Texas 2019 - 86th Regular

Texas Senate Bill SB2452 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 2452
	1	+	86R34396 JAM-F
	2	+	By: Lucio, et al. S.B. No. 2452
	3	+	(González of El Paso)
	4	+	Substitute the following for S.B. No. 2452: No.
2	5
3	6
	7	+	A BILL TO BE ENTITLED
4	8		AN ACT
5	9		relating to the provision by the Texas Water Development Board of
6	10		financial assistance for the development of certain projects in
7	11		economically distressed areas.
8	12		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	13		SECTION 1. Section 17.922, Water Code, is amended to read as
10	14		follows:
11	15		Sec. 17.922. FINANCIAL ASSISTANCE. (a) The board shall
12	16		use the economically distressed areas account [may be used by the
13	17		board] to provide financial assistance to political subdivisions
14	18		for the construction, acquisition, or improvement of water supply
15	19		and sewer services, including providing funds from the account for
16	20		the state's participation in federal programs that provide
17	21		assistance solely for projects intended to serve economically
18	22		distressed areas [to political subdivisions].
19	23		(b) To the extent practicable, the board shall use money
20	24		[the funds] in the economically distressed areas account in
21	25		conjunction with the other financial assistance available through
22	26		the board to encourage the use of cost-effective water supply and
23	27		wastewater systems, including regional systems, to maximize the
24	28		long-term economic development of political subdivisions
25	29		[counties] eligible for financial assistance under the
26	30		economically distressed areas program. Any savings derived from
27	31		the construction of a regional system that includes or serves an
28	32		economically distressed area project shall be factored into the
29	33		board's determination of financial assistance for the economically
30	34		distressed area in a manner that assures the economically
31	35		distressed area receives appropriate benefits from the savings. In
32	36		no event shall financial assistance provided from the economically
33	37		distressed areas account be used to provide water supply or
34	38		wastewater service to any area that is not an economically
35	39		distressed area.
36	40		SECTION 2. Subchapter K, Chapter 17, Water Code, is amended
37	41		by adding Section 17.9226 to read as follows:
38	42		Sec. 17.9226. USE OF CERTAIN GENERAL OBLIGATION BONDS. The
39	43		board may:
40	44		(1) maximize the effectiveness of the additional
41	45		general obligation bonds authorized by Section 49-d-14, Article
42	46		III, Texas Constitution, by using the additional bonds in
43	47		conjunction with other sources of financial assistance, including
44	48		nonpublic funds, to provide financial assistance to political
45	49		subdivisions for the construction, acquisition, or improvement of
46	50		water supply and sewer services; and
47	51		(2) use the additional general obligation bonds
48	52		authorized by Section 49-d-14, Article III, Texas Constitution, to
49	53		promote and support public-private partnerships that the board
50	54		determines:
51	55		(A) are financially viable;
52	56		(B) will diversify the methods of financing
53	57		available for water supply and sewer services; and
54	58		(C) will reduce reliance on the issuance of bonds
55	59		supported with general revenue.
56	60		SECTION 3. Sections 17.927(b) and (c), Water Code, are
57	61		amended to read as follows:
58	62		(b) The application and plan must include:
59	63		(1) the name of the political subdivision and its
60	64		principal officers;
61	65		(2) a citation of the law under which the political
62	66		subdivision was created and operates;
63	67		(3) a project plan, prepared and certified by an
64	68		engineer registered to practice in this state, that must:
65	69		(A) describe the proposed planning, design, and
66	70		construction activities necessary to provide water supply and sewer
67	71		services that meet minimum state standards provided by board rules;
68	72		and
69	73		(B) identify the households to which the water
70	74		supply and sewer services will be provided;
71	75		(4) a budget that estimates the total cost of
72	76		providing water supply and sewer services to the economically
73	77		distressed area and a proposed schedule and method for repayment of
74	78		financial assistance consistent with board rules and guidelines;
75	79		(5) a description of the existing water supply and
76	80		sewer facilities located in the area to be served by the proposed
77	81		project, including a statement prepared and certified by an
78	82		engineer registered to practice in this state that the facilities
79	83		do not meet minimum state standards;
80	84		(6) documentation that the appropriate political
81	85		subdivision has adopted and enforces the model rules developed
82	86		under Section 16.343;
83	87		(7) information identifying the median household
84	88		income for the area to be served by the proposed project; and
85	89		(8) the total amount of assistance requested from the
86	90		economically distressed areas account.
87	91		(c) Before the board approves the application or provides
88	92		any funds under an application, it shall require an applicant to
89	93		adopt a program of water conservation for the more effective use of
90	94		water that meets the criteria established under Section 17.125 for
91	95		water supply projects or under Section 17.277 for water quality
92	96		enhancement projects.
