Sec. 17.123.  FINDINGS REGARDING PERMITS.  (a)  The board shall not release funds for the construction of that portion of a project that proposes surface water or groundwater development until the executive administrator makes a written finding:
(1)  that an applicant proposing surface-water development has the necessary water right authorizing it to appropriate and use the water which the water supply project will provide;  or
(2)  that an applicant proposing groundwater development has the right to use water that the water supply project will provide.
(b)  The board may release funds for the costs of planning, engineering, architectural, legal, title, fiscal, or economic investigation, studies, surveys, or designs before making the finding required under Subsection (a) if the executive administrator determines that a reasonable expectation exists that the finding will be made before the release of funds for construction.
Amended by Acts 1977, 65th Leg., p. 2207, ch. 870, Sec. 1, eff. Sept. 1, 1977;  Acts 1985, 69th Leg., ch. 795, Sec. 1.053, eff. Sept. 1, 1985;  Acts 1987, 70th Leg., ch. 246, Sec. 2, eff. Aug. 31, 1987;  Acts 1987, 70th Leg., ch. 1103, Sec. 1, eff. Sept. 1, 1987;  Acts 2001, 77th Leg., ch. 1234, Sec. 29, eff. Sept. 1, 2001.