H.B. No. 1732
 
 
 
 
AN ACT
  relating to the provision by the Texas Water Development Board of
  financial assistance for certain projects.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 15.975, Water Code, is amended by adding
  Subsection (d) to read as follows:
         (d)  The board may not approve an application if the
  applicant has failed to satisfactorily complete a request by the
  executive administrator or a regional planning group for
  information relevant to the project, including a water
  infrastructure financing survey under Section 16.053(q).
         SECTION 2.  Section 15.912, Water Code, is amended to read as
  follows:
         Sec. 15.912.   CONSIDERATIONS IN ACTING ON APPLICATION.  (a)  
  In acting on an application for financial assistance, the board
  shall consider:
               (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 political
  subdivision or water supply corporation from all sources for any
  necessary repayment of the cost of the project, including all
  interest;
               (3)  the relationship of the project to overall
  statewide needs; and
               (4)  any other factors that the board considers
  relevant.
         (b)  The board may not accept an application for a loan or
  grant of financial assistance from the fund for a project
  recommended through the state and regional water planning processes
  under Sections 16.051 and 16.053 if the applicant has failed to
  satisfactorily complete a request by the executive administrator or
  a regional planning group for information relevant to the project,
  including a water infrastructure financing survey under Section
  16.053(q).
         SECTION 3.  Section 16.131, Water Code, is amended to read as
  follows:
         Sec. 16.131.  AUTHORIZED PROJECTS.  (a)  The board may use
  the state participation account of the development fund to
  encourage optimum regional development of projects including the
  design, acquisition, lease, construction, reconstruction,
  development, or enlargement in whole or part of:
               (1)  reservoirs and storm water retention basins for
  water supply, flood protection, and groundwater recharge;
               (2)  facilities for the transmission and treatment of
  water; and
               (3)  treatment works as defined by Section 17.001 [of
  this code].
         (b)  The board may not use the state participation account of
  the development fund to finance a project recommended through the
  state and regional water planning processes under Sections 16.051
  and 16.053 if the applicant has failed to satisfactorily complete a
  request by the executive administrator or a regional planning group
  for information relevant to the project, including a water
  infrastructure financing survey under Section 16.053(q).
         SECTION 4.  Section 17.003, Water Code, is amended by adding
  Subsections (c), (d), (e), and (f) to read as follows:
         (c)  Water financial assistance bonds that have been
  authorized but have not been issued are not considered to be state
  debt payable from the general revenue fund for purposes of Section
  49-j, Article III, Texas Constitution, until the legislature makes
  an appropriation from the general revenue fund to the board to pay
  the debt service on the bonds.
         (d)  In requesting approval for the issuance of bonds under
  this chapter, the executive administrator shall certify to the bond
  review board whether the bonds are reasonably expected to be paid
  from:
               (1)  the general revenues of the state; or
               (2)  revenue sources other than the general revenues of
  the state.
         (e)  The bond review board shall verify whether debt service
  on bonds to be issued by the board under this chapter is state debt
  payable from the general revenues of the state, in accordance with
  the findings made by the board in the resolution authorizing the
  issuance of the bonds and the certification provided by the
  executive administrator under Subsection (d).
         (f)  Bonds issued under this chapter that are designed to be
  paid from the general revenues of the state shall cease to be
  considered bonds payable from those revenues if:
               (1)  the bonds are backed by insurance or another form
  of guarantee that ensures payment from a source other than the
  general revenues of the state; or
               (2)  the board demonstrates to the satisfaction of the
  bond review board that the bonds no longer require payment from the
  general revenues of the state and the bond review board so certifies
  to the Legislative Budget Board.
         SECTION 5.  This Act takes effect September 1, 2011.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1732 was passed by the House on April
  6, 2011, by the following vote:  Yeas 139, Nays 0, 1 present, not
  voting; that the House refused to concur in Senate amendments to
  H.B. No. 1732 on May 25, 2011, and requested the appointment of a
  conference committee to consider the differences between the two
  houses; and that the House adopted the conference committee report
  on H.B. No. 1732 on May 28, 2011, by the following vote:  Yeas 144,
  Nays 1, 2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 1732 was passed by the Senate, with
  amendments, on May 23, 2011, by the following vote:  Yeas 30, Nays
  0; at the request of the House, the Senate appointed a conference
  committee to consider the differences between the two houses; and
  that the Senate adopted the conference committee report on H.B. No.
  1732 on May 28, 2011, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor