WATER CODE
SUBTITLE C. WATER DEVELOPMENT
CHAPTER 15. TEXAS WATER ASSISTANCE PROGRAM
SUBCHAPTER A. GENERAL PROVISIONS
§ 15.001. DEFINITIONS. In this chapter:
(1) "Board" means the Texas Water Development Board.
(2) "Commission" means the Texas Natural Resource
Conservation Commission.
(3) "Executive administrator" means the executive
administrator of the Texas Water Development Board.
(4) "Executive director" means the executive director
of the Texas Natural Resource Conservation Commission.
(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.
(6) "Project" means:
(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;
(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
(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.
(7) "Fund" means the water assistance fund.
(8) "Loan fund" means the water loan assistance fund.
(9) "Conservation" means:
(A) the development of water resources; and
(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.
(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.
(11) "Economically distressed area" means:
(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
(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.
(12) "Nonborder colonia" means a residential
community:
(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;
(B) in which water or wastewater services are
inadequate to meet minimal needs of residential users as defined by
board rules; and
(C) in which the average household income is less
than the average household income for the county in which the
community is located.
(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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 1.06;
Acts 1985, 69th Leg., ch. 133, § 2.01; Acts 1985, 69th Leg., ch.
795, § 1.038, eff. Sept. 1, 1985; Acts 1985, 69th Leg., ch. 821,
§ 1, eff. Sept. 1, 1985; Acts 1987, 70th Leg., ch. 977, § 8,
eff. June 19, 1987; Acts 1989, 71st Leg., ch. 624, § 2.01, eff.
Sept. 1, 1989; Acts 1991, 72nd Leg., 1st C.S., ch. 3, § 1.059,
eff. Aug. 12, 1991; Acts 1993, 73rd Leg., ch. 844, § 2, eff. Aug.
30, 1993; Acts 1997, 75th Leg., ch. 1010, § 4.07, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 62, § 18.54, eff. Sept. 1, 1999;
Acts 2001, 77th Leg., ch. 966, § 4.04, eff. Sept. 1, 2001; Acts
2001, 77th Leg., ch. 1367, § 11.01, eff. Sept. 1, 2001; Acts
2003, 78th Leg., ch. 1275, § 2(141), eff. Sept. 1, 2003.
§ 15.002. PURPOSE. (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.
(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.
(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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.02;
Acts 1989, 71st Leg., ch. 624, § 2.02, eff. Sept. 1, 1989; Acts
1991, 72nd Leg., ch. 295, § 41, eff. June 7, 1991; Acts 1997,
75th Leg., ch. 1010, § 4.08, eff. Sept. 1, 1997; Acts 1999, 76th
Leg., ch. 1461, § 3, eff. Sept. 1, 1999; Acts 2001, 77th Leg.,
ch. 966, § 4.05, eff. Sept. 1, 2001.
§ 15.003. POWER TO DEFINE PURPOSES. The board, by rule,
may define in greater detail the purposes enumerated in Section
15.002.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.004. TRANSBASIN DIVERSION. 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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.03.
§ 15.005. CONSIDERATION OF CERTAIN
APPLICATIONS. (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.
(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.
(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.
(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.
(e) The board shall adopt rules for carrying out this
section.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 795, § 1.039,
eff. Sept. 1, 1985; Acts 2003, 78th Leg., ch. 1057, § 2, eff.
June 20, 2003.
§ 15.006. OPEN MEETINGS AND OPEN RECORDS
LAWS. Nonprofit water supply corporations which receive any
assistance under this chapter are subject to Chapter 551,
Government Code, and to Chapter 552, Government Code.
Added by Acts 1985, 69th Leg., ch. 133, § 2.18. Amended by Acts
1995, 74th Leg., ch. 76, § 5.95(78), (90), eff. Sept. 1, 1995.
§ 15.007. CONSIDERATIONS FOR CERTAIN FINANCIAL
ASSISTANCE. (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.
(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.
Added by Acts 1989, 71st Leg., ch. 624, § 2.03, eff. Sept. 1,
1989.
§ 15.008. GRANT STANDARDS. 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.
Added by Acts 1991, 72nd Leg., ch. 422, § 4, eff. Sept. 1, 1991.
Amended by Acts 2001, 77th Leg., ch. 1234, § 13, eff. Sept. 1,
2001; Acts 2001, 77th Leg., ch. 1367, § 11.02, eff. Sept. 1,
2001.
SUBCHAPTER B. WATER ASSISTANCE FUND
§ 15.011. WATER ASSISTANCE FUND. (a) The water
assistance fund is created and shall be administered by the board
under this chapter and rules adopted by the board.
(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.
(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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1990, 71st Leg., 5th C.S., ch. 3,
§ 2, eff. June 14, 1990; Acts 1991, 72nd Leg., 1st C.S., ch. 3,
§ 1.060, eff. Aug. 12, 1991; Acts 1991, 72nd Leg., 1st C.S., ch.
4, § 10.07, eff. Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 477,
§ 2, eff. Aug. 30, 1993; Acts 1993, 73rd Leg., ch. 647, § 3,
eff. Aug. 30, 1993; Acts 1999, 76th Leg., ch. 1461, § 4, eff.
Sept. 1, 1999; Acts 2001, 77th Leg., ch. 966, § 4.06, eff. Sept.
1, 2001; Acts 2001, 77th Leg., ch. 1234, § 14, eff. Sept. 1,
2001; Acts 2003, 78th Leg., ch. 1276, § 18.002, eff. Sept. 1,
2003.
