Part 10.
TEXAS WATER DEVELOPMENT BOARD
Chapter 363.
FINANCIAL ASSISTANCE PROGRAMS
The Texas Water Development Board (board) proposes amendments to 31
TAC §§363.11, 363.33, 363.42, 363.931 and 363.1017 concerning Financial
Assistance Programs and the assignment of specific duties to the development
fund manager. References in §§363.11, 363.33, 363.42, 363.931, and
363.1017 to the "development fund manager" have been changed to "executive
administrator" to accurately reflect the assignment of certain responsibilities
as a result of a recent reorganization of Board offices.
The proposed amendment to §363.11 will designate the executive administrator,
not the development fund manager, as the appropriate contact for scheduling
a pre-application conference. Amendments to §363.33 are proposed to give
the executive administrator the responsibility to set interest rates for loans
and purchase of Board interest in state participation projects. Amendments
to §363.42 and §363.931 are proposed to designate the executive
administrator to accept escrow account statements related to a bond resolution
or ordinance. Proposed amendment to §363.1017 will give the executive
administrator the authority to consent to the annual payment of administrative
cost recovery fees for the State Participation Program. These tasks are more
appropriately vested with the executive administrator as the head of the agency
and may be delegated at his discretion.
Ms. Melanie Callahan, Director of Fiscal Services, has determined that
for the first five-year period these changes are in effect there will be no
fiscal implications to state or local government as a result of enforcement
and administration of the sections.
Ms. Callahan has also determined that for the first five years the changes
as proposed are in effect the public benefit anticipated as a result of implementing
the amended sections will be an updated representation of specific duties
assigned to the development fund manager and the executive administrator.
Ms. Callahan has further determined there will be no increased economic cost
to small businesses or individuals required to comply with the sections as
proposed because the provisions apply only to political subdivisions applying
for board assistance.
It is estimated that the rule amendment will not adversely affect local
economies because the proposed changes relate only to internal administration
of the agency.
Comments on the proposed amendment will be accepted for 30 days following
publication and may be submitted to Gail Allan, Director of Administration
and Northern Legal Services, 512/463-7804, Texas Water Development Board,
P.O. Box 13231, Austin, Texas, 78711-3231, or by fax at 512/463-5580.
Subchapter A. GENERAL PROVISIONS
2.
GENERAL APPLICATION PROCEDURES
31 TAC §363.11
Statutory authority: Water Code, §6.101 and §15.909.
Cross reference to statute: Water Code, Chapter 15, Subchapter 0; Chapter
16, Subchapters E and F; and Chapter 17, Subchapters D, E, and F.
§363.11.Preapplication Meeting.
An applicant seeking financial assistance should schedule a preapplication
conference with the
executive administrator
[
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on February 20, 2003.
TRD-200301261
Suzanne Schwartz
General Counsel
Texas Water Development Board
Proposed date of adoption: April 16, 2003
For further information, please call: (512) 463-7981
31 TAC §363.33
Statutory authority: Water Code, §6.101 and §15.909.
Cross reference to statute: Water Code, Chapter 15, Subchapter 0; Chapter
16, Subchapters E and F; and Chapter 17, Subchapters D, E, and F.
§363.33.Interest Rates for Loans and Purchase of Board's Interest in State Participation Projects.
(a)
Procedure and method for setting fixed interest rates.
(1)
The
executive administrator
[
(2)
For loans from the Texas Water Development Fund and Texas
Water Development Fund II or for lending rates for purchases of the board's
interest in state participation projects, the
executive administrator
[
(A)
the rates established in the lending rate scale adopted
by the board under subsection (b) of this section; or
(B)
either:
(i)
for tax-exempt issues, the rates established by the "A"
scale of the Delphis Hanover Corporation Range of Yield Curve Scales (Delphis
A scale); or
(ii)
for taxable issues, the Delphis A scale adjusted to take
into consideration the difference between taxable and tax-exempt rates in
the market, as determined by the
executive administrator
[
(C)
for loans with a maturity less than 15 years, if the interest
rates calculated in subparagraph (A) of this paragraph results in a true interest
cost that is less than the minimum true interest cost of the lending rate
scale established under subsection (b) of this section for those funds, at
a rate increased to match the minimum true interest costs so the board may
recover all costs attributed to the bonds sold by the board.
(D)
for loans funded by the board with proceeds of bonds, the
interest for which is intended to be tax exempt for purposes of federal tax
law, the
executive administrator
[
(3)
Interest rates for loans from the Water Loan Assistance
Fund, or from funds from the board's sale of political subdivision bonds to
the Texas Water Resources Finance Authority will be set according the Delphis
A scale. The board may establish different interest rates for loans under
this paragraph if it finds such rates are legislatively directed or are necessary
to promote major water initiatives designed to provide significant regional
benefit.
