85R15487 JAM-D
By: Lucio, Hinojosa, Perry S.B. No. 2140
A BILL TO BE ENTITLED
AN ACT
relating to the provision by the Texas Water Development Board of
financial assistance for the development of certain projects in
economically distressed areas.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter K, Chapter 17, Water
Code, is amended to read as follows:
SUBCHAPTER K. ASSISTANCE TO ECONOMICALLY DISTRESSED AREAS FOR WATER
SUPPLY, [AND] SEWER SERVICE, AND DRAINAGE PROJECTS
SECTION 2. Sections 17.921(1) and (2), Water Code, are
amended to read as follows:
(1) "Economically distressed area" means an area in
which:
(A) water supply, [or] sewer, or drainage
services are inadequate to meet minimal needs of residential users
as defined by board rules;
(B) financial resources are inadequate to
provide water supply, [or] sewer, or drainage services that will
satisfy those needs; and
(C) an established residential subdivision was
located on June 1, 2005, as determined by the board.
(2) "Financial assistance" means the funds provided by
the board to political subdivisions for water supply, [and] sewer,
and drainage services under this subchapter.
SECTION 3. Section 17.922, Water Code, is amended to read as
follows:
Sec. 17.922. FINANCIAL ASSISTANCE. (a) The economically
distressed areas account may be used by the board to provide
financial assistance to political subdivisions for the
construction, acquisition, or improvement of water supply, [and]
sewer, and drainage services, including providing funds from the
account for the state's participation in federal programs that
provide assistance to political subdivisions.
(b) To the extent practicable, the board shall use the funds
in the economically distressed areas account in conjunction with
the other financial assistance available through the board to
encourage the use of cost-effective water supply, [and] wastewater,
and drainage systems, including regional systems, to maximize the
long-term economic development of counties eligible for financial
assistance under the economically distressed areas program. Any
savings derived from the construction of a regional system that
includes or serves an economically distressed area project shall be
factored into the board's determination of financial assistance for
the economically distressed area in a manner that assures the
economically distressed area receives appropriate benefits from
the savings. In no event shall financial assistance provided from
the economically distressed areas account be used to provide water
supply, [or] wastewater, or drainage service to any area that is not
an economically distressed area.
SECTION 4. Subchapter K, Chapter 17, Water Code, is amended
by adding Section 17.9226 to read as follows:
Sec. 17.9226. USE OF CERTAIN GENERAL OBLIGATION BONDS. The
board shall:
(1) work to maximize the effectiveness of the
additional general obligation bonds authorized by Section
49-d-10(a-1), Article III, Texas Constitution, by using the
additional bonds in conjunction with other sources of financial
assistance, including nonpublic funds, to provide financial
assistance to political subdivisions for the construction,
acquisition, or improvement of water supply, sewer, and drainage
services; and
(2) use the additional general obligation bonds
authorized by Section 49-d-10(a-1), Article III, Texas
Constitution, to promote and support public-private partnerships
that the board determines:
(A) are financially viable;
(B) will diversify the methods of financing
available for water supply, sewer, and drainage services; and
(C) will reduce reliance on the issuance of bonds
supported with general revenue.
SECTION 5. Sections 17.927(a) and (b), Water Code, are
amended to read as follows:
(a) A political subdivision may apply to the board for
financial assistance under this subchapter by submitting an
application together with a plan for providing water supply, [and]
sewer, or drainage services to an economically distressed area for
which the financial assistance is to be used.
(b) The application and plan must include:
(1) the name of the political subdivision and its
principal officers;
(2) a citation of the law under which the political
subdivision was created and operates;
(3) a project plan, prepared and certified by an
engineer registered to practice in this state, that must:
(A) describe the proposed planning, design, and
construction activities necessary to provide water supply, [and]
sewer, or drainage services that meet minimum state standards; and
(B) identify the households to which the water
supply, [and] sewer, or drainage services will be provided;
(4) a budget that estimates the total cost of
providing water supply, [and] sewer, or drainage services to the
economically distressed area and a proposed schedule and method for
repayment of financial assistance consistent with board rules and
guidelines;
(5) a description of the existing water supply, [and]
sewer, or drainage facilities located in the area to be served by
the proposed project, including a statement prepared and certified
by an engineer registered to practice in this state that the
facilities do not meet minimum state standards;
(6) documentation that the appropriate political
subdivision has adopted the model rules developed under Section
16.343;
(7) information identifying the median household
income for the area to be served by the proposed project; and
(8) the total amount of assistance requested from the
economically distressed areas account.
SECTION 6. Section 17.928(c), Water Code, is amended to
read as follows:
(c) If an applicant includes a proposal for treatment or
drainage works, the board may not deliver funds for the treatment or
drainage works until the applicant has received a permit for
construction and operation of the treatment or drainage works and
approval of the plans and specifications from the commission or
unless such a permit is not required by the commission.
SECTION 7. Section 17.929(a), Water Code, is amended to
read as follows:
(a) In passing on an application for financial assistance,
the board shall consider:
(1) the need of the economically distressed area to be
served by the water supply, [and] sewer, or drainage services in
relation to the need of other political subdivisions requiring
financial assistance under this subchapter and the relative costs
and benefits of all applications;
(2) the availability to the area to be served by the
project of revenue or financial assistance from alternative sources
for the payment of the cost of the proposed project;
(3) the financing of the proposed water supply, [and]
sewer, or drainage project, including consideration of:
(A) the budget and repayment schedule submitted
under Section 17.927(b)(4);
(B) other items included in the application
relating to financing; and
(C) other financial information and data
available to the board;
(4) whether the county and other appropriate political
subdivisions have adopted model rules pursuant to Section 16.343
and the manner of enforcement of model rules; and
(5) the feasibility of achieving cost savings by
providing a regional facility for water supply or wastewater
service and the feasibility of financing the facility by using
funds from the economically distressed areas account or any other
financial assistance.
SECTION 8. Section 17.933(d), Water Code, is amended to
read as follows:
(d) In determining the amount and form of financial
assistance and the amount and form of repayment, if any, the board
shall consider:
(1) rates, fees, and charges that the average customer
to be served by the project will be able to pay based on a comparison
of what other families of similar income who are similarly situated
pay for comparable services;
(2) sources of funding available to the political
subdivision from federal and private funds and from other state
funds;
(3) any local funds of the political subdivision to be
served by the project if the economically distressed area to be
served by the board's financial assistance is within the boundary
of the political subdivision; and
(4) the just, fair, and reasonable charges for water,
[and] wastewater, and drainage service as provided in this code.
SECTION 9. Section 17.936(d), Water Code, is amended to
read as follows:
(d) The provider of water or wastewater utility or drainage
service to an economically distressed area may recover from a
developer or owner of an undeveloped lot economically distressed
areas program impact fees as provided by rules adopted by the board.
SECTION 10. This Act takes effect on the date on which the
constitutional amendment proposed by the 85th Legislature, Regular
Session, 2017, providing for the issuance of additional general
obligation bonds by the Texas Water Development Board to provide
financial assistance for the development of certain projects in
economically distressed areas takes effect. If that amendment is
not approved by the voters, this Act has no effect.