Relating to the oversight and financing of certain water infrastructure matters under the jurisdiction of the Texas Water Development Board.

89(R) SB 7 - Enrolled version - Bill Text

S.B. No. 7

AN ACT

relating to the oversight and financing of certain water

infrastructure matters under the jurisdiction of the Texas Water

Development Board.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. WATER INFRASTRUCTURE DEVELOPMENT

SECTION 1.01. Chapter 6, Water Code, is amended by adding

Subchapter H to read as follows:

SUBCHAPTER H. WATER SUPPLY CONVEYANCE COORDINATION

Sec.

6.301.

DEFINITION. In this subchapter, "project"

means a water supply development, treatment, or conveyance project

eligible to receive financial assistance from the board.

Sec.

6.302.

RESPONSIBILITIES OF BOARD. (a) Subject to

legislative appropriation, the board shall:

(1)

for the development of infrastructure to transport

water that is made available by a project, facilitate joint

planning and coordination between project sponsors, governmental

entities, utilities, common carriers, and other entities, as

applicable, to reduce the necessity of exercising the power of

eminent domain to obtain interests in real property by using

existing transportation and utility easements;

(2)

facilitate the development of guidance and best

practices for the standardization of the specifications,

materials, and components used to design and construct

infrastructure to transport water;

(3)

facilitate the development of standards and

guidance to ensure potential interconnectivity and

interoperability between different systems developed to transport

water from different projects;

(4)

facilitate the development of mechanical and

technical standards for the integration of water that is made

available by a project into a water supply system or into

infrastructure to transport water that is made available by a

project, as applicable; and

(5)

take other action the board determines necessary

to facilitate interconnectivity and interoperability between

different infrastructure developed to transport water from

different projects.

(b)

When developing guidance and best practices under

Subsection (a)(2), the board shall, if practicable, recommend

building excess capacity into infrastructure to transport water to

facilitate the transportation of additional water supplies that are

developed after the initial construction of the infrastructure.

Sec.

6.303.

USE OF PROFESSIONAL AND CONSULTING SERVICES

AUTHORIZED. (a) The board may procure professional and consulting

services to achieve a purpose described by Section 6.302.

(b)

Chapter 2254, Government Code, applies to the

procurement of professional and consulting services by the board.

Sec.

6.304.

FORMATION OF AD HOC COMMITTEES AUTHORIZED. The

board may convene one or more ad hoc committees composed of

representatives of current or potential project sponsors, the Texas

Department of Transportation, river authorities, retail public

utilities, electric utilities, counties, municipalities, special

purpose districts, common carriers, and other entities considered

appropriate by the board to advise and assist the board in

fulfilling any purpose described by Section 6.302, including in

drafting any guidance or best practices described by that section.

Sec.

6.305.

PAYMENT OF EXPENSES FROM TEXAS WATER FUND

ADMINISTRATIVE FUND. Pursuant to Section 15.504(f), the board

shall pay from the Texas water fund administrative fund established

under Section 15.508:

(1)

the necessary and reasonable administrative

expenses, including staffing expenses, incurred in administering

its responsibilities under this subchapter; and

(2)

the necessary and reasonable expenses for the

procurement of professional and consulting services under Section

6.303.

SECTION 1.02. Section 11.036, Water Code, is amended by

adding Subsection (e) to read as follows:

(e)

This section does not apply to a transfer of water or

water rights originating from outside this state under Section

15.703(a)(6) to any person having the right to acquire use of the

water.

SECTION 1.03. Section 15.153, Water Code, is amended by

amending Subsection (b) and adding Subsection (e) to read as

follows:

(b) The fund may be used to:

(1) provide financial assistance to political

subdivisions to develop water supply projects that create new water

sources for the state, including:

(A) desalination projects, including marine and

brackish water desalination;

(B) produced water treatment projects, other

than projects that are only for purposes of oil and gas exploration;

(C) aquifer storage and recovery projects; [
and
]

(D)
water and wastewater reuse projects;

(E)

acquisition of water or water rights

originating from outside this state;

(F) reservoir projects for which:

(i)

the required land has already been

acquired;

(ii)

a permit for the discharge of dredged

or fill material has been issued by the United States Secretary of

the Army under Section 404, Federal Water Pollution Control Act (33

U.S.C. Section 1344); and

(iii)

a permit for the storage, taking, or

diversion of state water has been issued by the commission under

Section 11.121; and

(G)
the development of infrastructure to

transport
water or integrate water into a water supply system,

other than groundwater produced from a well in this state
[
water
]

that is
not part of
[
made available by
] a project described by this

subdivision;

(2) make transfers from the fund:

(A) to the state water implementation fund for

Texas established under Subchapter G or the Texas Water Development

Fund II established under Subchapter L, Chapter 17; and

(B) for a purpose described by Subdivision (1);

[
and
]

(3) make transfers from the fund to the water bank

account established under Section 15.707
; and

(4) make transfers from the fund:

(A)

to the Texas Water Development Fund II state

participation account established under Section 17.957; and

(B) for a purpose described by Subdivision (1)
.

(e)

Money from the fund may be used to acquire another

person's right acquired or authorized in accordance with state law

to impound, divert, or use state water only by a water supply

contract or a lease of that right from its owner.

SECTION 1.04. Effective September 1, 2027, Section 15.153,

Water Code, is amended by adding Subsection (f) to read as follows:

(f)

For purposes of Section 7-e(c), Article VIII, Texas

Constitution, groundwater is considered brackish if, at the time of

production from a well, the groundwater had a total dissolved

solids concentration of not less than 3,000 milligrams per liter.

SECTION 1.05. Sections 15.502(b) and (e), Water Code, are

amended to read as follows:

(b) The board may use the fund only to transfer money to:

(1) the water assistance fund established under

Subchapter B;

(2) the new water supply for Texas fund established

under Subchapter C-1;

(3) the state water implementation fund for Texas

established under Subchapter G;

(4) the state water implementation revenue fund for

Texas established under Subchapter H;

(4-a)

the Texas water fund administrative fund

established under Section 15.508;

(4-b)

the flood infrastructure fund established under

Subchapter I;

(5) a revolving fund established under Subchapter J;

(6) the rural water assistance fund established under

Subchapter R;

(7) the statewide water public awareness account

established under Section 16.027;

(8) the Texas Water Development Fund II water

financial assistance account established under Section 17.959;

[
and
]

(8-a)

the Texas Water Development Fund II economically

distressed areas program account established under Section 17.958;

(9) the Texas Water Development Fund II state

participation account established under Section 17.957
; and

(10)

the agricultural water conservation fund

established under Section 50-d, Article III, Texas Constitution
.

(e) The fund consists of:

(1) money transferred or deposited to the credit of

the fund by law, including
:

(A)
money appropriated by the legislature

directly to the fund
;
and

(B)
money from any source transferred or

deposited to the credit of the fund as authorized by law;

(2) any other revenue that the legislature by statute

dedicates for deposit to the credit of the fund;

(3) investment earnings and interest earned on amounts

credited to the fund;

(4) money from gifts, grants, or donations to the

fund; and

(5) money returned from any authorized transfer.

SECTION 1.06. Effective September 1, 2027, Section

15.502(e), Water Code, is amended to read as follows:

(e) The fund consists of:

(1) money transferred or deposited to the credit of

the fund by law, including
:

(A)

money transferred or deposited to the credit

of the fund as provided by Section 7-e, Article VIII, Texas

Constitution;

(B)
money appropriated by the legislature

directly to the fund
;
and

(C)
money from any source transferred or

deposited to the credit of the fund as authorized by law;

(2) any other revenue that the legislature by statute

dedicates for deposit to the credit of the fund;

(3) investment earnings and interest earned on amounts

credited to the fund;

(4) money from gifts, grants, or donations to the

fund; and

(5) money returned from any authorized transfer.

