Texas Laws - Water Code
WATER CODE
TITLE 2. WATER ADMINISTRATION

SUBTITLE C. WATER DEVELOPMENT (5993)(1-click HTML)

CHAPTER 15. TEXAS WATER ASSISTANCE PROGRAM (5994)(1-click HTML)
Sec. 15.001. DEFINITIONS. (5995)(1-click HTML)

In this chapter: (5996)

(1) "Board" means the Texas Water Development Board. (5997)

(2) "Commission" means the Texas Natural Resource Conservation Commission. (5998)

(3) "Executive administrator" means the executive administrator of the Texas Water Development Board. (5999)

(4) "Executive director" means the executive director of the Texas Natural Resource Conservation Commission. (6000)

(5) "Political subdivision" means a city, county, district or authority created under Article III, Section 52, or Article XVI, Section 59, of the Texas Constitution, any other political subdivision of the state, any interstate compact commission to which the state is a party, and any nonprofit water supply corporation created and operating under Chapter 67. (6001)

(6) "Project" means: (6002)

(A) any undertaking or work, including planning activities and work to obtain regulatory authority at the local, state, and federal level, to conserve, convey, and develop water resources in the state, to provide for the maintenance and enhancement of the quality of the water of the state, to provide nonstructural and structural flood control, drainage, subsidence control, recharge, chloride control, brush control, precipitation enhancement, and desalinization, to provide for the acquisition of water rights and the repair of unsafe dams, and to carry out other purposes defined by board rules; (6003)

(B) any undertaking or work outside the state to provide for the maintenance and enhancement of the quality of water by eliminating saline inflow through well pumping and deep well injection of brine; or (6004)

(C) any undertaking or work by Texas political subdivisions or institutions of higher education to conserve, convey, and develop water resources in areas outside Texas or to provide for the maintenance and enhancement of the quality of the water in areas adjoining Texas, if such undertaking or work will result in water being available for use in or for the benefit of Texas or will maintain and enhance the quality of water in Texas. (6005)

(7) "Fund" means the water assistance fund. (6006)

(8) "Loan fund" means the water loan assistance fund. (6007)

(9) "Conservation" means: (6008)

(A) the development of water resources; and (6009)

(B) those practices, techniques, and technologies that will reduce the consumption of water, reduce the loss or waste of water, improve the efficiency in the use of water, or increase the recycling and reuse of water so that a water supply is made available for future or alternative uses. (6010)

(10) "Federal agency" means any federal agency, including the United States Secretary of State, that may act or that is acting through the American Commissioner on the International Boundary and Water Commission, United States and Mexico. (6011)

(11) "Economically distressed area" means: (6012)

(A) an area in which water supply or sewer services are inadequate to meet minimal needs of residential users as defined by board rules and in which financial resources are inadequate to provide water supply or sewer services that will satisfy those needs; or (6013)

(B) for purposes of any federal funds for colonias deposited in the water assistance fund, an area that meets the federal criteria for use of such funds. (6014)

(12) "Nonborder colonia" means a residential community: (6015)

(A) located in an unincorporated area of a county all parts of which are at least 150 miles from the international border of this state; (6016)

(B) in which water or wastewater services are inadequate to meet minimal needs of residential users as defined by board rules; (6017)

(C) in which the average household income is less than the average household income for the county in which the community is located; and (6018)

(D) that consists of 11 or more dwellings that are located in close proximity to each other in an area that may be described as a community or neighborhood. (6019)

(13) "Regionalization" means development of a water supply or wastewater collection and treatment system that incorporates multiple service areas into an areawide service facility or any such system that serves an area that includes more than a single county, city, special district, or other political subdivision of the state. (6020)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, Sec. 1.06; Acts 1985, 69th Leg., ch. 133, Sec. 2.01; Acts 1985, 69th Leg., ch. 795, Sec. 1.038, eff. Sept. 1, 1985; Acts 1985, 69th Leg., ch. 821, Sec. 1, eff. Sept. 1, 1985; Acts 1987, 70th Leg., ch. 977, Sec. 8, eff. June 19, 1987; Acts 1989, 71st Leg., ch. 624, Sec. 2.01, eff. Sept. 1, 1989; Acts 1991, 72nd Leg., 1st C.S., ch. 3, Sec. 1.059, eff. Aug. 12, 1991; Acts 1993, 73rd Leg., ch. 844, Sec. 2, eff. Aug. 30, 1993; Acts 1997, 75th Leg., ch. 1010, Sec. 4.07, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 62, Sec. 18.54, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 966, Sec. 4.04, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1367, Sec. 11.01, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 1275, Sec. 2(141), eff. Sept. 1, 2003. (6021)

Amended by: (6022)

Acts 2007, 80th Leg., R.S., Ch. 341 (S.B. 99), Sec. 14, eff. June 15, 2007. (6023)

Sec. 15.002. PURPOSE. (6024)(1-click HTML)

(a) The legislature finds that it is in the public interest and to the benefit of the general public of the state to encourage and to assist in the planning and construction of projects to develop and conserve the storm water and floodwater as well as the ordinary flows of the rivers and streams of the state, to maintain and enhance the quality of the water of the state, to provide protection to the state's citizens from the floodwater of the rivers and streams of the state, to provide drainage, subsidence control, public beach nourishment, recharge, chloride control, brush control, weather modification, regionalization, and desalination, to provide for the management of aquatic vegetation, and other purposes as provided by law or board rule. (6025)

(b) The legislature finds that the conventional means of financing projects are inadequate to meet current and anticipated needs of the state. Therefore, it is the further intent of the legislature to provide a means of coordinating the development of projects through the board and to provide political subdivisions the maximum opportunity to finance projects through programs provided by this chapter. Projects may be in the state or outside the state, provided that out-of-state projects must be funded through a Texas political subdivision or an institution of higher education and must result in water being available for use in or for the benefit of Texas or maintain and enhance the quality of water in Texas. (6026)

(c) The legislature finds that serious health and sanitation problems face the citizens of this state from discharges of untreated and treated waste water into the Rio Grande. It is the intent of the legislature to provide a means of coordinating and financing the development of waste water treatment projects through cooperative efforts between this state, the United States, and the Republic of Mexico to improve the quality of water being discharged into the Rio Grande. (6027)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, Sec. 2.02; Acts 1989, 71st Leg., ch. 624, Sec. 2.02, eff. Sept. 1, 1989; Acts 1991, 72nd Leg., ch. 295, Sec. 41, eff. June 7, 1991; Acts 1997, 75th Leg., ch. 1010, Sec. 4.08, eff. Sept. 1, 1997; Acts 1999, 76th Leg., ch. 1461, Sec. 3, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 966, Sec. 4.05, eff. Sept. 1, 2001. (6028)

Sec. 15.003. POWER TO DEFINE PURPOSES. (6029)(1-click HTML)

The board, by rule, may define in greater detail the purposes enumerated in Section 15.002. (6030)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6031)

Sec. 15.004. TRANSBASIN DIVERSION. (6032)(1-click HTML)

Money on deposit in a fund created under Article III, Section 49-d-3, of the Texas Constitution shall not be used to finance or in aid of any project under this chapter that contemplates or results in the removal from the basin of origin of any surface water necessary to supply the reasonably foreseeable future water requirements for the next ensuing 50-year period within the river basin of origin, except on a temporary, interim basis. (6033)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, Sec. 2.03. (6034)

Sec. 15.005. CONSIDERATION OF CERTAIN APPLICATIONS. (6035)(1-click HTML)

(a) On submission of a project application under this chapter, the executive administrator shall determine if the application includes a project that will have flood control as one of its purposes and if the political subdivision submitting the application includes all of the watershed in which the project is to be located. (6036)

(b) If the executive administrator finds that the application includes a project that has flood control as one of its purposes and that the watershed in which the project is located is partially located outside the political subdivision making the application, the executive administrator shall require the applicant to submit a written memorandum of understanding relating to the management of the watershed in which the project is to be located. (6037)

(c) The memorandum of understanding must be approved by all governing bodies of political subdivisions located in the watershed in which the project is to be located and must be signed by the presiding officers of each of those political subdivisions. (6038)

(d) The board shall not consider any application for which a memorandum of understanding must be filed under this section until that memorandum of understanding is filed with the executive administrator. (6039)

(e) The board shall adopt rules for carrying out this section. (6040)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.039, eff. Sept. 1, 1985; Acts 2003, 78th Leg., ch. 1057, Sec. 2, eff. June 20, 2003. (6041)

Sec. 15.006. OPEN MEETINGS AND OPEN RECORDS LAWS. (6042)(1-click HTML)

Nonprofit water supply corporations which receive any assistance under this chapter are subject to Chapter 551, Government Code, and to Chapter 552, Government Code. (6043)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.18. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(78), (90), eff. Sept. 1, 1995. (6044)

Sec. 15.007. CONSIDERATIONS FOR CERTAIN FINANCIAL ASSISTANCE. (6045)(1-click HTML)

(a) If financial assistance is provided under Subchapter C or J of this chapter, any waste treatment facility to be financed under the application must consider cost-effective methods of treatment such as rock reed, root zone, ponding, irrigation, or other nonconventional methods that may have been developed by the National Aeronautics and Space Administration or the Tennessee Valley Authority. (6046)

(b) Before granting an application for financial assistance under Subchapter C or J of this chapter, the board must find that any waste treatment facility to be financed under the application will consider cost-effective innovative methods of treatment such as rock reed, root zone, ponding, irrigation, or other nonconventional methods that may have been developed by the National Aeronautics and Space Administration or the Tennessee Valley Authority. (6047)

Added by Acts 1989, 71st Leg., ch. 624, Sec. 2.03, eff. Sept. 1, 1989. (6048)

Sec. 15.008. GRANT STANDARDS. (6049)(1-click HTML)

The law regarding uniform grants and contract management, Chapter 783, Government Code, does not apply to a contract under Subchapter F, H, K, or P, or to a contract relating to an economically distressed area or nonborder colonia under Subchapter C. (6050)

Added by Acts 1991, 72nd Leg., ch. 422, Sec. 4, eff. Sept. 1, 1991. Amended by Acts 2001, 77th Leg., ch. 1234, Sec. 13, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1367, Sec. 11.02, eff. Sept. 1, 2001. (6051)

SUBCHAPTER B. WATER ASSISTANCE FUND (6052)(1-click HTML)
Sec. 15.011. WATER ASSISTANCE FUND. (6053)(1-click HTML)

(a) The water assistance fund is created and shall be administered by the board under this chapter and rules adopted by the board. (6054)

