Texas 2023 - 88th Regular

Texas Senate Bill SB28 Compare Versions

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1	1	S.B. No. 28
2	2
3	3
4	4	AN ACT
5	5	relating to financial assistance provided and programs
6	6	administered by the Texas Water Development Board.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 10.010, Water Code, is amended to read as
9	9	follows:
10	10	Sec. 10.010. POWERS AND DUTIES OF COUNCIL. The council
11	11	shall:
12	12	(1) monitor trends in water conservation
13	13	implementation;
14	14	(2) monitor new technologies for possible inclusion by
15	15	the board as best management practices in the best management
16	16	practices guide developed by the water conservation implementation
17	17	task force under Chapter 109, Acts of the 78th Legislature, Regular
18	18	Session, 2003;
19	19	(3) monitor the effectiveness of the statewide water
20	20	[conservation] public awareness program developed under Section
21	21	16.026 [16.401] and associated local involvement in implementation
22	22	of the program;
23	23	(4) develop and implement a state water management
24	24	resource library;
25	25	(5) develop and implement a public recognition program
26	26	for water conservation;
27	27	(6) monitor the implementation of water conservation
28	28	strategies by water users included in regional water plans; and
29	29	(7) monitor target and goal guidelines for water
30	30	conservation to be considered by the board and commission.
31	31	SECTION 2. Chapter 15, Water Code, is amended by adding
32	32	Subchapter C-1 to read as follows:
33	33	SUBCHAPTER C-1. NEW WATER SUPPLY FOR TEXAS FUND
34	34	Sec. 15.151. DEFINITION. In this subchapter, "fund" means
35	35	the new water supply for Texas fund.
36	36	Sec. 15.152. FUND. (a) The new water supply for Texas fund
37	37	is a special fund in the state treasury administered by the board.
38	38	The fund consists of:
39	39	(1) money appropriated for transfer or deposit to the
40	40	credit of the fund;
41	41	(2) money the board transfers to the fund from any
42	42	available source;
43	43	(3) depository interest allocable to the fund and
44	44	other investment returns on money in the fund;
45	45	(4) money from gifts, grants, or donations to the
46	46	fund; and
47	47	(5) any other fees or sources of revenue that the
48	48	legislature may dedicate for deposit to the fund.
49	49	(b) The fund is exempt from the application of Section
50	50	403.095, Government Code.
51	51	Sec. 15.153. USE OF FUND. (a) The board by rule shall
52	52	undertake to finance projects through the fund that will lead to
53	53	seven million acre-feet of new water supplies by December 31, 2033.
54	54	(b) The fund may be used to:
55	55	(1) provide financial assistance to political
56	56	subdivisions to develop water supply projects that create new water
57	57	sources for the state, including:
58	58	(A) desalination projects, including marine and
59	59	brackish water desalination;
60	60	(B) produced water treatment projects, other
61	61	than projects that are only for purposes of oil and gas exploration;
62	62	(C) aquifer storage and recovery projects; and
63	63	(D) the development of infrastructure to
64	64	transport water that is made available by a project described by
65	65	this subdivision;
66	66	(2) make transfers from the fund:
67	67	(A) to the state water implementation fund for
68	68	Texas established under Subchapter G or the Texas Water Development
69	69	Fund II established under Subchapter L, Chapter 17; and
70	70	(B) for a purpose described by Subdivision (1);
71	71	and
72	72	(3) make transfers from the fund to the water bank
73	73	account established under Section 15.707.
74	74	(c) The fund may be used for any purpose described by
75	75	Subsection (b) under criteria developed by the board. A loan made
76	76	from the fund under this subchapter may provide for repayment terms
77	77	of up to 30 years, in the board's discretion.
78	78	(d) Financial assistance for a purpose described by
79	79	Subsection (b)(1):
80	80	(1) may be provided for a qualifying project under
81	81	Chapter 2267, Government Code, only if the project complies with
82	82	that chapter; and
83	83	(2) may not be provided for expenses associated with
84	84	the maintenance or operation of a water supply project described by
85	85	Subsection (b)(1).