SECTION 1.07. Section 15.504, Water Code, is amended by

amending Subsections (b), (c), and (f) and adding Subsection (f-1)

to read as follows:

(b)
Except as provided by Subsection (f) and other than

money transferred to the state water implementation fund for Texas

established under Subchapter G, the
[
The
] board may not transfer

money to a fund or account described by Section 15.502(b) until the

application for the project for which the money is to be used has

been approved.

(c) The board shall ensure that a portion of the money

transferred from the fund is used for:

(1) water
and wastewater
infrastructure projects,

including projects to rehabilitate or replace deficient or

deteriorating infrastructure,
prioritized by risk or need
for

financial assistance, including grants
, for:

(A) rural political subdivisions; and

(B) municipalities with a population of less than

150,000;

(2) projects for which all required state or federal

permitting has been substantially completed, as determined by the

board;

(3) the statewide water public awareness program

established under Section 16.026;

(4) water conservation strategies; [
and
]

(5) water loss mitigation projects
; and

(6)

technical assistance for applicants in obtaining

and using financial assistance from funds and accounts administered

by the board
.

(f)
In each state fiscal year, the
[
The
] board may
transfer

not more than two percent of the money deposited to the credit of

the fund in that state fiscal year to the Texas water fund

administrative fund established under Section 15.508
[
use the fund
]

to pay
or reimburse the board for
the necessary and reasonable

expenses of the board in administering the fund
as provided by

Section 15.508(c)
[
not to exceed two percent
].

(f-1)

The board may enter into an agreement with the

commission to pay from the Texas water fund administrative fund

established under Section 15.508 the necessary and reasonable

staffing expenses, not to exceed $2 million, incurred by the

commission on or before August 31, 2027, for the review of permit

applications for water supply projects receiving financial

assistance from the fund.

This subsection expires September 1,

2028.

SECTION 1.08. Section 15.505, Water Code, is amended to

read as follows:

Sec. 15.505. TRANSFER OF MONEY.
(a)
Notwithstanding any

other law:

(1) the board may[
:

[
(A)
] transfer money from the fund into any other

fund or account described by Section 15.502(b); and

[
(B) restore to the fund money transferred from

the fund and deposited to the credit of a fund or account described

by Section 15.502(b); and
]

(2) a fund or account described by Section 15.502(b)

may accept a transfer of money made under this subchapter.

(b)

The board may not restore to the fund money transferred

from the fund and deposited to the credit of a fund or account

described by Section 15.502(b).

SECTION 1.09. Effective September 1, 2027, Section 15.505,

Water Code, is amended by adding Subsections (c) and (d) to read as

follows:

(c)

Of the amount of money deposited to the credit of the

Texas water fund under Section 7-e, Article VIII, Texas

Constitution, before September 1, 2047, the administrator of the

fund shall allocate not less than 50 percent to be used only for

transfer to either or both of the following funds:

(1)

the new water supply for Texas fund established

under Subchapter C-1; or

(2)

the state water implementation fund for Texas

established under Subchapter G.

(d)

This subsection and Subsection (c) expire August 31,

2047.

SECTION 1.10. Subchapter H-1, Chapter 15, Water Code, is

amended by adding Section 15.508 to read as follows:

Sec.

15.508.

ADMINISTRATIVE FUND. (a) The Texas water fund

administrative fund is a fund outside the general revenue fund

administered by the board and established for the payment of or

reimbursement of the board for the expenses incurred by the board in

administering the Texas water fund.

(b) The Texas water fund administrative fund consists of:

(1)

money appropriated to the board for deposit to the

credit of the administrative fund;

(2)

money transferred by the board to the

administrative fund under Section 15.504(f) or other law; and

(3)

depository interest allocable to the

administrative fund.