(b) After notice and hearing and subject to any limitations established by the General Appropriations Act, the board may transfer money from the fund to the loan fund created under Subchapter C, the storage acquisition fund created under Subchapter E, the research and planning fund created under Subchapter F, the hydrographic survey account created under Subchapter M, provided the hydrographic survey account transfer does not exceed $425,000, the aquatic vegetation management fund created under Subchapter N, the rural community water and wastewater loan fund created under Subchapter O, the colonia self-help account created under Subchapter P, and the rural water assistance fund created under Subchapter R. (6055)

(c) The board may transfer money in the fund to the water bank account to be used by the board for administration and operation of the Texas Water Bank. (6056)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1990, 71st Leg., 5th C.S., ch. 3, Sec. 2, eff. June 14, 1990; Acts 1991, 72nd Leg., 1st C.S., ch. 3, Sec. 1.060, eff. Aug. 12, 1991; Acts 1991, 72nd Leg., 1st C.S., ch. 4, Sec. 10.07, eff. Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 477, Sec. 2, eff. Aug. 30, 1993; Acts 1993, 73rd Leg., ch. 647, Sec. 3, eff. Aug. 30, 1993; Acts 1999, 76th Leg., ch. 1461, Sec. 4, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 966, Sec. 4.06, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1234, Sec. 14, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 1276, Sec. 18.002, eff. Sept. 1, 2003. (6057)

Sec. 15.012. MANAGEMENT OF FUND. (6058)(1-click HTML)

(a) The board may invest, reinvest, and direct the investment of money accumulated in the fund. (6059)

(b) Money appropriated by the legislature to the fund shall be deposited in this fund. Gifts or grants from the United States government, local or regional governments, private sources, or other sources may be deposited in this fund. (6060)

(c) Money appropriated to the fund by the legislature for a specific purpose stated in Subchapter C, E, F, M, N, O, or P of this chapter shall be placed in the appropriate fund or account created by that subchapter. (6061)

(d) The money held in the fund may be invested as provided by law for investment of money under Section 404.024, Government Code. (6062)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1990, 71st Leg., 5th C.S., ch. 3, Sec. 3, eff. June 14, 1990; Acts 1991, 72nd Leg., 1st C.S., ch. 3, Sec. 1.061, eff. Aug. 12, 1991; Acts 1991, 72nd Leg., 1st C.S., ch. 4, Sec. 10.08, eff. Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 477, Sec. 3, eff. Aug. 30, 1993; Acts 1993, 73rd Leg., ch. 844, Sec. 3, eff. Aug. 30, 1993; Acts 1999, 76th Leg., ch. 1461, Sec. 5, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1234, Sec. 15, eff. Sept. 1, 2001. (6063)

SUBCHAPTER C. WATER LOAN ASSISTANCE PROGRAM (6064)(1-click HTML)
Sec. 15.101. WATER LOAN ASSISTANCE FUND. (6065)(1-click HTML)

(a) The water loan assistance fund is created, to be funded by direct appropriation and by the board at its discretion from the fund. (6066)

(b) Repayments of loans shall be deposited in the water assistance fund. (6067)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, Sec. 2.04. (6068)

Sec. 15.102. FINANCIAL ASSISTANCE. (6069)(1-click HTML)

(a) The loan fund may be used by the board to provide loans of financial assistance to political subdivisions, federal agencies, or both political subdivisions and federal agencies acting jointly for the construction, acquisition, improvement, or enlargement of projects involving water conservation, water development, or water quality enhancement, providing nonstructural and structural flood control, or drainage, project recreation lands and revenue-generating recreational improvements within any watershed, or providing recharge, chloride control, subsidence control, brush control, weather modification, regionalization, or desalination as provided by legislative appropriations, this chapter, and the board rules. (6070)

(b) The loan fund may also be used by the board to provide: (6071)

(1) grants or loans for projects that include supplying water and wastewater services in economically distressed areas or nonborder colonias as provided by legislative appropriations, this chapter, and board rules, including projects involving retail distribution of those services; and (6072)

(2) grants for: (6073)

(A) projects for which federal grant funds are placed in the loan fund; (6074)

(B) projects, on specific legislative appropriation for those projects; or (6075)

(C) water conservation, desalination, brush control, weather modification, regionalization, and projects providing regional water quality enhancement services as defined by board rule, including regional conveyance systems. (6076)

(c) A political subdivision may enter into an agreement with a federal agency to submit a joint application for financial assistance under this subchapter. Before the board may grant financial assistance under a joint application, the board must find that the project is designed to produce effluent that will meet federal and state approved water quality standards. (6077)

(d) A grant or loan of financial assistance under a joint application by the federal government and a political subdivision may be made only for a project that is covered by an international contract or treaty to which the United States government is a party, and a grant or loan made under such a joint application is subject to the provisions, terms, and conditions of the international contract or treaty to which the United States government is a party. (6078)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, Sec. 2.04; Acts 1987, 70th Leg., ch. 977, Sec. 9, eff. June 19, 1987; Acts 1987, 70th Leg., ch. 1103, Sec. 2, eff. Sept. 1, 1987; Acts 1989, 71st Leg., ch. 624, Sec. 2.04, eff. Sept. 1, 1989; Acts 2001, 77th Leg., ch. 966, Sec. 4.07, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1234, Sec. 16, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1367, Sec. 11.03, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 1276, Sec. 18.003, eff. Sept. 1, 2003. (6079)

Amended by: (6080)

Acts 2007, 80th Leg., R.S., Ch. 1352 (H.B. 4), Sec. 7, eff. June 15, 2007. (6081)

Acts 2007, 80th Leg., R.S., Ch. 1430 (S.B. 3), Sec. 2.10, eff. September 1, 2007. (6082)

Sec. 15.103. APPLICATION FOR ASSISTANCE. (6083)(1-click HTML)

(a) In an application to the board for financial assistance from the loan fund, the applicant shall include: (6084)

(1) the name of each political subdivision or federal agency and its principal officers; (6085)

(2) a citation of the law under which each political subdivision or federal agency operates and was created; (6086)

(3) the total cost of the project; (6087)

(4) the amount of state financial assistance requested; (6088)

(5) the plan for repaying the total cost of the project; and (6089)

(6) any other information the board requires in order to perform its duties and to protect the public interest. (6090)

(b) The board may not accept an application for a loan or grant of financial assistance from the loan fund unless it is submitted in affidavit form by the officials of the political subdivision or the chief administrator of the federal agency or both these officers and the chief administrator under a joint application. The board shall prescribe the affidavit form in its rules. (6091)

(c) The rules shall not restrict or prohibit the board from requiring additional factual material from an applicant. (6092)

(d) If an applicant has a program of water conservation, he shall state in his application that he has such a program and shall describe that program in the manner required by board rules. (6093)

(e) If the applicant claims an exemption under Subsection (c), Section 15.106 of this code, he shall state the exemption in his application and provide information relating to the exemption as required by board rules. (6094)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, Sec. 1.05, 2.04; Acts 1987, 70th Leg., ch. 977, Sec. 9, eff. June 19, 1987; Acts 1987, 70th Leg., ch. 1103, Sec. 3, eff. Sept. 1, 1987; Acts 1989, 71st Leg., ch. 624, Sec. 2.05, eff. Sept. 1, 1989. (6095)

Sec. 15.104. FINDINGS REGARDING PERMITS. (6096)(1-click HTML)

(a) The board shall not release funds for the construction of that portion of a project that proposes surface water or groundwater development until the executive administrator makes a written finding: (6097)

(1) that an applicant proposing surface-water development has the necessary water right authorizing it to appropriate and use the water that the project will provide; or (6098)

(2) that an applicant proposing groundwater development has the right to use water that the project will provide. (6099)

(b) The board may release funds for the costs of planning, engineering, architectural, legal, title, fiscal, or economic investigation, studies, surveys, or designs before making the finding required under Subsection (a) if the executive administrator determines that a reasonable expectation exists that the finding will be made before the release of funds for construction. (6100)

(c) If an applicant includes a proposal for a waste water treatment plant, the board may not deliver funds for the waste water treatment plant until the applicant has received a permit for construction and operation of the waste water treatment plant and approval of the plans and specifications from the commission. If the applicant proposes a waste water treatment plant that is located outside of the jurisdiction of this state and that is not subject to the permitting authority of the commission, the board must review the plans and specifications in coordination with the commission and find that the waste water treatment plant is capable of producing effluent that will meet federal and state-approved water quality standards. (6101)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, Sec. 2.04; Acts 1985, 69th Leg., ch. 795, Sec. 1.040, eff. Sept. 1, 1985; Acts 1987, 70th Leg., ch. 246, Sec. 1, eff. Aug. 31, 1987; Acts 1987, 70th Leg., ch. 1103, Sec. 4, eff. Sept. 1, 1987; Acts 1989, 71st Leg., ch. 624, Sec. 2.06, eff. Sept. 1, 1989; Acts 2001, 77th Leg., ch. 1234, Sec. 17, eff. Sept. 1, 2001. (6102)

Sec. 15.105. CONSIDERATIONS IN PASSING ON APPLICATION. (6103)(1-click HTML)

(a) In passing on an application for financial assistance from the loan fund, the board shall consider but is not limited to: (6104)

(1) the needs of the area to be served by the project and the benefit of the project to the area in relation to the needs of other areas requiring state assistance in any manner and the benefits of those projects to the other areas; (6105)

(2) the availability of revenue to the applicant from all sources for the ultimate repayment of the cost of the project, including all interest; (6106)

(3) the relationship of the project to overall statewide needs; (6107)

(4) the ability of the applicant to finance the project without state assistance; (6108)

(5) for applications for grants or loans for economically distressed areas or nonborder colonias, the regulatory efforts by the county in which the project is located to control the construction of subdivisions that lack basic utility services; and (6109)

(6) for applications for grants under Section 15.102(b)(2), the ability of the applicant to construct the project without the grant and the benefits of the project to water and wastewater needs of the state. (6110)

(b) The board by rule shall further define eligibility for grants under this subchapter. (6111)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, Sec. 2.04; Acts 1987, 70th Leg., ch. 1103, Sec. 5, eff. Sept. 1, 1987; Acts 1989, 71st Leg., ch. 624, Sec. 2.07, eff. Sept. 1, 1989; Acts 2001, 77th Leg., ch. 966, Sec. 4.08, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1367, Sec. 11.04, eff. Sept. 1, 2001. (6112)

Sec. 15.106. APPROVAL OF APPLICATION. (6113)(1-click HTML)