86	86	Sec. 15.154. FINANCIAL ASSISTANCE. (a) The board shall
87	87	adopt rules necessary to administer this subchapter, including
88	88	rules establishing procedures for the application for and award of
89	89	financial assistance, the distribution of financial assistance,
90	90	the investment of funds, and the administration of financial
91	91	assistance and the fund.
92	92	(b) When evaluating an application for financial assistance
93	93	from a political subdivision, the board shall consider:
94	94	(1) the intended end users of the water supply, the
95	95	needs of the area to be served by the project, the expected benefit
96	96	of the project to the area, the relationship of the project to the
97	97	water supply needs of this state overall, and the relationship of
98	98	the project to the state water plan;
99	99	(2) the amount of water expected to be produced by the
100	100	project; and
101	101	(3) the availability of money or revenue to the
102	102	political subdivision from all sources for the ultimate repayment
103	103	of the cost of the project, including all interest.
104	104	(c) The board by resolution may approve an application if,
105	105	after considering the factors listed in Subsection (b) and other
106	106	relevant factors, the board finds that:
107	107	(1) the public interest is served by state assistance
108	108	for the project; and
109	109	(2) for an application for financial assistance in the
110	110	form of a loan, the money or revenue pledged by the political
111	111	subdivision will be sufficient to meet all the obligations assumed
112	112	by the political subdivision during the term of the loan.
113	113	(d) The repayment of principal or interest on a loan made
114	114	under this subchapter must be deposited to the credit of the Texas
115	115	water fund. This subsection does not apply to a loan made under
116	116	other law with money transferred under Section 15.153(b)(2).
117	117	(e) An application from a political subdivision for
118	118	financial assistance under this subchapter must comply with the
119	119	requirements of Section 16.4021.
120	120	(f) Sections 17.183-17.187 apply to the construction of
121	121	projects funded under this subchapter.
122	122	SECTION 3. Section 15.438(a), Water Code, is amended to
123	123	read as follows:
124	124	(a) The State Water Implementation Fund for Texas Advisory
125	125	Committee is composed of the following seven members:
126	126	(1) the comptroller, or a person designated by the
127	127	comptroller;
128	128	(2) three members of the senate appointed by the
129	129	lieutenant governor, including:
130	130	(A) a member of the committee of the senate
131	131	having primary jurisdiction over matters relating to finance; and
132	132	(B) the chair [a member] of the committee of the
133	133	senate having primary jurisdiction over water [natural] resources;
134	134	and
135	135	(3) three members of the house of representatives
136	136	appointed by the speaker of the house of representatives,
137	137	including:
138	138	(A) a member of the committee of the house of
139	139	representatives having primary jurisdiction over appropriations;
140	140	and
141	141	(B) the chair [a member] of the committee of the
142	142	house of representatives having primary jurisdiction over water
143	143	[natural] resources.
144	144	SECTION 4. Section 15.472(a), Water Code, is amended to
145	145	read as follows:
146	146	(a) The state water implementation revenue fund for Texas is
147	147	a special fund in the state treasury outside the general revenue
148	148	fund to be used by the board, without further legislative
149	149	appropriation, only for the purpose of providing financing for
150	150	projects included in the state water plan that are authorized under
151	151	Subchapter C-1, Q, or R of this chapter, Subchapter E or F, Chapter
152	152	16, or Subchapter J or L, Chapter 17. The board may establish
153	153	separate accounts in the fund. The board has legal title to money
154	154	and investments in the fund until the money is disbursed as provided
155	155	by this subchapter and board rules. It is the intent of the
156	156	legislature that the fund will never be used:
157	157	(1) for a purpose other than the support of projects in
158	158	the state water plan; or
159	159	(2) to certify that appropriations from the treasury
160	160	are within the amount estimated to be available in a fund of the
161	161	treasury affected by the appropriation.
162	162	SECTION 5. Section 15.474(a), Water Code, is amended to
163	163	read as follows:
164	164	(a) Except as provided by Subsection (c), money in the fund
165	165	may be used by the board only to provide financing or refinancing,
166	166	under terms specified by the board, for projects included in the
167	167	state water plan that are authorized under Subchapter C-1, Q, or R
168	168	of this chapter, Subchapter E or F, Chapter 16, or Subchapter J or
169	169	L, Chapter 17, including water conservation or reuse projects
170	170	designed to reduce the need for this state or political
171	171	subdivisions of this state to develop additional water resources.