§ 15.012. MANAGEMENT OF FUND. (a) The board may
invest, reinvest, and direct the investment of money accumulated in
the fund.
(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.
(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.
(d) The money held in the fund may be invested as provided by
law for investment of money under Section 404.024, Government Code.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1990, 71st Leg., 5th C.S., ch. 3,
§ 3, eff. June 14, 1990; Acts 1991, 72nd Leg., 1st C.S., ch. 3,
§ 1.061, eff. Aug. 12, 1991; Acts 1991, 72nd Leg., 1st C.S., ch.
4, § 10.08, eff. Sept. 1, 1991; Acts 1993, 73rd Leg., ch. 477,
§ 3, eff. Aug. 30, 1993; Acts 1993, 73rd Leg., ch. 844, § 3,
eff. Aug. 30, 1993; Acts 1999, 76th Leg., ch. 1461, § 5, eff.
Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1234, § 15, eff. Sept.
1, 2001.
SUBCHAPTER C. WATER LOAN ASSISTANCE PROGRAM
§ 15.101. WATER LOAN ASSISTANCE FUND. (a) The water
loan assistance fund is created, to be funded by direct
appropriation and by the board at its discretion from the fund.
(b) Repayments of loans shall be deposited in the water
assistance fund.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.04.
§ 15.102. FINANCIAL ASSISTANCE. (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.
(b) The loan fund may also be used by the board to provide:
(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
(2) grants for:
(A) projects for which federal grant funds are
placed in the loan fund;
(B) projects, on specific legislative
appropriation for those projects; or
(C) desalination, brush control, weather
modification, regionalization, and projects providing regional
water quality enhancement services as defined by board rule,
including regional conveyance systems.
(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.
(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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.04;
Acts 1987, 70th Leg., ch. 977, § 9, eff. June 19, 1987; Acts
1987, 70th Leg., ch. 1103, § 2, eff. Sept. 1, 1987; Acts 1989,
71st Leg., ch. 624, § 2.04, eff. Sept. 1, 1989; Acts 2001, 77th
Leg., ch. 966, § 4.07, eff. Sept. 1, 2001; Acts 2001, 77th Leg.,
ch. 1234, § 16, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch.
1367, § 11.03, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch.
1276, § 18.003, eff. Sept. 1, 2003.
§ 15.103. APPLICATION FOR ASSISTANCE. (a) In an
application to the board for financial assistance from the loan
fund, the applicant shall include:
(1) the name of each political subdivision or federal
agency and its principal officers;
(2) a citation of the law under which each political
subdivision or federal agency operates and was created;
(3) the total cost of the project;
(4) the amount of state financial assistance
requested;
(5) the plan for repaying the total cost of the
project; and
(6) any other information the board requires in order
to perform its duties and to protect the public interest.
(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.
(c) The rules shall not restrict or prohibit the board from
requiring additional factual material from an applicant.
(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.
(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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 1.05,
2.04; Acts 1987, 70th Leg., ch. 977, § 9, eff. June 19, 1987;
Acts 1987, 70th Leg., ch. 1103, § 3, eff. Sept. 1, 1987; Acts
1989, 71st Leg., ch. 624, § 2.05, eff. Sept. 1, 1989.
§ 15.104. FINDINGS REGARDING PERMITS. (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:
(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
(2) that an applicant proposing groundwater
development has the right to use water that the project will
provide.
(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.
(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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.04;
Acts 1985, 69th Leg., ch. 795, § 1.040, eff. Sept. 1, 1985; Acts
1987, 70th Leg., ch. 246, § 1, eff. Aug. 31, 1987; Acts 1987,
70th Leg., ch. 1103, § 4, eff. Sept. 1, 1987; Acts 1989, 71st
Leg., ch. 624, § 2.06, eff. Sept. 1, 1989; Acts 2001, 77th Leg.,
ch. 1234, § 17, eff. Sept. 1, 2001.
§ 15.105. CONSIDERATIONS IN PASSING ON
APPLICATION. (a) In passing on an application for financial
assistance from the loan fund, the board shall consider but is not
limited to:
(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;
(2) the availability of revenue to the applicant from
all sources for the ultimate repayment of the cost of the project,
including all interest;
(3) the relationship of the project to overall
statewide needs;
(4) the ability of the applicant to finance the
project without state assistance;
(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
(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.
(b) The board by rule shall further define eligibility for
grants under this subchapter.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.04;
Acts 1987, 70th Leg., ch. 1103, § 5, eff. Sept. 1, 1987; Acts
1989, 71st Leg., ch. 624, § 2.07, eff. Sept. 1, 1989; Acts 2001,
77th Leg., ch. 966, § 4.08, eff. Sept. 1, 2001; Acts 2001, 77th
Leg., ch. 1367, § 11.04, eff. Sept. 1, 2001.
§ 15.106. APPROVAL OF APPLICATION. (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:
(1) that the public interest requires state
participation in the project; and
(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.
(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:
(1) restrictions on discretionary water uses, such as
lawn watering;
(2) plumbing code standards for water conservation in
new building construction;
(3) retrofit programs to improve water-use efficiency
in existing buildings;
(4) educational programs;
(5) universal metering;
(6) conservation-oriented water rate structures;
(7) drought contingency plans; and
(8) distribution system leak detection and repair.
(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.
(c) The board may not require a program of water
conservation to be adopted under Subsection (b) of this section if:
(1) an emergency exists as determined by the board;
(2) the amount of financial assistance to be provided
is $500,000 or less;
(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
(4) the project consists of construction outside the
jurisdiction of the State of Texas.
(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.
(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.
