CHAPTER 15. TEXAS WATER ASSISTANCE PROGRAM

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WATER CODE

TITLE 2. WATER ADMINISTRATION

SUBTITLE C. WATER DEVELOPMENT

CHAPTER 15. TEXAS WATER ASSISTANCE PROGRAM

SUBCHAPTER A. GENERAL PROVISIONS

Sec. 15.001. DEFINITIONS. In this chapter:

(1) "Board" means the Texas Water Development Board.

(2) "Commission" means the Texas Natural Resource Conservation

Commission.

(3) "Executive administrator" means the executive administrator

of the Texas Water Development Board.

(4) "Executive director" means the executive director of the

Texas Natural Resource Conservation Commission.

(5) "Political subdivision" means a city, county, district or

authority created under Article III, Section 52, or Article XVI,

Section 59, of the Texas Constitution, any other political

subdivision of the state, any interstate compact commission to

which the state is a party, and any nonprofit water supply

corporation created and operating under Chapter 67.

(6) "Project" means:

(A) any undertaking or work, including planning activities and

work to obtain regulatory authority at the local, state, and

federal level, to conserve, convey, and develop water resources

in the state, to provide for the maintenance and enhancement of

the quality of the water of the state, to provide nonstructural

and structural flood control, drainage, subsidence control,

recharge, chloride control, brush control, precipitation

enhancement, and desalinization, to provide for the acquisition

of water rights and the repair of unsafe dams, and to carry out

other purposes defined by board rules;

(B) any undertaking or work outside the state to provide for the

maintenance and enhancement of the quality of water by

eliminating saline inflow through well pumping and deep well

injection of brine; or

institutions of higher education to conserve, convey, and develop

water resources in areas outside Texas or to provide for the

maintenance and enhancement of the quality of the water in areas

adjoining Texas, if such undertaking or work will result in water

being available for use in or for the benefit of Texas or will

maintain and enhance the quality of water in Texas.

(7) "Fund" means the water assistance fund.

(8) "Loan fund" means the water loan assistance fund.

(9) "Conservation" means:

(A) the development of water resources; and

(B) those practices, techniques, and technologies that will

reduce the consumption of water, reduce the loss or waste of

water, improve the efficiency in the use of water, or increase

the recycling and reuse of water so that a water supply is made

available for future or alternative uses.

(10) "Federal agency" means any federal agency, including the

United States Secretary of State, that may act or that is acting

through the American Commissioner on the International Boundary

and Water Commission, United States and Mexico.

(11) "Economically distressed area" means:

(A) an area in which water supply or sewer services are

inadequate to meet minimal needs of residential users as defined

by board rules and in which financial resources are inadequate to

provide water supply or sewer services that will satisfy those

needs; or

(B) for purposes of any federal funds for colonias deposited in

the water assistance fund, an area that meets the federal

criteria for use of such funds.

(12) "Nonborder colonia" means a residential community:

(A) located in an unincorporated area of a county all parts of

which are at least 150 miles from the international border of

this state;

(B) in which water or wastewater services are inadequate to meet

minimal needs of residential users as defined by board rules;

average household income for the county in which the community is

located; and

(D) that consists of 11 or more dwellings that are located in

close proximity to each other in an area that may be described as

a community or neighborhood.

(13) "Regionalization" means development of a water supply or

wastewater collection and treatment system that incorporates

multiple service areas into an areawide service facility or any

such system that serves an area that includes more than a single

county, city, special district, or other political subdivision of

the state.

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1,

eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,

Sec. 1.06; Acts 1985, 69th Leg., ch. 133, Sec. 2.01; Acts 1985,

69th Leg., ch. 795, Sec. 1.038, eff. Sept. 1, 1985; Acts 1985,

69th Leg., ch. 821, Sec. 1, eff. Sept. 1, 1985; Acts 1987, 70th

Leg., ch. 977, Sec. 8, eff. June 19, 1987; Acts 1989, 71st Leg.,

ch. 624, Sec. 2.01, eff. Sept. 1, 1989; Acts 1991, 72nd Leg., 1st

C.S., ch. 3, Sec. 1.059, eff. Aug. 12, 1991; Acts 1993, 73rd

Leg., ch. 844, Sec. 2, eff. Aug. 30, 1993; Acts 1997, 75th Leg.,

ch. 1010, Sec. 4.07, eff. Sept. 1, 1997; Acts 1999, 76th Leg.,

ch. 62, Sec. 18.54, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch.

966, Sec. 4.04, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch.

1367, Sec. 11.01, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch.

1275, Sec. 2(141), eff. Sept. 1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

341, Sec. 14, eff. June 15, 2007.

Sec. 15.002. PURPOSE. (a) The legislature finds that it is in

the public interest and to the benefit of the general public of

the state to encourage and to assist in the planning and

construction of projects to develop and conserve the storm water

and floodwater as well as the ordinary flows of the rivers and

streams of the state, to maintain and enhance the quality of the

water of the state, to provide protection to the state's citizens

from the floodwater of the rivers and streams of the state, to

provide drainage, subsidence control, public beach nourishment,

recharge, chloride control, brush control, weather modification,

regionalization, and desalination, to provide for the management

of aquatic vegetation, and other purposes as provided by law or

board rule.

(b) The legislature finds that the conventional means of

financing projects are inadequate to meet current and anticipated

needs of the state. Therefore, it is the further intent of the

legislature to provide a means of coordinating the development of

projects through the board and to provide political subdivisions

the maximum opportunity to finance projects through programs

provided by this chapter. Projects may be in the state or outside

the state, provided that out-of-state projects must be funded

through a Texas political subdivision or an institution of higher

education and must result in water being available for use in or

for the benefit of Texas or maintain and enhance the quality of

water in Texas.

problems face the citizens of this state from discharges of

untreated and treated waste water into the Rio Grande. It is the

intent of the legislature to provide a means of coordinating and

financing the development of waste water treatment projects

through cooperative efforts between this state, the United

States, and the Republic of Mexico to improve the quality of

water being discharged into the Rio Grande.

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1,

eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,

Sec. 2.02; Acts 1989, 71st Leg., ch. 624, Sec. 2.02, eff. Sept.