172	172	SECTION 6. Chapter 15, Water Code, is amended by adding
173	173	Subchapter H-1 to read as follows:
174	174	SUBCHAPTER H-1. TEXAS WATER FUND
175	175	Sec. 15.501. DEFINITION. In this subchapter, "fund" means
176	176	the Texas water fund.
177	177	Sec. 15.502. FUND. (a) The Texas water fund is a special
178	178	fund in the state treasury outside the general revenue fund. The
179	179	fund is administered by the board.
180	180	(b) The board may use the fund only to transfer money to:
181	181	(1) the water assistance fund established under
182	182	Subchapter B;
183	183	(2) the new water supply for Texas fund established
184	184	under Subchapter C-1;
185	185	(3) the state water implementation fund for Texas
186	186	established under Subchapter G;
187	187	(4) the state water implementation revenue fund for
188	188	Texas established under Subchapter H;
189	189	(5) a revolving fund established under Subchapter J;
190	190	(6) the rural water assistance fund established under
191	191	Subchapter R;
192	192	(7) the statewide water public awareness account
193	193	established under Section 16.027;
194	194	(8) the Texas Water Development Fund II water
195	195	financial assistance account established under Section 17.959; and
196	196	(9) the Texas Water Development Fund II state
197	197	participation account established under Section 17.957.
198	198	(c) Money and investments in the fund shall be kept and held
199	199	for and in the name of the board.
200	200	(d) Money in the fund may be used only as provided by this
201	201	subchapter.
202	202	(e) The fund consists of:
203	203	(1) money transferred or deposited to the credit of
204	204	the fund by law, including money appropriated by the legislature
205	205	directly to the fund and money from any source transferred or
206	206	deposited to the credit of the fund as authorized by law;
207	207	(2) any other revenue that the legislature by statute
208	208	dedicates for deposit to the credit of the fund;
209	209	(3) investment earnings and interest earned on amounts
210	210	credited to the fund;
211	211	(4) money from gifts, grants, or donations to the
212	212	fund; and
213	213	(5) money returned from any authorized transfer.
214	214	Sec. 15.503. MANAGEMENT AND INVESTMENT OF FUND. (a) Money
215	215	in the fund shall be held and invested by the Texas Treasury
216	216	Safekeeping Trust Company, taking into account the purposes for
217	217	which money in the fund may be used.
218	218	(b) The fund and any accounts established in the fund shall
219	219	be kept and maintained by or at the direction of the board.
220	220	(c) In managing the assets of the fund, the trust company
221	221	may acquire, exchange, sell, supervise, manage, or retain any kind
222	222	of investment that a prudent investor, exercising reasonable care,
223	223	skill, and caution, would acquire or retain in light of the
224	224	purposes, terms, distribution requirements, and other
225	225	circumstances of the fund then prevailing, taking into
226	226	consideration the investment of all the assets of the fund rather
227	227	than a single investment. The reasonable expenses of managing the
228	228	fund's assets shall be paid from the fund.
229	229	(d) Section 404.094(d), Government Code, applies to the
230	230	fund.
231	231	Sec. 15.504. USE OF FUND. (a) The board by resolution may
232	232	make transfers from the fund to a fund or account described by
233	233	Section 15.502(b) for an authorized purpose of the receiving fund
234	234	or account.
235	235	(b) The board may not transfer money to a fund or account
236	236	described by Section 15.502(b) until the application for the
237	237	project for which the money is to be used has been approved.
238	238	(c) The board shall ensure that a portion of the money
239	239	transferred from the fund is used for:
240	240	(1) water infrastructure projects, prioritized by
241	241	risk or need, for:
242	242	(A) rural political subdivisions; and
243	243	(B) municipalities with a population of less than
244	244	150,000;
245	245	(2) projects for which all required state or federal
246	246	permitting has been substantially completed, as determined by the
247	247	board;
248	248	(3) the statewide water public awareness program
249	249	established under Section 16.026;
250	250	(4) water conservation strategies; and
251	251	(5) water loss mitigation projects.