(f) Rules adopted under this section must state the criteria
for preparation, review, and enforcement of an applicant's
conservation program.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 1.07;
Acts 1987, 70th Leg., ch. 977, § 10, eff. June 19, 1987; Acts
1989, 71st Leg., ch. 624, § 2.08, eff. Sept. 1, 1989; Acts 2001,
77th Leg., ch. 966, § 4.09, eff. Sept. 1, 2001; Acts 2003, 78th
Leg., ch. 688, § 2, eff. June 20, 2003.
§ 15.107. METHOD OF MAKING FINANCIAL ASSISTANCE
AVAILABLE. (a) The board may make financial assistance available
to successful applicants in any manner that it considers
economically feasible including:
(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;
(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;
(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
(4) contracts or agreements for the receipt of funds
and performance of obligations in relation to any grant of funds
provided by the board.
(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.
(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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.04;
Acts 1987, 70th Leg., ch. 1103, § 6, eff. Sept. 1, 1987; Acts
2001, 77th Leg., ch. 966, § 4.10, eff. Sept. 1, 2001.
§ 15.1071. SALE OF POLITICAL SUBDIVISION BONDS TO TEXAS
WATER RESOURCES FINANCE AUTHORITY. (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.
(b) The board shall sell the political subdivision bonds at
the price and under the terms that it determines to be reasonable.
(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.
(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.
(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.
(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.
(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.
Added by Acts 1987, 70th Leg., ch. 728, § 3, eff. June 20, 1987.
§ 15.108. RECOMMENDATIONS FOR FUNDING BY
LEGISLATURE. (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.
(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.
Added by Acts 1985, 69th Leg., ch. 133, § 2.04.
§ 15.109. DELIVERY OF LOANS OF FINANCIAL
ASSISTANCE. (a) As money becomes available in the loan fund, the
board shall deliver the funds under the approved applications.
(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.
Added by Acts 1985, 69th Leg., ch. 133, § 2.04.
§ 15.110. REQUIREMENTS FOR POLITICAL SUBDIVISIONS AND
FEDERAL AGENCIES. (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.
(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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.04;
Acts 1989, 71st Leg., ch. 624, § 2.09, 2.10, eff. Sept. 1, 1989.
§ 15.111. APPROVAL AND REGISTRATION. 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.
Formerly § 15.108, added by Acts 1981, 67th Leg., 1st C.S., p.
102, ch. 12, § 1, eff. Nov. 10, 1981. Renumbered by Acts 1985,
69th Leg., ch. 133, § 2.04.
§ 15.112. CONTRACTS INCONTESTABLE. 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:
(1) approval of the bonds or other obligations by the
attorney general;
(2) registration of the bonds or other obligations by
the comptroller; and
(3) purchase by and delivery of the bonds or other
obligations to the purchaser.
Formerly § 15.109, added by Acts 1981, 67th Leg., 1st C.S., p.
102, ch. 12, § 1, eff. Nov. 10, 1981. Renumbered by Acts 1985,
69th Leg., ch. 133, § 2.04.
§ 15.113. INSPECTION OF PROJECTS. (a) The board may
inspect the construction of a project any time to assure that:
(1) the contractor is substantially complying with the
approved engineering plans of the project; and
(2) the contractor is constructing the project in
accordance with sound engineering principles.
(b) Inspection of a project by the board does not subject
the state to any civil liability.
Formerly § 15.110, added by Acts 1981, 67th Leg., 1st C.S., p.
102, ch. 12, § 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th
Leg., ch. 795, § 1.040, eff. Sept. 1, 1985. Renumbered by Acts
1985, 69th Leg., ch. 133, § 2.04. Amended by Acts 1987, 70th
Leg., ch. 977, § 11, eff. June 19, 1987.
§ 15.114. ALTERATION OF PLANS. 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.
Formerly § 15.111, added by Acts 1981, 67th Leg., 1st C.S., p.
102, ch. 12, § 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th
Leg., ch. 795, § 1.040, eff. Sept. 1, 1985. Renumbered by Acts
1985, 69th Leg., ch. 133, § 2.04. Amended by Acts 1987, 70th
Leg., ch. 977, § 12, eff. June 19, 1987; Acts 1989, 71st Leg.,
ch. 624, § 2.11, eff. Sept. 1, 1989.
§ 15.115. CERTIFICATE OF APPROVAL. The executive
administrator may consider the following as grounds for refusal to
give a certificate of approval for any construction contract:
(1) failure to construct the project according to the
approved plans;
(2) failure to construct the works in accordance with
sound engineering principles; or
(3) failure to comply with any terms of the contract.
Formerly § 15.112, added by Acts 1981, 67th Leg., 1st C.S., p.
102, ch. 12, § 1, eff. Nov. 10, 1981. Amended by Acts 1985, 69th
Leg., ch. 795, § 1.040, eff. Sept. 1, 1985. Renumbered by Acts
1985, 69th Leg., ch. 133, § 2.04. Amended by Acts 1987, 70th
Leg., ch. 977, § 12, eff. June 19, 1987.
§ 15.116. SALE OF BONDS BY THE BOARD. The board may sell
or dispose of bonds or other obligations purchased with money in the
water loan assistance fund.
Added by Acts 1987, 70th Leg., ch. 1103, § 7, eff. Sept. 1, 1987.
SUBCHAPTER D. WATER BOND INSURANCE PROGRAM
§ 15.201. DEFINITIONS. (a) In this subchapter:
(1) "Program" means the water bond insurance program.
(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.
(3) "Insured bonds" means bonds or other obligations
insured by the state under this subchapter.