(b)
Lending rate scale. After each bond sale, or as necessary
to meet changing market conditions, the board will set the lending rate scale
for loans and state participation projects based upon cost of funds to the
board, risk factors of managing the board loan portfolio, and market rate
scales. To calculate the cost of funds, the board will add new bond proceeds
to those remaining bond funds that are not currently assigned to schedule
loan closings, weighting the funds by dollars and true interest costs of each
source. The board will establish separate lending rate scales for tax-exempt
and taxable projects from each of the following:
(1)
loans from the Texas Water Development Fund and Texas Water
Development Fund II;
(2)
purchase of the board's interest in state participation
projects from the State Participation Account;
(3)
loans from the Economically Distressed Area Program Account;
and
(4)
if revenue bonds constitute the consideration for the purchase
of the board's interest in a state participation project by a political subdivision,
the revenue bonds shall bear interest at either:
(A)
the prevailing state participation lending rate, as set
in subsection (b)(2) of this section; or
(B)
if there is outstanding board indebtedness related to the
purchase of its state participation interest, then at the rate then in effect
at the time the board provided funds, through the issuance of bonds, to participate
in the project.
(c)
Interest rates for loans from the State Water Pollution
Control Revolving Fund.
(1)
The fixed interest rates for SRF loans under this chapter
are set at a rate 70 basis points below the fixed rate index rates for borrowers,
plus an additional reduction under subparagraph (A) of this paragraph, or
if applicable, are set at the total basis points below the fixed rate index
for borrowers derived under (B) of this paragraph. The fixed rate index rates
shall be established for each uninsured borrower based on the borrower's market
cost of funds as they relate to the Delphis Hanover Corporation Range of Yield
Curve Scales (Delphis) or the 90 index scale of the Delphis for borrowers
with either no rating or a rating less than investment grade, using individual
coupon rates for each maturity of proposed debt based on the appropriate index's
scale. The fixed rate index rates shall be established for each insured borrower
based on the higher of the borrower's uninsured fixed rate index scale or
the Delphis 96 index scale.
(A)
Under §363.209(c) of this title (relating to Administrative
Cost Recovery) an additional 25 basis point reduction will be used, for total
fixed lending rates of 95 basis points below the fixed rate index rates for
such borrower.
(B)
For borrowers filing applications on or after September
21, 1997, for loans with an average bond life in excess of 14 years or, at
the discretion of the board for borrowers filing applications on or after
September 21, 1997, for loans which have debt schedules less than 20 years
and which produce a total fixed lending rate reduction in excess of a "standard
loan structure" (defined as a debt service schedule in which the first year
of the maturity schedule is interest only followed by 20 years of principal
maturing on the basis of level debt service), the following procedures will
be used in lieu of the provisions of subparagraph (A) of this paragraph to
determine the total fixed lending rate reduction:
(i)
The interest rate component of level debt service will
be determined by using the 13th year coupon rate of the appropriate index
of the Delphis scales that corresponds to the 13th year of principal of the
standard loan structure and that is measured from the first business day on
the month the loan application will be presented to the board for approval.
(ii)
Level debt service will be calculated using the 13th year
Delphis Scale coupon rate as described in clause (i) of this subparagraph
and the par amount of the loan according to a standard loan structure. For
a loan which has been proposed for a term of years equal to a standard loan
structure, the dates specified in the loan application shall be used for interest
and principal calculation. For a loan which has been proposed for a term of
years less than a standard loan structure or longer than a standard loan structure,
level debt service will be calculated beginning with the dated date and based
upon the principal and interest dates specified in the application, and continuing
for the term of a standard loan structure.
(iii)
A calculation will be made to determine how much a borrower's
interest would be reduced if the loan had been made according to the total
fixed lending rate reduction provided in subparagraph (A) of this paragraph
and based upon the principal payments calculated in clause (ii) of this subparagraph.
(iv)
The board will establish a total fixed lending rate reduction
for the loan that will achieve the interest savings in clause (iii) of this
subparagraph based upon the principal schedule proposed by the borrower.
(2)
The interest rate for SRF variable rate loans under this
chapter will be set at a rate equal to the actual interest cost paid by the
board on its outstanding variable rate debt plus the actual cost of maintaining
the variable rate debt in the fund. Variable rate loans are required to be
converted to long-term fixed rate loans within 90 days of project completion
unless an extension is approved in writing by the
executive administrator
[
(3)
The
executive administrator
[
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed
with the Office of the Secretary of State on February 20, 2003.
TRD-200301262
Suzanne Schwartz
General Counsel
Texas Water Development Board
Proposed date of adoption: April 16, 2003
For further information, please call: (512) 463-7981
31 TAC §363.42
Statutory authority: Water Code, §6.101 and §15.909.
Cross reference to statute: Water Code, Chapter 15, Subchapter 0; Chapter
16, Subchapters E and F; and Chapter 17, Subchapters D, E, and F.
§363.42.Loan Closing.
