H.B. No. 3605
AN ACT
relating to financial assistance awarded by the Texas Water
Development Board for water supply projects.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 16.0121, Water Code, is amended by
adding Subsections (g) and (h) to read as follows:
(g) A retail public utility providing potable water that
receives from the board financial assistance shall use a portion of
that financial assistance, or any additional financial assistance
provided by the board for the purpose described by this subsection,
to mitigate the utility's system water loss if, based on a water
audit filed by the utility under this section, the water loss meets
or exceeds the threshold established by board rule.
(h) For each category of retail public utility listed in
Subsection (c), the board shall adopt rules regarding:
(1) the amount of system water loss that requires a
utility to take action under Subsection (g); and
(2) the use of financial assistance from the board as
required by Subsection (g) to mitigate system water loss.
SECTION 2. Subchapter D, Chapter 17, Water Code, is amended
by adding Section 17.1245 to read as follows:
Sec. 17.1245. EVALUATION. (a) In passing on an application
for financial assistance from a retail public utility that provides
potable water service to 3,300 or more connections, the board
shall:
(1) evaluate for compliance with the board's best
management practices the utility's water conservation plan
required under Section 13.146; and
(2) issue a report to a utility detailing the results
of the evaluation conducted under Subdivision (1).
(b) Not later than January 1 of each odd-numbered year, the
board shall submit to the legislature a written summary of the
results of evaluations conducted under Subsection (a)(1).
SECTION 3. Section 17.183, Water Code, is amended to read as
follows:
Sec. 17.183. CONSTRUCTION CONTRACT REQUIREMENTS. (a) The
governing body of each political subdivision receiving financial
assistance from the board shall require in all contracts for the
construction of a project:
(1) that each bidder furnish a bid guarantee
equivalent to five percent of the bid price;
(2) that each contractor awarded a construction
contract furnish performance and payment bonds:
(A) the performance bond shall include without
limitation guarantees that work done under the contract will be
completed and performed according to approved plans and
specifications and in accordance with sound construction
principles and practices; and
(B) the performance and payment bonds shall be in
a penal sum of not less than 100 percent of the contract price and
remain in effect for one year beyond the date of approval by the
engineer of the political subdivision; [and]
(3) that payment be made in partial payments as the
work progresses;
(4) that each partial payment shall not exceed 95
percent of the amount due at the time of the payment as shown by the
engineer of the project, but, if the project is substantially
complete, a partial release of the five percent retainage may be
made by the political subdivision with approval of the executive
administrator;
(5) that payment of the retainage remaining due upon
completion of the contract shall be made only after:
(A) approval by the engineer for the political
subdivision as required under the bond proceedings;
(B) approval by the governing body of the
political subdivision by a resolution or other formal action; and
(C) certification by the executive administrator
in accordance with the rules of the board that the work to be done
under the contract has been completed and performed in a
satisfactory manner and in accordance with approved plans and
specifications [sound engineering principles and practices];
(6) that no valid approval may be granted unless the
work done under the contract has been completed and performed in a
satisfactory manner according to approved plans and
specifications; and
(7) that, if a political subdivision receiving
financial assistance under Subchapter K of this chapter, labor from
inside the political subdivision be used to the extent possible.
(b) Plans and specifications submitted to the board in
connection with an application for financial assistance must
include a seal by a licensed engineer affirming that the plans and
specifications are consistent with and conform to current industry
design and construction standards.
SECTION 4. Section 17.1245, Water Code, as added by this
Act, applies only to an application for financial assistance
submitted on or after the effective date of this Act. An
application for financial assistance submitted before the
effective date of this Act is governed by the law in effect on the
date the application was submitted, and the former law is continued
in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2013.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3605 was passed by the House on May 2,
2013, by the following vote: Yeas 146, Nays 1, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 3605 on May 24, 2013, by the following vote: Yeas 146, Nays 0,
2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3605 was passed by the Senate, with
amendments, on May 21, 2013, by the following vote: Yeas 30, Nays
1.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor