CHAPTER 15. TEXAS WATER ASSISTANCE PROGRAM
WATER CODE
TITLE 2. WATER ADMINISTRATION
SUBTITLE C. WATER DEVELOPMENT
CHAPTER 15. TEXAS WATER ASSISTANCE PROGRAM
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 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;
(C) in which the average household income is less than the
average household income for the county in which the community is
located; and
(D) that consists of 11 or more dwellings that are located in
close proximity to each other in an area that may be described as
a community or neighborhood.
(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, Sec. 1,
eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,
Sec. 1.06; Acts 1985, 69th Leg., ch. 133, Sec. 2.01; Acts 1985,
69th Leg., ch. 795, Sec. 1.038, eff. Sept. 1, 1985; Acts 1985,
69th Leg., ch. 821, Sec. 1, eff. Sept. 1, 1985; Acts 1987, 70th
Leg., ch. 977, Sec. 8, eff. June 19, 1987; Acts 1989, 71st Leg.,
ch. 624, Sec. 2.01, eff. Sept. 1, 1989; Acts 1991, 72nd Leg., 1st
C.S., ch. 3, Sec. 1.059, eff. Aug. 12, 1991; Acts 1993, 73rd
Leg., ch. 844, Sec. 2, eff. Aug. 30, 1993; Acts 1997, 75th Leg.,
ch. 1010, Sec. 4.07, eff. Sept. 1, 1997; Acts 1999, 76th Leg.,
ch. 62, Sec. 18.54, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch.
966, Sec. 4.04, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch.
1367, Sec. 11.01, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch.
1275, Sec. 2(141), eff. Sept. 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
341, Sec. 14, eff. June 15, 2007.
Sec. 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, Sec. 1,
eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,
Sec. 2.02; Acts 1989, 71st Leg., ch. 624, Sec. 2.02, eff. Sept.
1, 1989; Acts 1991, 72nd Leg., ch. 295, Sec. 41, eff. June 7,
1991; Acts 1997, 75th Leg., ch. 1010, Sec. 4.08, eff. Sept. 1,
1997; Acts 1999, 76th Leg., ch. 1461, Sec. 3, eff. Sept. 1, 1999;
Acts 2001, 77th Leg., ch. 966, Sec. 4.05, eff. Sept. 1, 2001.
Sec. 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, Sec. 1,
eff. Nov. 10, 1981.
Sec. 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, Sec. 1,
eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,
Sec. 2.03.
Sec. 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, Sec. 1,
eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 795,
Sec. 1.039, eff. Sept. 1, 1985; Acts 2003, 78th Leg., ch. 1057,
Sec. 2, eff. June 20, 2003.
Sec. 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, Sec. 2.18. Amended by
Acts 1995, 74th Leg., ch. 76, Sec. 5.95(78), (90), eff. Sept. 1,
1995.
Sec. 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, Sec. 2.03, eff. Sept. 1,
1989.
Sec. 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, Sec. 4, eff. Sept. 1,
1991. Amended by Acts 2001, 77th Leg., ch. 1234, Sec. 13, eff.
Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1367, Sec. 11.02, eff.
Sept. 1, 2001.
SUBCHAPTER B. WATER ASSISTANCE FUND
Sec. 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, Sec. 1,
eff. Nov. 10, 1981. Amended by Acts 1990, 71st Leg., 5th C.S.,
ch. 3, Sec. 2, eff. June 14, 1990; Acts 1991, 72nd Leg., 1st
C.S., ch. 3, Sec. 1.060, eff. Aug. 12, 1991; Acts 1991, 72nd
Leg., 1st C.S., ch. 4, Sec. 10.07, eff. Sept. 1, 1991; Acts 1993,
73rd Leg., ch. 477, Sec. 2, eff. Aug. 30, 1993; Acts 1993, 73rd
Leg., ch. 647, Sec. 3, eff. Aug. 30, 1993; Acts 1999, 76th Leg.,
ch. 1461, Sec. 4, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch.
966, Sec. 4.06, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch.
1234, Sec. 14, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch.
1276, Sec. 18.002, eff. Sept. 1, 2003.
Sec. 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, Sec. 1,
eff. Nov. 10, 1981. Amended by Acts 1990, 71st Leg., 5th C.S.,
ch. 3, Sec. 3, eff. June 14, 1990; Acts 1991, 72nd Leg., 1st
C.S., ch. 3, Sec. 1.061, eff. Aug. 12, 1991; Acts 1991, 72nd
Leg., 1st C.S., ch. 4, Sec. 10.08, eff. Sept. 1, 1991; Acts 1993,
73rd Leg., ch. 477, Sec. 3, eff. Aug. 30, 1993; Acts 1993, 73rd
Leg., ch. 844, Sec. 3, eff. Aug. 30, 1993; Acts 1999, 76th Leg.,
ch. 1461, Sec. 5, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch.