1, 1989; Acts 1991, 72nd Leg., ch. 295, Sec. 41, eff. June 7,

1991; Acts 1997, 75th Leg., ch. 1010, Sec. 4.08, eff. Sept. 1,

1997; Acts 1999, 76th Leg., ch. 1461, Sec. 3, eff. Sept. 1, 1999;

Acts 2001, 77th Leg., ch. 966, Sec. 4.05, eff. Sept. 1, 2001.

Sec. 15.003. POWER TO DEFINE PURPOSES. The board, by rule, may

define in greater detail the purposes enumerated in Section

15.002.

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1,

eff. Nov. 10, 1981.

Sec. 15.004. TRANSBASIN DIVERSION. Money on deposit in a fund

created under Article III, Section 49-d-3, of the Texas

Constitution shall not be used to finance or in aid of any

project under this chapter that contemplates or results in the

removal from the basin of origin of any surface water necessary

to supply the reasonably foreseeable future water requirements

for the next ensuing 50-year period within the river basin of

origin, except on a temporary, interim basis.

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1,

eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,

Sec. 2.03.

Sec. 15.005. CONSIDERATION OF CERTAIN APPLICATIONS. (a) On

submission of a project application under this chapter, the

executive administrator shall determine if the application

includes a project that will have flood control as one of its

purposes and if the political subdivision submitting the

application includes all of the watershed in which the project is

to be located.

(b) If the executive administrator finds that the application

includes a project that has flood control as one of its purposes

and that the watershed in which the project is located is

partially located outside the political subdivision making the

application, the executive administrator shall require the

applicant to submit a written memorandum of understanding

relating to the management of the watershed in which the project

is to be located.

governing bodies of political subdivisions located in the

watershed in which the project is to be located and must be

signed by the presiding officers of each of those political

subdivisions.

(d) The board shall not consider any application for which a

memorandum of understanding must be filed under this section

until that memorandum of understanding is filed with the

executive administrator.

(e) The board shall adopt rules for carrying out this section.

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1,

eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 795,

Sec. 1.039, eff. Sept. 1, 1985; Acts 2003, 78th Leg., ch. 1057,

Sec. 2, eff. June 20, 2003.

Sec. 15.006. OPEN MEETINGS AND OPEN RECORDS LAWS. Nonprofit

water supply corporations which receive any assistance under this

chapter are subject to Chapter 551, Government Code, and to

Chapter 552, Government Code.

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.18. Amended by

Acts 1995, 74th Leg., ch. 76, Sec. 5.95(78), (90), eff. Sept. 1,

1995.

Sec. 15.007. CONSIDERATIONS FOR CERTAIN FINANCIAL ASSISTANCE.

(a) If financial assistance is provided under Subchapter C or J

of this chapter, any waste treatment facility to be financed

under the application must consider cost-effective methods of

treatment such as rock reed, root zone, ponding, irrigation, or

other nonconventional methods that may have been developed by the

National Aeronautics and Space Administration or the Tennessee

Valley Authority.

(b) Before granting an application for financial assistance

under Subchapter C or J of this chapter, the board must find that

any waste treatment facility to be financed under the application

will consider cost-effective innovative methods of treatment such

as rock reed, root zone, ponding, irrigation, or other

nonconventional methods that may have been developed by the

National Aeronautics and Space Administration or the Tennessee

Valley Authority.

Added by Acts 1989, 71st Leg., ch. 624, Sec. 2.03, eff. Sept. 1,

1989.

Sec. 15.008. GRANT STANDARDS. The law regarding uniform grants

and contract management, Chapter 783, Government Code, does not

apply to a contract under Subchapter F, H, K, or P, or to a

contract relating to an economically distressed area or nonborder

colonia under Subchapter C.

Added by Acts 1991, 72nd Leg., ch. 422, Sec. 4, eff. Sept. 1,

1991. Amended by Acts 2001, 77th Leg., ch. 1234, Sec. 13, eff.

Sept. 1, 2001; Acts 2001, 77th Leg., ch. 1367, Sec. 11.02, eff.

Sept. 1, 2001.

SUBCHAPTER B. WATER ASSISTANCE FUND

Sec. 15.011. WATER ASSISTANCE FUND. (a) The water assistance

fund is created and shall be administered by the board under this

chapter and rules adopted by the board.

(b) After notice and hearing and subject to any limitations

established by the General Appropriations Act, the board may

transfer money from the fund to the loan fund created under

Subchapter C, the storage acquisition fund created under

Subchapter E, the research and planning fund created under

Subchapter F, the hydrographic survey account created under

Subchapter M, provided the hydrographic survey account transfer

does not exceed $425,000, the aquatic vegetation management fund

created under Subchapter N, the rural community water and

wastewater loan fund created under Subchapter O, the colonia

self-help account created under Subchapter P, and the rural water

assistance fund created under Subchapter R.

account to be used by the board for administration and operation

of the Texas Water Bank.

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1,

eff. Nov. 10, 1981. Amended by Acts 1990, 71st Leg., 5th C.S.,

ch. 3, Sec. 2, eff. June 14, 1990; Acts 1991, 72nd Leg., 1st

C.S., ch. 3, Sec. 1.060, eff. Aug. 12, 1991; Acts 1991, 72nd

Leg., 1st C.S., ch. 4, Sec. 10.07, eff. Sept. 1, 1991; Acts 1993,

73rd Leg., ch. 477, Sec. 2, eff. Aug. 30, 1993; Acts 1993, 73rd

Leg., ch. 647, Sec. 3, eff. Aug. 30, 1993; Acts 1999, 76th Leg.,

ch. 1461, Sec. 4, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch.

966, Sec. 4.06, eff. Sept. 1, 2001; Acts 2001, 77th Leg., ch.

1234, Sec. 14, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch.

1276, Sec. 18.002, eff. Sept. 1, 2003.

Sec. 15.012. MANAGEMENT OF FUND. (a) The board may invest,

reinvest, and direct the investment of money accumulated in the

fund.

(b) Money appropriated by the legislature to the fund shall be

deposited in this fund. Gifts or grants from the United States

government, local or regional governments, private sources, or

other sources may be deposited in this fund.

specific purpose stated in Subchapter C, E, F, M, N, O, or P of

this chapter shall be placed in the appropriate fund or account

created by that subchapter.

