Texas 2017 - 85th Regular

Texas Senate Bill SB2140 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Lucio, et al. S.B. No. 2140
	1	+	By: Lucio, Hinojosa, Perry S.B. No. 2140
	2	+	(In the Senate - Filed March 10, 2017; March 28, 2017, read
	3	+	first time and referred to Committee on Agriculture, Water & Rural
	4	+	Affairs; April 27, 2017, reported adversely, with favorable
	5	+	Committee Substitute by the following vote: Yeas 5, Nays 0;
	6	+	April 27, 2017, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR S.B. No. 2140 By: Rodríguez
2	9
3	10
4	11		A BILL TO BE ENTITLED
5	12		AN ACT
6	13		relating to the provision by the Texas Water Development Board of
7	14		financial assistance for the development of certain projects in
8	15		economically distressed areas.
9	16		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	17		SECTION 1. The heading to Subchapter K, Chapter 17, Water
11	18		Code, is amended to read as follows:
12	19		SUBCHAPTER K. ASSISTANCE TO ECONOMICALLY DISTRESSED AREAS FOR
13	20		WATER SUPPLY, [AND] SEWER SERVICE, AND RESIDENTIAL DRAINAGE
14	21		PROJECTS
15	22		SECTION 2. Sections 17.921(1) and (2), Water Code, are
16	23		amended to read as follows:
17	24		(1) "Economically distressed area" means an area in
18	25		which:
19	26		(A) water supply, [or] sewer, or residential
20	27		drainage services are inadequate to meet minimal needs of
21	28		residential users as defined by board rules;
22	29		(B) financial resources are inadequate to
23	30		provide water supply, [or] sewer, or residential drainage services
24	31		that will satisfy those needs; and
25	32		(C) an established residential subdivision was
26	33		located on June 1, 2005, as determined by the board.
27	34		(2) "Financial assistance" means the funds provided by
28	35		the board to political subdivisions for water supply, [and] sewer,
29	36		and residential drainage services under this subchapter.
30	37		SECTION 3. Section 17.922, Water Code, is amended to read as
31	38		follows:
32	39		Sec. 17.922. FINANCIAL ASSISTANCE. (a) The economically
33	40		distressed areas account may be used by the board to provide
34	41		financial assistance to political subdivisions for the
35	42		construction, acquisition, or improvement of water supply, [and]
36	43		sewer, and residential drainage services, including providing
37	44		funds from the account for the state's participation in federal
38	45		programs that provide assistance to political subdivisions.
39	46		(b) To the extent practicable, the board shall use the funds
40	47		in the economically distressed areas account in conjunction with
41	48		the other financial assistance available through the board to
42	49		encourage the use of cost-effective water supply, [and] wastewater,
43	50		and residential drainage systems, including regional systems, to
44	51		maximize the long-term economic development of counties eligible
45	52		for financial assistance under the economically distressed areas
46	53		program. Any savings derived from the construction of a regional
47	54		system that includes or serves an economically distressed area
48	55		project shall be factored into the board's determination of
49	56		financial assistance for the economically distressed area in a
50	57		manner that assures the economically distressed area receives
51	58		appropriate benefits from the savings. In no event shall financial
52	59		assistance provided from the economically distressed areas account
53	60		be used to provide water supply, [or] wastewater, or residential
54	61		drainage service to any area that is not an economically distressed
55	62		area.
56	63		SECTION 4. Subchapter K, Chapter 17, Water Code, is amended
57	64		by adding Section 17.9226 to read as follows:
58	65		Sec. 17.9226. USE OF CERTAIN GENERAL OBLIGATION BONDS. The
59	66		board shall:
60	67		(1) work to maximize the effectiveness of the
61	68		additional general obligation bonds authorized by Section
62	69		49-d-10(a-1), Article III, Texas Constitution, by using the
63	70		additional bonds in conjunction with other sources of financial
64	71		assistance, including nonpublic funds, to provide financial
65	72		assistance to political subdivisions for the construction,
66	73		acquisition, or improvement of water supply, sewer, and residential
67	74		drainage services; and
68	75		(2) use the additional general obligation bonds
69	76		authorized by Section 49-d-10(a-1), Article III, Texas
70	77		Constitution, to promote and support public-private partnerships
71	78		that the board determines:
72	79		(A) are financially viable;
73	80		(B) will diversify the methods of financing
74	81		available for water supply, sewer, and residential drainage
75	82		services; and
76	83		(C) will reduce reliance on the issuance of bonds
77	84		supported with general revenue.