(a)
Instruments needed for closing. The documents which shall
be required at the time of closing shall include the following:
(1)
evidence that requirements and regulations of all identified
local, state and federal agencies having jurisdiction have been met, including
but not limited to permits and authorizations;
(2)
certified copy of the ordinances or resolutions adopted
by the governing body authorizing issuance of debt sold to the board which
has received prior approval by the executive administrator and which shall
have sections providing:
(A)
that an escrow account, if applicable, shall be created
which shall be separate from all other funds and that:
(i)
the account shall be maintained at an escrow agent bank
or maintained with the trust agent;
(ii)
funds shall not be released from the escrow account without
written approval by the executive administrator;
(iii)
the escrow account bank statements or trust account statement
will be provided on a monthly basis to the
executive administrator's
[
(iv)
the escrow account will be adequately collateralized as
determined by the executive administrator sufficient to protect the board's
interest;
(B)
that a construction fund shall be created which shall be
separate from all other funds of the applicant;
(C)
that a final accounting be made to the board of the total
sources and authorized use of project funds and that any surplus loan funds
be used in a manner as approved by the executive administrator;
(D)
that an annual audit of the political subdivision, prepared
in accordance with generally accepted auditing standards by a certified public
accountant or licensed public accountant be provided annually to the executive
administrator;
(E)
that the political subdivision shall fix and maintain rates
and collect charges to provide adequate operation, maintenance and insurance
coverage on the project in an amount sufficient to protect the board's interest;
(F)
that the political subdivision will implement any water
conservation program required by the board until all financial obligations
to the state have been discharged;
(G)
that the political subdivision shall maintain current,
accurate and complete records and accounts necessary to demonstrate compliance
with financial assistance related legal and contractual provisions;
(H)
that the political subdivision covenants to abide by the
board's rules and relevant statutes, including the Texas Water Code, Chapters
15, 16, and 17; and
(I)
that the political subdivision, or an obligated person
for whom financial or operating data is presented, will undertake, either
individually or in combination with other issuers of the political subdivision's
obligations or obligated persons, in a written agreement or contract to comply
with requirements for continuing disclosure on an ongoing basis substantially
in the manner required by Securities and Exchange Commission (SEC) rule 15c2-12
and determined as if the board were a Participating Underwriter within the
meaning of such rule, such continuing disclosure undertaking being for the
benefit of the board and the beneficial owner of the political subdivision's
obligations, if the board sells or otherwise transfers such obligations, and
the beneficial owners of the board's bonds if the political subdivision is
an obligated person with respect to such bonds under rule 15c2-12;
(3)
two copies of the political subdivision's water conservation
program, including documentation of local adoption;
(4)
unqualified approving opinions of the attorney general
of Texas and if bonds are issued, a certification from the comptroller of
public accounts that such debt has been registered in that office;
(5)
if bonds are issued, an unqualified approving opinion by
a recognized bond attorney acceptable to the executive administrator, or if
a promissory note and loan agreement is used, an opinion from the corporation's
attorney which is acceptable to the executive administrator;
(6)
executed escrow agreement entered into by the entity and
an escrow agent bank or an executed trust agreement entered into by the entity
and the trust agent satisfactory to the executive administrator, in the event
that construction funds are escrowed;
(7)
other or additional data and information, if deemed necessary
by the executive administrator.
(b)
Certified bond transcript. At such time as available following
the final release of funds the political subdivision shall submit a transcript
of proceedings relating to the debt purchased by the board which shall contain
those instruments normally furnished a purchaser of debt.
(c)
Closing requirements for bonds. A political subdivision
shall be required to comply with the following closing requirements if the
applicant issues bonds that are purchased by the board:
(1)
all loans shall be closed in book-entry-only form;
(2)
the political subdivision shall use a paying agent/registrar
that is a Depository Trust Company (DTC) participant;
(3)
the political subdivision shall be responsible for paying
all DTC closing fees assessed to the political subdivision by the Board's
custodian bank directly to the Board's custodian bank;
(4)
the political subdivision shall provide evidence to the
Board that one fully registered bond has been sent to the DTC or to the political
subdivision's paying agent/registrar prior to closing.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed
with the Office of the Secretary of State on February 20, 2003.
TRD-200301263
Suzanne Schwartz
General Counsel
Texas Water Development Board
Proposed date of adoption: April 16, 2003
For further information, please call: (512) 463-7981
3.
CLOSING AND RELEASE OF FUNDS
31 TAC §363.931
Statutory authority: Water Code, §6.101 and §15.909.
Cross reference to statute: Water Code, Chapter 15, Subchapter 0; Chapter
16, Subchapters E and F; and Chapter 17, Subchapters D, E, and F.
§363.931.Requirements for Loan Closing.