(4) "Issuer" means a political subdivision or water
supply corporation issuing bonds or other obligations eligible to
be insured under the program.
(5) "Water supply corporation" means a nonprofit water
supply corporation created and operating under Chapter 67.
(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.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05. Amended by Acts
1991, 72nd Leg., ch. 516, § 2, eff. Sept. 1, 1991; Acts 1999,
76th Leg., ch. 62, § 18.55, eff. Sept. 1, 1999.
§ 15.202. CREATION AND ADMINISTRATION OF
PROGRAM. (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.
(b) The board shall administer the program in the manner
provided by this subchapter and by rules of the board.
(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.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05. Amended by Acts
1991, 72nd Leg., ch. 52, § 2, eff. May 1, 1991.
§ 15.203. ELIGIBLE BONDS. (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.
(b) Bonds issued for a term longer than 50 years are not
eligible to be insured under the program.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05.
§ 15.204. RULES. The board shall adopt necessary rules
to carry out this subchapter.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05.
§ 15.205. INSURANCE. 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.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05.
§ 15.206. APPLICATION FOR INSURANCE. (a) An issuer
may apply in writing to the board for the insurance of its bonds.
(b) The application must include the following information:
(1) the name of the issuer;
(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;
(3) the total amount of bonds for which insurance
coverage is sought and the anticipated interest rate on the bonds;
(4) the term for which the bonds are to be issued;
(5) the purpose or purposes for which the bonds are to
be issued;
(6) financial information relating to the issuance of
the bonds and to the financial stability and future of the issuer;
and
(7) any other information the board requires by its
rules or otherwise considers necessary in making a determination of
the application.
(c) The board by rule shall prescribe the form and procedure
for submitting and processing an application.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05.
§ 15.207. CONSIDERATIONS IN PASSING ON APPLICATION. In
addition to criteria established in its rules, the board in passing
on an application shall consider:
(1) the purpose or purposes for which the issuer is
issuing the bonds;
(2) the financial ability of the issuer to meet its
obligations under the bonds;
(3) the risk to the State of Texas in insuring the
bonds and the ability of the state to pay the insurance coverage;
and
(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.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05.
§ 15.208. APPROVAL OF APPLICATION. (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:
(1) that the bonds are being issued to finance a
project that serves the public interest;
(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
(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.
(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.
(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.
(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.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05.
§ 15.209. CONTRACTS, AGREEMENTS, AND OTHER
DOCUMENTS. (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.
(b) The insurance contract shall include:
(1) the extent of the insurance coverage;
(2) the terms and conditions of the insurance
coverage;
(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
(4) any other provision required in order to be in
compliance with the board's rules.
(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.
(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:
(1) approval by the attorney general;
(2) registration by the comptroller; and
(3) payment by and delivery to the buyer.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05.
§ 15.210. LIMITATION ON INSURANCE
COVERAGE. (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.
(b) The board may not approve insurance coverage in any
state fiscal year that exceeds a total of $100 million for all
applicants.
(c) The legislature, by a two-thirds vote of each house, may
change the limitations provided by Subsections (a) and (b) of this
section.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05.
§ 15.211. INSURANCE FEES. (a) The board shall adopt a
schedule of fees to be charged an issuer for insurance coverage
provided under this subchapter.
(b) Fees charged by the board under this section shall be
calculated to provide a reasonable reserve against defaults and
impending defaults.
(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.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05. Amended by Acts
1987, 70th Leg., ch. 1103, § 8, eff. Sept. 1, 1987; Acts 1989,
71st Leg., ch. 308, § 1, eff. June 14, 1989.
§ 15.212. PAYMENT BY STATE. (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.
(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.
(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.
(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.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05. Amended by Acts
1987, 70th Leg., ch. 977, § 13, eff. June 19, 1987.
§ 15.213. REFUNDING BONDS. 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.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05.
§ 15.214. INSPECTION OF PROJECTS. (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:
(1) the contractor is substantially complying with the
approved engineering plans of the project; and
(2) the contractor is constructing the project in
accordance with sound engineering principles.
(b) Inspection of a project by the board does not subject
the state to any civil liability.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05. Amended by Acts
1987, 70th Leg., ch. 977, § 14, eff. June 19, 1987.
§ 15.215. ALTERATION OF PLANS. 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.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05. Amended by Acts
1987, 70th Leg., ch. 977, § 14, eff. June 19, 1987.
§ 15.216. CERTIFICATE OF APPROVAL. The board may
consider the following as grounds for refusal to give a certificate
of approval for any construction contract:
(1) failure to construct the project according to
approved plans;
(2) failure to construct the project in accordance
with sound engineering principles; or
(3) failure to comply with any terms of the contract.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05. Amended by Acts
1987, 70th Leg., ch. 977, § 14, eff. June 19, 1987.
§ 15.217. OPEN RECORDS AND OPEN MEETINGS LAWS. Water
supply corporations receiving any assistance under this Act are
subject to Chapter 552, Government Code, and Chapter 551,
Government Code.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05. Amended by Acts
1995, 74th Leg., ch. 76, § 5.95(78), (90), eff. Sept. 1, 1995.
§ 15.218. REPORT. (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.
(b) The report shall include:
(1) the total amount of insurance coverage authorized
by the board during the biennium;
(2) the number of insurance coverage authorizations
granted by the board;
(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;
(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;
(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;
(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;
(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
(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.
(c) The state comptroller on request shall provide to the
board all information and assistance necessary for the board to
prepare this report.
