HB4657 - Relating to establishing the Local Government Water Redevelopment Fund.

      By: Barry H.B. No. 4657       A BILL TO BE ENTITLED   AN ACT   relating to establishing the Local Government Water Redevelopment   Fund.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 15, Water Code, is amended by adding   Subchapter C-2 to read as follows:   SUBCHAPTER C-2. LOCAL GOVERNMENT WATER REDEVELOPMENT FUND           Sec. 15.161.  DEFINITIONS. In this subchapter:                 (1)     "Applicant" means a political subdivision that   imposes a sales tax or a use tax under Subtitle C, Title 3, Tax Code,   and applies to the Board for a disbursement of money from fund.                 (2)     "Fund" means the Local Government Water   Redevelopment Fund.           Sec.   15.162.     FUND. (a) The fund is a special fund in the   state treasury administered by the board. The fund consists of:                 (1)     money appropriated for transfer or deposit to the   credit of the fund;                 (2)  depository interest allocable to the fund;                 (3)     money from gifts, grants, or donations to the   fund; and                 (4)     any other fees or sources of revenue that the   legislature may dedicate for deposit to the fund.           (b)     The fund is exempt from the application of Section   403.095, Government Code.           (c)     Money in the fund may be used only as provided by this   subchapter. The fund and any accounts established in the fund shall   be kept and maintained by or at the direction of the board.           (d)     The board may use revenues from the fund to administer   the program.           Sec.   15.163.     USE OF FUND. (a) The board shall disburse   funds for the repair and redevelopment of existing water   infrastructure located within the boundaries of an applicant.           (b)     The board may approve disbursement of funds for the   repair and redevelopment of existing water structure to multiple   applicants for the same project.           (c)     The board shall develop a procedure for applicants to   apply for funding and for the administration of the fund.           (d)     The board may not disburse money to an applicant until   an application made to the board for a disbursement of funds from   the fund has been approved by the board.           (e)     The board shall adopt rules necessary to administer the   fund.           Sec.   15.164.     APPLICATIONS FOR DISBURSEMENT. (a) The   application period for funding opens after the comptroller's   disposition of sales tax proceeds under Section 151.801, Tax Code.           (b)     In each fiscal year, an applicant is eligible to receive   an amount equal to up to the amount most recently deposited to the   fund under Section 151.801(g) multiplied by the quotient of:                 (1)     the applicant's share of the taxes collected by the   comptroller under Subtitle C, Title 3, Tax Code, in the   twelve-month period preceding the comptroller's most recent   deposit to the fund under Section 151.801(g); and                 (2)     the total amount of taxes collected the by   comptroller under Subtitle C, Title 3, Tax Code, in the   twelve-month period preceding the comptroller's most recent   deposit to the fund under Section 151.801(g).           (c)     The board shall publish the amounts that each applicant   is eligible to receive from the fund under Subsection (b).           (d)     The comptroller shall assist the board in publishing the   amounts required under Subsection (c).          SECTION 2.  Section 151.801, Tax Code, is amended by   amending Subsection (a) and adding Subsection (g) to read as   follows:          (a)  Except for the amounts allocated under Subsections (b),   (c), (c-2), (c-3), [ and ] (f), and (g), all proceeds from the   collection of the taxes imposed by this chapter shall be deposited   to the credit of the general revenue fund.           (g)     After deposits under subsections (b), (c), (c-2),   (c-3), and (f), but before a deposit of taxes collected under this   chapter to the general revenue fund under Subsection (a), four   percent of all proceeds from the collection of the taxes imposed by   this chapter shall be deposited to the credit of the Local   Government Water Redevelopment Fund under Subchapter C-2, Chapter   15, Water Code.          SECTION 3.  Not later than January 1, 2026, the Texas Water   Development Board shall adopt rules as required by this Act.          SECTION 4.  This Act takes effect January 1, 2026, but only   if the constitutional amendment proposed by the 89th Legislature,   Regular Session, 2025, to create the Local Government Water   Redevelopment Fund to assist in financing the repair and   redevelopment of water infrastructure projects in this state is   approved by voters. If that amendment is not approved by voters,   this Act has no effect.