(a)
Instruments needed for closing. The documents which shall
be required at the time of closing shall include the following:
(1)
evidence that requirements and regulations of all identified
local, state and federal agencies having jurisdiction have been met, including
but not limited to permits and authorizations;
(2)
certified copy of the ordinances or resolutions adopted
by the governing body authorizing issuance of debt sold to the board which
has received prior approval by the executive administrator and which shall
have sections providing:
(A)
that an escrow account, if applicable, shall be created
which shall be separate from all other funds and that:
(i)
the account shall be maintained at an escrow agent bank
or maintained with the trust agent;
(ii)
funds shall not be released from the escrow account without
written approval by the executive administrator;
(iii)
the escrow account bank statements or trust account statement
will be provided on a monthly basis to the
executive administrator's
[
(iv)
the escrow account will be adequately collateralized as
determined by the executive administrator sufficient to protect the board's
interest;
(B)
that a construction fund shall be created which shall be
separate from all other funds of the applicant;
(C)
that a final accounting be made to the board of the total
sources and authorized use of project funds and that any surplus loan funds
be used in a manner as approved by the executive administrator;
(D)
that an annual audit of the rural community, prepared in
accordance with generally accepted auditing standards by a certified public
accountant or licensed public accountant be provided annually to the executive
administrator;
(E)
that the rural community shall fix and maintain rates and
collect charges to provide adequate operation, maintenance and insurance coverage
on the project in an amount sufficient to protect the board's interest;
(F)
that the rural community shall maintain current, accurate
and complete records and accounts necessary to demonstrate compliance with
financial assistance related legal and contractual provisions;
(G)
that the rural community covenants to abide by the board's
rules and relevant statutes, including the Texas Water Code, Chapters 15,
16, and 17; and
(H)
that the rural community, or an obligated person for whom
financial or operating data is presented, will undertake, either individually
or in combination with other issuers of the rural community's obligations
or obligated persons, in a written agreement or contract to comply with requirements
for continuing disclosure on an ongoing basis substantially in the manner
required by Securities and Exchange Commission (SEC) rule 15c2-12 and determined
as if the board were a Participating Underwriter within the meaning of such
rule, such continuing disclosure undertaking being for the benefit of the
board and the beneficial owner of the rural community's obligations, if the
board sells or otherwise transfers such obligations, and the beneficial owners
of the board's bonds if the rural community is an obligated person with respect
to such bonds under rule 15c2-12;
(3)
unqualified approving opinions of the attorney general
of Texas and if bonds are issued, a certification from the comptroller of
public accounts that such debt has been registered in that office;
(4)
if bonds are issued, an unqualified approving opinion by
a recognized bond attorney acceptable to the executive administrator, or if
a promissory note and loan agreement is used, an opinion from the rural community's
attorney which is acceptable to the executive administrator;
(5)
executed escrow agreement entered into by the entity and
an escrow agent bank or an executed trust agreement entered into by the entity
and the trust agent satisfactory to the executive administrator, in the event
that construction funds are escrowed;
(6)
other or additional data and information, if deemed necessary
by the executive administrator.
(b)
Loan agreement and promissory note. The loan agreement
and promissory note shall be executed at the time of closing. The loan agreement
shall provide for the following:
(1)
the term of the loan and a schedule for repayment of principal
and interest;
(2)
that an annual audit of the rural community, prepared in
accordance with generally accepted auditing standards by a certified public
accountant or licensed public accountant, be provided annually to the executive
administrator for the term of the loan;
(3)
that a final accounting be made to the executive administrator
of the total sources and authorized use of project funds;
(4)
that the rural community shall fix and maintain rates and
collect taxes and/or charges to provide:
(A)
adequate operation, maintenance and insurance coverage
on the project in an amount sufficient to protect the board's interest; and
(B)
adequate revenue to pay principal and interest on the loan
as it comes due;
(5)
that the rural community covenants to abide by the board's
rules and relevant statutes, including the Texas Water Code, Chapter 15;
(6)
that the rural community covenants to comply with all applicable
state and federal environmental requirements prior to the initiation of construction
and any mitigation which might be required after construction;
(7)
that the rural community will apply any unused funds to
the repayment of loan principal; in inverse order of maturity or in a manner
as approved by the executive administrator;
(8)
that the rural community shall maintain current, accurate
and complete records and accounts necessary to demonstrate compliance with
financial assistance related legal and contractual provisions; and
(9)
any additional conditions that may be imposed by the board
or requested by the executive administrator.
(c)
Bonds. If bonds are issued, the documents which shall be
submitted by the time of closing shall comply with the requirements of §363.42
of this title (relating to Loan Closing).
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed
with the Office of the Secretary of State on February 20, 2003.
TRD-200301264
Suzanne Schwartz
General Counsel
Texas Water Development Board
Proposed date of adoption: April 16, 2003
For further information, please call: (512) 463-7981
31 TAC §363.1017
Statutory authority: Water Code, §6.101 and §15.909.
Cross reference to statute: Water Code, Chapter 15, Subchapter 0; Chapter
16, Subchapters E and F; and Chapter 17, Subchapters D, E, and F.
§363.1017.Administrative Cost Recovery for State Participation Program.
(a)
General. The board will assess fees for the purpose of
recovering administrative costs from all political subdivisions with which
the board agrees to participate in a state participation project under this
subchapter in an amount of 0.77% of the amount of the total participation
in the project by the board.
(b)
Payment Method. Payment of one-third of the fee is due
at closing. The balance of the fee may be paid in a limited number of annual
installments with the consent of the
executive administrator
[
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed
with the Office of the Secretary of State on February 20, 2003.
TRD-200301265
Suzanne Schwartz
General Counsel
Texas Water Development Board
Proposed date of adoption: April 16, 2003
For further information, please call: (512) 463-7981
Subchapter B. AGRICULTURAL WATER CONSERVATION LOAN PROGRAM
31 TAC §367.44, §367.45
The Texas Water Development Board (the board) proposes amendments
to §367.44 and §367.45, concerning the Agricultural Water Conservation
Program and the assignment of specific duties to the development fund manager.
References in §367.44 and §367.45 to the "development fund manager"
have been changed to "executive administrator" to accurately reflect the assignment
of certain responsibilities as a result of a recent reorganization of Board
offices.