(a) The board, by resolution, may approve an application for financial assistance if after considering the factors listed in Section 15.105 of this code and any other relevant factors, the board finds: (6114)

(1) that the public interest requires state participation in the project; and (6115)

(2) that in its opinion the revenue or taxes pledged by the political subdivision will be sufficient to meet all the obligations assumed by the political subdivision. (6116)

(b) Before the board grants the application or provides any financial assistance under an application, it shall require an applicant to adopt or to have already implemented a program of water conservation for the more efficient use of water that incorporates the practices, techniques, or technology prescribed by Subdivision (9)(B), Section 15.001, of this code and that the board determines will meet reasonably anticipated local needs and conditions. The program may include but is not limited to any or all of the following: (6117)

(1) restrictions on discretionary water uses, such as lawn watering; (6118)

(2) plumbing code standards for water conservation in new building construction; (6119)

(3) retrofit programs to improve water-use efficiency in existing buildings; (6120)

(4) educational programs; (6121)

(5) universal metering; (6122)

(6) conservation-oriented water rate structures; (6123)

(7) drought contingency plans; and (6124)

(8) distribution system leak detection and repair. (6125)

(b-1) Beginning May 1, 2005, all water conservation plans required under this section must include specific, quantified 5-year and 10-year targets for water savings. The entity preparing the plan shall establish the targets. Targets must include goals for water loss programs and goals for municipal use in gallons per capita per day. (6126)

(c) The board may not require a program of water conservation to be adopted under Subsection (b) of this section if: (6127)

(1) an emergency exists as determined by the board; (6128)

(2) the amount of financial assistance to be provided is $500,000 or less; (6129)

(3) the applicant demonstrates and the board finds that the submission of such a program is not reasonably necessary to facilitate conservation or conservation measures; or (6130)

(4) the project consists of construction outside the jurisdiction of the State of Texas. (6131)

(d) To the extent funds are available, the board shall establish an educational and technical assistance program to assist political subdivisions in developing comprehensive water conservation plans required by this section and other sections of this code. (6132)

(e) If the political subdivision will utilize the project to furnish water or services to another political subdivision that in turn will furnish the water or services to the ultimate consumer, the requirements of the board relative to water conservation can be met through contractual agreements between the political subdivisions providing for establishment of a water conservation plan and other necessary measures. (6133)

(f) Rules adopted under this section must state the criteria for preparation, review, and enforcement of an applicant's conservation program. (6134)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, Sec. 1.07; Acts 1987, 70th Leg., ch. 977, Sec. 10, eff. June 19, 1987; Acts 1989, 71st Leg., ch. 624, Sec. 2.08, eff. Sept. 1, 1989; Acts 2001, 77th Leg., ch. 966, Sec. 4.09, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 688, Sec. 2, eff. June 20, 2003. (6135)

Sec. 15.107. METHOD OF MAKING FINANCIAL ASSISTANCE AVAILABLE. (6136)(1-click HTML)

(a) The board may make financial assistance available to successful applicants in any manner that it considers economically feasible including: (6137)

(1) contracts or agreements with a political subdivision for the payment of the principal of or interest on or both the principal of and interest on bonds or other obligations issued or to be issued by the political subdivision; (6138)

(2) contracts or agreements with a political subdivision for the purpose of providing the political subdivision's share of any cost-sharing required as a participant in or local sponsor of any federal project; (6139)

(3) purchase of the bonds or other obligations of a political subdivision for the purpose of completely or partially financing the project for which the application is being submitted; or (6140)

(4) contracts or agreements for the receipt of funds and performance of obligations in relation to any grant of funds provided by the board. (6141)

(b) Contracts or agreements entered into under Subdivision (1) of Subsection (a) of this section may cover all or any part of the debt service requirements in a given year and may cover debt service requirements in as many years of an issue as the board considers appropriate. (6142)

(c) In a determination on a loan for financial assistance, the board may approve interest deferral or the capitalization of interest costs and may approve periods of repayment for the loans of up to 50 years. (6143)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, Sec. 2.04; Acts 1987, 70th Leg., ch. 1103, Sec. 6, eff. Sept. 1, 1987; Acts 2001, 77th Leg., ch. 966, Sec. 4.10, eff. Sept. 1, 2001. (6144)

Sec. 15.1071. SALE OF POLITICAL SUBDIVISION BONDS TO TEXAS WATER RESOURCES FINANCE AUTHORITY. (6145)(1-click HTML)

(a) Notwithstanding any other provision of this chapter, the board may sell to the Texas Water Resources Finance Authority any political subdivision bonds purchased with money in the water loan assistance fund and may apply the proceeds of a sale in the manner provided by this section. (6146)

(b) The board shall sell the political subdivision bonds at the price and under the terms that it determines to be reasonable. (6147)

(c) The board may sell political subdivision bonds to the Texas Water Resources Finance Authority without making a previous offer to the political subdivisions and without advertising, soliciting, or receiving bids for the sale. (6148)

(d) The board may enter into a contract with the Texas Water Resources Finance Authority to sell to the authority political subdivision bonds that are not owned by the board. For bonds sold under this subsection, the contract may provide that the board will receive from the authority the sales price for the political subdivision bonds in exchange for the board's agreement to transfer to the authority political subdivision bonds subsequently acquired by the board and to pay to the authority from the investment income received on the water assistance fund or the water loan assistance fund any amounts considered appropriate including without limitation an amount equal to the proportionate share of that investment income attributable to the money used to purchase the political subdivision bonds. (6149)

(e) Proceeds from the sale of bonds under this section shall be deposited in the water assistance fund and used for the purposes and in the manner provided by law. (6150)

(f) As part of a sales agreement with the Texas Water Resources Finance Authority, the board by contract may agree to perform the functions required to ensure that the political subdivisions pay the debt service on political subdivision bonds sold and observe the conditions and requirements stated in those bonds. (6151)

(g) The board may exercise any powers necessary to carry out the authority granted by this section including the authority to contract with any person to accomplish the purposes of this section. (6152)

Added by Acts 1987, 70th Leg., ch. 728, Sec. 3, eff. June 20, 1987. (6153)

Sec. 15.108. RECOMMENDATIONS FOR FUNDING BY LEGISLATURE. (6154)(1-click HTML)

(a) If money is not available in the fund to provide money for projects approved under this subchapter, the board shall prepare and submit with its biennial budget request to the Legislative Budget Board and to the presiding officers of each house of the legislature a list of all projects approved by the board under this subchapter. (6155)

(b) The list of projects submitted to the Legislative Budget Board and to the presiding officers of each house of the legislature shall include relevant information relating to each project and recommendations relating to the terms under which loans of financial assistance should be made to each applicant and projected amounts of money that will be required each biennium to fund each project to its completion. (6156)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.04. (6157)

Sec. 15.109. DELIVERY OF LOANS OF FINANCIAL ASSISTANCE. (6158)(1-click HTML)

(a) As money becomes available in the loan fund, the board shall deliver the funds under the approved applications. (6159)

(b) The board shall deliver money in the fund that is provided by legislative appropriation in the manner provided by and subject to the restrictions of the legislative appropriation. (6160)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.04. (6161)

Sec. 15.110. REQUIREMENTS FOR POLITICAL SUBDIVISIONS AND FEDERAL AGENCIES. (6162)(1-click HTML)

(a) Subject only to constitutional limitations, all contracting political subdivisions may issue and execute those bonds, notes, or other obligations necessary to conform to and comply with repayment obligations adopted by the board. (6163)

(b) Loans of financial assistance under this subchapter shall be repaid to the board, and the payments made to the board for these loans of financial assistance shall be made in compliance with terms and conditions established by the board. (6164)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, Sec. 2.04; Acts 1989, 71st Leg., ch. 624, Sec. 2.09, 2.10, eff. Sept. 1, 1989. (6165)

Sec. 15.111. APPROVAL AND REGISTRATION. (6166)(1-click HTML)

The board shall not contract for the payment of the principal of or interest on or both the principal of and interest on any bonds or other obligations that have not been approved by the attorney general and registered by the comptroller. (6167)

Formerly Sec. 15.108, added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Renumbered by Acts 1985, 69th Leg., ch. 133, Sec. 2.04. (6168)

Sec. 15.112. CONTRACTS INCONTESTABLE. (6169)(1-click HTML)

Contracts entered into by the board for the payment of the principal of or interest on or both the principal of and interest on bonds or other obligations issued by a political subdivision are valid, binding, and incontestable after: (6170)

(1) approval of the bonds or other obligations by the attorney general; (6171)

(2) registration of the bonds or other obligations by the comptroller; and (6172)

(3) purchase by and delivery of the bonds or other obligations to the purchaser. (6173)

Formerly Sec. 15.109, added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Renumbered by Acts 1985, 69th Leg., ch. 133, Sec. 2.04. (6174)

Sec. 15.113. INSPECTION OF PROJECTS. (6175)(1-click HTML)

(a) The board may inspect the construction of a project any time to assure that: (6176)

(1) the contractor is substantially complying with the approved engineering plans of the project; and (6177)

(2) the contractor is constructing the project in accordance with sound engineering principles. (6178)

(b) Inspection of a project by the board does not subject the state to any civil liability. (6179)

Formerly Sec. 15.110, added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.040, eff. Sept. 1, 1985. Renumbered by Acts 1985, 69th Leg., ch. 133, Sec. 2.04. Amended by Acts 1987, 70th Leg., ch. 977, Sec. 11, eff. June 19, 1987. (6180)

Sec. 15.114. ALTERATION OF PLANS. (6181)(1-click HTML)

After approval of engineering plans, a political subdivision or federal agency shall not make any substantial or material alteration in the plans unless the executive administrator authorizes the alteration. For a waste water treatment plant or other facility required to have commission approval of plans and specifications, the commission must give its approval before a substantial or material alteration is made in those plans. (6182)

Formerly Sec. 15.111, added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.040, eff. Sept. 1, 1985. Renumbered by Acts 1985, 69th Leg., ch. 133, Sec. 2.04. Amended by Acts 1987, 70th Leg., ch. 977, Sec. 12, eff. June 19, 1987; Acts 1989, 71st Leg., ch. 624, Sec. 2.11, eff. Sept. 1, 1989. (6183)

Sec. 15.115. CERTIFICATE OF APPROVAL. (6184)(1-click HTML)

The executive administrator may consider the following as grounds for refusal to give a certificate of approval for any construction contract: (6185)

(1) failure to construct the project according to the approved plans; (6186)

(2) failure to construct the works in accordance with sound engineering principles; or (6187)