Added by Acts 1985, 69th Leg., ch. 133, § 2.05. Amended by Acts
1987, 70th Leg., ch. 977, § 14, eff. June 19, 1987; Acts 1997,
75th Leg., ch. 1423, § 20.02, eff. Sept. 1, 1997.
SUBCHAPTER E. STORAGE ACQUISITION PROGRAM
§ 15.301. FUND CREATED. 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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.06.
§ 15.302. AUTHORIZED PROJECTS. (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.
(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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.303. JOINT VENTURES. 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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.304. PERMITS REQUIRED. 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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 4.03.
§ 15.3041. RESERVATION AND APPROPRIATION FOR BAYS AND
ESTUARIES AND INSTREAM USES. (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.
(b) The Parks and Wildlife Department in cooperation with
the department shall manage this water for the purposes stated in
this section.
(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.
(d) This section does not limit or repeal any other
authority of or law relating to the department or the commission.
(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.
Added by Acts 1985, 69th Leg., ch. 133, § 4.03.
§ 15.305. STORING WATER. 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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.306. BOARD FINDINGS. Before the board may acquire
storage facilities in any reservoir, the board shall find
affirmatively that:
(1) it is reasonable to expect that the state will
recover its investment in the facilities;
(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;
(3) the public interest will be served by acquisition
of the facilities; and
(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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.3061. RECOMMENDATIONS FOR FUNDING BY
LEGISLATURE. (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.
(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.
Added by Acts 1985, 69th Leg., ch. 133, § 2.06.
§ 15.307. FACILITIES WANTED BY POLITICAL
SUBDIVISION. The board shall not acquire any facility to the
extent that the board finds that the political subdivision:
(1) is willing and reasonably able to finance the
acquisition of the facility;
(2) has qualified by obtaining the necessary permit;
and
(3) has proposals that are inconsistent with the
objectives of the state water plan.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1987, 70th Leg., ch. 977, § 14,
eff. June 19, 1987.
§ 15.308. CONTRACTS: GENERAL AUTHORITY. (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.
(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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.309. SPECIFIC CONTRACTS AUTHORIZED. Contracts
authorized by Section 15.308 of this code include but are not
limited to the following:
(1) federal grants or grants from other sources;
(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;
(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
(4) contracts secured by the pledge of all or any part
of funds in the storage acquisition fund.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.310. CONTRACTS: FACILITIES ACQUIRED FOR A TERM OF
YEARS. 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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.311. MAINTENANCE CONTRACTS. 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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.312. RECREATIONAL FACILITIES. 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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.313. BOARD MAY SELL OR LEASE PROJECTS. (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.
(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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.314. PERMIT REQUIRED. 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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.315. CONTRACT MUST BE NEGOTIATED. The commission
may issue a term permit until the applicant has executed a contract
with the board for acquisition of the facilities.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.316. RESERVOIR LAND. The board may lease acquired
reservoir land until construction of the dam is completed without
the necessity of a permit issued by the commission.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.317. PRICE OF SALE. (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.
(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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.318. PRICE OF SALE: FACILITIES ACQUIRED UNDER
CONTRACTS WITH THE UNITED STATES. (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.
(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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.319. COSTS DEFINED. 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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.320. LEASE PAYMENTS. In leasing a state facility
for a term of years, the board shall require annual payments not
less than the total of:
(1) the annual principal and interest requirements
applicable to the debt incurred by the state in acquiring the
facility; and
(2) the state's annual cost for operation,
maintenance, and rehabilitation of the facility.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.321. SALE OR LEASE: CONDITION PRECEDENT. (a) No
sale, transfer, or lease of a state facility is valid unless the
board first makes the following affirmative findings:
(1) that the applicant has a permit granted by the
commission;
(2) that the sale, transfer, or lease serves the
public interest; and
(3) that the consideration for the sale, transfer, or
lease is fair, just, reasonable, and in full compliance with the
law.
(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.
(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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.322. DISPOSITION OF PROCEEDS. (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.
(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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.06.
§ 15.323. SALE OF STORED WATER. (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.
(b) Except as provided by Subsection (c) of this section,
money received from any sale shall be placed in the general revenue
fund.
(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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.06.
§ 15.324. SALE CONTRACT: PROVISIONS,
LIMITATIONS. (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.
(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.
(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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.325. EMERGENCY RELEASES OF WATER. (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.
(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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 795, §
1.041, eff. Sept. 1, 1985.
§ 15.326. PREFERENCES. 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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.327. LEASE OF LAND PRIOR TO PROJECT
CONSTRUCTION. 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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.328. LEASE CONTRIBUTION EQUIVALENT TO TAXES. The
lease may provide for contribution by the lessee to units of local
government of amounts equivalent to ad valorem taxes or special
assessments.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.329. INSPECTION OF PROJECTS. (a) The board may
inspect the construction of a project any time to assure that:
(1) the contractor is substantially complying with the
approved engineering plans of the project; and
(2) the contractor is constructing the project in
accordance with sound engineering principles.
(b) Inspection of a project by the board does not subject
the state to any civil liability.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 795, §
1.042, eff. Sept. 1, 1985; Acts 1987, 70th Leg., ch. 977, § 14,
eff. June 19, 1987.
§ 15.330. ALTERATION OF PLANS. 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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 795, §
1.042, eff. Sept. 1, 1985; Acts 1987, 70th Leg., ch. 977, § 14,
eff. June 19, 1987.
§ 15.331. CERTIFICATE OF APPROVAL. The executive
administrator may consider the following as grounds for refusal to
give a certificate of approval for any construction contract:
(1) failure to construct the project according to
approved plans;
(2) failure to construct the works in accordance with
sound engineering principles; or
(3) failure to comply with any terms of the contract.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 795, §
1.042, eff. Sept. 1, 1985; Acts 1987, 70th Leg., ch. 977, § 14,
eff. June 19, 1987.