(c)

Pursuant to Section 15.504(f), the board may pay from

the Texas water fund administrative fund necessary and reasonable

expenses of the board in administering the Texas water fund,

including:

(1)

staffing expenses incurred in administering its

responsibilities for providing grants, loans, financial

assistance, and technical assistance and procuring professional

and consulting services through and for all funds eligible to

receive transfers from the Texas water fund;

(2)

carrying out responsibilities under Subchapter H,

Chapter 6; and

(3)

any purposes for which money is appropriated by

the legislature from the Texas water fund administrative fund

related to the Texas water fund and all funds eligible to receive

transfers from the Texas water fund.

SECTION 1.11. Subchapter B, Chapter 16, Water Code, is

amended by adding Section 16.0123 to read as follows:

Sec.

16.0123.

INTERIM STUDY OF INCORPORATION OF WASTEWATER

PLANNING INTO STATE WATER PLANNING PROCESS. (a) Using existing

resources, the executive administrator shall conduct a study to

determine:

(1)

the feasibility and practicability of

incorporating planning for the development of infrastructure to

meet the state's current and future wastewater treatment needs into

the process used to produce each state water plan under Section

16.051, beginning with the five-year state water planning period

ending January 5, 2032; and

(2)

the statutory changes necessary to facilitate the

incorporation of the wastewater treatment planning described by

Subdivision (1) into the process used to produce each state water

plan under Section 16.051, beginning with the five-year state water

planning period ending January 5, 2032.

(b)

Not later than December 1, 2026, the executive

administrator shall provide a report of the study's findings to:

(1) the governor;

(2) the lieutenant governor;

(3) the speaker of the house of representatives;

(4)

each member of the Texas Water Fund Advisory

Committee established under Section 15.009; and

(5)

each member of the standing committees of the

senate and the house of representatives having primary jurisdiction

over water resources.

(c) This section expires May 31, 2027.

SECTION 1.12. Section 15.703(a), Water Code, is amended to

read as follows:

(a) The board may take all actions necessary to operate the

water bank and to facilitate the transfer of water rights from the

water bank for future beneficial use
,
including but not limited to:

(1) negotiating a sale price and terms acceptable to

the depositor and purchaser;

(2) maintaining a registry of water bank deposits and

those water users in need of additional supplies;

(3) informing water users in need of additional supply

of water rights available in the bank;

(4) encouraging water right holders to implement water

conservation practices and deposit the right to use the conserved

water into the bank;

(5) establishing requirements for deposit of a water

right into the water bank
,
including minimum terms for deposit;

(6) purchasing, holding, and transferring water or

water rights in its own name
, including purchasing, holding, and

transferring water or water rights originating from outside this

state for the purpose of providing water for the use or benefit of

this state
;

(7) establishing regional water banks;

(8) acting as a clearinghouse for water marketing

information
,
including water availability, pricing of water

transactions, environmental considerations, and potential buyers

and sellers of water rights;

(9) preparing and publishing a manual on structuring

water transactions;

(10) accepting and holding donations of water rights

to meet instream, water quality, fish and wildlife habitat, or bay

and estuary inflow needs;

(11) entering into contracts with persons to pay for

feasibility studies or the preparation of plans and specifications

relating to water conservation efforts or to estimate the amount of

water that would be saved through conservation efforts; and

(12) other actions to facilitate water transactions.

SECTION 1.13. Section 16.131(a), Water Code, is amended to

read as follows:

(a) The board may use the state participation account of the

development fund to encourage optimum regional and interregional

development of projects
,
including the design, acquisition, lease,

construction, reconstruction, development, or enlargement in whole

or part of:

(1) reservoirs and storm water retention basins for

water supply, flood protection, and groundwater recharge;

(2) facilities for the transmission and treatment of

water;

(3) treatment works as defined by Section 17.001;

[
and
]

(4) interregional water supply projects selected

under Section 16.145
; and

(5) projects described by Section 15.153(b)(1)
.

SECTION 1.14. Section 17.0112(a), Water Code, is amended to

read as follows:

(a) The board may issue not more than
$100
[
$25
] million in

bonds [
dedicated under Section 17.0111 of this code and may issue

not more than $50 million in bonds
] authorized under Article III,

Texas Constitution, during a fiscal year to provide financial

assistance for water supply and sewer services as provided under

Subchapter K of this chapter.

