88R11087 JAM-F
By: King of Uvalde H.B. No. 2483
A BILL TO BE ENTITLED
AN ACT
relating to financial assistance provided and programs
administered by the Texas Water Development Board.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 15, Water Code, is amended by adding
Subchapter H-1 to read as follows:
SUBCHAPTER H-1. WATER FOR TEXAS FUND
Sec. 15.501. DEFINITION. In this subchapter, "fund" means
the water for Texas fund.
Sec. 15.502. FUND. (a) The water for Texas fund is a
special fund in the state treasury outside the general revenue
fund. The fund is administered by the board. The fund is not
subject to legislative appropriation.
(b) The board may use the fund only to disburse money to
another fund or account administered by the board, including a fund
or account established by this chapter.
(c) The board has legal title to money and investments in
the fund.
(d) The comptroller may not use the fund to certify under
Section 49a, Article III, Texas Constitution, that an amount
appropriated by a bill is with the amount estimated to be available
in the affected funds.
(e) Money in the fund may be used only as provided by this
subchapter.
(f) The fund consists of:
(1) money transferred or deposited to the credit of
the fund by law, including money from any source transferred or
deposited to the credit of the fund at the board's discretion as
authorized by law;
(2) any other revenue that the legislature by statute
dedicates for deposit to the credit of the fund;
(3) investment earnings and interest earned on amounts
credited to the fund;
(4) money from gifts, grants, or donations to the
fund; and
(5) the redeposit of money disbursed from the fund.
(g) The board may establish separate accounts in the fund as
necessary or convenient to administer the fund.
Sec. 15.503. MANAGEMENT AND INVESTMENT OF FUND. (a) Money
in the fund shall be invested as determined by the board. The fund
may be invested with the state treasury pool.
(b) The fund and any accounts established in the fund shall
be kept and maintained by or at the direction of the board.
(c) At the direction of the board, the fund and any accounts
established in the fund may be managed by the comptroller or a
corporate trustee that is a trust company or a bank that has the
powers of a trust company for and on behalf of the board and pending
their use for the purposes provided by this subchapter may be
invested as provided by an order, resolution, or rule of the board.
(d) The comptroller or corporate trustee shall manage the
fund in strict accordance with this subchapter and the orders,
resolutions, and rules of the board.
Sec. 15.504. USE OF FUND. (a) The board may make
disbursements from the fund to another fund or account administered
by the board, including a fund or account established by this
chapter, in the amounts the board determines necessary. Legislative
appropriation is not required for the board to disburse money from
the fund.
(b) The board shall ensure that a portion of the money
disbursed from the fund is used for:
(1) water infrastructure projects for:
(A) rural political subdivisions, as defined by
Section 15.992; and
(B) municipalities with a population of less than
150,000; and
(2) projects to develop new water supply sources.
(c) Projects funded under Subsection (b)(2) must be
designed to develop water supply sources not currently available in
this state. A project may include:
(1) acquisition of water rights from another state;
(2) development of infrastructure to transport water
from another state;
(3) a desalination project, including marine and
brackish water desalination;
(4) a produced water treatment plant; and
(5) research into new technology that may lead to the
development of a significant new water supply source, as determined
by the board based on the amount of water the technology may
produce.
(d) Money disbursed from the fund for the purposes described
by Subsection (b) may be disbursed to other funds or accounts to be
used to provide zero interest loans, negative interest loans, loan
forgiveness, or grants for any purpose described by Subsection (b)
under criteria developed by the board.
Sec. 15.505. REDEPOSIT OF MONEY PREVIOUSLY DISBURSED. The
board may restore to the fund money disbursed from the fund and
deposited to the credit of another fund or account. Legislative
appropriation is not required for the board to restore money to the
fund.
Sec. 15.506. ADVISORY COMMITTEE. The State Water
Implementation Fund for Texas Advisory Committee established under
Section 15.438:
(1) 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 15.507 and in adopting policies and
procedures under Section 15.508;
(2) shall review the overall operation, function, and
structure of the fund at least semiannually and may provide
comments and recommendations to the board on any matter; and
(3) may adopt rules, procedures, and policies as
needed to administer this section and implement its
responsibilities.
Sec. 15.507. RULES. The board may adopt rules providing
for the use of money in the fund that are consistent with this
subchapter.
Sec. 15.508. POLICIES AND PROCEDURES TO MITIGATE OR
MINIMIZE ADVERSE EFFECTS OF CERTAIN FEDERAL LAWS. The board shall
adopt, and may amend from time to time at the board's discretion,
policies and procedures for the purpose of mitigating or minimizing
the adverse effects, if any, of federal laws and regulations
relating to income taxes, arbitrage, rebates, and related matters
that may restrict the board's ability to freely invest all or part
of the fund or to receive and retain all the earnings from the fund.
Sec. 15.509. NEW WATER SUPPLY INITIATIVE. The board shall
undertake to acquire through projects funded under Section
15.504(b)(2) seven million acre-feet of new water supplies from
sources not previously available in this state by December 31,
2033.
SECTION 2. Section 15.994(c), Water Code, is amended to
read as follows:
(c) The board may use money in the fund to contract for
outreach, financial, planning, and technical assistance to assist
rural political subdivisions [in obtaining and using financing from
any source] for a purpose described by this section.
SECTION 3. Section 16.0121, Water Code, is amended by
adding Subsections (k) and (l) to read as follows:
(k) The board by rule shall establish a program to provide
technical assistance to retail public utilities in conducting water
audits required under Subsections (b) and (b-1) and in applying for
financial assistance from the board to mitigate the utility
system's water loss. Rules adopted under this section must provide
for the prioritization of technical assistance to retail public
utilities based on:
(1) water loss audits submitted to the board;
(2) the population served by the utility; and
(3) the integrity of the utility's system.
(l) The board shall submit to the legislature every fifth
year a water loss report that:
(1) summarizes the information compiled under
Subsection (f);
(2) summarizes the measures taken by retail public
utilities to reduce water loss; and
(3) identifies the retail public utilities
participating in the program established under Subsection (k) and
details the use of financial assistance provided under that
subsection.
SECTION 4. (a) Except as otherwise provided by this Act,
this Act takes effect September 1, 2023.
(b) Section 1 of this Act takes effect January 1, 2024, but
only if the constitutional amendment proposed by the 88th
Legislature, Regular Session, 2023, creating the water for Texas
fund to assist in financing water projects in this state is approved
by the voters. If that constitutional amendment is not approved by
the voters, Section 1 of this Act has no effect.