S.B. No. 1261 introduces a new chapter, Chapter 1373, to the Government Code, which establishes a framework for the issuance of obligations to finance water supply projects identified in the state water plan. The bill defines "eligible projects" as those with cumulative capital costs of at least $750 million that are recommended in the state water plan. It outlines the authority of issuers to issue obligations for financing or refinancing these projects, as well as the security measures that can be employed, such as revenue from contracts related to the projects. The bill also stipulates that obligations cannot be secured by ad valorem taxes and sets forth the maximum maturity terms for these obligations.

Additionally, the bill amends various sections of the Water Code to align with the new provisions, including extending the maximum repayment term for loans related to eligible projects to 40 years. It clarifies that funds can be used for financing eligible projects as defined in the new chapter and includes provisions for the review and approval of obligations by the attorney general. The act is set to take effect on September 1, 2025.

Statutes affected:
Introduced: Water Code 15.432, Water Code 15.435, Water Code 15.474, Water Code 17.852, Water Code 17.957 (Water Code 17, Water Code 15)
Senate Committee Report: Water Code 15.432, Water Code 15.435, Water Code 15.474, Water Code 17.852, Water Code 17.957 (Water Code 17, Water Code 15)
Engrossed: Water Code 15.435, Water Code 15.474, Water Code 17.852, Water Code 17.957 (Water Code 17, Water Code 15)
House Committee Report: Water Code 15.435, Water Code 15.474, Water Code 17.852, Water Code 17.957 (Water Code 17, Water Code 15)
Enrolled: Water Code 15.435, Water Code 15.474, Water Code 17.852, Water Code 17.957 (Water Code 17, Water Code 15)