(d) The money held in the fund may be invested as provided by

law for investment of money under Section 404.024, Government

Code.

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1,

eff. Nov. 10, 1981. Amended by Acts 1990, 71st Leg., 5th C.S.,

ch. 3, Sec. 3, eff. June 14, 1990; Acts 1991, 72nd Leg., 1st

C.S., ch. 3, Sec. 1.061, eff. Aug. 12, 1991; Acts 1991, 72nd

Leg., 1st C.S., ch. 4, Sec. 10.08, eff. Sept. 1, 1991; Acts 1993,

73rd Leg., ch. 477, Sec. 3, eff. Aug. 30, 1993; Acts 1993, 73rd

Leg., ch. 844, Sec. 3, eff. Aug. 30, 1993; Acts 1999, 76th Leg.,

ch. 1461, Sec. 5, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch.

1234, Sec. 15, eff. Sept. 1, 2001.

SUBCHAPTER C. WATER LOAN ASSISTANCE PROGRAM

Sec. 15.101. WATER LOAN ASSISTANCE FUND. (a) The water loan

assistance fund is created, to be funded by direct appropriation

and by the board at its discretion from the fund.

(b) Repayments of loans shall be deposited in the water

assistance fund.

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1,

eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,

Sec. 2.04.

Sec. 15.102. FINANCIAL ASSISTANCE. (a) The loan fund may be

used by the board to provide loans of financial assistance to

political subdivisions, federal agencies, or both political

subdivisions and federal agencies acting jointly for the

construction, acquisition, improvement, or enlargement of

projects involving water conservation, water development, or

water quality enhancement, providing nonstructural and structural

flood control, or drainage, project recreation lands and

revenue-generating recreational improvements within any

watershed, or providing recharge, chloride control, subsidence

control, brush control, weather modification, regionalization, or

desalination as provided by legislative appropriations, this

chapter, and the board rules.

(b) The loan fund may also be used by the board to provide:

(1) grants or loans for projects that include supplying water

and wastewater services in economically distressed areas or

nonborder colonias as provided by legislative appropriations,

this chapter, and board rules, including projects involving

retail distribution of those services; and

(2) grants for:

(A) projects for which federal grant funds are placed in the

loan fund;

(B) projects, on specific legislative appropriation for those

projects; or

modification, regionalization, and projects providing regional

water quality enhancement services as defined by board rule,

including regional conveyance systems.

federal agency to submit a joint application for financial

assistance under this subchapter. Before the board may grant

financial assistance under a joint application, the board must

find that the project is designed to produce effluent that will

meet federal and state approved water quality standards.

(d) A grant or loan of financial assistance under a joint

application by the federal government and a political subdivision

may be made only for a project that is covered by an

international contract or treaty to which the United States

government is a party, and a grant or loan made under such a

joint application is subject to the provisions, terms, and

conditions of the international contract or treaty to which the

United States government is a party.

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1,

eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,

Sec. 2.04; Acts 1987, 70th Leg., ch. 977, Sec. 9, eff. June 19,

1987; Acts 1987, 70th Leg., ch. 1103, Sec. 2, eff. Sept. 1, 1987;

Acts 1989, 71st Leg., ch. 624, Sec. 2.04, eff. Sept. 1, 1989;

Acts 2001, 77th Leg., ch. 966, Sec. 4.07, eff. Sept. 1, 2001;

Acts 2001, 77th Leg., ch. 1234, Sec. 16, eff. Sept. 1, 2001; Acts

2001, 77th Leg., ch. 1367, Sec. 11.03, eff. Sept. 1, 2001; Acts

2003, 78th Leg., ch. 1276, Sec. 18.003, eff. Sept. 1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1352, Sec. 7, eff. June 15, 2007.

Acts 2007, 80th Leg., R.S., Ch.

1430, Sec. 2.10, eff. September 1, 2007.

Sec. 15.103. APPLICATION FOR ASSISTANCE. (a) In an application

to the board for financial assistance from the loan fund, the

applicant shall include:

(1) the name of each political subdivision or federal agency and

its principal officers;

(2) a citation of the law under which each political subdivision

or federal agency operates and was created;

(3) the total cost of the project;

(4) the amount of state financial assistance requested;

(5) the plan for repaying the total cost of the project; and

(6) any other information the board requires in order to perform

its duties and to protect the public interest.

(b) The board may not accept an application for a loan or grant

of financial assistance from the loan fund unless it is submitted

in affidavit form by the officials of the political subdivision

or the chief administrator of the federal agency or both these

officers and the chief administrator under a joint application.

The board shall prescribe the affidavit form in its rules.

requiring additional factual material from an applicant.

(d) If an applicant has a program of water conservation, he

shall state in his application that he has such a program and

shall describe that program in the manner required by board

rules.

(e) If the applicant claims an exemption under Subsection (c),

Section 15.106 of this code, he shall state the exemption in his

application and provide information relating to the exemption as

required by board rules.

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1,

eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,

Sec. 1.05, 2.04; Acts 1987, 70th Leg., ch. 977, Sec. 9, eff. June

19, 1987; Acts 1987, 70th Leg., ch. 1103, Sec. 3, eff. Sept. 1,

1987; Acts 1989, 71st Leg., ch. 624, Sec. 2.05, eff. Sept. 1,

1989.

Sec. 15.104. FINDINGS REGARDING PERMITS. (a) The board shall

not release funds for the construction of that portion of a

project that proposes surface water or groundwater development

until the executive administrator makes a written finding:

(1) that an applicant proposing surface-water development has

the necessary water right authorizing it to appropriate and use

the water that the project will provide; or

(2) that an applicant proposing groundwater development has the

right to use water that the project will provide.

(b) The board may release funds for the costs of planning,

engineering, architectural, legal, title, fiscal, or economic

investigation, studies, surveys, or designs before making the

finding required under Subsection (a) if the executive

administrator determines that a reasonable expectation exists

that the finding will be made before the release of funds for

construction.

treatment plant, the board may not deliver funds for the waste

water treatment plant until the applicant has received a permit

for construction and operation of the waste water treatment plant

and approval of the plans and specifications from the commission.

If the applicant proposes a waste water treatment plant that is

located outside of the jurisdiction of this state and that is not

subject to the permitting authority of the commission, the board

must review the plans and specifications in coordination with the

commission and find that the waste water treatment plant is

capable of producing effluent that will meet federal and

state-approved water quality standards.

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1,

eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,

Sec. 2.04; Acts 1985, 69th Leg., ch. 795, Sec. 1.040, eff. Sept.

1, 1985; Acts 1987, 70th Leg., ch. 246, Sec. 1, eff. Aug. 31,

1987; Acts 1987, 70th Leg., ch. 1103, Sec. 4, eff. Sept. 1, 1987;

Acts 1989, 71st Leg., ch. 624, Sec. 2.06, eff. Sept. 1, 1989;

Acts 2001, 77th Leg., ch. 1234, Sec. 17, eff. Sept. 1, 2001.

Sec. 15.105. CONSIDERATIONS IN PASSING ON APPLICATION. (a) In

passing on an application for financial assistance from the loan

fund, the board shall consider but is not limited to:

(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 applicant from all

sources for the ultimate repayment of the cost of the project,

including all interest;

(3) the relationship of the project to overall statewide needs;

(4) the ability of the applicant to finance the project without

state assistance;

(5) for applications for grants or loans for economically

distressed areas or nonborder colonias, the regulatory efforts by

the county in which the project is located to control the

construction of subdivisions that lack basic utility services;

and

(6) for applications for grants under Section 15.102(b)(2), the

ability of the applicant to construct the project without the

grant and the benefits of the project to water and wastewater

needs of the state.

(b) The board by rule shall further define eligibility for

grants under this subchapter.

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1,

eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,

Sec. 2.04; Acts 1987, 70th Leg., ch. 1103, Sec. 5, eff. Sept. 1,

1987; Acts 1989, 71st Leg., ch. 624, Sec. 2.07, eff. Sept. 1,

1989; Acts 2001, 77th Leg., ch. 966, Sec. 4.08, eff. Sept. 1,

2001; Acts 2001, 77th Leg., ch. 1367, Sec. 11.04, eff. Sept. 1,

2001.

Sec. 15.106. APPROVAL OF APPLICATION. (a) The board, by

resolution, may approve an application for financial assistance

if after considering the factors listed in Section 15.105 of this

code and any other relevant factors, the board finds:

(1) that the public interest requires state participation in the

project; and

(2) that in its opinion the revenue or taxes pledged by the

political subdivision will be sufficient to meet all the

obligations assumed by the political subdivision.

(b) Before the board grants the application or provides any

financial assistance under an application, it shall require an

applicant to adopt or to have already implemented a program of

water conservation for the more efficient use of water that

incorporates the practices, techniques, or technology prescribed

by Subdivision (9)(B), Section 15.001, of this code and that the

board determines will meet reasonably anticipated local needs and

conditions. The program may include but is not limited to any or

all of the following:

(1) restrictions on discretionary water uses, such as lawn

watering;

(2) plumbing code standards for water conservation in new

building construction;

(3) retrofit programs to improve water-use efficiency in

existing buildings;

(4) educational programs;

(5) universal metering;

(6) conservation-oriented water rate structures;

(7) drought contingency plans; and

(8) distribution system leak detection and repair.

(b-1) Beginning May 1, 2005, all water conservation plans

required under this section must include specific, quantified

5-year and 10-year targets for water savings. The entity

preparing the plan shall establish the targets. Targets must

include goals for water loss programs and goals for municipal use

in gallons per capita per day.

be adopted under Subsection (b) of this section if:

(1) an emergency exists as determined by the board;

(2) the amount of financial assistance to be provided is

$500,000 or less;

(3) the applicant demonstrates and the board finds that the

submission of such a program is not reasonably necessary to

facilitate conservation or conservation measures; or

(4) the project consists of construction outside the

jurisdiction of the State of Texas.

(d) To the extent funds are available, the board shall establish

an educational and technical assistance program to assist

political subdivisions in developing comprehensive water

conservation plans required by this section and other sections of

this code.

(e) If the political subdivision will utilize the project to

furnish water or services to another political subdivision that

in turn will furnish the water or services to the ultimate

consumer, the requirements of the board relative to water

conservation can be met through contractual agreements between

the political subdivisions providing for establishment of a water

conservation plan and other necessary measures.

(f) Rules adopted under this section must state the criteria for

preparation, review, and enforcement of an applicant's

conservation program.

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1,

eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,

Sec. 1.07; Acts 1987, 70th Leg., ch. 977, Sec. 10, eff. June 19,

1987; Acts 1989, 71st Leg., ch. 624, Sec. 2.08, eff. Sept. 1,

1989; Acts 2001, 77th Leg., ch. 966, Sec. 4.09, eff. Sept. 1,

2001; Acts 2003, 78th Leg., ch. 688, Sec. 2, eff. June 20, 2003.

Sec. 15.107. METHOD OF MAKING FINANCIAL ASSISTANCE AVAILABLE.

(a) The board may make financial assistance available to

successful applicants in any manner that it considers

economically feasible including:

(1) contracts or agreements with a political subdivision for the

payment of the principal of or interest on or both the principal

of and interest on bonds or other obligations issued or to be

issued by the political subdivision;

(2) contracts or agreements with a political subdivision for the

purpose of providing the political subdivision's share of any

cost-sharing required as a participant in or local sponsor of any

federal project;

(3) purchase of the bonds or other obligations of a political

subdivision for the purpose of completely or partially financing

the project for which the application is being submitted; or

(4) contracts or agreements for the receipt of funds and

performance of obligations in relation to any grant of funds

provided by the board.

(b) Contracts or agreements entered into under Subdivision (1)

of Subsection (a) of this section may cover all or any part of

the debt service requirements in a given year and may cover debt

service requirements in as many years of an issue as the board

considers appropriate.

board may approve interest deferral or the capitalization of

interest costs and may approve periods of repayment for the loans

of up to 50 years.

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1,

eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,

Sec. 2.04; Acts 1987, 70th Leg., ch. 1103, Sec. 6, eff. Sept. 1,

1987; Acts 2001, 77th Leg., ch. 966, Sec. 4.10, eff. Sept. 1,

2001.

