85R7281 JXC-F     By: Lucio III H.B. No. 1863       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 persons for projects eligible for assistance under   Section 603(c) of the Federal Water Pollution Control Act (33   U.S.C. Section 1383(c)), including [political subdivisions for   construction of treatment works and to persons for] nonpoint source   pollution control and abatement projects described by [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 persons for projects eligible for assistance under   Section 603(c) of the federal act (33 U.S.C. Section 1383(c))   [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   a term [terms] not to exceed the lesser of 30 years or the projected   useful life, as determined by the board, of the project to be   financed with the proceeds of the loan [20 years];                      (B)  principal and interest payments will begin   not later than one year after completion of the project to be   financed with the proceeds of the loan [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 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                (9) [(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.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2017.