78	85		SECTION 5. Sections 17.927(a) and (b), Water Code, are
79	86		amended to read as follows:
80	87		(a) A political subdivision may apply to the board for
81	88		financial assistance under this subchapter by submitting an
82	89		application together with a plan for providing water supply, [and]
83	90		sewer, or residential drainage services to an economically
84	91		distressed area for which the financial assistance is to be used.
85	92		(b) The application and plan must include:
86	93		(1) the name of the political subdivision and its
87	94		principal officers;
88	95		(2) a citation of the law under which the political
89	96		subdivision was created and operates;
90	97		(3) a project plan, prepared and certified by an
91	98		engineer registered to practice in this state, that must:
92	99		(A) describe the proposed planning, design, and
93	100		construction activities necessary to provide water supply, [and]
94	101		sewer, or residential drainage services that meet minimum state
95	102		standards; and
96	103		(B) identify the households to which the water
97	104		supply, [and] sewer, or residential drainage services will be
98	105		provided;
99	106		(4) a budget that estimates the total cost of
100	107		providing water supply, [and] sewer, or residential drainage
101	108		services to the economically distressed area and a proposed
102	109		schedule and method for repayment of financial assistance
103	110		consistent with board rules and guidelines;
104	111		(5) a description of the existing water supply, [and]
105	112		sewer, or residential drainage facilities located in the area to be
106	113		served by the proposed project, including a statement prepared and
107	114		certified by an engineer registered to practice in this state that
108	115		the facilities do not meet minimum state standards;
109	116		(6) documentation that the appropriate political
110	117		subdivision has adopted the model rules developed under Section
111	118		16.343;
112	119		(7) information identifying the median household
113	120		income for the area to be served by the proposed project; and
114	121		(8) the total amount of assistance requested from the
115	122		economically distressed areas account.
116	123		SECTION 6. Subchapter K, Chapter 17, Water Code, is amended
117	124		by adding Section 17.9275 to read as follows:
118	125		Sec. 17.9275. PRIORITIZATION OF PROJECTS BY BOARD.
119	126		(a) The board shall prioritize projects for the purpose of
120	127		providing financial assistance under this subchapter.
121	128		(b) The board shall establish a system for prioritizing
122	129		projects for which financial assistance is sought from the board.
123	130		The system must include a standard for the board to apply in
124	131		determining whether a project qualifies for financial assistance at
125	132		the time the application for financial assistance is filed with the
126	133		board.
127	134		(c) The board shall give the highest consideration to
128	135		projects that will have a substantial effect, including projects
129	136		that will serve an area for which the Department of State Health
130	137		Services has issued a finding that a nuisance dangerous to the
131	138		public health and safety exists resulting from water supply and
132	139		sanitation problems.
133	140		(d) In addition to the criteria provided by Subsection (c),
134	141		the board must also consider at least the following criteria in
135	142		prioritizing projects:
136	143		(1) the local contribution to be made to finance the
137	144		project, including the up-front capital to be provided by the
138	145		applicant;
139	146		(2) the financial capacity of the applicant to repay
140	147		the financial assistance provided;
141	148		(3) the ability of the board and the applicant to
142	149		timely leverage state financing with local and federal funding;
143	150		(4) whether there is an emergency need for the
144	151		project, taking into consideration whether the applicant is
145	152		included at the time of the application on the list maintained by
146	153		the commission of local public water systems that have a water
147	154		supply that will last less than 180 days without additional
148	155		rainfall;
149	156		(5) whether the applicant is ready to proceed with the
150	157		project at the time of the application, including whether:
151	158		(A) all preliminary planning and design work
152	159		associated with the project has been completed; and
153	160		(B) the applicant is able to begin implementing
154	161		or constructing the project; and
155	162		(6) the cost per connection of the project.
156	163		SECTION 7. Section 17.928(c), Water Code, is amended to
157	164		read as follows:
158	165		(c) If an applicant includes a proposal for treatment or
159	166		residential drainage works, the board may not deliver funds for the
160	167		treatment or residential drainage works until the applicant has
161	168		received a permit for construction and operation of the treatment
162	169		or residential drainage works and approval of the plans and
163	170		specifications from the commission or other applicable permitting
164	171		authority or unless such a permit is not required by the commission
165	172		or other applicable permitting authority.