93	97		SECTION 4. Subchapter K, Chapter 17, Water Code, is amended
94	98		by adding Section 17.9275 to read as follows:
95	99		Sec. 17.9275. PRIORITIZATION OF PROJECTS BY BOARD.
96	100		(a) The board shall prioritize projects for the purpose of
97	101		providing financial assistance under this subchapter.
98	102		(b) The board shall establish a system for prioritizing
99	103		projects for which financial assistance is sought from the board.
100	104		The system must include a standard for the board to apply in
101	105		determining whether a project qualifies for financial assistance at
102	106		the time the application for financial assistance is filed with the
103	107		board.
104	108		(c) The board shall give the highest consideration to
105	109		projects that will have a substantial effect, including projects:
106	110		(1) that will serve an area for which the board or the
107	111		Department of State Health Services has determined that a nuisance
108	112		dangerous to the public health and safety exists resulting from
109	113		water supply and sanitation problems; or
110	114		(2) for which the applicant:
111	115		(A) is subject to an enforcement action,
112	116		including a final order, judgment, or consent decree, by the
113	117		commission, the state, or the United States Environmental
114	118		Protection Agency, related to public health and safety issues
115	119		resulting from water supply or sewer services; and
116	120		(B) did not cause or allow the violations that
117	121		are the subject of the enforcement action.
118	122		(d) The board by rule may provide for the consideration of
119	123		additional criteria.
120	124		SECTION 5. Section 17.928(c), Water Code, is amended to
121	125		read as follows:
122	126		(c) If an applicant includes a proposal for treatment
123	127		works[,] the board may not deliver funds for the treatment works
124	128		until the applicant has received:
125	129		(1) a permit for construction and operation of the
126	130		treatment works from the commission or other applicable permitting
127	131		authority unless such a permit is not required; and
128	132		(2) approval of the plans and specifications from the
129	133		commission, the executive administrator, or other applicable
130	134		authority [or unless such a permit is not required by the
131	135		commission].
132	136		SECTION 6. Section 17.929(a), Water Code, is amended to
133	137		read as follows:
134	138		(a) In passing on an application for financial assistance,
135	139		the board shall consider:
136	140		(1) the need of the economically distressed area to be
137	141		served by the water supply and sewer services in relation to the
138	142		need of other political subdivisions requiring financial
139	143		assistance under this subchapter and the relative costs and
140	144		benefits of all applications;
141	145		(2) the availability to the area to be served by the
142	146		project of revenue or financial assistance from alternative sources
143	147		for the payment of the cost of the proposed project;
144	148		(3) the financing of the proposed water supply and
145	149		sewer project including consideration of:
146	150		(A) the budget and repayment schedule submitted
147	151		under Section 17.927(b)(4);
148	152		(B) other items included in the application
149	153		relating to financing; and
150	154		(C) other financial information and data
151	155		available to the board;
152	156		(4) whether the county and other appropriate political
153	157		subdivisions have adopted model rules pursuant to Section 16.343
154	158		and the manner of enforcement of model rules; [and]
155	159		(5) the feasibility of achieving cost savings by
156	160		providing a regional facility for water supply or wastewater
157	161		service and the feasibility of financing the facility by using
158	162		funds from the economically distressed areas account or any other
159	163		financial assistance; and
160	164		(6) the ability of the applicant to repay the
161	165		financial assistance.
162	166		SECTION 7. Section 17.931, Water Code, is amended to read as
163	167		follows:
164	168		Sec. 17.931. APPLICATION AMENDMENT. (a) A political
165	169		subdivision may request the executive administrator [board] in
166	170		writing to approve a change to or a modification of the budget or
167	171		project plan included in its application if the change or
168	172		modification does not increase the budget or change the project
169	173		scope.
170	174		(b) A change or modification requested under Subsection (a)
171	175		may not be implemented unless the executive administrator [board]
172	176		provides [its] written approval.
173	177		SECTION 8. Sections 17.933(a), (b), (c), and (d), Water
174	178		Code, are amended to read as follows:
175	179		(a) The board may use money in the economically distressed
176	180		areas account to provide financial assistance to a political
177	181		subdivision in the form of a loan, [including] a loan with zero
178	182		interest, a grant, or other type of financial assistance to be
179	183		determined by the board taking into consideration the information
180	184		provided by Section 17.927(b)(7) and the political subdivision's
181	185		ability to repay the financial assistance.
