Texas 2023 - 88th Regular

Texas Senate Bill SB1823 Compare Versions

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1	1	88R4350 JAM-D
2	2	By: Johnson S.B. No. 1823
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the provision by the Texas Water Development Board of
8	8	financial assistance for the development of residential drainage
9	9	projects in economically distressed areas.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. The heading to Subchapter K, Chapter 17, Water
12	12	Code, is amended to read as follows:
13	13	SUBCHAPTER K. ASSISTANCE TO ECONOMICALLY DISTRESSED AREAS FOR
14	14	WATER SUPPLY, [AND] SEWER SERVICE, AND RESIDENTIAL DRAINAGE
15	15	PROJECTS
16	16	SECTION 2. Sections 17.921(1) and (2), Water Code, are
17	17	amended to read as follows:
18	18	(1) "Economically distressed area" means an area in
19	19	which:
20	20	(A) water supply, [or] sewer, or residential
21	21	drainage services are inadequate to meet minimal needs of
22	22	residential users as defined by board rules;
23	23	(B) financial resources are inadequate to
24	24	provide water supply, [or] sewer, or residential drainage services
25	25	that will satisfy those needs; and
26	26	(C) an established residential subdivision was
27	27	located on June 1, 2005, as determined by the board.
28	28	(2) "Financial assistance" means the funds provided by
29	29	the board to political subdivisions for water supply, [and] sewer,
30	30	and residential drainage services under this subchapter.
31	31	SECTION 3. Sections 17.922 and 17.9226, Water Code, are
32	32	amended to read as follows:
33	33	Sec. 17.922. FINANCIAL ASSISTANCE. (a) The board shall use
34	34	the economically distressed areas account to provide financial
35	35	assistance to political subdivisions for the construction,
36	36	acquisition, or improvement of water supply, [and] sewer, and
37	37	residential drainage services, including providing funds from the
38	38	account for the state's participation in federal programs that
39	39	provide assistance solely for projects intended to serve
40	40	economically distressed areas.
41	41	(b) To the extent practicable, the board shall use money in
42	42	the economically distressed areas account in conjunction with the
43	43	other financial assistance available through the board to encourage
44	44	the use of cost-effective water supply, [and] wastewater, and
45	45	residential drainage systems, including regional systems, to
46	46	maximize the long-term economic development of political
47	47	subdivisions eligible for financial assistance under the
48	48	economically distressed areas program. Any savings derived from
49	49	the construction of a regional system that includes or serves an
50	50	economically distressed area project shall be factored into the
51	51	board's determination of financial assistance for the economically
52	52	distressed area in a manner that assures the economically
53	53	distressed area receives appropriate benefits from the savings. In
54	54	no event shall financial assistance provided from the economically
55	55	distressed areas account be used to provide water supply, [or]
56	56	wastewater, or residential drainage service to any area that is not
57	57	an economically distressed area.
58	58	Sec. 17.9226. USE OF CERTAIN GENERAL OBLIGATION BONDS. The
59	59	board may:
60	60	(1) maximize the effectiveness of the additional
61	61	general obligation bonds authorized by Section 49-d-14, Article
62	62	III, Texas Constitution, by using the additional bonds in
63	63	conjunction with other sources of financial assistance, including
64	64	nonpublic funds, to provide financial assistance to political
65	65	subdivisions for the construction, acquisition, or improvement of
66	66	water supply, [and] sewer, and residential drainage services; and
67	67	(2) use the additional general obligation bonds
68	68	authorized by Section 49-d-14, Article III, Texas Constitution, to
69	69	promote and support public-private partnerships that the board
70	70	determines:
71	71	(A) are financially viable;
72	72	(B) will diversify the methods of financing
73	73	available for water supply, [and] sewer, and residential drainage
74	74	services; and
75	75	(C) will reduce reliance on the issuance of bonds
76	76	supported with general revenue.
77	77	SECTION 4. Sections 17.927(a) and (b), Water Code, are
78	78	amended to read as follows:
79	79	(a) A political subdivision may apply to the board for
80	80	financial assistance under this subchapter by submitting an
81	81	application together with a plan for providing water supply, [and]
82	82	sewer, or residential drainage services to an economically
83	83	distressed area for which the financial assistance is to be used.
84	84	(b) The application and plan must include:
85	85	(1) the name of the political subdivision and its
86	86	principal officers;
87	87	(2) a citation of the law under which the political
88	88	subdivision was created and operates;
89	89	(3) a project plan, prepared and certified by an
90	90	engineer registered to practice in this state, that must:
91	91	(A) describe the proposed planning, design, and
92	92	construction activities necessary to provide water supply, [and]
93	93	sewer, or residential drainage services that meet minimum state
94	94	standards provided by board rules; and
95	95	(B) identify the households to which the water
96	96	supply, [and] sewer, or residential drainage services will be
97	97	provided;
98	98	(4) a budget that estimates the total cost of
99	99	providing water supply, [and] sewer, or residential drainage
100	100	services to the economically distressed area and a proposed
101	101	schedule and method for repayment of financial assistance
102	102	consistent with board rules and guidelines;
103	103	(5) a description of the existing water supply, [and]
104	104	sewer, or residential drainage facilities located in the area to be
105	105	served by the proposed project, including a statement prepared and
106	106	certified by an engineer registered to practice in this state that
107	107	the facilities do not meet minimum state standards;
108	108	(6) documentation that the appropriate political
109	109	subdivision has adopted and enforces the model rules developed
110	110	under Section 16.343;
111	111	(7) information identifying the median household
112	112	income for the area to be served by the proposed project;
113	113	(8) the total amount of assistance requested from the
114	114	economically distressed areas account; and
115	115	(9) the water conservation plan required by Section
116	116	16.4021.
117	117	SECTION 5. Section 17.928(c), Water Code, is amended to
118	118	read as follows:
119	119	(c) If an applicant includes a proposal for treatment or
120	120	residential drainage works the board may not deliver funds for the
121	121	treatment or residential drainage works until the applicant has
122	122	received:
123	123	(1) a permit for construction and operation of the
124	124	treatment or residential drainage works from the commission or
125	125	other applicable permitting authority unless such a permit is not
126	126	required; and
127	127	(2) approval of the plans and specifications from the
128	128	commission, the executive administrator, or other applicable
129	129	authority.
130	130	SECTION 6. Section 17.929(a), Water Code, is amended to
131	131	read as follows:
132	132	(a) In passing on an application for financial assistance,
133	133	the board shall consider:
134	134	(1) the need of the economically distressed area to be
135	135	served by the water supply, [and] sewer, or residential drainage
136	136	services in relation to the need of other political subdivisions
137	137	requiring financial assistance under this subchapter and the
138	138	relative costs and benefits of all applications;
139	139	(2) the availability to the area to be served by the
140	140	project of revenue or financial assistance from alternative sources
141	141	for the payment of the cost of the proposed project;
142	142	(3) the financing of the proposed water supply, [and]
143	143	sewer, or residential drainage project, including consideration
144	144	of:
145	145	(A) the budget and repayment schedule submitted
146	146	under Section 17.927(b)(4);
147	147	(B) other items included in the application
148	148	relating to financing; and
149	149	(C) other financial information and data
150	150	available to the board;
151	151	(4) whether the county and other appropriate political
152	152	subdivisions have adopted model rules pursuant to Section 16.343
153	153	and the manner of enforcement of model rules;
154	154	(5) the feasibility of achieving cost savings by
155	155	providing a regional facility for water supply, [or] wastewater, or
156	156	residential drainage service and the feasibility of financing the
157	157	facility by using funds from the economically distressed areas
158	158	account or any other financial assistance; and
159	159	(6) the ability of the applicant to repay the
160	160	financial assistance.
161	161	SECTION 7. Section 17.933(d), Water Code, is amended to
162	162	read as follows:
163	163	(d) In determining the amount and form of financial
164	164	assistance and the amount and form of repayment, if any, the board
165	165	shall establish repayment based on the political subdivision's
166	166	ability to repay the financial assistance and shall consider:
167	167	(1) rates, fees, and charges that the average customer
168	168	to be served by the project will be able to pay;
169	169	(2) sources of funding available to the political
170	170	subdivision from federal and private funds and from other state
171	171	funds;
172	172	(3) any local funds of the political subdivision to be
173	173	served by the project if the economically distressed area to be
174	174	served by the board's financial assistance is within the boundary
175	175	of the political subdivision;
176	176	(4) the just, fair, and reasonable charges for water,
177	177	[and] wastewater, and residential drainage service as provided in
178	178	this code; and
179	179	(5) the ability of the board to maximize the portion of
180	180	financial assistance for which repayment is required based on the
181	181	political subdivision's ability to repay the assistance, as
182	182	provided by board rule.
183	183	SECTION 8. Section 17.936(d), Water Code, is amended to
184	184	read as follows:
185	185	(d) The provider of water or wastewater utility or
186	186	residential drainage service to an economically distressed area may
187	187	recover from a developer or owner of an undeveloped lot
188	188	economically distressed areas program impact fees as provided by
189	189	rules adopted by the board.
190	190	SECTION 9. This Act takes effect September 1, 2023.