H.B. No. 1269
    1-1                                AN ACT
    1-2  relating to the powers of the Texas Water Development Board and the
    1-3  executive administrator of the board.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 6.183, Water Code, is amended to read as
    1-6  follows:
    1-7        Sec. 6.183.  EMPLOYMENT OF PERSONNEL.  The executive
    1-8  administrator shall employ necessary personnel for the board.  The
    1-9  executive administrator may delegate powers and duties to deputy
   1-10  executive administrators.
   1-11        SECTION 2.  Section 15.011(b), Water Code, is amended to read
   1-12  as follows:
   1-13        (b)  After notice and hearing and subject to any limitations
   1-14  established by the General Appropriations Act, the board may
   1-15  transfer money from the fund to the loan fund created under
   1-16  Subchapter C of this chapter, the storage acquisition fund created
   1-17  under Subchapter E of this chapter, <and> the research and planning
   1-18  fund created under Subchapter F of this chapter, and the
   1-19  hydrographic survey account created under Subchapter M <L> of this
   1-20  chapter, provided the hydrographic survey account transfer does not
   1-21  exceed $425,000.
   1-22        SECTION 3.  Subsections 15.012(c) and (d), Water Code, are
   1-23  amended to read as follows:
   1-24        (c)  Money appropriated to the fund by the legislature for a
    2-1  specific purpose stated in Subchapter C, E, <or> F, or M <L> of
    2-2  this chapter shall be placed in the appropriate fund created by
    2-3  that subchapter.
    2-4        (d)  The money held in the fund may <will> be invested as
    2-5  provided by law for investment of money under Section 404.024,
    2-6  Government Code <in the water development fund in accordance with
    2-7  procedures in Chapter 401, Acts of the 60th Legislature, 1967, as
    2-8  amended (Article 6252-5a, Vernon's Texas Civil Statutes)>.
    2-9        SECTION 4.  Subchapter L, Chapter 15, Water Code, as added by
   2-10  Chapter 3, Acts of the 72nd Legislature, 1st Called Session, 1991,
   2-11  is relettered as Subchapter M, Chapter 15, Water Code, in order to
   2-12  eliminate duplicate citations, as follows:
   2-13            SUBCHAPTER M <L>.  HYDROGRAPHIC SURVEY PROGRAM
   2-14        SECTION 5.  Section 15.431(c), Water Code, is amended to read
   2-15  as follows:
   2-16        (c)  Money in the agricultural trust fund may be invested in
   2-17  the manner provided for investment of money under Section 404.024,
   2-18  Government Code <in the permanent school fund>.
   2-19        SECTION 6.  Section 15.602(1), Water Code, is amended to read
   2-20  as follows:
   2-21              (1)  "Authorized investments" means<:>
   2-22                    <(A)  direct obligations of the United States;>
   2-23                    <(B)  other obligations unconditionally
   2-24  guaranteed by the United States;>
   2-25                    <(C)  obligations of the State of Texas;>
   2-26                    <(D)  obligations of cities, counties, and other
   2-27  political subdivisions of the state, except bonds issued to finance
    3-1  a project or treatment works described in this chapter; and>
    3-2                    <(E)>  any authorized investments described in
    3-3  Section 404.024, Government Code <2.014, Chapter 240, Acts of the
    3-4  69th Legislature, Regular Session, 1985 (Article 4393-1, Vernon's
    3-5  Texas Civil Statutes)>.
    3-6        SECTION 7.  Section 15.803, Water Code, is amended to read as
    3-7  follows:
    3-8        Sec. 15.803.  Use of Account.  Money in the account may be
    3-9  used only to pay the costs of surveys, the costs of insurance for
   3-10  watercraft and capital equipment, and the costs of capital
   3-11  equipment and personnel necessary to administer the program.
   3-12        SECTION 8.  Section 17.083, Water Code, is amended to read as
   3-13  follows:
   3-14        Sec. 17.083.  Investment of Reserve Money.  The board may
   3-15  invest any money credited to the development fund and not
   3-16  immediately required for its intended use and money in the interest
   3-17  and sinking fund and in the economically distressed areas interest
   3-18  and sinking fund, including the reserve portions of the interest
   3-19  and sinking fund and the economically distressed areas interest and
   3-20  sinking fund, in investments authorized by law for state deposits
   3-21  under Section 404.024, Government Code.
   3-22        SECTION 9.  Section 17.124, Water Code, is amended to read as
   3-23  follows:
   3-24        Sec. 17.124.  Considerations in Passing on Applications.