Amendments to §367.44 are proposed to give the executive administrator
the responsibility to set and extend interest rates for loans from the ag
trust fund. Amendment to §367.45 is proposed to designate the executive
administrator as the source for guidelines with which applications for agricultural
loans must be consistent. These tasks are more appropriately vested with the
executive administrator as the head of the agency and may be delegated at
his discretion.
Ms. Melanie Callahan, Director of Fiscal Services, has determined that
for the first five-year period these changes are in effect there will be no
fiscal implications to state or local government as a result of enforcement
and administration of the sections.
Ms. Callahan has also determined that for the first five years the changes
as proposed are in effect the public benefit anticipated as a result of implementing
the amended sections will be an updated representation of specific duties
assigned to the development fund manager and the executive administrator.
Ms. Callahan has further determined there will be no increased economic cost
to small businesses or individuals required to comply with the sections as
proposed because the provisions apply only to political subdivisions applying
for board assistance.
It is estimated that the rule amendment will not adversely affect local
economies because the proposed changes relate only to internal administration
of the agency.
Comments on the proposed amendment will be accepted for 30 days following
publication and may be submitted to Gail Allan, Director of Administration
and Northern Legal Services, 512/463-7804, Texas Water Development Board,
P.O. Box 13231, Austin, Texas, 78711-3231, or by fax at 512/463-5580.
Statutory authority: Water Code §6.101 and §17.903.
Cross Reference to Statute: Chapter 17, Subchapter J.
§367.44.Procedure and Method for Setting Interest Rates.
(a)
For loans and conservation loans from the ag trust fund,
the
executive administrator
[
(b)
For loans and conservation loans from the fund, the
executive administrator
[
(c)
The board shall establish the rate of interest it charges
for loans to lender districts or for conservation loans to borrower districts.
(d)
A lender district may charge individual borrowers an interest
rate not to exceed the interest rate the lender district is charged by the
board, plus 1.0% for administrative expenses.
(e)
A lender district may charge individual borrowers a one-time
application fee in an amount determined by the board to cover costs of processing
loan applications.
§367.45.Applications.
A lender district that desires to obtain loans or a borrower district
that desires to obtain conservation loans shall file an application with the
executive administrator. The application shall be consistent with the application
guidelines which are available from the
executive administrator
[
(1)
origination and description of the district;
(2)
fiscal information with a plan for repayment to the board
of the loan, including a plan for repayment in the event of default;
(3)
the district shall specify the amount, period, and intended
use of the loan;
(4)
the district's rules or procedures for approving borrower's
loan applications and for approving and managing lender-borrower agreements;
(5)
for lender districts, rules or procedures for identifying
the methods to be used by the lender district to ensure the financial integrity
of a loan to an individual borrower. Such methods may include, but not be
limited to, an irrevocable letter of credit or a lien on property in excess
of value of improvements; and
(6)
the executive administrator may request additional information
necessary to evaluate the loan application.
(7)
a certified copy of the resolution adopted by the governing
body approving the application with the board for a loan or conservation loan,
authorizing the submission of the application and designating the authorized
representative for executing the application.
This agency hereby certifies that the proposal has been
reviewed by legal counsel and found to be within the agency's legal authority
to adopt.
Filed with the Office of
the Secretary of State on February 20, 2003.
TRD-200301266
Suzanne Schwartz
General Counsel
Texas Water Development Board
Proposed date of adoption: April 16, 2003
For further information, please call: (512) 463-7981
The Texas Water Development Board (the board) proposes amendments
to 31 TAC §371.52 and §371.71, concerning the Drinking Water State
Revolving Fund program and the assignment of specific duties to the development
fund manager. References in §371.52 and §371.71 to the "development
fund manager" have been changed to "executive administrator" to accurately
reflect the assignment of certain responsibilities as a result of a recent
reorganization of Board offices.
Amendments to §371.52 are proposed to give the executive administrator
the responsibility to set and extend interest rates for loans from the Drinking
Water State Revolving Fund. Amendment to §371.71 is proposed to designate
the executive administrator to accept escrow account statements related to
a bond resolution or ordinance. These tasks are more appropriately vested
with the executive administrator as the head of the agency and may be delegated
at his discretion.
Melanie Callahan, Director of Fiscal Services, has determined that for
the first five-year period these changes are in effect there will be no fiscal
implications to state or local government as a result of enforcement and administration
of the sections.
Ms. Callahan has also determined that for the first five years the changes
as proposed are in effect the public benefit anticipated as a result of implementing
the amended sections will be an updated representation of specific duties
assigned to the development fund manager and the executive administrator.
Ms. Callahan has further determined there will be no increased economic cost
to small businesses or individuals required to comply with the sections as
proposed because the provisions apply only to political subdivisions applying
for board assistance.
It is estimated that the rule amendment will not adversely affect local
economies because the proposed changes relate only to internal administration
of the agency.
Comments on the proposed amendment will be accepted for 30 days following
publication and may be submitted to Gail Allan, Director of Administration
and Northern Legal Services, (512) 463-7804, Texas Water Development Board,
P.O. Box 13231, Austin, Texas, 78711-3231, or by fax at (512) 463-5580.
Subchapter D. BOARD ACTION ON APPLICATION
31 TAC §371.52
Statutory authority: Water Code, §6.101 and §15.605.
Cross reference to statute: Water Code, Chapter 15, Subchapter J.
§371.52.Lending Rates.
(a)
Procedure for setting fixed interest rates.
(1)
The
executive administrator
[
(A) - (B)
(No change.)
(2)
After 45 days from the assignment of the interest rate
on the loan, rates may be extended only with the
executive administrator's
[
(b)
(No change.)
(c)
Variable Rates. The interest rate for DWSRF variable rate
loans under this chapter will be set at a rate equal to the actual interest
cost paid by the board on its outstanding variable rate debt plus the cost
of maintaining the variable rate debt in the DWSRF. Variable rate loans are
required to be converted to long-term fixed rate loans within 90 days of project
completion unless an extension is approved in writing by the
executive
administrator
[
(d) - (e)
(No change.)
(f)
The
executive administrator
[
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on February 20, 2003.
TRD-200301267
Suzanne Schwartz
General Counsel
Texas Water Development Board
Proposed date of adoption: April 16, 2003
For further information, please call: (512) 463-7981
31 TAC §371.71
Statutory authority: Water Code, §6.101 and §15.605.
Cross reference to statute: Water Code, Chapter 15, Subchapter J.
§371.71.Loan Closing.
(a)
Instruments needed for closing. The documents which shall
be required at the time of closing shall include the following:
(1)
(No change.)
(2)
certified copy of the ordinances or resolutions adopted
by the governing body authorizing issuance of debt sold to the board which
has received prior approval by the executive administrator and which shall
have sections providing for the following, or alternatively, for a water supply
corporation, eligible NPNC, or eligible private applicant, an executed promissory
note and loan agreement and related documents which contain the following:
(A)
that an escrow account, if applicable, shall be created
which shall be separate from all other funds and that:
(i) - (ii)
(No change.)
(iii)
if requested, the escrow account bank statements or trust
account statement will be provided on a monthly basis to the
executive
administrator's
[
(iv)
(No change.)
(B) - (I)
(No change.)
(3) - (9)
(No change.)
(b) - (f)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed
with the Office of the Secretary of State on February 20, 2003.
TRD-200301268
Suzanne Schwartz
General Counsel
Texas Water Development Board
Proposed date of adoption: April 16, 2003
For further information, please call: (512) 463-7981
The Texas Water Development Board (the board) proposes amendments
to 31 TAC §§375.52, 375.71, and 375.222, concerning the Clean Water
State Revolving Fund and the assignment of specific duties to the development
fund manager. References in §§375.52, 375.71, and 375.222 to the
"development fund manager" have been changed to "executive administrator"
to accurately reflect the assignment of certain responsibilities as a result
of a recent reorganization of Board offices.
Amendments to §375.52 and §375.222 are proposed to give the executive
administrator the responsibility to set interest rates for loans from the
Board's Clean Water State Revolving Fund. The proposed amendment to §375.71
will designate the executive administrator to accept escrow account statements
related to a bond resolution or ordinance. These tasks are more appropriately
vested with the executive administrator as the head of the agency and may
be delegated at his discretion.
Melanie Callahan, Director of Fiscal Services, has determined that for
the first five-year period these changes are in effect there will be no fiscal
implications to state or local government as a result of enforcement and administration
of the sections.
Ms. Callahan has also determined that for the first five years the changes
as proposed are in effect the public benefit anticipated as a result of implementing
the amended sections will be an updated representation of specific duties
assigned to the development fund manager and the executive administrator.
Ms. Callahan has further determined there will be no increased economic cost
to small businesses or individuals required to comply with the sections as
proposed because the provisions apply only to political subdivisions applying
for board assistance.
It is estimated that the rule amendment will not adversely affect local
economies because the proposed changes relate only to internal administration
of the agency.
Comments on the proposed amendment will be accepted for 30 days following
publication and may be submitted to Gail Allan, Director of Administration
and Northern Legal Services, (512) 463-7804, Texas Water Development Board,
P.O. Box 13231, Austin, Texas, 78711-3231, or by fax at (512) 463-5580.
Subchapter A. GENERAL PROVISIONS
4.
BOARD ACTION ON APPLICATIONS
31 TAC §375.52
Statutory authority: Water Code, §6.101 and §15.605.
Cross reference to statute: Water Code, Chapter 15, Subchapter J and Chapter
17, Subchapters C, E, and F.
§375.52.Lending Rates.
(a)
Procedure for setting fixed interest rates.
(1)
The
executive administrator
[
(A) - (B)
(No change.)
(2)
After 45 days from the assignment of the interest rate
on the loan, rates may be extended only with the
executive administrator's
[
(b)
(No change.)
(c)
Variable rates. The interest rate for variable rate loans
under this chapter will be set at a rate equal to the actual interest cost
paid by the board on its outstanding variable rate debt plus the cost of maintaining
the variable rate debt in the CWSRF. Variable rate loans are required to be
converted to long-term fixed rate loans within 90 days of project completion
unless an extension is approved in writing by the
executive administrator
[
(d)
Adjustment of interest rate. The
executive administrator
[
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on February 20, 2003.