1234, Sec. 15, eff. Sept. 1, 2001.
SUBCHAPTER C. WATER LOAN ASSISTANCE PROGRAM
Sec. 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, Sec. 1,
eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,
Sec. 2.04.
Sec. 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) water conservation, desalination, brush control, weather
modification, regionalization, and projects providing regional
water quality enhancement services as defined by board rule,
including regional conveyance systems.
(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, Sec. 1,
eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,
Sec. 2.04; Acts 1987, 70th Leg., ch. 977, Sec. 9, eff. June 19,
1987; Acts 1987, 70th Leg., ch. 1103, Sec. 2, eff. Sept. 1, 1987;
Acts 1989, 71st Leg., ch. 624, Sec. 2.04, eff. Sept. 1, 1989;
Acts 2001, 77th Leg., ch. 966, Sec. 4.07, eff. Sept. 1, 2001;
Acts 2001, 77th Leg., ch. 1234, Sec. 16, eff. Sept. 1, 2001; Acts
2001, 77th Leg., ch. 1367, Sec. 11.03, eff. Sept. 1, 2001; Acts
2003, 78th Leg., ch. 1276, Sec. 18.003, eff. Sept. 1, 2003.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
1352, Sec. 7, eff. June 15, 2007.
Acts 2007, 80th Leg., R.S., Ch.
1430, Sec. 2.10, eff. September 1, 2007.
Sec. 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, Sec. 1,
eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,
Sec. 1.05, 2.04; Acts 1987, 70th Leg., ch. 977, Sec. 9, eff. June
19, 1987; Acts 1987, 70th Leg., ch. 1103, Sec. 3, eff. Sept. 1,
1987; Acts 1989, 71st Leg., ch. 624, Sec. 2.05, eff. Sept. 1,
1989.
Sec. 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, Sec. 1,
eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,
Sec. 2.04; Acts 1985, 69th Leg., ch. 795, Sec. 1.040, eff. Sept.
1, 1985; Acts 1987, 70th Leg., ch. 246, Sec. 1, eff. Aug. 31,
1987; Acts 1987, 70th Leg., ch. 1103, Sec. 4, eff. Sept. 1, 1987;
Acts 1989, 71st Leg., ch. 624, Sec. 2.06, eff. Sept. 1, 1989;
Acts 2001, 77th Leg., ch. 1234, Sec. 17, eff. Sept. 1, 2001.
Sec. 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, Sec. 1,
eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,
Sec. 2.04; Acts 1987, 70th Leg., ch. 1103, Sec. 5, eff. Sept. 1,
1987; Acts 1989, 71st Leg., ch. 624, Sec. 2.07, eff. Sept. 1,
1989; Acts 2001, 77th Leg., ch. 966, Sec. 4.08, eff. Sept. 1,
2001; Acts 2001, 77th Leg., ch. 1367, Sec. 11.04, eff. Sept. 1,
2001.
Sec. 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, Sec. 1,
eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,
Sec. 1.07; Acts 1987, 70th Leg., ch. 977, Sec. 10, eff. June 19,
1987; Acts 1989, 71st Leg., ch. 624, Sec. 2.08, eff. Sept. 1,
1989; Acts 2001, 77th Leg., ch. 966, Sec. 4.09, eff. Sept. 1,
2001; Acts 2003, 78th Leg., ch. 688, Sec. 2, eff. June 20, 2003.
Sec. 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, Sec. 1,
eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,
Sec. 2.04; Acts 1987, 70th Leg., ch. 1103, Sec. 6, eff. Sept. 1,
1987; Acts 2001, 77th Leg., ch. 966, Sec. 4.10, eff. Sept. 1,
2001.
Sec. 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, Sec. 3, eff. June 20,
1987.
Sec. 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, Sec. 2.04.
Sec. 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, Sec. 2.04.
Sec. 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, Sec. 1,
eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,
Sec. 2.04; Acts 1989, 71st Leg., ch. 624, Sec. 2.09, 2.10, eff.
Sept. 1, 1989.
Sec. 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 Sec. 15.108, added by Acts 1981, 67th Leg., 1st C.S., p.
102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Renumbered by Acts 1985,
69th Leg., ch. 133, Sec. 2.04.
Sec. 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 Sec. 15.109, added by Acts 1981, 67th Leg., 1st C.S., p.
102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Renumbered by Acts 1985,
69th Leg., ch. 133, Sec. 2.04.