(3) failure to comply with any terms of the contract. (6188)

Formerly Sec. 15.112, added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.040, eff. Sept. 1, 1985. Renumbered by Acts 1985, 69th Leg., ch. 133, Sec. 2.04. Amended by Acts 1987, 70th Leg., ch. 977, Sec. 12, eff. June 19, 1987. (6189)

Sec. 15.116. SALE OF BONDS BY THE BOARD. (6190)(1-click HTML)

The board may sell or dispose of bonds or other obligations purchased with money in the water loan assistance fund. (6191)

Added by Acts 1987, 70th Leg., ch. 1103, Sec. 7, eff. Sept. 1, 1987. (6192)

SUBCHAPTER D. WATER BOND INSURANCE PROGRAM (6193)(1-click HTML)
Sec. 15.201. DEFINITIONS. (6194)(1-click HTML)

(a) In this subchapter: (6195)

(1) "Program" means the water bond insurance program. (6196)

(2) "Bonds" means bonds or other obligations of a political subdivision or water supply corporation issued to provide funds for a project defined in Subsection (b) of this section. (6197)

(3) "Insured bonds" means bonds or other obligations insured by the state under this subchapter. (6198)

(4) "Issuer" means a political subdivision or water supply corporation issuing bonds or other obligations eligible to be insured under the program. (6199)

(5) "Water supply corporation" means a nonprofit water supply corporation created and operating under Chapter 67. (6200)

(b) Notwithstanding the definition in Subdivision (6), Section 15.001, of this code, in this subchapter, "project" means any undertaking or work to conserve, convey, and develop surface or subsurface water resources of the state, to provide for the maintenance and enhancement of the quality of the water of the state, to provide for flood control and drainage, to provide recharge or chloride control, or to provide for desalinization, and to carry out other purposes defined by board rules. (6201)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. Amended by Acts 1991, 72nd Leg., ch. 516, Sec. 2, eff. Sept. 1, 1991; Acts 1999, 76th Leg., ch. 62, Sec. 18.55, eff. Sept. 1, 1999. (6202)

Sec. 15.202. CREATION AND ADMINISTRATION OF PROGRAM. (6203)(1-click HTML)

(a) The water bond insurance program is created pursuant to Article III, Section 49-d-4, of the Texas Constitution to insure to holders of insured bonds that in the event of default or impending default the state will pay, to the extent authorized by this subchapter, the principal of or interest on or both principal of and interest on the bonds. (6204)

(b) The board shall administer the program in the manner provided by this subchapter and by rules of the board. (6205)

(c) The legislature, in accordance with authorization provided by Article III, Section 49-d-4, of the Texas Constitution, authorizes the existence of the program to continue beyond the expiration date of the program provided by Subsection (g) of that section. (6206)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. Amended by Acts 1991, 72nd Leg., ch. 52, Sec. 2, eff. May 1, 1991. (6207)

Sec. 15.203. ELIGIBLE BONDS. (6208)(1-click HTML)

(a) Only revenue, general obligation, tax, or combination bonds issued by a political subdivision or a water supply corporation for a project qualifying for assistance under this subchapter and board rules are eligible to be insured under the program. (6209)

(b) Bonds issued for a term longer than 50 years are not eligible to be insured under the program. (6210)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. (6211)

Sec. 15.204. RULES. (6212)(1-click HTML)

The board shall adopt necessary rules to carry out this subchapter. (6213)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. (6214)

Sec. 15.205. INSURANCE. (6215)(1-click HTML)

The board may pledge the general credit of the state, to the extent authorized by Article III, Section 49-d-4, of the Texas Constitution, to insure the payment of the principal of or interest on or both the principal of and interest on eligible bonds issued by an issuer in the event of default or impending default of the insured bonds. (6216)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. (6217)

Sec. 15.206. APPLICATION FOR INSURANCE. (6218)(1-click HTML)

(a) An issuer may apply in writing to the board for the insurance of its bonds. (6219)

(b) The application must include the following information: (6220)

(1) the name of the issuer; (6221)

(2) citations of the laws under which the issuer is created and operates and under which the bonds to be insured are to be issued; (6222)

(3) the total amount of bonds for which insurance coverage is sought and the anticipated interest rate on the bonds; (6223)

(4) the term for which the bonds are to be issued; (6224)

(5) the purpose or purposes for which the bonds are to be issued; (6225)

(6) financial information relating to the issuance of the bonds and to the financial stability and future of the issuer; and (6226)

(7) any other information the board requires by its rules or otherwise considers necessary in making a determination of the application. (6227)

(c) The board by rule shall prescribe the form and procedure for submitting and processing an application. (6228)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. (6229)

Sec. 15.207. CONSIDERATIONS IN PASSING ON APPLICATION. (6230)(1-click HTML)

In addition to criteria established in its rules, the board in passing on an application shall consider: (6231)

(1) the purpose or purposes for which the issuer is issuing the bonds; (6232)

(2) the financial ability of the issuer to meet its obligations under the bonds; (6233)

(3) the risk to the State of Texas in insuring the bonds and the ability of the state to pay the insurance coverage; and (6234)

(4) the needs of the area to be served by the project and the benefit of the project to the area in relation to the needs of other areas requiring similar state assistance and the benefits of those projects to other areas. (6235)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. (6236)

Sec. 15.208. APPROVAL OF APPLICATION. (6237)(1-click HTML)

(a) After notice and hearing, the board by resolution may approve an application if, after considering the information in the application and presented at the hearing, criteria established by this subchapter, and the rules and other relevant factors, the board finds: (6238)

(1) that the bonds are being issued to finance a project that serves the public interest; (6239)

(2) that there is strong evidence and a high degree of certainty that the issuer will be able to meet its obligations under the bonds; and (6240)

(3) that an applicant proposing surface water development has the necessary water right authorizing it to appropriate and use the water which the project will provide. (6241)

(b) If the board finds that an applicant is not using water efficiently, the board may require the applicant to develop a conservation program to provide for more efficient use of water. (6242)

(c) The board may establish an educational and technical assistance program to assist political subdivisions in developing comprehensive water conservation programs required by this section and other sections of this code. (6243)

(d) If the issuer plans to utilize the project to furnish water or services to a political subdivision that in turn plans to furnish the water or services to the ultimate consumer, the requirements of the board relative to water conservation can be met through contractual agreements between the issuer and the political subdivision providing for establishment of a water conservation program and other necessary measures. (6244)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. (6245)

Sec. 15.209. CONTRACTS, AGREEMENTS, AND OTHER DOCUMENTS. (6246)(1-click HTML)

(a) On approval of an application, the board shall enter into a contract with the issuer for the insurance of the bonds on terms and conditions agreed to by the parties. The terms and conditions must comply with this subchapter and rules adopted by the board. (6247)

(b) The insurance contract shall include: (6248)

(1) the extent of the insurance coverage; (6249)

(2) the terms and conditions of the insurance coverage; (6250)

(3) rights in addition to those provided by law reserved by the board against the issuer in the event the board must pay all or part of the insurance coverage; and (6251)

(4) any other provision required in order to be in compliance with the board's rules. (6252)

(c) The board shall execute any other documents necessary to legally bind the state to insure payment to the bondholders on default or impending default. (6253)

(d) For the insurance coverage of bonds to be effective, it must be approved by the attorney general as to the legality of the insurance coverage. Documents relating to the insurance of the bonds shall be submitted to the attorney general for approval at the same time as the bonds and records relating to the issuance of the bonds are submitted for approval. The bonds issued by a political subdivision or water supply corporation and the insurance coverage approved by the board are valid, binding, and incontestable after: (6254)

(1) approval by the attorney general; (6255)

(2) registration by the comptroller; and (6256)

(3) payment by and delivery to the buyer. (6257)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. (6258)

Sec. 15.210. LIMITATION ON INSURANCE COVERAGE. (6259)(1-click HTML)

(a) Except as provided by Subsection (c) of this section, the total principal balance of all insurance coverage issued by the board and outstanding may not exceed the dollar amount that equals two times the maximum amount of money that the state is authorized to pay under the program by the constitution. (6260)

(b) The board may not approve insurance coverage in any state fiscal year that exceeds a total of $100 million for all applicants. (6261)

(c) The legislature, by a two-thirds vote of each house, may change the limitations provided by Subsections (a) and (b) of this section. (6262)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. (6263)

Sec. 15.211. INSURANCE FEES. (6264)(1-click HTML)

(a) The board shall adopt a schedule of fees to be charged an issuer for insurance coverage provided under this subchapter. (6265)

(b) Fees charged by the board under this section shall be calculated to provide a reasonable reserve against defaults and impending defaults. (6266)

(c) Fees collected under this section shall be deposited in a special reserve fund created in the state treasury for the purpose of paying amounts on default or impending default of any bonds without resorting to the general credit of the state. The board may invest any money credited to the reserve fund in investments authorized by law for state deposits. (6267)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. Amended by Acts 1987, 70th Leg., ch. 1103, Sec. 8, eff. Sept. 1, 1987; Acts 1989, 71st Leg., ch. 308, Sec. 1, eff. June 14, 1989. (6268)

Sec. 15.212. PAYMENT BY STATE. (6269)(1-click HTML)

(a) On receipt by the executive administrator from the paying agent for any insured bond of a written notice by registered or certified mail that a payment on the bond is due but has not been made to the paying agent by the issuer and that the issuer's reserves are insufficient to cover the payment, the executive administrator shall have a deposit of funds made with the paying agent sufficient to cover the payment due on the bond less any amount already held by the paying agent to pay the principal of and interest on the bond. (6270)

(b) On transfer of the payment to the paying agent under Subsection (a) of this section and on receipt of the uncanceled bond or coupon, the state becomes the owner of the bond or coupon and is subrogated to the rights of the bondholder with respect to the amount paid by the state. (6271)

(c) After making payment on the bonds under Subsection (a) of this section, the board shall attempt to collect from the issuer the amount paid by the state. The board may enter into agreements for the issuer to pay those claims, may enforce any provisions of the bonds relating to actions that may be taken by bondholders on default, or may sue the issuer to collect amounts paid by the state. The attorney general, at the request of the board, shall take all necessary legal action to assist the board in carrying out this subsection. (6272)

(d) Money collected under Subsection (c) of this section shall be deposited in the special reserve fund up to the amount used from that fund to pay the defaulted bonds. Any remaining money collected and not deposited in that fund shall be deposited in the general revenue fund. (6273)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. Amended by Acts 1987, 70th Leg., ch. 977, Sec. 13, eff. June 19, 1987. (6274)