252	252	(d) Money transferred from the fund for the purposes
253	253	described by Subsection (c) may be transferred to funds or accounts
254	254	described by Section 15.502(b) to be used to provide financial
255	255	assistance for any purpose described by Subsection (c) under
256	256	criteria developed by the board and in accordance with law.
257	257	(e) Money deposited to the credit of the fund as provided by
258	258	Section 15.154(d) may be used only for the purposes described by
259	259	Section 15.153(b).
260	260	(f) The board may use the fund to pay the necessary and
261	261	reasonable expenses of the board in administering the fund not to
262	262	exceed two percent.
263	263	Sec. 15.505. TRANSFER OF MONEY. Notwithstanding any other
264	264	law:
265	265	(1) the board may:
266	266	(A) transfer money from the fund into any other
267	267	fund or account described by Section 15.502(b); and
268	268	(B) restore to the fund money transferred from
269	269	the fund and deposited to the credit of a fund or account described
270	270	by Section 15.502(b); and
271	271	(2) a fund or account described by Section 15.502(b)
272	272	may accept a transfer of money made under this subchapter.
273	273	Sec. 15.506. ADVISORY COMMITTEE. (a) The State Water
274	274	Implementation Fund for Texas Advisory Committee established under
275	275	Section 15.438:
276	276	(1) shall submit comments and recommendations to the
277	277	board regarding the use of money in the fund for use by the board in
278	278	adopting rules under Section 15.507;
279	279	(2) shall review the overall operation, function, and
280	280	structure of the fund at least annually and may provide comments and
281	281	recommendations to the board on any matter; and
282	282	(3) may adopt rules, procedures, and policies as
283	283	needed to administer this section and implement its
284	284	responsibilities.
285	285	(b) The advisory committee may not recommend specific
286	286	projects for consideration for receipt of financial assistance from
287	287	the fund.
288	288	Sec. 15.507. RULES. (a) The board may adopt rules
289	289	providing for the use of money in the fund that are consistent with
290	290	this subchapter.
291	291	(b) Rules adopted under this section must require each
292	292	recipient of financial assistance administered through the fund to
293	293	submit to the board a water conservation plan consistent with the
294	294	requirements of Section 16.4021.
295	295	SECTION 7. Section 15.994(c), Water Code, is amended to
296	296	read as follows:
297	297	(c) The board may use money in the fund to contract for
298	298	outreach, financial, planning, and technical assistance to assist
299	299	rural political subdivisions [in obtaining and using financing from
300	300	any source] for a purpose described by this section, including in
301	301	obtaining and using financing from funds and accounts administered
302	302	by the board.
303	303	SECTION 8. Section 16.0121, Water Code, is amended by
304	304	adding Subsections (k) and (l) to read as follows:
305	305	(k) The board by rule shall establish a program to provide
306	306	technical assistance to retail public utilities in conducting water
307	307	audits required under Subsections (b) and (b-1) and in applying for
308	308	financial assistance from the board to mitigate the utility
309	309	system's water loss. The board may provide for the implementation
310	310	of the program established under this subsection by contracting or
311	311	partnering with other entities. Rules adopted under this section
312	312	must provide for the prioritization of technical assistance to
313	313	retail public utilities based on:
314	314	(1) water loss audits submitted to the board;
315	315	(2) the population served by the utility; and
316	316	(3) the integrity of the utility's system.
317	317	(l) The board shall post on the board's Internet website
318	318	information that:
319	319	(1) summarizes the information compiled under
320	320	Subsection (f);
321	321	(2) summarizes the measures taken by retail public
322	322	utilities to reduce water loss; and
323	323	(3) identifies the retail public utilities
324	324	participating in the program established under Subsection (k) and
325	325	details the use of financial assistance provided under that
326	326	subsection.
327	327	SECTION 9. Section 16.401, Water Code, is transferred to
328	328	Subchapter B, Chapter 16, Water Code, redesignated as Section
329	329	16.026, Water Code, and amended to read as follows:
330	330	Sec. 16.026 [16.401]. STATEWIDE WATER [CONSERVATION]
331	331	PUBLIC AWARENESS PROGRAM. (a) The executive administrator shall
332	332	develop and implement a statewide water [conservation] public
333	333	awareness program to educate residents of this state about water
334	334	[conservation]. The program shall take into account the
335	335	differences in water [conservation] needs of various geographic
336	336	regions of the state and shall be designed to complement and support
337	337	existing local and regional water education or awareness
338	338	[conservation] programs.
339	339	(b) The executive administrator is required to develop and
340	340	implement the program required by Subsection (a) in a state fiscal
341	341	biennium only if the legislature appropriates sufficient money in
342	342	that biennium specifically for that purpose.
343	343	SECTION 10. Subchapter B, Chapter 16, Water Code, is
344	344	amended by adding Section 16.027 to read as follows:
345	345	Sec. 16.027. STATEWIDE WATER PUBLIC AWARENESS ACCOUNT. (a)
346	346	The statewide water public awareness account is an account in the
347	347	general revenue fund. The account consists of:
348	348	(1) money appropriated to the board for deposit to the
349	349	credit of the account;
350	350	(2) money transferred by the board to the credit of the
351	351	account from other funds available to the board;
352	352	(3) money from gifts or grants to the account from any
353	353	source, including the federal government, an educational
354	354	institution, or a private donor;
355	355	(4) proceeds from the sale of educational or public
356	356	awareness materials, publications, and other items deposited to the
357	357	credit of the account; and
358	358	(5) interest earned on the investment of money in the
359	359	account and depository interest allocable to the account.
360	360	(b) The account may be used by the board to develop,
361	361	administer, and implement the statewide water public awareness
362	362	program established by Section 16.026.
363	363	(c) The account is exempt from the application of Section
364	364	403.095, Government Code.
365	365	SECTION 11. Section 16.4021(b), Water Code, is amended to
366	366	read as follows:
367	367	(b) This section applies to an application for financial
368	368	assistance under:
369	369	(1) Subchapters C, C-1, D, E, G, H, J, O, Q, and R,
370	370	Chapter 15;
371	371	(2) Subchapters E and F of this chapter; and
372	372	(3) Subchapters D, F, I, K, and L, Chapter 17.
373	373	SECTION 12. Not later than January 1, 2024, the Texas Water
374	374	Development Board shall adopt rules as required by Section
375	375	16.0121(k), Water Code, as added by this Act.
376	376	SECTION 13. (a) Except as otherwise provided by this Act,
377	377	this Act takes effect September 1, 2023.
378	378	(b) Section 6 of this Act takes effect January 1, 2024, but
379	379	only if the constitutional amendment proposed by the 88th
380	380	Legislature, Regular Session, 2023, creating the Texas water fund
381	381	to assist in financing water projects in this state is approved by
382	382	the voters. If that constitutional amendment is not approved by
383	383	the voters, Section 6 of this Act has no effect.
384	384	______________________________ ______________________________
385	385	President of the Senate Speaker of the House
386	386	I hereby certify that S.B. No. 28 passed the Senate on
387	387	April 3, 2023, by the following vote: Yeas 31, Nays 0;
388	388	May 22, 2023, Senate refused to concur in House amendments and
389	389	requested appointment of Conference Committee; May 23, 2023, House
390	390	granted request of the Senate; May 28, 2023, Senate adopted
391	391	Conference Committee Report by the following vote: Yeas 31,
392	392	Nays 0.
393	393	______________________________
394	394	Secretary of the Senate
395	395	I hereby certify that S.B. No. 28 passed the House, with
396	396	amendments, on May 17, 2023, by the following vote: Yeas 136,
397	397	Nays 8, one present not voting; May 23, 2023, House granted request
398	398	of the Senate for appointment of Conference Committee;
399	399	May 28, 2023, House adopted Conference Committee Report by the
400	400	following vote: Yeas 134, Nays 4, two present not voting.
401	401	______________________________
402	402	Chief Clerk of the House
403	403	Approved:
404	404	______________________________
405	405	Date
406	406	______________________________
407	407	Governor