TRD-200301271
Suzanne Schwartz
General Counsel
Texas Water Development Board
Proposed date of adoption: April 16, 2003
For further information, please call: (512) 463-7981
31 TAC §375.71
Statutory authority: Water Code, §6.101 and §15.605.
Cross reference to statute: Water Code, Chapter 15, Subchapter J and Chapter
17, Subchapters C, E, and F.
§375.71.Loan Closing.
(a)
Instruments needed for closing. The documents which shall
be required at the time of closing shall include the following:
(1)
(No change.)
(2)
certified copy of the ordinances or resolutions adopted
by the governing body authorizing issuance of debt sold to the board which
has received prior approval by the executive administrator and which shall
have sections providing:
(A)
that an escrow account, if applicable, shall be created
which shall be separate from all other funds and that:
(i) - (ii)
(No change.)
(iii)
the escrow account bank statements or trust account statement
will be provided on a monthly basis to the
executive administrator's
[
(iv)
(No change.)
(B) - (I)
(No change.)
(3) - (9)
(No change.)
(b) - (f)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed
with the Office of the Secretary of State on February 20, 2003.
TRD-200301272
Suzanne Schwartz
General Counsel
Texas Water Development Board
Proposed date of adoption: April 16, 2003
For further information, please call: (512) 463-7981
3.
PREREQUISITES TO RELEASE OF FUNDS
31 TAC §375.222
Statutory authority: Water Code, §6.101 and §15.605.
Cross reference to statute: Water Code, Chapter 15, Subchapter J and Chapter
17, Subchapters C, E, and F.
§375.222.Lending Rates.
(a)
Procedure for setting fixed interest rates.
(1)
The
executive administrator
[
(A) - (B)
(No change.)
(2)
After 45 days from the assignment of the interest rate
on the loan, rates may be extended only with the
executive administrator's
[
(b)
(No change.)
(c)
Variable rates. The interest rate for CWSRF variable rate
loans under this chapter will be set at a rate equal to the actual interest
cost paid by the board on its outstanding variable rate debt plus the cost
of maintaining the variable rate debt in the CWSRF. Variable rate loans are
required to be converted to long-term fixed rate loans within 90 days of project
completion unless an extension is approved in writing by the
executive
administrator
[
(d)
Adjustment of rate. The
executive administrator
[
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed
with the Office of the Secretary of State on February 20, 2003.
TRD-200301273
Suzanne Schwartz
General Counsel
Teas Water Development Board
Proposed date of adoption: April 16, 2003
For further information, please call: (512) 463-7981
Subchapter A. INTRODUCTORY PROVISIONS
31 TAC §382.5
The Texas Water Development Board (Board) proposes amendments
to 31 TAC §382.5, concerning the Water Infrastructure Fund and the assignment
of specific duties to the development fund manager. References in §382.5
to the "development fund manager" have been changed to "executive administrator"
to accurately reflect the assignment of certain responsibilities as a result
of a recent reorganization of Board offices.
Amendments to §382.5 are proposed to give the executive administrator
the responsibility to set interest rates for loans from the Water Infrastructure
Fund. These tasks are more appropriately vested with the executive administrator
as the head of the agency and may be delegated at his discretion.
Melanie Callahan, Director of Fiscal Services, has determined that for
the first five-year period these changes are in effect there will be no fiscal
implications to state or local government as a result of enforcement and administration
of the section.
Ms. Callahan has also determined that for the first five years the changes
as proposed are in effect the public benefit anticipated as a result of implementing
the amended section will be an updated representation of specific duties assigned
to the development fund manager and the executive administrator. Ms. Callahan
has further determined there will be no increased economic cost to small businesses
or individuals required to comply with the section as proposed because the
provisions apply only to political subdivisions applying for board assistance.
It is estimated that the rule amendment will not adversely affect local
economies because the proposed changes relate only to internal administration
of the agency.
Comments on the proposed amendment will be accepted for 30 days following
publication and may be submitted to Gail Allan, Director of Administration
and Northern Legal Services, (512) 463-7804, Texas Water Development Board,
P.O. Box 13231, Austin, Texas, 78711-3231, or by fax at (512) 463-5580.
Statutory authority: Water Code, §6.101 and §15.907.
Cross reference to statute: Water Code, Chapter 15, Subchapter O.
§382.5.Interest Rates for Loans.
(a)
The following procedures will be used to set fixed interest
rates.
(1)
The
executive administrator
[
(2)
For loans from the fund, the
executive administrator
[
(A) - (B)
(No change.)
(C)
for loans funded by the board with proceeds of bonds, the
interest for which is intended to be tax exempt for purposes of federal tax
law, the
executive administrator
[
(b)
(No change.)
This agency hereby certifies that the proposal has been reviewed
by legal counsel and found to be within the agency's legal authority to adopt.
Filed with the Office of
the Secretary of State on February 20, 2003.
TRD-200301269
Suzanne Schwartz
General Counsel
Texas Water Development Board
Proposed date of adoption: April 16, 2003
For further information, please call: (512) 463-7981
Subchapter A. INTRODUCTORY PROVISIONS
development fund
manager
] to obtain guidance and establish basic eligibility of the project
and political subdivision for financial assistance.