Sec. 15.213. REFUNDING BONDS. (6275)(1-click HTML)

Without the express written consent of the board, insurance provided by the board under this subchapter shall not extend to refunding bonds issued to replace bonds that have been insured by the board. The board may give its consent under procedures provided by its rules. (6276)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. (6277)

Sec. 15.214. INSPECTION OF PROJECTS. (6278)(1-click HTML)

(a) The board may inspect at any time the construction of a project being constructed with proceeds of revenue bonds insured by the board to assure that: (6279)

(1) the contractor is substantially complying with the approved engineering plans of the project; and (6280)

(2) the contractor is constructing the project in accordance with sound engineering principles. (6281)

(b) Inspection of a project by the board does not subject the state to any civil liability. (6282)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. Amended by Acts 1987, 70th Leg., ch. 977, Sec. 14, eff. June 19, 1987. (6283)

Sec. 15.215. ALTERATION OF PLANS. (6284)(1-click HTML)

After approval of engineering plans, a political subdivision or water supply corporation may not make any substantial or material alteration in the plans unless the executive administrator authorizes the alteration. (6285)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. Amended by Acts 1987, 70th Leg., ch. 977, Sec. 14, eff. June 19, 1987. (6286)

Sec. 15.216. CERTIFICATE OF APPROVAL. (6287)(1-click HTML)

The board may consider the following as grounds for refusal to give a certificate of approval for any construction contract: (6288)

(1) failure to construct the project according to approved plans; (6289)

(2) failure to construct the project in accordance with sound engineering principles; or (6290)

(3) failure to comply with any terms of the contract. (6291)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. Amended by Acts 1987, 70th Leg., ch. 977, Sec. 14, eff. June 19, 1987. (6292)

Sec. 15.217. OPEN RECORDS AND OPEN MEETINGS LAWS. (6293)(1-click HTML)

Water supply corporations receiving any assistance under this Act are subject to Chapter 552, Government Code, and Chapter 551, Government Code. (6294)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. Amended by Acts 1995, 74th Leg., ch. 76, Sec. 5.95(78), (90), eff. Sept. 1, 1995. (6295)

Sec. 15.218. REPORT. (6296)(1-click HTML)

(a) Not later than January 1 of each odd-numbered year, the board shall prepare and submit to the governor, lieutenant governor, and speaker of the house a report relating to the financial impact of the bond insurance program during the immediately preceding biennium. (6297)

(b) The report shall include: (6298)

(1) the total amount of insurance coverage authorized by the board during the biennium; (6299)

(2) the number of insurance coverage authorizations granted by the board; (6300)

(3) a list of the issuers receiving insurance coverage from the board during the biennium and the amount of insurance coverage provided to each issuer; (6301)

(4) an analysis of the marketability of the bonds of the issuers receiving insurance coverage during the biennium and the effect that the insurance coverage had on interest rates and bond ratings for those issuers; (6302)

(5) an analysis of the marketability of bonds issued by the state and its agencies during the biennium and the effect that the bond insurance program had on interest rates on state bonds and the state's bond rating; (6303)

(6) an analysis of the impact on the commercial bond market and bond interest rates generally during the biennium as a result of the implementation of the bond insurance program with particular emphasis on the impact on bonds of political subdivisions and water supply corporations that did not participate in the program; (6304)

(7) recommendations for changes in the bond issuance program that will favorably affect marketability of state bonds and issuer's bonds, bond ratings, and interest rates; and (6305)

(8) any other information, analyses, and recommendations that the board considers necessary to give the governor and the legislature a complete understanding of the financial impact of the bond insurance program. (6306)

(c) The state comptroller on request shall provide to the board all information and assistance necessary for the board to prepare this report. (6307)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. Amended by Acts 1987, 70th Leg., ch. 977, Sec. 14, eff. June 19, 1987; Acts 1997, 75th Leg., ch. 1423, Sec. 20.02, eff. Sept. 1, 1997. (6308)

SUBCHAPTER E. STORAGE ACQUISITION PROGRAM (6309)(1-click HTML)
Sec. 15.301. FUND CREATED. (6310)(1-click HTML)

There is created a fund in the state treasury to be known as the storage acquisition fund which is to be funded by direct appropriations and by transfers from the fund at the discretion of the board. (6311)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, Sec. 2.06. (6312)

Sec. 15.302. AUTHORIZED PROJECTS. (6313)(1-click HTML)

(a) The board may use the storage acquisition fund for projects including the design, acquisition, lease, construction, reconstruction, development, or enlargement in whole or part of any existing or proposed water storage project. (6314)

(b) In addition, the board may, at its discretion and in accordance with its rules, contract with a political subdivision, under terms and conditions established by the board, to pay the principal of or interest on or both the principal of and interest on bonds or other obligations issued or to be issued by a political subdivision. (6315)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6316)

Sec. 15.303. JOINT VENTURES. (6317)(1-click HTML)

The board may act singly or in a joint venture in partnership with any political subdivision, with the United States, or with any other state to the extent permitted by law. (6318)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6319)

Sec. 15.304. PERMITS REQUIRED. (6320)(1-click HTML)

Except as provided by Section 15.3041 of this code, the board shall obtain permits from the commission for the storage, transportation, and application to beneficial use of water in reservoirs and associated works constructed by the board. (6321)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, Sec. 4.03. (6322)

Sec. 15.3041. RESERVATION AND APPROPRIATION FOR BAYS AND ESTUARIES AND INSTREAM USES. (6323)(1-click HTML)

(a) Five percent of the annual firm yield of water in any reservoir and associated works constructed with state financial participation under this chapter within 200 river miles from the coast, to commence from the mouth of the river thence inland, is appropriated to the Parks and Wildlife Department for use to make releases to bays and estuaries and for instream uses, and the commission shall issue permits for this water to the Parks and Wildlife Department under procedures adopted by the commission. (6324)

(b) The Parks and Wildlife Department in cooperation with the department shall manage this water for the purposes stated in this section. (6325)

(c) The Parks and Wildlife Department shall adopt necessary rules and shall enter into necessary memoranda of understanding with the department to provide necessary rules and procedures for managing the water and for release of the water for the purposes stated in this section. (6326)

(d) This section does not limit or repeal any other authority of or law relating to the department or the commission. (6327)

(e) Operating and maintenance costs for the percentage of annual firm yield appropriated to the Parks and Wildlife Department shall be paid by the local political subdivisions that are the project owners. (6328)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 4.03. (6329)

Sec. 15.305. STORING WATER. (6330)(1-click HTML)

The board may use any reservoir acquired, leased, constructed, reconstructed, developed, or enlarged by it under this chapter to store unappropriated state water and other water acquired by the state. (6331)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6332)

Sec. 15.306. BOARD FINDINGS. (6333)(1-click HTML)

Before the board may acquire storage facilities in any reservoir, the board shall find affirmatively that: (6334)

(1) it is reasonable to expect that the state will recover its investment in the facilities; (6335)

(2) the cost of the facilities exceeds the current financing capabilities of the area involved, and the facilities cannot be reasonably financed by local interests without state participation; (6336)

(3) the public interest will be served by acquisition of the facilities; and (6337)

(4) the facilities to be constructed or reconstructed contemplate the optimum development of the site which is reasonably reserved under all existing circumstances of the site. (6338)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6339)

Sec. 15.3061. RECOMMENDATIONS FOR FUNDING BY LEGISLATURE. (6340)(1-click HTML)

(a) If money is not available in the fund to provide money for projects approved under this subchapter, the board shall prepare and submit with its biennial budget request to the Legislative Budget Board and to the presiding officers of each house of the legislature a list of all projects approved by the board under this subchapter. (6341)

(b) The list of projects submitted to the Legislative Budget Board and to the presiding officers of each house of the legislature shall include relevant information relating to each project and recommendations relating to the priorities for funding. (6342)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.06. (6343)

Sec. 15.307. FACILITIES WANTED BY POLITICAL SUBDIVISION. (6344)(1-click HTML)

The board shall not acquire any facility to the extent that the board finds that the political subdivision: (6345)

(1) is willing and reasonably able to finance the acquisition of the facility; (6346)

(2) has qualified by obtaining the necessary permit; and (6347)

(3) has proposals that are inconsistent with the objectives of the state water plan. (6348)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1987, 70th Leg., ch. 977, Sec. 14, eff. June 19, 1987. (6349)

Sec. 15.308. CONTRACTS: GENERAL AUTHORITY. (6350)(1-click HTML)

(a) The board may execute contracts which include but are not limited to the design, management, acquisition, lease, construction, reconstruction, development, enlargement, operation, or maintenance, singularly or in any combination, of any existing or proposed storage project. (6351)

(b) The board shall obtain the approval of the attorney general as to the legality of all contracts authorized under this subchapter to which the board is a party. (6352)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6353)

Sec. 15.309. SPECIFIC CONTRACTS AUTHORIZED. (6354)(1-click HTML)

Contracts authorized by Section 15.308 of this code include but are not limited to the following: (6355)

(1) federal grants or grants from other sources; (6356)

(2) contracts which may be fully or partially secured by water purchase or repayment contracts executed by political subdivisions of the state for purchase of water and facilities necessary to supply present and future regional and local water requirements; (6357)

(3) contracts for goods and services necessary for the design, management, acquisition, lease, construction, reconstruction, development, enlargement, implementation, operation, or maintenance of any existing or proposed project or portion of the project; and (6358)

(4) contracts secured by the pledge of all or any part of funds in the storage acquisition fund. (6359)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6360)

Sec. 15.310. CONTRACTS: FACILITIES ACQUIRED FOR A TERM OF YEARS. (6361)(1-click HTML)

If facilities are acquired for a term of years, the board may include in the contract provisions for renewal that will protect the state's investment. (6362)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6363)

Sec. 15.311. MAINTENANCE CONTRACTS. (6364)(1-click HTML)

The board may execute contracts for the operation and maintenance of the state's interest in any project and may agree to pay reasonable operation and maintenance charges allocable to the state interest. (6365)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6366)

Sec. 15.312. RECREATIONAL FACILITIES. (6367)(1-click HTML)

The board may execute contracts with the United States and with state agencies and political subdivisions and with others to the extent authorized for the development and operation of recreational facilities at any project in which the state has acquired an interest. Income received by the board under these contracts shall be deposited in the water assistance fund. (6368)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6369)

Sec. 15.313. BOARD MAY SELL OR LEASE PROJECTS. (6370)(1-click HTML)