SUBCHAPTER F. RESEARCH AND PLANNING PROGRAM
§ 15.401. PROGRAM CREATION. 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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1991, 72nd Leg., ch. 516, § 3,
eff. Sept. 1, 1991; Acts 1997, 75th Leg., ch. 1010, § 1.04, eff.
Sept. 1, 1997.
§ 15.402. RESEARCH AND PLANNING FUND. 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.
Added by Acts 1981, 67th Leg. 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133, § 2.13.
§ 15.403. RULES. The board shall adopt rules to carry
out this chapter.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981.
§ 15.404. RESEARCH CONTRACTS. (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.
(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:
(1) a description of the proposed research project;
(2) a detailed estimate of the cost of the proposed
research project;
(3) the estimated time required to complete the
research project; and
(4) any other information requested by the board or
required by the board's rules.
(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.
(d) The board shall adopt rules providing criteria for
research projects and for eligibility of persons to receive
contract awards under this section.
(e) A contract made by the board under this section shall
include:
(1) a detailed description of the research project;
(2) the time in which the research project is to be
completed;
(3) the total amount of money to be paid by the board
from the research and planning fund for the research project; and
(4) any other terms and conditions required by the
board's rules or agreed to by the contracting parties.
(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.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1997, 75th Leg., ch. 1010, §
1.05, eff. Sept. 1, 1997.
§ 15.405. PLANNING CONTRACTS. (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.
(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.
(c) The application shall include:
(1) the name of the political subdivision;
(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;
(3) the amount requested from the board for flood
control planning; and
(4) any other information required by the board in its
rules or specifically requested by the board.
(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.
(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:
(1) a detailed statement of the purpose for which the
money is to be used;
(2) the total amount of money to be paid from the
research and planning fund under the contract; and
(3) any other terms and conditions required by board
rules or agreed to by the contracting parties.
(f) The board shall adopt rules establishing criteria of
eligibility for flood control planning money that considers:
(1) the relative need of the political subdivision for
the money;
(2) the legal authority of the political subdivision
to plan for and control flooding; and
(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.
(g) The board shall require that flood control plans
developed under contracts entered into under this section be made
available to the commission.
Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, § 1, eff.
Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 795, §
1.043, eff. Sept. 1, 1985.
§ 15.406. REGIONAL FACILITY PLANNING. (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.
(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.
(c) The application shall include:
(1) the name of the political subdivision;
(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;
(3) the amount requested from the board for regional
facility planning; and
(4) any other information required by the board in its
rules or specifically requested by the board.
(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.
(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:
(1) a detailed statement of the purpose for which the
money is to be used;
(2) the total amount of money to be paid from the
research and planning fund under the contract; and
(3) any other terms and conditions required by board
rules or agreed to by the contracting parties.
(f) The board shall adopt rules establishing criteria of
eligibility for regional facility planning money that considers:
(1) the relative need of the political subdivision for
the money;
(2) the legal authority of the political subdivision
to plan, develop, and operate regional facilities;
(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
(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.
(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.
Added by Acts 1985, 69th Leg., ch. 133, § 2.13. Amended by Acts
1987, 70th Leg., ch. 977, § 15, eff. June 19, 1987; Acts 1997,
75th Leg., ch. 1010, § 1.06, eff. Sept. 1, 1997.
§ 15.4061. FUNDING FOR REGIONAL WATER PLANS. (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.
(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.
(c) The application shall be in the manner and form required
by board rules and include:
(1) the name of the political subdivision or political
subdivisions;
(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;
(3) the amount requested from the board for regional
water planning; and
(4) any other relevant information required by the
board in its rules or specifically requested by the board.
(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.
(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:
(1) a detailed statement of the purpose for which the
money is to be used;
(2) the total amount of money to be paid by the board
from the research and planning fund under the contract; and
(3) any other terms and conditions required by the
board's rules or agreed to by the contracting parties.
(f) The board shall adopt rules establishing criteria for
eligibility for regional water planning money that include:
(1) the relative need of the political subdivision for
the money;
(2) the legal authority of the political subdivision
to develop and implement a regional water plan; and
(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.
(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:
(1) detailed evaluation of cost of water supply
alternatives where recent information is available to evaluate the
cost associated with the alternative;
(2) evaluation of groundwater resources for which
current information is available from the board or other entity
sufficient for evaluation of the resource;
(3) determination of water savings resulting from
standard conservation practices for which current information is
available from the board;
(4) revision of board demand and population
projections;
(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
(6) collection of data describing groundwater or
surface water resources where information for evaluation of the
resource is currently available.
(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.
Added by Acts 1997, 75th Leg., ch. 1010, § 1.07, eff. Sept. 1,
1997. Amended by Acts 1999, 76th Leg., ch. 456, § 1, eff. June
18, 1999; Acts 1999, 76th Leg., ch. 979, § 1, eff. June 18, 1999.
§ 15.407. FACILITY ENGINEERING IN ECONOMICALLY
DISTRESSED AREAS. (a) In this section, "economically distressed
area" and "political subdivision" have the meanings assigned by
Section 16.341 of this code.
(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.
(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.
(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.
(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.
(f) The application shall include:
(1) the name of the political subdivision;
(2) a citation to the laws under which the political
subdivision was created and is operating;
(3) the amount requested from the board for facility
engineering in an economically distressed area; and
(4) any other information required by the board in its
rules or specifically requested by the board.
(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.