Sec. 15.1071. SALE OF POLITICAL SUBDIVISION BONDS TO TEXAS WATER

RESOURCES FINANCE AUTHORITY. (a) Notwithstanding any other

provision of this chapter, the board may sell to the Texas Water

Resources Finance Authority any political subdivision bonds

purchased with money in the water loan assistance fund and may

apply the proceeds of a sale in the manner provided by this

section.

(b) The board shall sell the political subdivision bonds at the

price and under the terms that it determines to be reasonable.

Water Resources Finance Authority without making a previous offer

to the political subdivisions and without advertising,

soliciting, or receiving bids for the sale.

(d) The board may enter into a contract with the Texas Water

Resources Finance Authority to sell to the authority political

subdivision bonds that are not owned by the board. For bonds sold

under this subsection, the contract may provide that the board

will receive from the authority the sales price for the political

subdivision bonds in exchange for the board's agreement to

transfer to the authority political subdivision bonds

subsequently acquired by the board and to pay to the authority

from the investment income received on the water assistance fund

or the water loan assistance fund any amounts considered

appropriate including without limitation an amount equal to the

proportionate share of that investment income attributable to the

money used to purchase the political subdivision bonds.

(e) Proceeds from the sale of bonds under this section shall be

deposited in the water assistance fund and used for the purposes

and in the manner provided by law.

(f) As part of a sales agreement with the Texas Water Resources

Finance Authority, the board by contract may agree to perform the

functions required to ensure that the political subdivisions pay

the debt service on political subdivision bonds sold and observe

the conditions and requirements stated in those bonds.

(g) The board may exercise any powers necessary to carry out the

authority granted by this section including the authority to

contract with any person to accomplish the purposes of this

section.

Added by Acts 1987, 70th Leg., ch. 728, Sec. 3, eff. June 20,

1987.

Sec. 15.108. RECOMMENDATIONS FOR FUNDING BY LEGISLATURE. (a)

If money is not available in the fund to provide money for

projects approved under this subchapter, the board shall prepare

and submit with its biennial budget request to the Legislative

Budget Board and to the presiding officers of each house of the

legislature a list of all projects approved by the board under

this subchapter.

(b) The list of projects submitted to the Legislative Budget

Board and to the presiding officers of each house of the

legislature shall include relevant information relating to each

project and recommendations relating to the terms under which

loans of financial assistance should be made to each applicant

and projected amounts of money that will be required each

biennium to fund each project to its completion.

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.04.

Sec. 15.109. DELIVERY OF LOANS OF FINANCIAL ASSISTANCE. (a) As

money becomes available in the loan fund, the board shall deliver

the funds under the approved applications.

(b) The board shall deliver money in the fund that is provided

by legislative appropriation in the manner provided by and

subject to the restrictions of the legislative appropriation.

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.04.

Sec. 15.110. REQUIREMENTS FOR POLITICAL SUBDIVISIONS AND FEDERAL

AGENCIES. (a) Subject only to constitutional limitations, all

contracting political subdivisions may issue and execute those

bonds, notes, or other obligations necessary to conform to and

comply with repayment obligations adopted by the board.

(b) Loans of financial assistance under this subchapter shall be

repaid to the board, and the payments made to the board for these

loans of financial assistance shall be made in compliance with

terms and conditions established by the board.

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1,

eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,

Sec. 2.04; Acts 1989, 71st Leg., ch. 624, Sec. 2.09, 2.10, eff.

Sept. 1, 1989.

Sec. 15.111. APPROVAL AND REGISTRATION. The board shall not

contract for the payment of the principal of or interest on or

both the principal of and interest on any bonds or other

obligations that have not been approved by the attorney general

and registered by the comptroller.

Formerly Sec. 15.108, added by Acts 1981, 67th Leg., 1st C.S., p.

102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Renumbered by Acts 1985,

69th Leg., ch. 133, Sec. 2.04.

Sec. 15.112. CONTRACTS INCONTESTABLE. Contracts entered into by

the board for the payment of the principal of or interest on or

both the principal of and interest on bonds or other obligations

issued by a political subdivision are valid, binding, and

incontestable after:

(1) approval of the bonds or other obligations by the attorney

general;

(2) registration of the bonds or other obligations by the

comptroller; and

(3) purchase by and delivery of the bonds or other obligations

to the purchaser.

Formerly Sec. 15.109, added by Acts 1981, 67th Leg., 1st C.S., p.

102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Renumbered by Acts 1985,

69th Leg., ch. 133, Sec. 2.04.

Sec. 15.113. INSPECTION OF PROJECTS. (a) The board may inspect

the construction of a project any time to assure that:

(1) the contractor is substantially complying with the approved

engineering plans of the project; and

(2) the contractor is constructing the project in accordance

with sound engineering principles.

(b) Inspection of a project by the board does not subject the

state to any civil liability.

Formerly Sec. 15.110, added by Acts 1981, 67th Leg., 1st C.S., p.

102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985,

69th Leg., ch. 795, Sec. 1.040, eff. Sept. 1, 1985. Renumbered by

Acts 1985, 69th Leg., ch. 133, Sec. 2.04. Amended by Acts 1987,

70th Leg., ch. 977, Sec. 11, eff. June 19, 1987.

Sec. 15.114. ALTERATION OF PLANS. After approval of engineering

plans, a political subdivision or federal agency shall not make

any substantial or material alteration in the plans unless the

executive administrator authorizes the alteration. For a waste

water treatment plant or other facility required to have

commission approval of plans and specifications, the commission

must give its approval before a substantial or material

alteration is made in those plans.

Formerly Sec. 15.111, added by Acts 1981, 67th Leg., 1st C.S., p.

102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985,

69th Leg., ch. 795, Sec. 1.040, eff. Sept. 1, 1985. Renumbered by

Acts 1985, 69th Leg., ch. 133, Sec. 2.04. Amended by Acts 1987,

70th Leg., ch. 977, Sec. 12, eff. June 19, 1987; Acts 1989, 71st

Leg., ch. 624, Sec. 2.11, eff. Sept. 1, 1989.