166	173		SECTION 8. Section 17.929(a), Water Code, is amended to
167	174		read as follows:
168	175		(a) In passing on an application for financial assistance,
169	176		the board shall consider:
170	177		(1) the need of the economically distressed area to be
171	178		served by the water supply, [and] sewer, or residential drainage
172	179		services in relation to the need of other political subdivisions
173	180		requiring financial assistance under this subchapter and the
174	181		relative costs and benefits of all applications;
175	182		(2) the availability to the area to be served by the
176	183		project of revenue or financial assistance from alternative sources
177	184		for the payment of the cost of the proposed project;
178	185		(3) the financing of the proposed water supply, [and]
179	186		sewer, or residential drainage project, including consideration
180	187		of:
181	188		(A) the budget and repayment schedule submitted
182	189		under Section 17.927(b)(4);
183	190		(B) other items included in the application
184	191		relating to financing; and
185	192		(C) other financial information and data
186	193		available to the board;
187	194		(4) whether the county and other appropriate political
188	195		subdivisions have adopted model rules pursuant to Section 16.343
189	196		and the manner of enforcement of model rules; and
190	197		(5) the feasibility of achieving cost savings by
191	198		providing a regional facility for water supply, [or] wastewater, or
192	199		residential drainage service and the feasibility of financing the
193	200		facility by using funds from the economically distressed areas
194	201		account or any other financial assistance.
195	202		SECTION 9. Sections 17.933(b) and (d), Water Code, are
196	203		amended to read as follows:
197	204		(b) In providing financial assistance to an applicant under
198	205		this subchapter, the board may not provide to the applicant
199	206		financial assistance for which repayment is not required in an
200	207		amount that exceeds 50 percent of the total amount of the financial
201	208		assistance plus interest on any amount that must be repaid, unless
202	209		the [Texas] Department of State Health Services issues a finding
203	210		that a nuisance dangerous to the public health and safety exists
204	211		resulting from water supply and sanitation problems in the area to
205	212		be served by the proposed project. The board and the applicant
206	213		shall provide to the [Texas] Department of State Health Services
207	214		information necessary to make a determination, and the board and
208	215		the [Texas] Department of State Health Services may enter into
209	216		necessary memoranda of understanding to carry out this subsection.
210	217		(d) In determining the amount and form of financial
211	218		assistance and the amount and form of repayment, if any, the board
212	219		shall consider:
213	220		(1) rates, fees, and charges that the average customer
214	221		to be served by the project will be able to pay [based on a
215	222		comparison of what other families of similar income who are
216	223		similarly situated pay for comparable services];
217	224		(2) sources of funding available to the political
218	225		subdivision from federal and private funds and from other state
219	226		funds;
220	227		(3) any local funds of the political subdivision to be
221	228		served by the project if the economically distressed area to be
222	229		served by the board's financial assistance is within the boundary
223	230		of the political subdivision; and
224	231		(4) the just, fair, and reasonable charges for water,
225	232		[and] wastewater, and residential drainage service as provided in
226	233		this code.
227	234		SECTION 10. Section 17.936(d), Water Code, is amended to
228	235		read as follows:
229	236		(d) The provider of water or wastewater utility or
230	237		residential drainage service to an economically distressed area may
231	238		recover from a developer or owner of an undeveloped lot
232	239		economically distressed areas program impact fees as provided by
233	240		rules adopted by the board.
234	241		SECTION 11. Subchapter K, Chapter 17, Water Code, is
235	242		amended by adding Section 17.937 to read as follows:
236	243		Sec. 17.937. REPORTING AND TRANSPARENCY REQUIREMENTS.
237	244		(a) The board shall annually post on the board's Internet website
238	245		a report detailing each project for which the board has provided
239	246		financial assistance under this subchapter.
240	247		(b) The report must include:
241	248		(1) a description of each project;
242	249		(2) the location of each project;
243	250		(3) the number of residents served by each project;
244	251		(4) the amount of financial assistance provided or
245	252		anticipated to be provided for each project; and
246	253		(5) a statement of whether each project has been
247	254		completed and, if not, the expected completion date.
248	255		SECTION 12. Section 17.933(b-1), Water Code, is repealed.
249	256		SECTION 13. This Act takes effect on the date on which the
250	257		constitutional amendment proposed by the 85th Legislature, Regular
251	258		Session, 2017, providing for the issuance of additional general
252	259		obligation bonds by the Texas Water Development Board to provide
253	260		financial assistance for the development of certain projects in
254	261		economically distressed areas takes effect. If that amendment is
255	262		not approved by the voters, this Act has no effect.
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