SECTION 1.15. Section 17.933(c), Water Code, is amended to

read as follows:

(c) The total amount of financial assistance provided by the

board to political subdivisions under this subchapter from

state-issued bonds for which repayment is not required may not

exceed at any time
90
[
70
] percent of the total principal amount of

issued and unissued bonds authorized under Article III of the Texas

Constitution, for purposes of this subchapter plus outstanding

interest on those bonds.

SECTION 1.16. The following provisions of the Water Code

are repealed:

(1) Section 16.131(c); and

(2) Section 16.146(h).

ARTICLE 2. LEGISLATIVE OVERSIGHT

SECTION 2.01. Section 15.431(1), Water Code, is amended to

read as follows:

(1) "Advisory committee" means the [
State Water

Implementation Fund for
] Texas
Water Fund
Advisory Committee.

SECTION 2.02. Section 15.438, Water Code, is transferred to

Subchapter A, Chapter 15, Water Code, redesignated as Section

15.009, Water Code, and amended to read as follows:

Sec.
15.009
[
15.438
].
TEXAS WATER FUND
ADVISORY COMMITTEE.

(a) The [
State Water Implementation Fund for
] Texas
Water Fund

Advisory Committee is composed of the following
eight
[
seven
]

members:

(1) the comptroller, or a person designated by the

comptroller;

(2)
the director of the Texas Division of Emergency

Management or the successor in function to that entity, or a person

designated by that person;

(3)

the chair of the committee of the senate having

primary jurisdiction over water resources;

(4)

the chair of the committee of the house of

representatives having primary jurisdiction over water resources;

(5) two
[
three
] members of the senate appointed by the

lieutenant governor, including
at least one
[
:

[
(A) a
] member of the committee of the senate

having primary jurisdiction over matters relating to finance;
and

(6) two
[
and

[
(B)

the chair of the committee of the senate

having primary jurisdiction over water resources; and

[
(3) three
] members of the house of representatives

appointed by the speaker of the house of representatives, including

at least one
[
:

[
(A) a
] member of the committee of the house of

representatives having primary jurisdiction over appropriations[
;

and

[
(B)

the chair of the committee of the house of

representatives having primary jurisdiction over water resources
].

(b) The
board
[
following persons
] shall
designate agency

personnel to
serve as staff support for the advisory committee[
:

[
(1)

the deputy executive administrator of the board

who is responsible for water science and conservation or a person

who holds an equivalent position at the agency, or a person

designated by that person;

[
(2)

the deputy executive administrator of the board

who is responsible for water resources planning and information or

a person who holds an equivalent position at the agency, or a person

designated by that person; and

[
(3)

the chief financial officer of the board, or a

person who holds an equivalent position at the agency
].

(c)
A
[
An appointed
] member of the advisory committee

designated under Subsection (a)(1) or (2) or appointed under

Subsection (a)(5) or (6)
serves at the will of the person who

designated or
appointed the member.

(d) The
members of the advisory committee described by

Subsections (a)(3) and (4) serve as
[
lieutenant governor shall

appoint a
] co-presiding
officers
[
officer
] of the [
advisory
]

committee [
from among the members appointed by the lieutenant

governor, and the speaker of the house of representatives shall

appoint a co-presiding officer of the committee from among the

members appointed by the speaker
].

(e) The advisory committee may hold public hearings, formal

meetings, or work sessions. Either co-presiding officer of the

advisory committee may call a public hearing, formal meeting, or

work session of the advisory committee at any time. The advisory

committee may not take formal action at a public hearing, formal

meeting, or work session unless a quorum of the committee is

present.