Sec. 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 Sec. 15.110, added by Acts 1981, 67th Leg., 1st C.S., p.
102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985,
69th Leg., ch. 795, Sec. 1.040, eff. Sept. 1, 1985. Renumbered by
Acts 1985, 69th Leg., ch. 133, Sec. 2.04. Amended by Acts 1987,
70th Leg., ch. 977, Sec. 11, eff. June 19, 1987.
Sec. 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 Sec. 15.111, added by Acts 1981, 67th Leg., 1st C.S., p.
102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985,
69th Leg., ch. 795, Sec. 1.040, eff. Sept. 1, 1985. Renumbered by
Acts 1985, 69th Leg., ch. 133, Sec. 2.04. Amended by Acts 1987,
70th Leg., ch. 977, Sec. 12, eff. June 19, 1987; Acts 1989, 71st
Leg., ch. 624, Sec. 2.11, eff. Sept. 1, 1989.
Sec. 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 Sec. 15.112, added by Acts 1981, 67th Leg., 1st C.S., p.
102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985,
69th Leg., ch. 795, Sec. 1.040, eff. Sept. 1, 1985. Renumbered by
Acts 1985, 69th Leg., ch. 133, Sec. 2.04. Amended by Acts 1987,
70th Leg., ch. 977, Sec. 12, eff. June 19, 1987.
Sec. 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, Sec. 7, eff. Sept. 1,
1987.
SUBCHAPTER D. WATER BOND INSURANCE PROGRAM
Sec. 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, Sec. 2.05. Amended by
Acts 1991, 72nd Leg., ch. 516, Sec. 2, eff. Sept. 1, 1991; Acts
1999, 76th Leg., ch. 62, Sec. 18.55, eff. Sept. 1, 1999.
Sec. 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, Sec. 2.05. Amended by
Acts 1991, 72nd Leg., ch. 52, Sec. 2, eff. May 1, 1991.
Sec. 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, Sec. 2.05.
Sec. 15.204. RULES. The board shall adopt necessary rules to
carry out this subchapter.
Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05.
Sec. 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, Sec. 2.05.
Sec. 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, Sec. 2.05.
Sec. 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, Sec. 2.05.
Sec. 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, Sec. 2.05.
Sec. 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, Sec. 2.05.
Sec. 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, Sec. 2.05.
Sec. 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, Sec. 2.05. Amended by
Acts 1987, 70th Leg., ch. 1103, Sec. 8, eff. Sept. 1, 1987; Acts
1989, 71st Leg., ch. 308, Sec. 1, eff. June 14, 1989.
Sec. 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, Sec. 2.05. Amended by
Acts 1987, 70th Leg., ch. 977, Sec. 13, eff. June 19, 1987.
Sec. 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, Sec. 2.05.
Sec. 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, Sec. 2.05. Amended by
Acts 1987, 70th Leg., ch. 977, Sec. 14, eff. June 19, 1987.
Sec. 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, Sec. 2.05. Amended by
Acts 1987, 70th Leg., ch. 977, Sec. 14, eff. June 19, 1987.
Sec. 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, Sec. 2.05. Amended by
Acts 1987, 70th Leg., ch. 977, Sec. 14, eff. June 19, 1987.
Sec. 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, Sec. 2.05. Amended by
Acts 1995, 74th Leg., ch. 76, Sec. 5.95(78), (90), eff. Sept. 1,
1995.
Sec. 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, Sec. 2.05. Amended by
Acts 1987, 70th Leg., ch. 977, Sec. 14, eff. June 19, 1987; Acts
1997, 75th Leg., ch. 1423, Sec. 20.02, eff. Sept. 1, 1997.
SUBCHAPTER E. STORAGE ACQUISITION PROGRAM
Sec. 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, Sec. 1,
eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,
Sec. 2.06.
Sec. 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, Sec. 1,
eff. Nov. 10, 1981.
Sec. 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, Sec. 1,
eff. Nov. 10, 1981.
Sec. 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, Sec. 1,
eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,
Sec. 4.03.
Sec. 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, Sec. 4.03.
Sec. 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, Sec. 1,
eff. Nov. 10, 1981.
Sec. 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, Sec. 1,
eff. Nov. 10, 1981.
Sec. 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, Sec. 2.06.
Sec. 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, Sec. 1,
eff. Nov. 10, 1981. Amended by Acts 1987, 70th Leg., ch. 977,
Sec. 14, eff. June 19, 1987.
Sec. 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, Sec. 1,
eff. Nov. 10, 1981.
Sec. 15.309. SPECIFIC CONTRACTS AUTHORIZED. Contracts
authorized by Section 15.308 of this code include but are not<