Bill > SB1261

This bill establishes a new legal framework for financing large-scale water supply projects in Texas by creating Chapter 1373 in the Government Code. The bill defines an "eligible project" as a water supply project recommended in the state water plan with cumulative capital costs of at least $750 million, and provides a comprehensive set of rules for how local government entities (called "issuers") can issue obligations (bonds or notes) to fund these projects. Key provisions include: prohibiting the use of ad valorem (property) taxes to secure these obligations, allowing obligations to be secured by project revenues, water supply contracts, or other authorized revenue sources, limiting the maximum maturity of such obligations to 50 years or the project's expected useful life, and requiring all obligations to be reviewed and approved by the Attorney General. The bill also makes complementary amendments to the Water Code to align existing statutes with this new financing mechanism, such as expanding the definition of eligible projects and extending potential loan repayment terms. These changes are designed to provide more flexible financing options for large-scale water infrastructure projects in Texas, helping to implement strategies outlined in the state water plan.

Agriculture and Natural Resources

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1261