(a) The board may sell, transfer, or lease, to the extent of its ownership, a project acquired, constructed, reconstructed, developed, or enlarged with money from the storage acquisition fund. (6371)

(b) The board shall obtain the approval of the attorney general as to the legality of all contracts authorized under this subchapter to which the board is a party. (6372)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6373)

Sec. 15.314. PERMIT REQUIRED. (6374)(1-click HTML)

Before the board grants the application to buy, receive, or lease the facilities, the applicant shall first secure a permit for water use from the commission. If the facilities are to be leased, the permit may be for a term of years. (6375)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6376)

Sec. 15.315. CONTRACT MUST BE NEGOTIATED. (6377)(1-click HTML)

The commission may issue a term permit until the applicant has executed a contract with the board for acquisition of the facilities. (6378)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6379)

Sec. 15.316. RESERVOIR LAND. (6380)(1-click HTML)

The board may lease acquired reservoir land until construction of the dam is completed without the necessity of a permit issued by the commission. (6381)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6382)

Sec. 15.317. PRICE OF SALE. (6383)(1-click HTML)

(a) The price of the sale or transfer of a state facility acquired on or subsequent to September 1, 1981, other than a facility acquired under a contract with the United States, shall be the sum of the direct cost of acquisition, plus an amount of interest calculated by multiplying the lending rate in effect at the date of acquisition by the amount of board money disbursed for the acquisition times the number of years and fraction of a year from the date or dates of the disbursement of funds to the date or dates of the sale or transfer of the state facility, plus the board's cost of operating and maintaining the facility from the date of acquisition to the date of sale or transfer, less any payments received by the board from the lease of the facility or the sale of water from it. (6384)

(b) The purchaser of the board's interest in a state facility shall also assume, to the extent disclosed by the board at or before the sale, any and all direct, conditional, or contingent liabilities of the board attributed to the project in direct relation to the percentage of the project acquired by the purchaser. (6385)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6386)

Sec. 15.318. PRICE OF SALE: FACILITIES ACQUIRED UNDER CONTRACTS WITH THE UNITED STATES. (6387)(1-click HTML)

(a) The price of the sale or transfer of a state facility acquired on or subsequent to September 1, 1981, under a contract with the United States shall be the sum of the direct cost of acquisition, plus an amount of interest calculated by multiplying the lending rate in effect at the time of acquisition, by the amount of board money disbursed for the acquisition of the facility times the number of years and fraction of a year from the date or dates of disbursement of the money to the date or dates of sale or transfer, plus the board's cost of operating and maintaining the facility from the date of acquisition to the date of the sale or transfer of the facility, less any payments received by the board from the lease of the facility or the sale of water from it. (6388)

(b) If, in transferring any contract, the board remains in any way directly, conditionally, or contingently liable for the performance of any part of the contract, then the transferee, in addition to the payments prescribed by Subsection (a) of this section, as applicable, shall pay to the board annually one-half of one percent of the remaining amount owed to the other party to the contract, and shall continue these payments until the board is fully released from the contract. (6389)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6390)

Sec. 15.319. COSTS DEFINED. (6391)(1-click HTML)

With reference to the sale of a state facility, "direct cost of acquisition" means the principal amount the board has paid plus the amounts the board has agreed to pay under obligations not transferred to the purchaser for a facility up to the date of sale, but does not include the board's cost of operating and maintaining the facility from the date of acquisition to the date of the sale or transfer of the facility. (6392)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6393)

Sec. 15.320. LEASE PAYMENTS. (6394)(1-click HTML)

In leasing a state facility for a term of years, the board shall require annual payments not less than the total of: (6395)

(1) the annual principal and interest requirements applicable to the debt incurred by the state in acquiring the facility; and (6396)

(2) the state's annual cost for operation, maintenance, and rehabilitation of the facility. (6397)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6398)

Sec. 15.321. SALE OR LEASE: CONDITION PRECEDENT. (6399)(1-click HTML)

(a) No sale, transfer, or lease of a state facility is valid unless the board first makes the following affirmative findings: (6400)

(1) that the applicant has a permit granted by the commission; (6401)

(2) that the sale, transfer, or lease serves the public interest; and (6402)

(3) that the consideration for the sale, transfer, or lease is fair, just, reasonable, and in full compliance with the law. (6403)

(b) The consideration for a sale or transfer may be either money or revenue bonds which for the purposes of this section shall be deemed the same as money. (6404)

(c) The amount of money shall be equal to the price for purchasing the facilities as prescribed by Sections 15.317-15.318 of this code, or if revenue bonds constitute the consideration, the principal amount of revenue bonds shall be equal to the price for purchasing the facilities as prescribed by the provisions of Sections 15.317-15.318 of this code, and the revenue bonds shall bear interest at the rate prescribed in Section 17.128 of this code with regard to bonds purchased with the proceeds of the Texas water development fund. (6405)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6406)

Sec. 15.322. DISPOSITION OF PROCEEDS. (6407)(1-click HTML)

(a) The money received from any sale, transfer, or lease of facilities, or in the case of a sale or transfer involving revenue bonds, the money received as matured interest or principal on the bonds shall be placed in the general revenue fund. (6408)

(b) If money received from a sale, transfer, or lease of facilities, or in the case of a sale or transfer involving revenue bonds, if the money received as matured interest or principal on the bonds, is money derived originally from the appropriation made in Section 2, Chapter 12, Acts of the 67th Legislature, 1st Called Session, 1981, or interest earned on that money, the money received as matured interest or principal on the bonds shall be placed in a special account in the water assistance fund. (6409)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, Sec. 2.06. (6410)

Sec. 15.323. SALE OF STORED WATER. (6411)(1-click HTML)

(a) The board may sell any unappropriated public water of the state and other water acquired by the state that is stored by or for it. The price shall be determined by the board. (6412)

(b) Except as provided by Subsection (c) of this section, money received from any sale shall be placed in the general revenue fund. (6413)

(c) Money received from a sale of unappropriated public water or other water acquired by the state and stored by it or for it in a facility for which funds were provided from the appropriation made in Section 2, Chapter 12, Acts of the 67th Legislature, 1st Called Session, 1981, or interest earned on the money constituting that appropriation, must be deposited in a special account in the water assistance fund. (6414)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, Sec. 2.06. (6415)

Sec. 15.324. SALE CONTRACT: PROVISIONS, LIMITATIONS. (6416)(1-click HTML)

(a) The board may determine the consideration and other provisions to be included in water sale contracts, but the consideration and other provisions shall be fair, reasonable, and nondiscriminatory. The board may include charges for standby service, which means holding water and conservation storage space for use and for actual delivery of water. (6417)

(b) The board shall make the same determinations with respect to the sale of water as are required by Section 15.321 of this code with respect to the sale or lease of facilities. (6418)

(c) The board shall not compete with any political subdivisions in the sale of water when this competition jeopardizes the ability of the political subdivision to meet obligations incurred to finance its own water supply projects. (6419)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6420)

Sec. 15.325. EMERGENCY RELEASES OF WATER. (6421)(1-click HTML)

(a) All water owned by the board in any facility may be released at the discretion of the board, with or without charge, to relieve any emergency condition arising from drought, public calamity, or any other reason causing a severe water shortage, if the commission first determines the existence of the emergency and requests the board to release water to alleviate the emergency condition. (6422)

(b) The executive administrator may authorize the release of water owned by the state from any facility in which the state has an interest under this subchapter for a period of not to exceed 72 hours from time of authorization to relieve an emergency condition that poses an imminent threat of flooding. The commission must approve any release of water that must be made beyond the 72-hour period provided by this subsection. (6423)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.041, eff. Sept. 1, 1985. (6424)

Sec. 15.326. PREFERENCES. (6425)(1-click HTML)

The board shall give political subdivisions a preferential right, but not an exclusive right, to purchase, acquire, or lease facilities and to purchase water from facilities. Preferences shall be given in these respects in accord with the provisions of Section 11.123 of this code. The board and the commission shall coordinate their efforts to meet these objectives and to assure that the public water of this state, which is held in trust for the use and benefit of the public, will be conserved, developed, and utilized in the greatest practicable measure for the public welfare. (6426)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6427)

Sec. 15.327. LEASE OF LAND PRIOR TO PROJECT CONSTRUCTION. (6428)(1-click HTML)

The board may lease tracts of land acquired for project purposes for a term of years for any purpose not inconsistent with ultimate project construction. The lease shall provide for expiration before initiation of project construction. The money received from such leases shall be placed in the water assistance fund. (6429)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6430)

Sec. 15.328. LEASE CONTRIBUTION EQUIVALENT TO TAXES. (6431)(1-click HTML)

The lease may provide for contribution by the lessee to units of local government of amounts equivalent to ad valorem taxes or special assessments. (6432)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6433)

Sec. 15.329. INSPECTION OF PROJECTS. (6434)(1-click HTML)

(a) The board may inspect the construction of a project any time to assure that: (6435)

(1) the contractor is substantially complying with the approved engineering plans of the project; and (6436)

(2) the contractor is constructing the project in accordance with sound engineering principles. (6437)

(b) Inspection of a project by the board does not subject the state to any civil liability. (6438)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.042, eff. Sept. 1, 1985; Acts 1987, 70th Leg., ch. 977, Sec. 14, eff. June 19, 1987. (6439)

Sec. 15.330. ALTERATION OF PLANS. (6440)(1-click HTML)

After approval of engineering plans, a political subdivision shall not make any substantial or material alteration in the plans unless the executive administrator authorizes the alteration. For a waste water treatment plant or other facility required to have commission approval of the plans and specifications, the commission must give its approval before a substantial or material alteration is made in those plans. (6441)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.042, eff. Sept. 1, 1985; Acts 1987, 70th Leg., ch. 977, Sec. 14, eff. June 19, 1987. (6442)

Sec. 15.331. CERTIFICATE OF APPROVAL. (6443)(1-click HTML)

The executive administrator may consider the following as grounds for refusal to give a certificate of approval for any construction contract: (6444)

(1) failure to construct the project according to approved plans; (6445)

(2) failure to construct the works in accordance with sound engineering principles; or (6446)

(3) failure to comply with any terms of the contract. (6447)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.042, eff. Sept. 1, 1985; Acts 1987, 70th Leg., ch. 977, Sec. 14, eff. June 19, 1987. (6448)

SUBCHAPTER F. RESEARCH AND PLANNING PROGRAM (6449)(1-click HTML)
Sec. 15.401. PROGRAM CREATION. (6450)(1-click HTML)

