H.B. No. 2815 introduces Chapter 1373 to the Government Code, establishing a framework for political subdivisions to issue bonds for financing water supply projects identified in the state water plan, specifically those with cumulative costs of at least $750 million. The bill outlines the authority of issuers to finance, refinance, and cover costs associated with these projects, emphasizing that obligations secured by ad valorem taxes require voter approval. Additionally, it amends several sections of the Water Code to align with the new provisions, allowing for a maximum loan repayment period of up to 40 years and clarifying that the Texas Water Development Board can provide financing for eligible projects.

The bill also amends Section 17.957(c) of the Water Code, specifying that the board may use funds from the state participation account for eligible projects as defined in Chapter 1373, as well as for projects described in Sections 16.131 and 16.146. The previous language allowing the board to determine the necessary use of funds for fund administration has been deleted. The bill is set to take effect on September 1, 2025, aiming to provide clearer guidelines for fund allocation and enhance the administration of the fund.

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)