(f) Except as otherwise provided by this subsection, a

member of the advisory committee is not entitled to receive

compensation for service on the committee or reimbursement for

expenses incurred in the performance of official duties as a member

of the committee. Service on the advisory committee by a member of

the senate or house of representatives is considered legislative

service for which the member is entitled to reimbursement and other

benefits in the same manner and to the same extent as for other

legislative service.

(g) The advisory committee
may
[
shall
] submit comments and

recommendations to the board regarding the use of money in
:

(1)
the
state water implementation fund for Texas

established under Subchapter G
[
fund
] for use by the board in

adopting rules under Section 15.439 and in adopting policies and

procedures under Section 15.441
;

(2)

the Texas water fund established under Subchapter

H-1 for use by the board in adopting rules under Section 15.507;

(3)

the flood infrastructure fund established under

Subchapter I for use by the board in adopting rules under Section

15.537; and

(4)

the Texas infrastructure resiliency fund

established under Section 16.452 for use by the board in adopting

rules under Section 16.460
. [
The submission must include:

[
(1)

comments and recommendations on rulemaking

related to the prioritization of projects in regional water plans

and the state water plan in accordance with Section 15.437;

[
(2)

comments and recommendations on rulemaking

related to establishing standards for determining whether projects

meet the criteria provided by Section 15.434(b);

[
(3)

an evaluation of the available programs for

providing financing for projects included in the state water plan

and guidelines for implementing those programs, including

guidelines for providing financing for projects included in the

state water plan that are authorized under Subchapter Q or R of this

chapter, Subchapter E or F, Chapter 16, or Subchapter J, Chapter 17;

[
(4)

an evaluation of the lending practices of the

board and guidelines for lending standards;

[
(5)

an evaluation of the use of funds by the board to

provide support for financial assistance for water projects,

including support for the purposes described by Section 15.435(c);

[
(6)

an evaluation of whether premium financing

programs should be established within the funds described by

Section 15.435 to serve the purposes of this subchapter, especially

in connection with projects described by Section 15.434(b);

[
(7)

an evaluation of methods for encouraging

participation in the procurement process by companies domiciled in

this state or that employ a significant number of residents of this

state; and

[
(8)

an evaluation of the overall operation, function,

and structure of the fund.
]

(h) The advisory committee shall review the overall

operation, function, and structure of
each fund listed in

Subsection (g)
[
the fund
] at least semiannually [
and may provide

comments and recommendations to the board on any matter
].

(i) The advisory committee may
:

(1)

provide comments and recommendations to the board

on any matter;

(2)

review the overall operation, function, and

structure of any fund established under this chapter or Chapter 16

that is not listed in Subsection (g); and

(3)
adopt rules, procedures, and policies as needed to

administer this section and implement its responsibilities.

(j) Chapter 2110, Government Code, does not apply to the

size, composition, or duration of the advisory committee.

(k) The advisory committee is
not
subject to Chapter 325,

Government Code (Texas Sunset Act). [
Unless continued in existence

as provided by that chapter, the advisory committee is abolished

and this section expires September 1, 2035.
]

(l) The advisory committee
may
[
shall
] make recommendations

to the board regarding information to be posted on the board's

Internet website
relating to the funds listed in Subsection (g)

[
under Section 15.440(b)
].

(m) The advisory committee shall evaluate and may provide

comments or recommendations on the feasibility of the state owning,

constructing, and operating water supply projects, including

reservoirs and major water supply conveyance infrastructure,

through existing financial assistance programs under Subchapter E

of this chapter, Subchapter E or F, Chapter 16, or other mechanisms.

(n) The executive administrator shall provide an annual

report to the advisory committee on:

(1) the board's compliance with statewide annual goals

relating to historically underutilized businesses; and

(2) the participation level of historically

underutilized businesses in projects that receive funding related

to a bond enhancement agreement under
Subchapter G
[
this

subchapter
].

(o) If the aggregate level of participation by historically

underutilized businesses in projects that receive funding related

to a bond enhancement agreement under
Subchapter G
[
this

subchapter
] does not meet statewide annual goals adopted under

Chapter 2161, Government Code, the advisory committee shall make

recommendations to the board to improve the participation level.