(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:
(1) a detailed statement of the purpose for which the
money is to be used;
(2) the total amount of money to be paid from the
research and planning fund under the contract; and
(3) any other terms and conditions required by board
rules or agreed to by the contracting parties.
(i) If, after submission of an application under this
section, a county has an increase in average per capita income or a
decrease in unemployment rate average so that the county no longer
meets the definition of an affected county in Section 16.341, the
political subdivision that submits the application continues to be
eligible for the funds under this section, and the board shall
process the application for facility engineering and, if the
application is approved, shall provide funds for the facility
engineering plan to the political subdivision.
(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.
Added by Acts 1989, 71st Leg., ch. 624, § 2.12, eff. Sept. 1,
1989. Amended by Acts 1995, 74th Leg., ch. 649, § 1, eff. June
14, 1995; Acts 1999, 76th Leg., ch. 404, § 32, eff. Sept. 1,
1999.
SUBCHAPTER J. FINANCIAL ASSISTANCE FOR WATER POLLUTION CONTROL
§ 15.601. CREATION OF FUND. (a) The state water
pollution control revolving fund shall be administered by the board
under this subchapter and rules adopted by the board. The fund
shall be used to provide financial assistance to political
subdivisions for construction of treatment works and to persons for
nonpoint source pollution control and abatement projects under
Section 15.603(h), in accordance with the capitalization grant
program established under the Federal Water Pollution Control Act
(33 U.S.C. 1251 et seq.).
(b) The board may establish one or more additional state
revolving funds in accordance with other capitalization grant
programs hereafter established by federal agencies or otherwise
authorized by federal law. Such additional state revolving funds
shall be held and administered by the board in the same manner as
provided by Section 15.603 of this code for the administration of
the state water pollution control revolving fund, except that such
additional state revolving funds shall be held and administered in
accordance with the federal legislation or federal agency program
under which the additional state revolving fund was established and
shall be used to provide financial assistance to political
subdivisions for public works in accordance with such legislation
or program. In the administration of such additional state
revolving funds, the board shall have all rights and powers
authorized to the board pursuant to this subchapter in connection
with the administration of the state water pollution control
revolving fund, together with such additional rights and powers as
are necessary or appropriate in connection with the administration
of such additional state revolving funds.
(c) The board may, in its discretion, provide for the state
water pollution control revolving fund to be merged into any
additional state revolving fund hereafter created.
Added by Acts 1987, 70th Leg., ch. 420, § 1, eff. June 17, 1987.
Amended by Acts 1993, 73rd Leg., ch. 184, § 1, eff. May 19, 1993;
Acts 2001, 77th Leg., ch. 1234, § 19, eff. Sept. 1, 2001.
§ 15.602. DEFINITIONS. In this subchapter:
(1) "Additional state revolving fund" means any state
revolving fund hereafter established by the board to provide
financial assistance to political subdivisions for public works in
accordance with a capitalization grant program hereafter
established by a federal agency or otherwise authorized by federal
law.
(2) "Authorized investments" means any authorized
investments described in Section 404.024, Government Code.
(3) "Community water system" means a public water
system that:
(A) serves at least 15 service connections used
by year-round residents of the area served by the system; or
(B) regularly serves at least 25 year-round
residents.
(4) "Construction" shall have the meaning assigned by
the Federal Water Pollution Control Act (33 U.S.C. 1251 et seq.).
(5) "Disadvantaged community" means an area meeting
criteria established by board rule, which criteria shall be based
on measures that may include single-family residential property
valuation, income levels of residents of the area, or other
similarly appropriate measures.
(5-a) "Eligible lending institution" means a financial
institution that makes commercial loans, is either a depository of
state funds or an institution of the Farm Credit System
headquartered in this state, agrees to participate in a linked
deposit program established under Section 15.611 and to provide
collateral equal to the amount of linked deposits placed with it,
and meets any other requirements established by board rule.
(6) "Federal Act" means the Federal Water Pollution
Control Act, as amended (33 U.S.C. 1251 et seq.).
(7) "Nonprofit noncommunity water system" means a
public water system that is not operated for profit and that:
(A) is owned by a political subdivision or
nonprofit entity; and
(B) is not a community water system.
(8) "Person" means an individual, corporation,
partnership, association, state, municipality, commission, or
political subdivision of a state or any interstate body, as defined
by Section 502 of the federal act, including a political
subdivision as defined by this subchapter, if the person is
eligible for financial assistance under federal law establishing
the revolving fund.
(9) "Political subdivision" means a municipality,
intermunicipal, interstate, or state agency, any other public
entity eligible for assistance under this subchapter, or a
nonprofit water supply corporation created and operating under
Chapter 67, if such entity is eligible for financial assistance
under federal law establishing the state revolving fund or an
additional state revolving fund.
(10) "Public water system" means a system that is
owned by any person and that meets the definition of public water
system in the Safe Drinking Water Act.
(11) "Public works" means any project to acquire,
construct, improve, repair, or otherwise provide any buildings,
structures, facilities, equipment, or other real or personal
property or improvements designed for public use, protection, or
enjoyment undertaken by a political subdivision and paid for, in
whole or in part, out of public funds.
(12) "Revolving fund" means the state water pollution
control revolving fund.
(13) "Safe Drinking Water Act" means Title XIV of the
federal Public Health Service Act, commonly known as the Safe
Drinking Water Act, as amended (42 U.S.C. Section 300f et seq.).
(14) "Safe drinking water revolving fund" means the
fund established by the board as an additional state revolving fund
to provide financial assistance in accordance with the federal
program established pursuant to the provisions of the Safe Drinking
Water Act.
(15) "Treatment works" has the meaning established by
the federal act and the eligible components of the management
programs established by Sections 319 and 320 of the federal act.
Added by Acts 1987, 70th Leg., ch. 420, § 1, eff. June 17, 1987.
Amended by Acts 1993, 73rd Leg., ch. 184, § 2, eff. May 19, 1993;
Acts 1993, 73rd Leg., ch. 477, § 6, eff. Aug. 30, 1993; Acts
1997, 75th Leg., ch. 1010, § 6.15, eff. Sept. 1, 1997; Acts
1999, 76th Leg., ch. 62, § 18.56, eff. Sept. 1, 1999; Acts 2001,
77th Leg., ch. 966, § 4.13, eff. Sept. 1, 2001; Acts 2003, 78th
Leg., ch. 200, § 19(a), eff. Sept. 1, 2003; Acts 2003, 78th
Leg., ch. 352, § 1, eff. Sept. 1, 2003.
§ 15.603. CREATION AND ADMINISTRATION OF
PROGRAM. (a) The revolving fund is held separately from other
funds by the board outside the State Treasury to provide financial
assistance to political subdivisions for construction of treatment
works and to persons for estuary management projects and for
nonpoint source pollution control and abatement projects under
Subsection (h).
(b) The board may execute agreements with the Environmental
Protection Agency or any other federal agency to establish and
administer the revolving fund and may discharge the duties and
responsibilities required for the administration of the revolving
fund.
(c) The revolving fund consists of money derived from
federal grants, direct appropriations, investment earnings on
amounts credited to the revolving fund, and, at the board's
discretion, from any and all sources available.
(d) The revolving fund shall remain available in perpetuity
for providing financial assistance in accordance with the federal
act.
(e) All payments of principal and interest and all proceeds
from the sale, refunding, or prepayment of bonds of political
subdivisions acquired in carrying out the purposes of the revolving
fund shall be deposited in the revolving fund.
(f) The board shall administer the revolving fund in the
manner provided by the federal act, state law, and the rules of the
board.
(g) The revolving fund and any accounts established in the
revolving fund shall be kept and maintained by or at the direction
of the board and do not constitute and are not a part of the State
Treasury. However, at the direction of the board, the revolving
fund or accounts in the revolving fund may be kept and held in
escrow and in trust by the comptroller for and on behalf of the
board, shall be used only as provided by this subchapter, and
pending such use shall be invested in authorized investments as
provided by any order, resolution, or rule of the board. Legal
title to money and investments in the revolving fund is in the board
unless or until paid out as provided by this subchapter, the federal
act, and the rules of the board. The comptroller, as custodian,
shall administer the funds strictly and solely as provided by this
subchapter and in the orders, resolutions, and rules, and the state
shall take no action with respect to the revolving fund other than
that specified in this subchapter, the federal act, and the rules of
the board.
(h) The board may establish a separate account in the
revolving fund to be used solely for providing financial assistance
to persons for nonpoint source pollution control and abatement
projects. The account shall be composed solely of funds
appropriated by the legislature, funds provided as gifts or grants
by the United States, interest earnings on amounts credited to the
account, and repayments of loans made from the account. The board
shall adopt rules establishing the criteria for eligibility and the
terms of assistance for persons that receive financial assistance
from the account.
(i) In addition to authorized purposes under Subsection
(a), the revolving fund is held by the board to provide linked
deposits to eligible financial institutions for loans to persons
for nonpoint source pollution control projects.
Added by Acts 1987, 70th Leg., ch. 420, § 1, eff. June 17, 1987.
Amended by Acts 1997, 75th Leg., ch. 1010, § 6.17, eff. Sept. 1,
1997; Acts 1997, 75th Leg., ch. 1423, § 20.03, eff. Sept. 1,
1997; Acts 2001, 77th Leg., ch. 966, § 4.14, eff. Sept. 1, 2001;
Acts 2001, 77th Leg., ch. 1234, § 20, eff. Sept. 1, 2001; Acts
2003, 78th Leg., ch. 200, § 19(b), eff. Sept. 1, 2003; Acts
2003, 78th Leg., ch. 352, § 2, eff. Sept. 1, 2003; Acts 2003,
78th Leg., ch. 1276, § 18.004, eff. Sept. 1, 2003.
§ 15.604. FINANCIAL ASSISTANCE UNDER THE REVOLVING
FUND. (a) The board may use the revolving fund for financial
assistance only as provided by the federal act:
(1) to make loans, on the conditions that:
(A) those loans are made at or below market
interest rates, including interest-free loans, at terms not to
exceed 20 years;
(B) principal and interest payments will begin
not later than one year after completion of any treatment works and
all loans will be fully amortized not later than 20 years after
completion of the treatment works;
(C) the recipient of a loan will establish a
dedicated source of revenue for repayment of loans; and
(D) the revolving fund will be credited with all
payments of principal of and interest on all loans;
(2) to buy or refinance the debt obligation of
political subdivisions at or below market rates if the debt
obligations were incurred after March 7, 1985;
(3) to guarantee or purchase insurance for political
subdivisions if the guarantee or insurance would improve access to
market credit or reduce interest rates;
(4) as a source of revenue or security for the payment
of principal and interest on bonds issued by the state if the
proceeds of the sale of those bonds will be deposited in the
revolving fund;
(5) to provide loan guarantees to similar revolving
funds established by municipalities or intermunicipal agencies;
(6) to earn interest on revolving fund accounts;
(7) for the reasonable costs of administering the
revolving fund and conducting activiti
