Texas 2025 - 89th Regular

Texas House Bill HB2815 Compare Versions

Only one version of the bill is available at this time.

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1	1	89R5056 JAM-F
2	2	By: Gerdes H.B. No. 2815
3	3
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5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the financing of water supply projects included in the
10	10	state water plan; authorizing the issuance of obligations.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subtitle F, Title 9, Government Code, is amended
13	13	by adding Chapter 1373 to read as follows:
14	14	CHAPTER 1373. ISSUANCE OF BONDS BY POLITICAL SUBDIVISIONS FOR
15	15	WATER PROJECTS
16	16	Sec. 1373.001. DEFINITIONS. In this chapter:
17	17	(1) "Board" means the Texas Water Development Board.
18	18	(2) "Eligible project" means one or more water supply
19	19	projects:
20	20	(A) that are identified as recommended water
21	21	management strategies in the state water plan; and
22	22	(B) the cumulative costs of which are not less
23	23	than $750 million.
24	24	(3) "Indebtedness" means a bond, note, certificate of
25	25	participation, contract, or loan agreement of an issuer issued or
26	26	incurred pursuant to any statutory authority other than this
27	27	chapter.
28	28	(4) "Issuer" means a political subdivision as that
29	29	term is defined by Section 16.001, Water Code.
30	30	(5) "Obligation" means a bond, note, certificate of
31	31	participation, contract, or loan agreement, whether payable or
32	32	secured by taxes, revenues, or a combination thereof.
33	33	(6) "Obligation authorization" means the order,
34	34	ordinance, or resolution of the issuer authorizing the obligation.
35	35	(7) "State water plan" means the comprehensive water
36	36	plan for the state adopted under Section 16.051, Water Code.
37	37	Sec. 1373.002. CONSTRUCTION. This chapter shall be
38	38	liberally construed to achieve the legislative intent and purposes
39	39	of this chapter. A power granted by this chapter shall be broadly
40	40	interpreted to achieve the intent and purposes.
41	41	Sec. 1373.003. RELATIONSHIP TO OTHER LAW. (a) To the
42	42	extent of any conflict or inconsistency between this chapter and
43	43	another law or a municipal charter, this chapter controls.
44	44	(b) An issuer may use any provision of another law that does
45	45	not conflict with this chapter to the extent convenient or
46	46	necessary as determined by the issuer to carry out any power or
47	47	authority, express or implied, granted by this chapter, without
48	48	reference to any other laws or any restrictions or limitations
49	49	contained in those laws.
50	50	(c) Chapter 1207 applies to the refunding of obligations
51	51	issued or incurred under this chapter.
52	52	Sec. 1373.004. AUTHORITY TO ISSUE OBLIGATIONS.
53	53	Notwithstanding any other law, as authorized and approved by the
54	54	governing body of an issuer, obligations may be issued, sold,
55	55	incurred, and delivered to:
56	56	(1) finance or refinance an eligible project;
57	57	(2) refund obligations, other indebtedness, or
58	58	contractual obligations of the issuer issued or incurred in
59	59	connection with an eligible project; and
60	60	(3) pay the costs of issuance or delivery of the
61	61	obligations.
62	62	Sec. 1373.005. SECURITY FOR OBLIGATION. (a) An obligation
63	63	may be secured by:
64	64	(1) the proceeds from the sale of other obligations or
65	65	indebtedness of the issuer, including proceeds from the sale of
66	66	revenue bonds payable from the revenue to be received from an
67	67	eligible project or a specified user of an eligible project;
68	68	(2) any revenue that the issuer is authorized by the
69	69	constitution, a statute, or the charter of a home-rule municipality
70	70	to pledge or pay any kind of general or special indebtedness by or
71	71	from those revenues;
72	72	(3) water supply contracts or water treatment
73	73	contracts or other similar contracts or the revenue received from
74	74	those contracts; or
75	75	(4) any combination of the sources described by this
76	76	subsection.
77	77	(b) The governing body of an issuer may secure an obligation
78	78	and pay the cost of a contract or other agreement executed and
79	79	delivered in connection with the financing of an eligible project
80	80	with a pledge of the sources permitted by this chapter.
81	81	(c) Notwithstanding any other law, if an issuer secures an
82	82	obligation with contracts or the revenue from those contracts, the
83	83	term of the contracts may not be less than the final maturity or
84	84	term of such obligations pursuant to Section 1373.008.
85	85	(d) Any obligations payable wholly or partly from a pledge
86	86	of ad valorem taxes to finance or refinance an eligible project must
87	87	be approved by the voters of the issuer at an election held for that
88	88	purpose.
89	89	Sec. 1373.006. USE OF PROCEEDS. An issuer may use the
90	90	proceeds from the issuance or incurrence of an obligation to
91	91	finance and refinance an eligible project, including costs
92	92	authorized by Section 1201.042(a).
93	93	Sec. 1373.007. TEXAS WATER DEVELOPMENT BOARD FINANCING OR
94	94	FUNDING OF ELIGIBLE PROJECTS. (a) Any financing or funding
95	95	provided by the board for an eligible project may not exceed the
96	96	maturity or term of an obligation pledged to the project.
97	97	(b) If the design, construction, and placing into service of
98	98	an eligible project is estimated to take more than four years, as
99	99	certified by a licensed professional engineer selected by the
100	100	issuer, the board shall make a multiyear commitment of any
101	101	financing or funding provided by the board of the eligible project
102	102	at the request of the issuer.
103	103	Sec. 1373.008. MATURITY OR TERM OF OBLIGATIONS. (a) The
104	104	maximum maturity or term of an obligation issued pursuant to this
105	105	chapter may not exceed the lesser of:
106	106	(1) the reasonably expected weighted average useful
107	107	life of the eligible project as certified by a licensed
108	108	professional engineer selected by the issuer; or
109	109	(2) 40 years from the date of issuance of the
110	110	obligation.
111	111	(b) The determination of reasonably expected weighted
112	112	average useful life of an eligible project made under Subsection
113	113	(a) may not be contested for any reason.
114	114	Sec. 1373.009. OBLIGATION AUTHORIZATION. (a) The
115	115	governing body of an issuer must adopt or approve an obligation
116	116	authorization before an obligation may be issued or incurred.
117	117	(b) The obligation authorization must establish:
118	118	(1) the maximum amount of the obligation to be issued
119	119	or incurred or, if applicable, the maximum principal amount that
120	120	may be outstanding at any time;
121	121	(2) subject to Section 1373.008, the maximum term for
122	122	which the obligation issued or incurred under the authorization may
123	123	be outstanding;
124	124	(3) the maximum interest rate the obligation may bear;
125	125	(4) subject to Subsection (c)(2), the manner of sale
126	126	of the obligation, which may be by public or private sale, the price
127	127	of the obligation, the form of the obligation, and the terms,
128	128	representations, and covenants of the issuer made in connection
129	129	with the issuance of the obligation, if applicable; and
130	130	(5) each source pledged or to be pledged to the payment
131	131	of the obligation.
132	132	(c) The obligation authorization may:
133	133	(1) provide for the designation of a paying agent and
134	134	registrar for the obligation; and
135	135	(2) authorize one or more designated officers or
136	136	employees of the issuer to act on behalf of the issuer from time to
137	137	time in selling, incurring, and delivering obligations and setting
138	138	the dates, price, interest rates, interest payment periods,
139	139	redemption features, and other procedures relating to the issuance,
140	140	sale, incurrence, and delivery of obligations, as specified in the
141	141	obligation authorization.
142	142	Sec. 1373.010. EFFECT OF FINDING OR DETERMINATION UNDER
143	143	DELEGATION OF AUTHORITY. A finding or determination made by an
144	144	officer or employee acting under the authority delegated to the
145	145	officer or employee by an obligation authorization adopted or
146	146	approved under this chapter has the same force and effect as a
147	147	finding or determination made by the governing body.
148	148	Sec. 1373.011. REVIEW AND APPROVAL OF OBLIGATION AND
149	149	CONTRACT BY ATTORNEY GENERAL. (a) Before an obligation may be
150	150	issued or incurred, a record of the proceedings of the issuer
151	151	authorizing the issuance, execution, incurrence, and delivery of
152	152	the obligation and any contract providing revenue or security
153	153	pledged to the payment of the obligation must be submitted to the
154	154	attorney general for review.
155	155	(b) If the attorney general finds that the proceedings
156	156	authorizing an obligation conform to the requirements of the Texas
157	157	Constitution and this chapter, the attorney general shall approve
158	158	it and deliver to the comptroller a copy of the attorney general's
159	159	legal opinion stating that approval and the record of proceedings.
160	160	After approval, the obligation may be executed and delivered,
161	161	exchanged, or refinanced from time to time in accordance with those
162	162	authorizing proceedings.
163	163	Sec. 1373.012. REGISTRATION. On receipt of the documents
164	164	required by Section 1373.011(b), the comptroller shall register the
165	165	record of the proceedings relating to the issuance of an
166	166	obligation.
167	167	Sec. 1373.013. VALIDITY AND INCONTESTABILITY. (a) If
168	168	proceedings to authorize an obligation are approved by the attorney
169	169	general and registered by the comptroller, each obligation and any
170	170	contract that provides revenue or security included in or executed
171	171	and delivered according to the authorizing proceedings and pledged
172	172	to the payment of the obligation is incontestable in a court or
173	173	other forum and is valid, binding, and enforceable according to its
174	174	terms.
175	175	(b) Notwithstanding Subsection (a) and except as provided
176	176	by this subsection, an obligation authorized by this chapter is not
177	177	valid, binding, or enforceable unless the obligation is approved by
178	178	the attorney general and registered by the comptroller in
179	179	accordance with Chapter 1202.
180	180	SECTION 2. Section 15.432(b), Water Code, is amended to
181	181	read as follows:
182	182	(b) Money deposited to the credit of the fund may be used:
183	183	(1) only as provided by this subchapter; and
184	184	(2) for eligible projects authorized under Chapter
185	185	1373, Government Code.
186	186	SECTION 3. Section 15.435(c), Water Code, is amended to
187	187	read as follows:
188	188	(c) If the trust company enters into a bond enhancement
189	189	agreement under Subsection (b), the board may direct the trust
190	190	company to make disbursements from the fund to another fund or
191	191	account for the support of bonds the proceeds of which are used to
192	192	provide financial assistance in the form of:
193	193	(1) a loan bearing an interest rate of not less than 50
194	194	percent of the then-current market rate of interest available to
195	195	the board;
196	196	(2) a loan to finance a facility under repayment terms
197	197	similar to the terms of debt customarily issued by the entity
198	198	requesting assistance but not to exceed the lesser of:
199	199	(A) the expected useful life of the facility; or
200	200	(B) 30 years or, for an eligible project
201	201	authorized by Chapter 1373, Government Code, 40 years;
202	202	(3) a deferral of loan repayment, including deferral
203	203	of the repayment of:
204	204	(A) principal and interest; or
205	205	(B) accrued interest;
206	206	(4) incremental repurchase terms for an acquired
207	207	facility, including terms for no initial repurchase payment
208	208	followed by progressively increasing incremental levels of
209	209	interest payment, repurchase of principal and interest, and
210	210	ultimate repurchase of the entire state interest in the facility
211	211	using simple interest calculations; or
212	212	(5) a combination of the methods of financing
213	213	described by Subdivisions (1)-(4).
214	214	SECTION 4. Section 15.474(a), Water Code, is amended to
215	215	read as follows:
216	216	(a) Except as provided by Subsection (c), money in the fund
217	217	may be used by the board only to provide financing or refinancing,
218	218	under terms specified by the board, for an eligible project
219	219	authorized under Chapter 1373, Government Code, or for projects
220	220	included in the state water plan that are authorized under
221	221	Subchapter C-1, Q, or R of this chapter, Subchapter E or F, Chapter
222	222	16, or Subchapter J or L, Chapter 17, including water conservation
223	223	or reuse projects designed to reduce the need for this state or
224	224	political subdivisions of this state to develop additional water
225	225	resources.
226	226	SECTION 5. Section 17.852(5), Water Code, is amended to
227	227	read as follows:
228	228	(5) "Project" includes water supply projects,
229	229	treatment works, [and] flood projects, as defined by Section 15.531
230	230	or 16.451, and eligible projects as defined by Section 1373.001,
231	231	Government Code.
232	232	SECTION 6. Section 17.957(c), Water Code, is amended to
233	233	read as follows:
234	234	(c) Money on deposit in the state participation account may
235	235	be used by the board, in the manner that the board determines
236	236	necessary for the administration of the fund, for:
237	237	(1) eligible projects, as defined by Section 1373.001,
238	238	Government Code; and
239	239	(2) projects described in Sections 16.131 and 16.146
240	240	[in the manner that the board determines necessary for the
241	241	administration of the fund].
242	242	SECTION 7. This Act takes effect September 1, 2025.