The research and planning program is created to provide money for research into and planning of the proper conservation, management, and development of the state's water resources, for regional planning by political subdivisions, for facility engineering in economically distressed areas, and for flood control planning by political subdivisions. The program may also provide money for research and planning by Texas political subdivisions related to the proper conservation, management, and development of water resources of areas outside Texas if such research or planning will result in water being available for use in or for the benefit of Texas or will maintain and enhance the quality of water in Texas. (6451)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1991, 72nd Leg., ch. 516, Sec. 3, eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1010, Sec. 1.04, eff. Sept. 1, 1997. (6452)

Sec. 15.402. RESEARCH AND PLANNING FUND. (6453)(1-click HTML)

The research and planning fund is created in the state treasury to be funded by direct appropriation and at the discretion of the board from the money in the fund. (6454)

Added by Acts 1981, 67th Leg. 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, Sec. 2.13. (6455)

Sec. 15.403. RULES. (6456)(1-click HTML)

The board shall adopt rules to carry out this chapter. (6457)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. (6458)

Sec. 15.404. RESEARCH CONTRACTS. (6459)(1-click HTML)

(a) The board may enter into a contract with any person for research into any matter relating to the conservation and development of the state's water resources or for research by Texas political subdivisions related to the proper conservation and development of water resources of areas outside Texas if such research will result in water being available for use in or for the benefit of Texas or will help maintain and enhance the quality of water in Texas. (6460)

(b) Before a contract is awarded, the board may prepare written specifications for the proposed contract and may require each prospective contractor to prepare and submit to the board a written proposal that includes: (6461)

(1) a description of the proposed research project; (6462)

(2) a detailed estimate of the cost of the proposed research project; (6463)

(3) the estimated time required to complete the research project; and (6464)

(4) any other information requested by the board or required by the board's rules. (6465)

(c) At a regular or specially called meeting of the board, the board may award a research contract to any person and may provide money from the research and planning fund in any amount the board considers adequate to carry out the research project under the contract. (6466)

(d) The board shall adopt rules providing criteria for research projects and for eligibility of persons to receive contract awards under this section. (6467)

(e) A contract made by the board under this section shall include: (6468)

(1) a detailed description of the research project; (6469)

(2) the time in which the research project is to be completed; (6470)

(3) the total amount of money to be paid by the board from the research and planning fund for the research project; and (6471)

(4) any other terms and conditions required by the board's rules or agreed to by the contracting parties. (6472)

(f) The board may enter into a supplemental contract with a contractor under this section to change any of the provisions of a contract awarded under this section including extension of time to complete the project, the award of more research funds, or changes in the planned research. (6473)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1997, 75th Leg., ch. 1010, Sec. 1.05, eff. Sept. 1, 1997. (6474)

Sec. 15.405. PLANNING CONTRACTS. (6475)(1-click HTML)

(a) The board may enter into contracts with political subdivisions to pay from the research and planning fund all or part of the cost of developing flood control plans for the political subdivision. (6476)

(b) A political subdivision that desires money from the research and planning fund for flood control planning shall submit a written application to the board in the manner and form required by board rules. (6477)

(c) The application shall include: (6478)

(1) the name of the political subdivision; (6479)

(2) a citation to the laws under which the political subdivision was created and is operating including specific citation of all laws providing flood control authority; (6480)

(3) the amount requested from the board for flood control planning; and (6481)

(4) any other information required by the board in its rules or specifically requested by the board. (6482)

(d) After notice and hearing, the board may award the applicant all or part of the requested funds that are considered necessary by the board for the political subdivision to carry out adequate flood control planning. (6483)

(e) If the board grants an application under this section and awards funds for flood control planning, the board shall enter into a contract with the political subdivision that includes: (6484)

(1) a detailed statement of the purpose for which the money is to be used; (6485)

(2) the total amount of money to be paid from the research and planning fund under the contract; and (6486)

(3) any other terms and conditions required by board rules or agreed to by the contracting parties. (6487)

(f) The board shall adopt rules establishing criteria of eligibility for flood control planning money that considers: (6488)

(1) the relative need of the political subdivision for the money; (6489)

(2) the legal authority of the political subdivision to plan for and control flooding; and (6490)

(3) the effect of flood control planning by the political subdivision on overall flood control in the state and within the area in which the political subdivision is located. (6491)

(g) The board shall require that flood control plans developed under contracts entered into under this section be made available to the commission. (6492)

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 795, Sec. 1.043, eff. Sept. 1, 1985. (6493)

Sec. 15.406. REGIONAL FACILITY PLANNING. (6494)(1-click HTML)

(a) The board may enter into contracts with political subdivisions to pay from the research and planning fund all or part of the cost of developing regional facility plans. (6495)

(b) A political subdivision that desires money from the research and planning fund for regional facility planning shall submit a written application to the board in the manner and form required by board rules. (6496)

(c) The application shall include: (6497)

(1) the name of the political subdivision; (6498)

(2) a citation to the laws under which the political subdivision was created and is operating including specific citation of all laws providing authority to plan, develop, and operate regional facilities; (6499)

(3) the amount requested from the board for regional facility planning; and (6500)

(4) any other information required by the board in its rules or specifically requested by the board. (6501)

(d) After notice and hearing, the board may award the applicant all or part of the requested funds that are considered necessary by the board for the political subdivision to carry out adequate regional facility planning. (6502)

(e) If the board grants an application under this section and awards funds for regional facility planning, the board shall enter into a contract with the political subdivision that includes: (6503)

(1) a detailed statement of the purpose for which the money is to be used; (6504)

(2) the total amount of money to be paid from the research and planning fund under the contract; and (6505)

(3) any other terms and conditions required by board rules or agreed to by the contracting parties. (6506)

(f) The board shall adopt rules establishing criteria of eligibility for regional facility planning money that considers: (6507)

(1) the relative need of the political subdivision for the money; (6508)

(2) the legal authority of the political subdivision to plan, develop, and operate regional facilities; (6509)

(3) the effect of regional facility planning by the political subdivision on overall regional facility planning, development, and operation in the state and within the area in which the political subdivision is located; and (6510)

(4) the degree to which the regional facility planning by the political subdivision is consistent with an approved regional water plan for the area in which the political subdivision is located. (6511)

(g) The board may require that regional facility plans developed under contracts entered into under this section be made available to the commission as provided by board rules. (6512)

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.13. Amended by Acts 1987, 70th Leg., ch. 977, Sec. 15, eff. June 19, 1987; Acts 1997, 75th Leg., ch. 1010, Sec. 1.06, eff. Sept. 1, 1997. (6513)

Sec. 15.4061. FUNDING FOR REGIONAL WATER PLANS. (6514)(1-click HTML)

(a) The board may enter into contracts with political subdivisions designated as representatives of a regional water planning group under Section 16.053(c) of this code to pay from the research and planning fund all or part of the cost of developing or revising regional water plans as defined in Section 16.053 of this code. (6515)

(b) A political subdivision may submit, either individually or jointly with other political subdivisions, a written application to the board for the purpose of funding regional water planning from the research and planning fund. (6516)

(c) The application shall be in the manner and form required by board rules and include: (6517)

(1) the name of the political subdivision or political subdivisions; (6518)

(2) a citation to the laws under which the political subdivision was created and is operating, including specific citation of all laws providing authority to develop and implement a regional water plan; (6519)

(3) the amount requested from the board for regional water planning; and (6520)

(4) any other relevant information required by the board in its rules or specifically requested by the board. (6521)

(d) After notice and hearing, the board may award the applicant all or part of the requested funds that the board considers necessary for the political subdivision to carry out regional water planning. (6522)

(e) If the board grants an application under this section and awards funds for regional water planning, the board shall enter into a contract with the political subdivision or political subdivisions that includes: (6523)

(1) a detailed statement of the purpose for which the money is to be used; (6524)

(2) the total amount of money to be paid by the board from the research and planning fund under the contract; and (6525)

(3) any other terms and conditions required by the board's rules or agreed to by the contracting parties. (6526)

(f) The board shall adopt rules establishing criteria for eligibility for regional water planning money that include: (6527)

(1) the relative need of the political subdivision for the money; (6528)

(2) the legal authority of the political subdivision to develop and implement a regional water plan; and (6529)

(3) the degree to which regional water planning by the political subdivision or political subdivisions will address the water supply needs in the regional water planning area. (6530)

(g) The board may not provide funds under this section for activities for which existing information or data is sufficient for the planning effort, including: (6531)

(1) detailed evaluation of cost of water supply alternatives where recent information is available to evaluate the cost associated with the alternative; (6532)

(2) evaluation of groundwater resources for which current information is available from the board or other entity sufficient for evaluation of the resource; (6533)

(3) determination of water savings resulting from standard conservation practices for which current information is available from the board; (6534)

(4) revision of board demand and population projections; (6535)

(5) revision of environmental planning criteria for new surface water supply projects as defined in the state water plan guidelines established in Section 16.051(d) of this section; and (6536)

(6) collection of data describing groundwater or surface water resources where information for evaluation of the resource is currently available. (6537)

(h) The board shall require that regional water plans developed or revised under contracts entered into under this section be made available to the commission, the Department of Agriculture, and the Parks and Wildlife Department. (6538)

Added by Acts 1997, 75th Leg., ch. 1010, Sec. 1.07, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 456, Sec. 1, eff. June 18, 1999; Acts 1999, 76th Leg., ch. 979, Sec. 1, eff. June 18, 1999. (6539)

Sec. 15.4063. ENVIRONMENTAL FLOWS FUNDING. (6540)(1-click HTML)

The board may authorize the use of money in the research and planning fund: (6541)

(1) to compensate the members of the Texas environmental flows science advisory committee established under Section 11.02361 for attendance and participation at meetings of the committee and for transportation, meals, lodging, or other travel expenses associated with attendance at those meetings as provided by the General Appropriations Act; (6542)

(2) for contracts with cooperating state and federal agencies and universities and with private entities as necessary to provide technical assistance to enable the Texas environmental flows science advisory committee and the basin and bay expert science teams established under Section 11.02362 to perform their statutory duties; (6543)

(3) to compensate the members of the basin and bay expert science teams established under Section 11.02362 for attendance and participation at meetings of the basin and bay expert science teams and for transportation, meals, lodging, or other travel expenses associated with attendance at those meetings as provided by the General Appropriations Act; and (6544)

(4) for contracts with political subdivisions designated as representatives of basin and bay area stakeholders committees established under Section 11.02362 to fund all or part of the administrative expenses incurred in conducting meetings of the basin and bay area stakeholders committees or the pertinent basin and bay expert science teams. (6545)

