85R4884 JXC-D     By: Wu H.B. No. 4230       A BILL TO BE ENTITLED   AN ACT   relating to the authority of the Texas Water Development Board to   provide financial assistance to political subdivisions for flood   control or mitigation projects.          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 flood control or mitigation projects 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.).          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:                (1)  political subdivisions for construction of   treatment works;                (2)  political subdivisions for flood control or   mitigation projects;                (3)  [and to] persons for estuary management projects;   and                (4)  persons 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)  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 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;                (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 financial assistance to political   subdivisions for flood control or mitigation projects; and                (11)  to provide linked deposits to eligible lending   institutions for loans to persons for nonpoint source pollution   control projects.          SECTION 4.  Subchapter J, Chapter 15, Water Code, is amended   by adding Section 15.6065 to read as follows:          Sec. 15.6065.  EXPEDITED PROCEDURE FOR ACTING ON APPLICATION   FOR FINANCIAL ASSISTANCE FOR FLOOD CONTROL OR MITIGATION PROJECT.   The board shall adopt rules providing an expedited procedure for   acting on an application by a political subdivision for financial   assistance from the revolving fund for a flood control or   mitigation project.          SECTION 5.  This Act takes effect September 1, 2017.