   3-25  <(a)>  In passing on an application from a political subdivision
   3-26  for financial assistance for a water supply project, the board
   3-27  shall consider:
    4-1              (1)  the needs of the area to be served by the water
    4-2  supply project, <and> the benefit of the water supply project to
    4-3  the area, the relationship of the water supply project to the
    4-4  overall, statewide water needs, and the relationship of the water
    4-5  supply project to the state water plan; and <in relation to the
    4-6  needs of other areas requiring state assistance in any manner and
    4-7  the benefits of those water supply projects to the other areas;>
    4-8              (2)  the availability of revenue to the political
    4-9  subdivision, from all sources, for the ultimate repayment of the
   4-10  cost of the water supply project, including interest.<;>
   4-11              <(3)  whether the political subdivision can reasonably
   4-12  finance the water supply project without assistance from the state;>
   4-13              <(4)  the relationship of the water supply project to
   4-14  the overall, statewide water needs; and>
   4-15              <(5)  the relationship of the water supply project to
   4-16  the state water plan.>
   4-17        <(b)  In passing on an application for financial assistance
   4-18  for regional facilities, water facilities for a political
   4-19  subdivision that is converting from the use of groundwater to the
   4-20  use of surface water, or a water supply project that includes flood
   4-21  control, the board shall consider the factors set out for political
   4-22  subdivisions in Subsection (a) of this section except the board is
   4-23  not required to consider the factor set out in Subdivision (3) of
   4-24  that subsection.>
   4-25        SECTION 10.  Section 17.125(a), Water Code, is amended to
   4-26  read as follows:
   4-27        (a)  The board by resolution may approve an application if,
    5-1  after considering the factors listed in Section 17.124 of this code
    5-2  and any other relevant factors, the board finds:
    5-3              (1)  that the public interest requires state assistance
    5-4  <participation> in the water supply project;
    5-5              (2)  <that the political subdivision cannot reasonably
    5-6  finance the water supply project without state assistance in the
    5-7  amount finally approved by the board;> and
    5-8              <(3)>  that in its opinion the revenue or taxes pledged
    5-9  by the political subdivision will be sufficient to meet all the
   5-10  obligations assumed by the political subdivision during the
   5-11  succeeding period of not more than 50 years.
   5-12        SECTION 11.  Section 17.126, Water Code, is repealed.
   5-13        SECTION 12.  Section 17.275, Water Code, is amended to read
   5-14  as follows:
   5-15        Sec. 17.275.  Considerations in Passing on Application.
   5-16  <(a)>  In passing on an application from a political subdivision
   5-17  for financial assistance for water quality enhancement purposes,
   5-18  the board shall consider:
   5-19              (1)  the water quality needs of the waters into which
   5-20  effluent from the treatment works will be discharged, <and> the
   5-21  benefit of the treatment works to such water quality needs, the
   5-22  relationship of the treatment works to the overall, statewide water
   5-23  quality needs; and the relationship of the treatment works to water
   5-24  quality planning for the state; <in relation to the needs of other
   5-25  waters requiring state assistance in any manner and the benefits of
   5-26  those treatment works to the other waters;>
   5-27              (2)  the availability of revenue to the political
    6-1  subdivision, from all sources, for the ultimate repayment of the
    6-2  cost of the treatment works, including interest; and
    6-3              (3)  <whether the political subdivision can reasonably
    6-4  finance the treatment works without assistance from the state;>
    6-5              <(4)  the relationship of the treatment works to the
    6-6  overall, statewide water quality needs;>
    6-7              <(5)  the relationship of the treatment works to water
    6-8  quality planning for the state; and>
    6-9              <(6)>  whether the political subdivision has been
   6-10  designated, pursuant to Section 26.082 of this code, to provide a
   6-11  regional system to serve all or part of the waste disposal needs of
   6-12  a defined area, the development of such systems being the declared
   6-13  policy of the legislature.
   6-14        <(b)  In passing on an application for financial assistance
   6-15  for regional facilities, the board shall consider the factors set
   6-16  out for political subdivisions in Subsection (a) of this section
   6-17  except the board is not required to consider the factor set out in
   6-18  Subdivision (3) of that subsection.>
   6-19        SECTION 13.  Section 17.276(d) and (e), Water Code, is
   6-20  amended to read as follows:
   6-21        (d)  The board <commission> shall review and approve or
   6-22  disapprove plans and specifications for all sewerage <sewage>
   6-23  collection, treatment, and disposal systems for which financial
   6-24  assistance is provided in any amount from water quality enhancement
   6-25  funds or funds granted under the Federal Water Pollution Control
   6-26  Act, as amended, in a manner that will satisfy commission
   6-27  requirements for <for compliance with> design criteria and permit
    7-1  conditions that apply to construction activities.  <established by
    7-2  the commission for sewerage systems.  To avoid duplicate review and
    7-3  approval by two or more state agencies, review and approval of
    7-4  plans and specifications under this subsection by the Texas
    7-5  Department of Health is not required.>
    7-6        (e)  <Except as provided by Subsection (d) of this section,>
    7-7  The <the> deliberations, proposals, decisions, and other actions of
    7-8  the board under this subchapter do not require the concurrence or
    7-9  approval of any other governmental agency, board, commission,
   7-10  council, political subdivision, or other governmental entity.