182	186		(b) In providing financial assistance to an applicant under
183	187		this subchapter, the board may not provide to the applicant
184	188		financial assistance for which repayment is not required in an
185	189		amount that exceeds 50 percent of the total amount of the financial
186	190		assistance [plus interest on any amount that must be repaid],
187	191		unless the board or the [Texas] Department of State Health Services
188	192		determines [issues a finding] that a nuisance dangerous to the
189	193		public health and safety exists resulting from water supply and
190	194		sanitation problems in the area to be served by the proposed
191	195		project. The board may provide the repayable portion of financial
192	196		assistance from any financial assistance program for which the
193	197		applicant is eligible. The [board and the] applicant shall provide
194	198		to the board or the [Texas] Department of State Health Services
195	199		information necessary to make a determination, and the board and
196	200		the [Texas] Department of State Health Services may enter into
197	201		necessary memoranda of understanding to carry out this subsection.
198	202		(c) The total amount of financial assistance provided by the
199	203		board to political subdivisions under this subchapter from
200	204		state-issued bonds for which repayment is not required may not
201	205		exceed at any time 70 [90] percent of the total principal amount of
202	206		issued and unissued bonds authorized under Article III of the Texas
203	207		Constitution, for purposes of this subchapter plus outstanding
204	208		interest on those bonds.
205	209		(d) In determining the amount and form of financial
206	210		assistance and the amount and form of repayment, if any, the board
207	211		shall establish repayment based on the political subdivision's
208	212		ability to repay the financial assistance and shall consider:
209	213		(1) rates, fees, and charges that the average customer
210	214		to be served by the project will be able to pay [based on a
211	215		comparison of what other families of similar income who are
212	216		similarly situated pay for comparable services];
213	217		(2) sources of funding available to the political
214	218		subdivision from federal and private funds and from other state
215	219		funds;
216	220		(3) any local funds of the political subdivision to be
217	221		served by the project if the economically distressed area to be
218	222		served by the board's financial assistance is within the boundary
219	223		of the political subdivision; [and]
220	224		(4) the just, fair, and reasonable charges for water
221	225		and wastewater service as provided in this code; and
222	226		(5) the ability of the board to maximize the portion of
223	227		financial assistance for which repayment is required based on the
224	228		political subdivision's ability to repay the assistance, as
225	229		provided by board rule.
226	230		SECTION 9. Subchapter K, Chapter 17, Water Code, is amended
227	231		by adding Section 17.937 to read as follows:
228	232		Sec. 17.937. REPORTING AND TRANSPARENCY REQUIREMENTS.
229	233		(a) Annually, the board shall post on the board's Internet website
230	234		a report detailing each project for which the board has provided
231	235		financial assistance under this subchapter.
232	236		(b) The report must include:
233	237		(1) a description of each project;
234	238		(2) the location of each project;
235	239		(3) the number of residents served by each project;
236	240		(4) the amount of financial assistance provided or
237	241		anticipated to be provided for each project;
238	242		(5) a statement of whether each project has been
239	243		completed and, if not, the expected completion date;
240	244		(6) the date on which each appropriate political
241	245		subdivision adopted the model rules developed under Section 16.343;
242	246		and
243	247		(7) the date on which each appropriate political
244	248		subdivision certified that it enforces the applicable model rules
245	249		developed under Section 16.343 or a description of measures taken
246	250		to mitigate any deficiencies in compliance.
247	251		SECTION 10. Section 17.933(b-1), Water Code, is repealed.
248	252		SECTION 11. The Texas Water Development Board is required
249	253		to implement a provision of this Act only if the legislature
250	254		appropriates money specifically for that purpose. If the
251	255		legislature does not appropriate money specifically for that
252	256		purpose, the board may, but is not required to, implement a
253	257		provision of this Act using other appropriations available for that
254	258		purpose.
255	259		SECTION 12. This Act takes effect on the date on which the
256	260		constitutional amendment proposed by the 86th Legislature, Regular
257	261		Session, 2019, providing for the issuance of additional general
258	262		obligation bonds by the Texas Water Development Board in an amount
259	263		not to exceed $200 million to provide financial assistance for the
260	264		development of certain projects in economically distressed areas
261	265		takes effect. If that amendment is not approved by the voters, this
262	266		Act has no effect.
263		-	______________________________ ______________________________
264		-	President of the Senate Speaker of the House
265		-	I hereby certify that S.B. No. 2452 passed the Senate on
266		-	May 8, 2019, by the following vote: Yeas 21, Nays 10; and that the
267		-	Senate concurred in House amendment on May 25, 2019, by the
268		-	following vote: Yeas 22, Nays 8.
269		-	______________________________
270		-	Secretary of the Senate
271		-	I hereby certify that S.B. No. 2452 passed the House, with
272		-	amendment, on May 22, 2019, by the following vote: Yeas 103,
273		-	Nays 41, two present not voting.
274		-	______________________________
275		-	Chief Clerk of the House
276		-	Approved:
277		-	______________________________
278		-	Date
279		-	______________________________
280		-	Governor