Bill Text: TX SB942 | 2019-2020 | 86th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to the use of money in the state water pollution control revolving fund.

Spectrum: Slight Partisan Bill (Republican 2-1)

Status: (Passed) 2019-06-04 - Effective on 9/1/19 [SB942 Detail]

Download: Texas-2019-SB942-Comm_Sub.html

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By: Johnson, Perry S.B. No. 942
(In the Senate - Filed February 21, 2019; March 1, 2019,
read first time and referred to Committee on Water & Rural Affairs;
March 20, 2019, reported adversely, with favorable Committee
Substitute by the following vote: Yeas 7, Nays 0; March 20, 2019,
sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR S.B. No. 942 By: Johnson

A BILL TO BE ENTITLED
AN ACT
relating to the use of money in the state water pollution control
revolving fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 15.601(a), Water Code, is amended to
read as follows:
(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. Section 1251 et
seq.) and Section 15.603 of this code.
SECTION 2. Section 15.603(a), Water Code, is amended to
read as follows:
(a) The revolving fund is held separately from other funds
by the board outside the State Treasury to provide financial
assistance to persons for projects eligible for assistance under
the federal act, including projects eligible under Section 603(c)
of the federal act (33 U.S.C. Section 1383(c)), and to provide
linked deposits to eligible lending institutions for loans to
persons for nonpoint source pollution control projects [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)].
SECTION 3. Section 15.604(a), Water Code, is amended to
read as follows:
(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) the loan is [those loans are] made at or below
market interest rates, including an interest-free loan [loans, at
terms not to exceed 20 years];
(B) principal and interest payments will begin
not later than one year after completion of the project to be
financed [any treatment works] and the loan [all loans] will be
fully amortized not later than the expiration date of the term of
the loan [20 years after completion of the treatment works];
(C) the recipient of the [a] loan will establish
a dedicated source of revenue for repayment of the loan [loans]; and
(D) the revolving fund will be credited with all
payments of principal of and interest on the loan [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 activities provided for by Title VI
of the federal act, except that those amounts may not exceed the
amount authorized under Title VI of the federal act; and
(8) [to provide financial assistance to persons for a
nonpoint source pollution control project under Section 319 of the
federal act or for an estuary management project under Section 320
of the federal act;
[(9)] for other purposes as provided by the federal
act[; and
[(10) to provide linked deposits to eligible lending
institutions for loans to persons for nonpoint source pollution
control projects].
SECTION 4. Section 17.0821(c), Water Code, is amended to
read as follows:
(c) The board shall use the state water pollution control
revolving fund in accordance with Section 15.604(a)(4) [15.604(4)]
of this code and the Federal Water Pollution Control Act, Section
603(d)(4), as a source of revenue to be deposited in accordance with
this chapter for the payment of principal and interest on water
quality enhancement bonds issued by the state, the proceeds of
which are deposited into the state water pollution control
revolving fund.
SECTION 5. Section 15.603(i), Water Code, is repealed.
SECTION 6. This Act takes effect September 1, 2019.
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