Added by Acts 2007, 80th Leg., R.S., Ch. 1351 (H.B. 3), Sec. 1.22, eff. September 1, 2007. (6546)

Added by Acts 2007, 80th Leg., R.S., Ch. 1430 (S.B. 3), Sec. 1.22, eff. September 1, 2007. (6547)

Sec. 15.407. FACILITY ENGINEERING IN ECONOMICALLY DISTRESSED AREAS. (6548)(1-click HTML)

(a) In this section, "economically distressed area" and "political subdivision" have the meanings assigned by Section 17.921. (6549)

(b) The board may enter into contracts with a political subdivision to pay from the research and planning fund all or part of the cost of facility engineering in economically distressed areas, including preparation of plans and specifications. (6550)

(c) The selection process used by a political subdivision to procure engineering services necessary for facility engineering is subject to review by and approval of the executive administrator. The executive administrator may assist a political subdivision in the selection of the provider of engineering services necessary for facility engineering in economically distressed areas. (6551)

(d) The board shall adopt rules governing the procurement of facility engineering services by a political subdivision awarded funds under this subchapter and may adopt other rules necessary to carry out the board's powers and duties under this subchapter. (6552)

(e) A political subdivision that desires money from the research and planning fund for facility engineering in an economically distressed area shall submit a written application to the board in the manner and form required by board rules. (6553)

(f) The application shall include: (6554)

(1) the name of the political subdivision; (6555)

(2) a citation to the laws under which the political subdivision was created and is operating; (6556)

(3) the amount requested from the board for facility engineering in an economically distressed area; and (6557)

(4) any other information required by the board in its rules or specifically requested by the board. (6558)

(g) After notice and hearing, the board may award the applicant all or part of the requested funds that are considered necessary by the board for the political subdivision to carry out adequate facility engineering in an economically distressed area. (6559)

(h) If the board grants an application under this section and awards funds for facility engineering in an economically distressed area, the board shall enter into a contract with the political subdivision that includes: (6560)

(1) a detailed statement of the purpose for which the money is to be used; (6561)

(2) the total amount of money to be paid from the research and planning fund under the contract; and (6562)

(3) any other terms and conditions required by board rules or agreed to by the contracting parties. (6563)

(i) Repealed by Acts 2005, 79th Leg., Ch. 927, Sec. 15, eff. September 1, 2005. (6564)

(j) If the board determines that planning activities undertaken by a political subdivision for which the board has committed funds under this subchapter have been inadequate or not completed in a timely manner, the board may terminate the contract with the political subdivision and on behalf of and in consultation with the political subdivision may perform or contract for facility engineering in the economically distressed area. (6565)

Added by Acts 1989, 71st Leg., ch. 624, Sec. 2.12, eff. Sept. 1, 1989. Amended by Acts 1995, 74th Leg., ch. 649, Sec. 1, eff. June 14, 1995; Acts 1999, 76th Leg., ch. 404, Sec. 32, eff. Sept. 1, 1999. (6566)

Amended by: (6567)

Acts 2005, 79th Leg., Ch. 927 (H.B. 467), Sec. 1, eff. September 1, 2005. (6568)

Acts 2005, 79th Leg., Ch. 927 (H.B. 467), Sec. 15, eff. September 1, 2005. (6569)

SUBCHAPTER G. STATE WATER IMPLEMENTATION FUND FOR TEXAS (6570)(1-click HTML)
Sec. 15.431. DEFINITIONS. (6571)(1-click HTML)

In this subchapter: (6572)

(1) "Advisory committee" means the State Water Implementation Fund for Texas Advisory Committee. (6573)

(2) "Fund" means the state water implementation fund for Texas. (6574)

(3) "Historically underutilized business" has the meaning assigned by Section 2161.001, Government Code. (6575)

(4) "Trust company" means the Texas Treasury Safekeeping Trust Company. (6576)

Added by Acts 2013, 83rd Leg., R.S., Ch. 207 (H.B. 4), Sec. 2.02, eff. November 5, 2013. (6577)

Sec. 15.432. FUND. (6578)(1-click HTML)

(a) The state water implementation fund for Texas is a special fund in the state treasury outside the general revenue fund to be used by the board, without further legislative appropriation, for the purpose of implementing the state water plan as provided by this subchapter. The board may establish separate accounts in the fund. The fund and the fund's accounts are kept and held by the trust company for and in the name of the board. The board has legal title to money and investments in the fund until money is disbursed from the fund as provided by this subchapter and board rules. It is the intent of the legislature that the fund will never be used: (6579)

(1) for a purpose other than the support of projects in the state water plan; or (6580)

(2) to certify that appropriations from the treasury are within the amount estimated to be available in a fund of the treasury affected by the appropriation. (6581)

(b) Money deposited to the credit of the fund may be used only as provided by this subchapter. (6582)

(c) The fund consists of: (6583)

(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; (6584)

(2) the proceeds of any fee or tax imposed by this state that by statute is dedicated for deposit to the credit of the fund; (6585)

(3) any other revenue that the legislature by statute dedicates for deposit to the credit of the fund; (6586)

(4) investment earnings and interest earned on amounts credited to the fund; and (6587)

(5) money transferred to the fund under a bond enhancement agreement from another fund or account to which money from the fund was transferred under a bond enhancement agreement, as authorized by Section 15.435. (6588)

Added by Acts 2013, 83rd Leg., R.S., Ch. 207 (H.B. 4), Sec. 2.02, eff. November 5, 2013. (6589)

Sec. 15.433. MANAGEMENT AND INVESTMENT OF FUND. (6590)(1-click HTML)

(a) The trust company shall hold and invest the fund, and any accounts established in the fund, for and in the name of the board, taking into account the purposes for which money in the fund may be used. The fund may be invested with the state treasury pool. (6591)

(b) The overall objective for the investment of the fund is to maintain sufficient liquidity to meet the needs of the fund while striving to preserve the purchasing power of the fund. (6592)

(c) The trust company has any power necessary to accomplish the purposes of managing and investing the assets of the fund. In managing the assets of the fund, through procedures and subject to restrictions the trust company considers appropriate, the trust company may acquire, exchange, sell, supervise, manage, or retain any kind of investment that a prudent investor, exercising reasonable care, skill, and caution, would acquire or retain in light of the purposes, terms, distribution requirements, and other circumstances of the fund then prevailing, taking into consideration the investment of all the assets of the fund rather than a single investment. (6593)

(d) The trust company may charge fees to cover its costs incurred in managing and investing the fund. The fees must be consistent with the fees the trust company charges other state and local governmental entities for which it provides investment management services. The trust company may recover fees it charges under this subsection only from the earnings of the fund. (6594)

(e) The trust company annually shall provide a written report to the board and to the advisory committee with respect to the investment of the fund. The trust company shall contract with a certified public accountant to conduct an independent audit of the fund annually and shall present the results of each annual audit to the board and to the advisory committee. This subsection does not affect the state auditor's authority to conduct an audit of the fund under Chapter 321, Government Code. (6595)

(f) The trust company shall adopt a written investment policy that is appropriate for the fund. The trust company shall present the investment policy to the investment advisory board established under Section 404.028, Government Code. The investment advisory board shall submit to the trust company recommendations regarding the policy. (6596)

(g) The board annually shall provide to the trust company a forecast of the cash flows into and out of the fund. The board shall provide updates to the forecasts as appropriate to ensure that the trust company is able to achieve the objective specified by Subsection (b). (6597)

(h) The trust company shall disburse money from the fund as directed by the board. The board shall direct disbursements from the fund on a semiannual schedule specified by the board and not more frequently than twice in any state fiscal year. (6598)

(i) An investment-related contract entered into under this section is not subject to Chapter 2260, Government Code. (6599)

Added by Acts 2013, 83rd Leg., R.S., Ch. 207 (H.B. 4), Sec. 2.02, eff. November 5, 2013. (6600)

Sec. 15.434. USE OF FUND; PAYMENTS TO AND FROM OTHER FUNDS OR ACCOUNTS. (6601)(1-click HTML)

(a) At the direction of the board, the trust company shall make disbursements from the fund to another fund or account pursuant to a bond enhancement agreement authorized by Section 15.435 in the amounts the board determines are needed for debt service payments on or security provisions of the board's general obligation bonds or revenue bonds, after considering all other sources available for those purposes in the respective fund or account. (6602)

(b) Of the money disbursed from the fund during the five-year period between the adoption of a state water plan and the adoption of a new plan, the board shall undertake to apply not less than: (6603)

(1) 10 percent to support projects described by Section 15.435 that are for: (6604)

(A) rural political subdivisions as defined by Section 15.992; or (6605)

(B) agricultural water conservation; and (6606)

(2) 20 percent to support projects described by Section 15.435, including agricultural irrigation projects, that are designed for water conservation or reuse. (6607)

Added by Acts 2013, 83rd Leg., R.S., Ch. 207 (H.B. 4), Sec. 2.02, eff. November 5, 2013. (6608)

Sec. 15.435. BOND ENHANCEMENT AGREEMENTS. (6609)(1-click HTML)

(a) A bond enhancement agreement entered into under this section is an agreement for professional services. A bond enhancement agreement must contain terms that are consistent with Section 15.433(h), and the agreement, including the period covered by the agreement and all other terms and conditions of the agreement, must be approved by the board. An obligation to disburse money from the fund, or from a special account established by the board, in accordance with a bond enhancement agreement is a special obligation of the board payable solely from designated income and receipts of the fund or of the account, as determined by the board. An obligation to disburse money from the fund, or from a special account established by the board, in accordance with a bond enhancement agreement does not constitute indebtedness of the state. (6610)

(b) To facilitate the use of the fund for the purposes of this subchapter, the board may direct the trust company to enter into bond enhancement agreements to provide a source of revenue or security for the payment of the principal of and interest on general obligation bonds, including bonds issued under Section 49-d-9 or 49-d-11, Article III, Texas Constitution, or revenue bonds issued by the board to finance or refinance projects included in the state water plan if the proceeds of the sale of the bonds have been or will be deposited to the credit of: (6611)

(1) the state water implementation revenue fund for Texas; (6612)

(2) the water infrastructure fund; (6613)

(3) the rural water assistance fund; (6614)

(4) the Texas Water Development Fund II state participation account; or (6615)

(5) the agricultural water conservation fund. (6616)

(c) If the trust company enters into a bond enhancement agreement under Subsection (b), the board may direct the trust company to make disbursements from the fund to another fund or account for the support of bonds the proceeds of which are used to provide financial assistance in the form of: (6617)

  

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