   7-11        SECTION 14.  Section 17.277, Water Code, is amended to read
   7-12  as follows:
   7-13        Sec. 17.277.  Approval of Application.  (a)  The board by
   7-14  resolution may approve an application if, after considering the
   7-15  factors listed in Section 17.275 of this code and any other
   7-16  relevant factors, the board finds<:>
   7-17              <(1)>  that the public interest will benefit from state
   7-18  assistance <participation> in the financing of the treatment
   7-19  works.<; and>
   7-20              <(2)  that the political subdivision cannot reasonably
   7-21  finance the treatment works without state assistance in the amount
   7-22  finally approved by the board.>
   7-23        (b)  <In approving an application for financial assistance
   7-24  for regional facilities, the board shall make the finding required
   7-25  by Subsection (a)(1) of this section.>
   7-26        <(c)>  Before the board grants the application or provides
   7-27  any funds under an application, it shall require an applicant to
    8-1  adopt a program of water conservation for the more efficient use of
    8-2  water that incorporates the practices, techniques, or technology
    8-3  prescribed by Subdivision (23)(B), Section 17.001, of this code and
    8-4  that the board determines will meet reasonably anticipated local
    8-5  needs and conditions.  The program may include but is not limited
    8-6  to any or all of the following:
    8-7              (1)  restrictions on discretionary water uses, such as
    8-8  lawn watering;
    8-9              (2)  plumbing code standards for water conservation in
   8-10  new building construction;
   8-11              (3)  retrofit programs to improve water-use efficiency
   8-12  in existing buildings;
   8-13              (4)  educational programs;
   8-14              (5)  universal metering;
   8-15              (6)  conservation-oriented water rate structures;
   8-16              (7)  drought contingency plans; and
   8-17              (8)  distribution system leak detection and repair.
   8-18        (c) <(d)>  The board may not require a program of water
   8-19  conservation to be adopted under Subsection (b) <(c)> of this
   8-20  section if:
   8-21              (1)  an emergency exists as determined by the board;
   8-22              (2)  the amount of financial assistance to be provided
   8-23  is $500,000 or less; or
   8-24              (3)  the applicant demonstrates and the board finds
   8-25  that the submission of such a program is not reasonably necessary
   8-26  to facilitate conservation or conservation measures.
   8-27        (d) <(e)>  To the extent funds are available, the board shall
    9-1  establish an educational and technical assistance program to assist
    9-2  political subdivisions in developing comprehensive water
    9-3  conservation plans required by this section and other sections of
    9-4  this code.
    9-5        (e) <(f)>  If the political subdivision will utilize the
    9-6  project to furnish water or services to another political
    9-7  subdivision that in turn will furnish the water or services to the
    9-8  ultimate consumer, the requirements of the board relative to water
    9-9  conservation can be met through contractual agreements between the
   9-10  political subdivisions providing for establishment of a water
   9-11  conservation plan and other measures.
   9-12        (f) <(g)>  Rules adopted under this section must state the
   9-13  criteria for preparation, review, and enforcement of an applicant's
   9-14  conservation program.
   9-15        SECTION 15.  Section 17.899(a), Water Code, is amended to
   9-16  read as follows:
   9-17        (a)  The board may approve an application if, after
   9-18  considering the factors in Section 17.898 and other relevant
   9-19  factors, the board finds that:
   9-20              (1)  the public interest would be served in granting
   9-21  the application;
   9-22              (2)  a lender district has the ability to make
   9-23  conservation loans, manage a conservation loan program, and repay
   9-24  the loan to the board;
   9-25              (3)  a borrower district has the ability to repay
   9-26  <prepay> the conservation loan; and
   9-27              (4)  granting the application will further water
   10-1  conservation in the state.
   10-2        SECTION 16.  The importance of this legislation and the
   10-3  crowded condition of the calendars in both houses create an
   10-4  emergency and an imperative public necessity that the
   10-5  constitutional rule requiring bills to be read on three several
   10-6  days in each house be suspended, and this rule is hereby suspended,
   10-7  and that this Act take effect and be in force from and after its
   10-8  passage, and it is so enacted.