Sec. 15.115. CERTIFICATE OF APPROVAL. The executive

administrator may consider the following as grounds for refusal

to give a certificate of approval for any construction contract:

(1) failure to construct the project according to the approved

plans;

(2) failure to construct the works in accordance with sound

engineering principles; or

(3) failure to comply with any terms of the contract.

Formerly Sec. 15.112, added by Acts 1981, 67th Leg., 1st C.S., p.

102, ch. 12, Sec. 1, eff. Nov. 10, 1981. Amended by Acts 1985,

69th Leg., ch. 795, Sec. 1.040, eff. Sept. 1, 1985. Renumbered by

Acts 1985, 69th Leg., ch. 133, Sec. 2.04. Amended by Acts 1987,

70th Leg., ch. 977, Sec. 12, eff. June 19, 1987.

Sec. 15.116. SALE OF BONDS BY THE BOARD. The board may sell or

dispose of bonds or other obligations purchased with money in the

water loan assistance fund.

Added by Acts 1987, 70th Leg., ch. 1103, Sec. 7, eff. Sept. 1,

1987.

SUBCHAPTER D. WATER BOND INSURANCE PROGRAM

Sec. 15.201. DEFINITIONS. (a) In this subchapter:

(1) "Program" means the water bond insurance program.

(2) "Bonds" means bonds or other obligations of a political

subdivision or water supply corporation issued to provide funds

for a project defined in Subsection (b) of this section.

(3) "Insured bonds" means bonds or other obligations insured by

the state under this subchapter.

(4) "Issuer" means a political subdivision or water supply

corporation issuing bonds or other obligations eligible to be

insured under the program.

(5) "Water supply corporation" means a nonprofit water supply

corporation created and operating under Chapter 67.

(b) Notwithstanding the definition in Subdivision (6), Section

15.001, of this code, in this subchapter, "project" means any

undertaking or work to conserve, convey, and develop surface or

subsurface water resources of the state, to provide for the

maintenance and enhancement of the quality of the water of the

state, to provide for flood control and drainage, to provide

recharge or chloride control, or to provide for desalinization,

and to carry out other purposes defined by board rules.

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. Amended by

Acts 1991, 72nd Leg., ch. 516, Sec. 2, eff. Sept. 1, 1991; Acts

1999, 76th Leg., ch. 62, Sec. 18.55, eff. Sept. 1, 1999.

Sec. 15.202. CREATION AND ADMINISTRATION OF PROGRAM. (a) The

water bond insurance program is created pursuant to Article III,

Section 49-d-4, of the Texas Constitution to insure to holders of

insured bonds that in the event of default or impending default

the state will pay, to the extent authorized by this subchapter,

the principal of or interest on or both principal of and interest

on the bonds.

(b) The board shall administer the program in the manner

provided by this subchapter and by rules of the board.

by Article III, Section 49-d-4, of the Texas Constitution,

authorizes the existence of the program to continue beyond the

expiration date of the program provided by Subsection (g) of that

section.

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. Amended by

Acts 1991, 72nd Leg., ch. 52, Sec. 2, eff. May 1, 1991.

Sec. 15.203. ELIGIBLE BONDS. (a) Only revenue, general

obligation, tax, or combination bonds issued by a political

subdivision or a water supply corporation for a project

qualifying for assistance under this subchapter and board rules

are eligible to be insured under the program.

(b) Bonds issued for a term longer than 50 years are not

eligible to be insured under the program.

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05.

Sec. 15.204. RULES. The board shall adopt necessary rules to

carry out this subchapter.

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05.

Sec. 15.205. INSURANCE. The board may pledge the general credit

of the state, to the extent authorized by Article III, Section

49-d-4, of the Texas Constitution, to insure the payment of the

principal of or interest on or both the principal of and interest

on eligible bonds issued by an issuer in the event of default or

impending default of the insured bonds.

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05.

Sec. 15.206. APPLICATION FOR INSURANCE. (a) An issuer may

apply in writing to the board for the insurance of its bonds.

(b) The application must include the following information:

(1) the name of the issuer;

(2) citations of the laws under which the issuer is created and

operates and under which the bonds to be insured are to be

issued;

(3) the total amount of bonds for which insurance coverage is

sought and the anticipated interest rate on the bonds;

(4) the term for which the bonds are to be issued;

(5) the purpose or purposes for which the bonds are to be

issued;

(6) financial information relating to the issuance of the bonds

and to the financial stability and future of the issuer; and

(7) any other information the board requires by its rules or

otherwise considers necessary in making a determination of the

application.

submitting and processing an application.

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05.

Sec. 15.207. CONSIDERATIONS IN PASSING ON APPLICATION. In

addition to criteria established in its rules, the board in

passing on an application shall consider:

(1) the purpose or purposes for which the issuer is issuing the

bonds;

(2) the financial ability of the issuer to meet its obligations

under the bonds;

(3) the risk to the State of Texas in insuring the bonds and the

ability of the state to pay the insurance coverage; and

(4) 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 similar state assistance and the benefits

of those projects to other areas.

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05.

Sec. 15.208. APPROVAL OF APPLICATION. (a) After notice and

hearing, the board by resolution may approve an application if,

after considering the information in the application and

presented at the hearing, criteria established by this

subchapter, and the rules and other relevant factors, the board

finds:

(1) that the bonds are being issued to finance a project that

serves the public interest;

(2) that there is strong evidence and a high degree of certainty

that the issuer will be able to meet its obligations under the

bonds; and

(3) that an applicant proposing surface water development has

the necessary water right authorizing it to appropriate and use

the water which the project will provide.

(b) If the board finds that an applicant is not using water

efficiently, the board may require the applicant to develop a

conservation program to provide for more efficient use of water.

assistance program to assist political subdivisions in developing

comprehensive water conservation programs required by this

section and other sections of this code.

(d) If the issuer plans to utilize the project to furnish water

or services to a political subdivision that in turn plans to

furnish the water or services to the ultimate consumer, the

requirements of the board relative to water conservation can be

met through contractual agreements between the issuer and the

political subdivision providing for establishment of a water

conservation program and other necessary measures.

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05.