3.
FORMAL ACTION BY THE BOARD
development
fund manager
] will set fixed interest rates under this section for purchase
of the board's interest in state participation projects or for loans on a
date that is five business days prior to the political subdivision's adoption
of the ordinance or resolution authorizing its bonds or drawdown of state
participation funds and not more than 45 days before the anticipated closing
of the loan or state participation project from the board. After 45 days from
the establishment of the interest rate of a loan, rates will be reconsidered,
and may be extended only with the approval of the
executive administrator
[
development fund manager
].
development fund manager
] will set the interest rate at
the higher of:
development fund manager
]; or
development fund manager
] will limit the interest set pursuant to this subsection at no higher
than the rate permitted under federal tax law to maintain the tax exemption
for the interest on the board's bond.
development fund manager
]. Borrowers may request to convert
to a long-term fixed rate at any time, upon notification to the
executive
administrator
[
development fund manager
] and submittal of
a resolution requesting such conversion. The fixed lending rate will be calculated
under the procedures and requirements of subsection (a)(1) of this section
and paragraph (1) of this subsection.
development
fund manager
] may adjust a borrower's interest rate at any time prior
to closing as a result of a change in the borrower's credit rating.
4.
PREREQUISITES TO RELEASE OF STATE FUNDS
Development Fund Manager's
] office; and
Subchapter I. PILOT PROGRAM FOR WATER AND WASTEWATER LOANS TO RURAL COMMUNITIES
development fund manager's
] office; and
Subchapter J. STATE PARTICIPATION PROGRAM
development fund manager
].
Chapter 367.
AGRICULTURAL WATER CONSERVATION PROGRAM
development fund manager
]
will set fixed interest rates on a date that is five business days prior to
the effective date of the contract between the board and the lender district
or borrower district, or the lender district or borrower district's adoption
of the ordinance or resolution authorizing its bonds and not more than 45
days before the anticipated closing of the loan from the board. After 45 days
from the establishment of the interest rate of a loan, rates will be reconsidered,
and may be extended only with the approval of the
executive administrator
[
development fund manager
]. The fixed interest rate shall
be the same as the asking yield of the twelve month maturity U.S. Treasury
note on the date that rates are set.
development fund manager
] will set
the interest rates at the weighted rate of the lending rates for principal
payments received in the previous fiscal year into the fund.
development fund manager
]. An application shall include information
on the following:
Chapter 371.
DRINKING WATER STATE REVOLVING FUND
development
fund manager
] will set fixed rates for loans on a date that is:
development fund manager's
] approval.
development fund manager
]. Within the time
limits set forward in this subdivision, borrowers may request to convert to
a long-term fixed rate at any time, upon notification to the
executive
administrator
[
development fund manager
] and submittal of
a resolution requesting such conversion. The fixed lending rate will be calculated
under the procedures and requirements of subsections (a) and (b) of this section.
development
fund manager
] may adjust a borrower's interest rate at any time prior
to closing as a result of a change in the borrower's credit rating.
Subchapter F. PREREQUISITES TO RELEASE OF FUNDS
development fund manager's
] office; and
Chapter 375.
CLEAN WATER STATE REVOLVING FUND
development
fund manager
] will set fixed rates for loans on a date that is:
development fund manager's
] approval.
development fund manager
]. Within the time limits set forward
in this subdivision, borrowers may request to convert to a long-term fixed
rate at any time, upon notification to the
executive administrator
[
development fund manager
] and submittal of a resolution requesting such
conversion. The fixed lending rate will be calculated under the procedures
and requirements of subsections (a) and (b) of this section.
development fund manager
] may adjust a borrower's interest
rate at any time prior to closing as a result of a change in the borrower's
credit rating.
6.
PREREQUISITES TO RELEASE OF FUNDS
development fund manager's
] office; and
Subchapter B. PROVISIONS RELATING TO USE OF CAPITALIZATION GRANT FUNDS
development
fund manager
] will set fixed rates for loans on a date that is:
development fund manager's
] approval.
development fund manager
]. Within the time
limits set forward in this subdivision, borrowers may request to convert to
a long-term fixed rate at any time, upon notification to the
executive
administrator
[
development fund manager
] and submittal of
a resolution requesting such conversion. The fixed lending rate will be calculated
under the procedures and requirements of subsections (a) and (b) of this section.
development fund manager
] may adjust a borrower's interest rate at any
time prior to closing as a result of a change in the borrower's credit rating.
Chapter 382.
WATER INFRASTRUCTURE FUND
development
fund manager
] will set fixed interest rates under this section for loans
on a date that is five business days prior to the political subdivision's
adoption of the ordinance or resolution authorizing its bonds and not more
than 45 days before the anticipated closing of the loan from the board. After
45 days from the establishment of the interest rate of a loan, rates will
be reconsidered, and may be extended only with the approval of the
executive
administrator
[
development fund manager
].
development fund manager
] will set the interest rates in
accordance with the following:
development fund manager
] will limit the interest set pursuant to this subsection at no higher
than the rate permitted under federal tax law to maintain the tax exemption
for the interest on the board's bonds.
Chapter 384.
RURAL WATER ASSISTANCE FUND