88R18802 KBB-F
By: Schofield H.B. No. 4659
A BILL TO BE ENTITLED
AN ACT
relating to a study of the financing of regional facilities that
convert groundwater to surface water.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. DEFINITIONS. In this Act:
(1) "Board" means the Texas Water Development Board.
(2) "Facility" means a regional water facility that
converts groundwater to surface water.
SECTION 2. WORKING GROUP. (a) A working group composed of
representatives of the Texas Water Development Board and the Texas
Public Finance Authority is formed to study, review, and report to
the legislature on the methods used to finance or refinance
regional water facilities that convert groundwater to surface
water.
(b) The working group may include representatives of local
governments of Harris and Fort Bend Counties that have borrowed
money from the board for a facility.
(c) The chair of the board, or a designee of the chair of the
board, shall serve as the chair of the working group.
(d) The working group shall convene at the call of the
chair.
SECTION 3. STUDY. The working group shall study:
(1) the useful life of regional water facilities that
convert groundwater to surface water, including associated
improvements during a facility's useful life;
(2) the typical period of time necessary to pay the
costs associated with developing a financed facility;
(3) the economic effect on current water users paying
the cost of a facility that will provide service to future water
users;
(4) the financing terms of current and anticipated
facilities;
(5) the ability to distribute the costs associated
with the development of a facility to the users who benefit from the
facility, including:
(A) the fairness and equity benefits to water
users of extending the financing of a facility compared to the
potential increase in financing costs associated with an extension
of financing;
(B) the ability to use methods of financing or
refinancing to accomplish this distribution;
(C) policies and procedures of this state and the
board that may be used to accomplish this distribution;
(D) whether the board's financing terms and
conditions can be improved to better accomplish this distribution,
including whether the board may forgive a loan or a portion of a
loan to better accomplish this distribution;
(E) whether potential measures that could
accomplish this distribution are precluded by state law; and
(F) what changes to state law may be necessary to
accomplish this distribution;
(6) whether financial assistance administered by the
board may be used to refinance or restructure existing financing of
a facility; and
(7) whether a facility is eligible for grant funding.
SECTION 4. FINDINGS AND RECOMMENDATIONS. (a) The working
group shall recommend any changes and improvements relating to the
financing of regional facilities that convert groundwater to
surface water that may be implemented by this state, the board, or
another state agency without further legislative authorization.
(b) Not later than September 1, 2024, the working group
shall report the working group's findings and recommendations to
the lieutenant governor, the speaker of the house of
representatives, and the governor.
(c) A member of the house or the senate may request to be
kept informed of the working group's progress throughout the
duration of the study.
SECTION 5. EXPIRATION. This Act expires September 1, 2025.
SECTION 6. EFFECTIVE DATE. This Act takes effect
immediately if it receives a vote of two-thirds of all the members
elected to each house, as provided by Section 39, Article III, Texas
Constitution. If this Act does not receive the vote necessary for
immediate effect, this Act takes effect September 1, 2023.