Sec. 15.209. CONTRACTS, AGREEMENTS, AND OTHER DOCUMENTS. (a)

On approval of an application, the board shall enter into a

contract with the issuer for the insurance of the bonds on terms

and conditions agreed to by the parties. The terms and conditions

must comply with this subchapter and rules adopted by the board.

(b) The insurance contract shall include:

(1) the extent of the insurance coverage;

(2) the terms and conditions of the insurance coverage;

(3) rights in addition to those provided by law reserved by the

board against the issuer in the event the board must pay all or

part of the insurance coverage; and

(4) any other provision required in order to be in compliance

with the board's rules.

legally bind the state to insure payment to the bondholders on

default or impending default.

(d) For the insurance coverage of bonds to be effective, it must

be approved by the attorney general as to the legality of the

insurance coverage. Documents relating to the insurance of the

bonds shall be submitted to the attorney general for approval at

the same time as the bonds and records relating to the issuance

of the bonds are submitted for approval. The bonds issued by a

political subdivision or water supply corporation and the

insurance coverage approved by the board are valid, binding, and

incontestable after:

(1) approval by the attorney general;

(2) registration by the comptroller; and

(3) payment by and delivery to the buyer.

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05.

Sec. 15.210. LIMITATION ON INSURANCE COVERAGE. (a) Except as

provided by Subsection (c) of this section, the total principal

balance of all insurance coverage issued by the board and

outstanding may not exceed the dollar amount that equals two

times the maximum amount of money that the state is authorized to

pay under the program by the constitution.

(b) The board may not approve insurance coverage in any state

fiscal year that exceeds a total of $100 million for all

applicants.

change the limitations provided by Subsections (a) and (b) of

this section.

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05.

Sec. 15.211. INSURANCE FEES. (a) The board shall adopt a

schedule of fees to be charged an issuer for insurance coverage

provided under this subchapter.

(b) Fees charged by the board under this section shall be

calculated to provide a reasonable reserve against defaults and

impending defaults.

special reserve fund created in the state treasury for the

purpose of paying amounts on default or impending default of any

bonds without resorting to the general credit of the state. The

board may invest any money credited to the reserve fund in

investments authorized by law for state deposits.

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. Amended by

Acts 1987, 70th Leg., ch. 1103, Sec. 8, eff. Sept. 1, 1987; Acts

1989, 71st Leg., ch. 308, Sec. 1, eff. June 14, 1989.

Sec. 15.212. PAYMENT BY STATE. (a) On receipt by the executive

administrator from the paying agent for any insured bond of a

written notice by registered or certified mail that a payment on

the bond is due but has not been made to the paying agent by the

issuer and that the issuer's reserves are insufficient to cover

the payment, the executive administrator shall have a deposit of

funds made with the paying agent sufficient to cover the payment

due on the bond less any amount already held by the paying agent

to pay the principal of and interest on the bond.

(b) On transfer of the payment to the paying agent under

Subsection (a) of this section and on receipt of the uncanceled

bond or coupon, the state becomes the owner of the bond or coupon

and is subrogated to the rights of the bondholder with respect to

the amount paid by the state.

this section, the board shall attempt to collect from the issuer

the amount paid by the state. The board may enter into agreements

for the issuer to pay those claims, may enforce any provisions of

the bonds relating to actions that may be taken by bondholders on

default, or may sue the issuer to collect amounts paid by the

state. The attorney general, at the request of the board, shall

take all necessary legal action to assist the board in carrying

out this subsection.

(d) Money collected under Subsection (c) of this section shall

be deposited in the special reserve fund up to the amount used

from that fund to pay the defaulted bonds. Any remaining money

collected and not deposited in that fund shall be deposited in

the general revenue fund.

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. Amended by

Acts 1987, 70th Leg., ch. 977, Sec. 13, eff. June 19, 1987.

Sec. 15.213. REFUNDING BONDS. Without the express written

consent of the board, insurance provided by the board under this

subchapter shall not extend to refunding bonds issued to replace

bonds that have been insured by the board. The board may give its

consent under procedures provided by its rules.

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05.

Sec. 15.214. INSPECTION OF PROJECTS. (a) The board may inspect

at any time the construction of a project being constructed with

proceeds of revenue bonds insured by the board to assure that:

(1) the contractor is substantially complying with the approved

engineering plans of the project; and

(2) the contractor is constructing the project in accordance

with sound engineering principles.

(b) Inspection of a project by the board does not subject the

state to any civil liability.

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. Amended by

Acts 1987, 70th Leg., ch. 977, Sec. 14, eff. June 19, 1987.

Sec. 15.215. ALTERATION OF PLANS. After approval of engineering

plans, a political subdivision or water supply corporation may

not make any substantial or material alteration in the plans

unless the executive administrator authorizes the alteration.

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. Amended by

Acts 1987, 70th Leg., ch. 977, Sec. 14, eff. June 19, 1987.

Sec. 15.216. CERTIFICATE OF APPROVAL. The board may consider

the following as grounds for refusal to give a certificate of

approval for any construction contract:

(1) failure to construct the project according to approved

plans;

(2) failure to construct the project in accordance with sound

engineering principles; or

(3) failure to comply with any terms of the contract.

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. Amended by

Acts 1987, 70th Leg., ch. 977, Sec. 14, eff. June 19, 1987.

Sec. 15.217. OPEN RECORDS AND OPEN MEETINGS LAWS. Water supply

corporations receiving any assistance under this Act are subject

to Chapter 552, Government Code, and Chapter 551, Government

Code.

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. Amended by

Acts 1995, 74th Leg., ch. 76, Sec. 5.95(78), (90), eff. Sept. 1,

1995.

Sec. 15.218. REPORT. (a) Not later than January 1 of each

odd-numbered year, the board shall prepare and submit to the

governor, lieutenant governor, and speaker of the house a report

relating to the financial impact of the bond insurance program

during the immediately preceding biennium.

(b) The report shall include:

(1) the total amount of insurance coverage authorized by the

board during the biennium;

(2) the number of insurance coverage authorizations granted by

the board;

(3) a list of the issuers receiving insurance coverage from the

board during the biennium and the amount of insurance coverage

provided to each issuer;

(4) an analysis of the marketability of the bonds of the issuers

receiving insurance coverage during the biennium and the effect

that the insurance coverage had on interest rates and bond

ratings for those issuers;

(5) an analysis of the marketability of bonds issued by the

state and its agencies during the biennium and the effect that

the bond insurance program had on interest rates on state bonds

and the state's bond rating;

(6) an analysis of the impact on the commercial bond market and

bond interest rates generally during the biennium as a result of

the implementation of the bond insurance program with particular

emphasis on the impact on bonds of political subdivisions and

water supply corporations that did not participate in the

program;

(7) recommendations for changes in the bond issuance program

that will favorably affect marketability of state bonds and

issuer's bonds, bond ratings, and interest rates; and

(8) any other information, analyses, and recommendations that

the board considers necessary to give the governor and the

legislature a complete understanding of the financial impact of

the bond insurance program.

all information and assistance necessary for the board to prepare

this report.

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.05. Amended by

Acts 1987, 70th Leg., ch. 977, Sec. 14, eff. June 19, 1987; Acts

1997, 75th Leg., ch. 1423, Sec. 20.02, eff. Sept. 1, 1997.

SUBCHAPTER E. STORAGE ACQUISITION PROGRAM

Sec. 15.301. FUND CREATED. There is created a fund in the state

treasury to be known as the storage acquisition fund which is to

be funded by direct appropriations and by transfers from the fund

at the discretion of the board.

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1,

eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,

Sec. 2.06.

Sec. 15.302. AUTHORIZED PROJECTS. (a) The board may use the

storage acquisition fund for projects including the design,

acquisition, lease, construction, reconstruction, development, or

enlargement in whole or part of any existing or proposed water

storage project.

(b) In addition, the board may, at its discretion and in

accordance with its rules, contract with a political subdivision,

under terms and conditions established by the board, to pay the

principal of or interest on or both the principal of and interest

on bonds or other obligations issued or to be issued by a

political subdivision.

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1,

eff. Nov. 10, 1981.

Sec. 15.303. JOINT VENTURES. The board may act singly or in a

joint venture in partnership with any political subdivision, with

the United States, or with any other state to the extent

permitted by law.

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1,

eff. Nov. 10, 1981.

Sec. 15.304. PERMITS REQUIRED. Except as provided by Section

15.3041 of this code, the board shall obtain permits from the

commission for the storage, transportation, and application to

beneficial use of water in reservoirs and associated works

constructed by the board.

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1,

eff. Nov. 10, 1981. Amended by Acts 1985, 69th Leg., ch. 133,

Sec. 4.03.

Sec. 15.3041. RESERVATION AND APPROPRIATION FOR BAYS AND

ESTUARIES AND INSTREAM USES. (a) Five percent of the annual

firm yield of water in any reservoir and associated works

constructed with state financial participation under this chapter

within 200 river miles from the coast, to commence from the mouth

of the river thence inland, is appropriated to the Parks and

Wildlife Department for use to make releases to bays and

estuaries and for instream uses, and the commission shall issue

permits for this water to the Parks and Wildlife Department under

procedures adopted by the commission.

(b) The Parks and Wildlife Department in cooperation with the

department shall manage this water for the purposes stated in

this section.

rules and shall enter into necessary memoranda of understanding

with the department to provide necessary rules and procedures for

managing the water and for release of the water for the purposes

stated in this section.

(d) This section does not limit or repeal any other authority of

or law relating to the department or the commission.

(e) Operating and maintenance costs for the percentage of annual

firm yield appropriated to the Parks and Wildlife Department

shall be paid by the local political subdivisions that are the

project owners.

Added by Acts 1985, 69th Leg., ch. 133, Sec. 4.03.

Sec. 15.305. STORING WATER. The board may use any reservoir

acquired, leased, constructed, reconstructed, developed, or

enlarged by it under this chapter to store unappropriated state

water and other water acquired by the state.

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1,

eff. Nov. 10, 1981.

Sec. 15.306. BOARD FINDINGS. Before the board may acquire

storage facilities in any reservoir, the board shall find

affirmatively that:

(1) it is reasonable to expect that the state will recover its

investment in the facilities;

(2) the cost of the facilities exceeds the current financing

capabilities of the area involved, and the facilities cannot be

reasonably financed by local interests without state

participation;

(3) the public interest will be served by acquisition of the

facilities; and

(4) the facilities to be constructed or reconstructed

contemplate the optimum development of the site which is

reasonably reserved under all existing circumstances of the site.

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1,

eff. Nov. 10, 1981.

Sec. 15.3061. RECOMMENDATIONS FOR FUNDING BY LEGISLATURE. (a)

If money is not available in the fund to provide money for

projects approved under this subchapter, the board shall prepare

and submit with its biennial budget request to the Legislative

Budget Board and to the presiding officers of each house of the

legislature a list of all projects approved by the board under

this subchapter.

(b) The list of projects submitted to the Legislative Budget

Board and to the presiding officers of each house of the

legislature shall include relevant information relating to each

project and recommendations relating to the priorities for

funding.

Added by Acts 1985, 69th Leg., ch. 133, Sec. 2.06.

Sec. 15.307. FACILITIES WANTED BY POLITICAL SUBDIVISION. The

board shall not acquire any facility to the extent that the board

finds that the political subdivision:

(1) is willing and reasonably able to finance the acquisition of

the facility;

(2) has qualified by obtaining the necessary permit; and

(3) has proposals that are inconsistent with the objectives of

the state water plan.

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1,

eff. Nov. 10, 1981. Amended by Acts 1987, 70th Leg., ch. 977,

Sec. 14, eff. June 19, 1987.

Sec. 15.308. CONTRACTS: GENERAL AUTHORITY. (a) The board may

execute contracts which include but are not limited to the

design, management, acquisition, lease, construction,

reconstruction, development, enlargement, operation, or

maintenance, singularly or in any combination, of any existing or

proposed storage project.

(b) The board shall obtain the approval of the attorney general

as to the legality of all contracts authorized under this

subchapter to which the board is a party.

Added by Acts 1981, 67th Leg., 1st C.S., p. 102, ch. 12, Sec. 1,

eff. Nov. 10, 1981.

Sec. 15.309. SPECIFIC CONTRACTS AUTHORIZED. Contracts

authorized by Section 15.308 of this code include but are not<

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

State Codes and Statutes

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