89R4449 ANG-F     By: Kolkhorst, Johnson S.B. No. 718       A BILL TO BE ENTITLED   AN ACT   relating to creation of the groundwater science, research, and   innovation fund to be administered by the Texas Water Development   Board.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 15, Water Code, is amended by adding   Subchapter F-1 to read as follows:   SUBCHAPTER F-1. GROUNDWATER SCIENCE, RESEARCH, AND INNOVATION FUND          Sec. 15.421.  DEFINITIONS. In this subchapter:                (1)  "District" means a groundwater conservation   district created under Section 52, Article III, or Section 59,   Article XVI, Texas Constitution, that has the authority to regulate   the spacing of wells producing from groundwater reservoirs in the   district and regulate the production from those wells.                (2)  "Fund" means the groundwater science, research,   and innovation fund.          Sec. 15.422.  GROUNDWATER SCIENCE, RESEARCH, AND INNOVATION   FUND.  (a)  The groundwater science, research, and innovation fund   is a special fund in the state treasury to be administered by the   board under this subchapter and rules adopted by the board under   this subchapter.          (b)  The fund consists of:                (1)  money appropriated for transfer or deposit to the   credit of the fund;                (2)  money the board transfers to the fund from any   available source;                (3)  depository interest allocable to the fund and   other investment returns on money in the fund;                (4)  money from gifts, grants, or donations to the   fund; and                (5)  any other fees or sources of revenue that the   legislature may dedicate for deposit to the fund.          Sec. 15.423.  USE OF FUND. (a)  The board may use the fund   only to provide financial assistance in the form of grants to   finance district programs and projects that will further   groundwater science, research, and innovation in this state,   including local research, data, modeling, and innovative programs   and projects designed to:                (1)  improve understanding of local groundwater   conditions;                (2)  develop or improve groundwater models relied on   for planning and decision-making;                (3)  improve groundwater use efficiency and increase   water conservation efforts;                (4)  increase groundwater recharge; or                (5)  protect groundwater quality.          (b)  The fund may be used for any purpose described by   Subsection (a) under criteria developed by the board.          Sec. 15.424.  FINANCIAL ASSISTANCE. The board shall adopt   rules necessary to administer this subchapter, including rules   establishing procedures for the application for and award of   financial assistance, the distribution of financial assistance,   and the administration of financial assistance and the fund.          Sec. 15.425.  EVALUATION OF APPLICATION.  (a)  When   evaluating an application for financial assistance from a district,   the board shall consider:                (1)  the expected benefit of the program or project in   informing the management, planning, or decision-making of the   district;                (2)  whether the program or project meets any science,   data, and modeling objectives of the board;                (3)  the extent to which the program's or project's   outcome may benefit the state and regional water planning processes   under Sections 16.051 and 16.053; and                (4)  the district's need for financial assistance based   on the district's available revenue or other sources of financial   assistance available to the district.          (b)  The board by resolution may approve an application if,   after considering the factors listed in Subsection (a) and other   relevant factors, the board finds that the public interest is   served by state assistance for the program or project and the   district has met the matching funds requirement under Section   15.426.          (c)  The board shall ensure that a district that receives   financial assistance for a program or project provides the board   with all data, science, and other research findings gathered   through the implementation of the program or project for which the   district received financial assistance.          (d)  The board shall ensure that at least 35 percent of the   money transferred from the fund is used to fund programs or projects   by districts with:                (1)  populations of not more than 100,000; and                (2)  annual revenues of not more than $250,000, as   determined at the close of the previous fiscal year.          Sec. 15.426.  MATCHING FUNDS REQUIRED. The board by rule may   require a district that is the recipient of a grant using money from   the fund to provide matching funds, which may include direct   expenditures or in-kind services related to the program or project,   in an amount equal to 25 percent of the amount of the grant.          SECTION 2.  This Act takes effect September 1, 2025.