(p)

Notwithstanding Section 552.008, Government Code, the

advisory committee may access all records that relate to the

administration of the funds described in this section that are

maintained by any entity under contract with the board.

(q)

The board, by providing information under this section

that is confidential or otherwise excepted from required disclosure

under law, does not waive or affect the confidentiality of the

information for purposes of state or federal law or waive the right

to assert exceptions to required disclosure of the information in

the future. The board may require the requesting individual member

of the advisory committee, the requesting advisory committee, or

the members or employees of the advisory committee who will view,

handle, or retain information that is received under this section

and that is confidential under law to sign a confidentiality

agreement that covers the information and requires that the

information:

(1)

not be disclosed to anyone but other members of the

advisory committee;

(2)

not be disclosed to another member of the advisory

committee for purposes other than the purpose for which it was

received;

(3) be labeled as confidential;

(4) be kept securely; and

(5)

be controlled, such that all copies of the

information or notes taken from the information that implicate the

confidential nature of the information that are not destroyed or

returned to the board remain confidential and subject to the

confidentiality agreement.

SECTION 2.03. The following provisions of the Water Code

are repealed:

(1) Section 15.506;

(2) Section 15.540;

(3) Section 16.451(1); and

(4) Section 16.456.

ARTICLE 3. PERFORMANCE AND ACCOUNTABILITY

SECTION 3.01. Subchapter D, Chapter 6, Water Code, is

amended by adding Section 6.116 to read as follows:

Sec.

6.116.

PUBLIC INFORMATION AND REPORTING. (a) The

board shall develop and maintain on its Internet website a publicly

available tool by which a person may obtain information regarding:

(1)

state progress toward meeting future water supply

needs, including the extent to which water management strategies

and projects implemented after the adoption of the preceding state

water plan have affected that progress;

(2)

water supply projects included in the most

recently approved state water plan that received commitments of

financial assistance from the board in the preceding year;

(3)

the board's commitments of financial assistance

for water supply projects, by program;

(4)

the net amount of water projected to be developed,

conserved, or reclaimed through projects that receive financial

assistance from the board;

(5)

the board's progress toward providing financial

assistance to utilities that have water losses that meet or exceed

the threshold established by rule under Section 16.0121;

(6)

the transfer of money from the Texas water fund to

other eligible board-administered funds in the preceding year;

(7)

the total estimated statewide costs of water,

wastewater, and flood infrastructure needs and the estimated amount

of state financial assistance required to address those needs; and

(8)

the state's progress in closing the gap between

total statewide water infrastructure needs and the state financial

assistance required to meet those needs.

(b)

The board shall update the information required to be

maintained under Subsection (a) as appropriate.

ARTICLE 4. EFFECTIVE DATES

SECTION 4.01. (a) Except as otherwise provided by this

Act, this Act takes effect September 1, 2025.

(b) Section 1.06 of this Act takes effect September 1, 2027,

but only if the constitutional amendment proposed by H.J.R. 7, 89th

Legislature, Regular Session, 2025, is approved by the voters. If

that amendment is not approved by the voters, Section 1.06 of this

Act has no effect.

(c) The sections of this Act adding Sections 15.153(f) and

15.505(c) and (d), Water Code, take effect September 1, 2027, but

only if the constitutional amendment proposed by H.J.R. 7, 89th

Legislature, Regular Session, 2025, is approved by the voters. If

that amendment is not approved by the voters, those sections of this

Act have no effect.

______________________________

______________________________

President of the Senate

Speaker of the House

I hereby certify that S.B. No. 7 passed the Senate on

April 2, 2025, by the following vote: Yeas 31, Nays 0; and that

the Senate concurred in House amendments on May 30, 2025, by the

following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

I hereby certify that S.B. No. 7 passed the House, with

amendments, on May 28, 2025, by the following vote: Yeas 136,

Nays 0, two present not voting.

______________________________

Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor