TITLE natural-resources-and-conservation

Part X. Texas Water Development Board

Chapter 357. Regional Water Planning Guidelines

31 TAC §357.4

The Texas Water Development Board (the board) adopts amendment to §357.4, concerning Regional Water Planning Guidelines, without changes to the proposed text as published in the March 5, 1999, issue of the, Texas Register (24 TexReg 1580) and will not be republished.

Texas Water Code §16.053 states that regional water planning shall provide for the orderly development, management, and conservation of water resources and response to drought conditions in order, among other factors, to protect the agricultural and natural resources of the region. The amendment will allow for the Texas Department of Agriculture to add a member in an advisory role relating to Senate Bill 1. The placement of a Texas Department of Agriculture non-voting member will provide that agency with appropriate input into the impact of the regional water planning process on agricultural resources.

One comment was received from the Upper Guadalupe River Authority in support of the amendment.

The amendment is adopted under the authority granted in Texas Water Code, §6.101, which provides the board with the authority to adopt rules necessary to carry out its powers and duties under the Texas Water Code and laws of Texas, and under the authority of Texas Water Code, §16.053, which requires the board to develop rules and guidelines to govern procedures to be followed in carrying out the responsibilities in Texas Water Code, §16.053, which responsibilities include designation of representatives for regional water planning areas and procedures for adoption of regional water plans by regional water planning groups.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 8, 1999.

Suzanne Schwartz

General Counsel

Texas Water Development Board

Effective date: April 18, 1999

Proposal publication date: March 5, 1999

For further information, please call: (512) 463-7981

Chapter 363. Financial Assistance Programs

Subchapter H. Groundwater District Loan Program

31 TAC §§363.801-363.811

The Texas Water Development Board (board) adopts new §§363.801 - 363.811 comprising new 31 TAC 363, Subchapter H, establishing the Groundwater District Loan Program, without changes to the proposed text as published in the March 5, 1999, Texas Register (24 TexReg 1581) and will not be republished. The purpose of the new sections is to implement the provisions of the Texas Water Code, Chapter 36, Subchapter L by governing the board's administration of groundwater district loan assistance, which provides loans for start-up and initial operating costs to newly created districts and authorities which regulate the spacing of water wells and/or the production from water wells.

The new sections provide guidelines for programmatic requirements. Section 363.801 describes the scope of the rules of the new subchapter. Section 363.802 relates to the maximum terms of the loans available and provides notice to potential applicants that loans may not exceed a term of three years. This requirement ensures the revolving nature of the loan program in that loaned funds may quickly be returned to the program so as to be available for lending out again. Section 363.803 relates to criteria and methods for distribution of funds and provides that those borrowers which quickly complete an application will be the most likely to be considered for funding.

Section 363.804 identifies the public entities that are permitted by Constitutional and statutory provisions to apply for financial assistance. Section 363.805, relating to use of funds, provides guidelines for potential applicants of initial operating expenses of the districts that are eligible for funding. Section 363.806 provides notice to potential applicants of the legal and fiscal information from a district that is required for all applications for assistance.

Section 363.807 states the required statutory findings that the board must make in approving an application for financial assistance. Section 363.808 provides for the use of a note and loan agreement as the method by which potential applicants may contract for and pledge repayment of a loan. Section 363.809 provides a list of loan documents that must be executed at the time of closing on the loan. The required documents offer evidence that the applicant is aware of the terms and interest rate of the loan. The required documents also allow the board to assess the applicant's financial ability to repay the loan. The adopted section further requires a documented pledge that the applicant will collect the necessary revenues to repay the loan.

Section 363.810 states the supporting documentation that must be reviewed and assessed before funds are released. Section 363.811 provides notice to applicants that the board will conduct financial audits of all loans during the terms of the loan, and that borrowers must take actions necessary to correct items in noncompliance with the loan agreement.

No comments were received on the proposed new rules.

The new sections are adopted pursuant to Texas Water Code, §6.101 and §36.372, which requires respectively for the board to adopt rules necessary to carry out the powers and duties of the board and to establish rules for the use and administration of the Water Loan Assistance Fund.

This agency hereby certifies that the adoption has been reviewed by legal counsel and found to be a valid exercise of the agency's legal authority.

Filed with the Office of the Secretary of State on April 8, 1999.

Suzanne Schwartz

General Counsel

Texas Water Development Board

Effective date: April 18, 1999

Proposal publication date: March 5, 1999

For further information, please call: (512) 463-7981