BILL ANALYSIS H.B. 365 By: Gonzlez, Mary Natural Resources Committee Report (Unamended) BACKGROUND AND PURPOSE The Texas Water Development Board (TWDB) administers the economically distressed areas program to finance projects, through a combination of grants and loans, extending water supply or sewer service to certain areas lacking those services or the financial resources to otherwise obtain them. The aggregate grant amount authorized to be issued under the program was lowered by the enactment of S.B. 2452 during the 86th Legislative Session from 90 percent of the total principal amount of issued and unissued bonds to 70 percent of that amount. Constituents and elected officials from El Paso County, the City of El Paso, and area water districts have requested that the cap on such grant assistance return to the original level to reincentivize the construction of more water supply and sewer projects. H.B. 365 seeks to do so by raising the cap on the aggregate amount of financial assistance provided by the TWDB under the program. CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 365 amends the Water Code to raise the cap on the total amount of financial assistance that the Texas Water Development Board may provide to political subdivisions under the economically distressed areas program from state-issued bonds for which repayment is not required from 70 percent of the total principal amount of issued and unissued bonds authorized for the purpose under the Texas Constitution plus outstanding interest on those bonds to 90 percent of that principal amount plus the interest. EFFECTIVE DATE September 1, 2025.
BILL ANALYSIS
# BILL ANALYSIS
H.B. 365
By: Gonzlez, Mary
Natural Resources
Committee Report (Unamended)
H.B. 365
By: Gonzlez, Mary
Natural Resources
Committee Report (Unamended)
BACKGROUND AND PURPOSE The Texas Water Development Board (TWDB) administers the economically distressed areas program to finance projects, through a combination of grants and loans, extending water supply or sewer service to certain areas lacking those services or the financial resources to otherwise obtain them. The aggregate grant amount authorized to be issued under the program was lowered by the enactment of S.B. 2452 during the 86th Legislative Session from 90 percent of the total principal amount of issued and unissued bonds to 70 percent of that amount. Constituents and elected officials from El Paso County, the City of El Paso, and area water districts have requested that the cap on such grant assistance return to the original level to reincentivize the construction of more water supply and sewer projects. H.B. 365 seeks to do so by raising the cap on the aggregate amount of financial assistance provided by the TWDB under the program.
CRIMINAL JUSTICE IMPACT It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS H.B. 365 amends the Water Code to raise the cap on the total amount of financial assistance that the Texas Water Development Board may provide to political subdivisions under the economically distressed areas program from state-issued bonds for which repayment is not required from 70 percent of the total principal amount of issued and unissued bonds authorized for the purpose under the Texas Constitution plus outstanding interest on those bonds to 90 percent of that principal amount plus the interest.
EFFECTIVE DATE September 1, 2025.
BACKGROUND AND PURPOSE
The Texas Water Development Board (TWDB) administers the economically distressed areas program to finance projects, through a combination of grants and loans, extending water supply or sewer service to certain areas lacking those services or the financial resources to otherwise obtain them. The aggregate grant amount authorized to be issued under the program was lowered by the enactment of S.B. 2452 during the 86th Legislative Session from 90 percent of the total principal amount of issued and unissued bonds to 70 percent of that amount. Constituents and elected officials from El Paso County, the City of El Paso, and area water districts have requested that the cap on such grant assistance return to the original level to reincentivize the construction of more water supply and sewer projects. H.B. 365 seeks to do so by raising the cap on the aggregate amount of financial assistance provided by the TWDB under the program.
CRIMINAL JUSTICE IMPACT
It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 365 amends the Water Code to raise the cap on the total amount of financial assistance that the Texas Water Development Board may provide to political subdivisions under the economically distressed areas program from state-issued bonds for which repayment is not required from 70 percent of the total principal amount of issued and unissued bonds authorized for the purpose under the Texas Constitution plus outstanding interest on those bonds to 90 percent of that principal amount plus the interest.
EFFECTIVE DATE
September 1, 2025.