.