Texas HB365 modifies the Water Code to limit financial assistance from the economically distressed areas account to 90 percent of authorized bonds.

Texas HB365 amends Section 17.933(c) of the Water Code to restrict the total amount of financial assistance the Texas Water Development Board can provide to political subdivisions from state-issued bonds that do not require repayment. The cap is set at 90 percent of the total principal amount of issued and unissued bonds authorized under Article III of the Texas Constitution, plus outstanding interest on those bonds. This change takes effect on September 1, 2025.

Texas HB365 modifies the Water Code to limit financial assistance from the economically distressed areas account to 90 percent of authorized bonds.

Texas HB365 amends Section 17.933(c) of the Water Code to restrict the total amount of financial assistance the Texas Water Development Board can provide to political subdivisions from state-issued bonds that do not require repayment. The cap is set at 90 percent of the total principal amount of issued and unissued bonds authorized under Article III of the Texas Constitution, plus outstanding interest on those bonds. This change takes effect on September 1, 2025.