88R4350 JAM-D
By: Johnson S.B. No. 1823
A BILL TO BE ENTITLED
AN ACT
relating to the provision by the Texas Water Development Board of
financial assistance for the development of residential drainage
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 RESIDENTIAL 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 residential
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 residential 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 residential drainage services under this subchapter.
SECTION 3. Sections 17.922 and 17.9226, Water Code, are
amended to read as follows:
Sec. 17.922. FINANCIAL ASSISTANCE. (a) The board shall use
the economically distressed areas account to provide financial
assistance to political subdivisions for the construction,
acquisition, or improvement of water supply, [and] sewer, and
residential drainage services, including providing funds from the
account for the state's participation in federal programs that
provide assistance solely for projects intended to serve
economically distressed areas.
(b) To the extent practicable, the board shall use money 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
residential drainage systems, including regional systems, to
maximize the long-term economic development of political
subdivisions 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 residential drainage service to any area that is not
an economically distressed area.
Sec. 17.9226. USE OF CERTAIN GENERAL OBLIGATION BONDS. The
board may:
(1) maximize the effectiveness of the additional
general obligation bonds authorized by Section 49-d-14, 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, [and] sewer, and residential drainage services; and
(2) use the additional general obligation bonds
authorized by Section 49-d-14, 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, [and] sewer, and residential drainage
services; and
(C) will reduce reliance on the issuance of bonds
supported with general revenue.
SECTION 4. 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 residential 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 residential drainage services that meet minimum state
standards provided by board rules; and
(B) identify the households to which the water
supply, [and] sewer, or residential drainage services will be
provided;
(4) a budget that estimates the total cost of
providing water supply, [and] sewer, or residential 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 residential 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 and enforces 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;
(8) the total amount of assistance requested from the
economically distressed areas account; and
(9) the water conservation plan required by Section
16.4021.
SECTION 5. Section 17.928(c), Water Code, is amended to
read as follows:
(c) If an applicant includes a proposal for treatment or
residential drainage works the board may not deliver funds for the
treatment or residential drainage works until the applicant has
received:
(1) a permit for construction and operation of the
treatment or residential drainage works from the commission or
other applicable permitting authority unless such a permit is not
required; and
(2) approval of the plans and specifications from the
commission, the executive administrator, or other applicable
authority.
SECTION 6. 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 residential 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 residential 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;
(5) the feasibility of achieving cost savings by
providing a regional facility for water supply, [or] wastewater, or
residential drainage service and the feasibility of financing the
facility by using funds from the economically distressed areas
account or any other financial assistance; and
(6) the ability of the applicant to repay the
financial assistance.
SECTION 7. 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 establish repayment based on the political subdivision's
ability to repay the financial assistance and shall consider:
(1) rates, fees, and charges that the average customer
to be served by the project will be able to pay;
(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;
(4) the just, fair, and reasonable charges for water,
[and] wastewater, and residential drainage service as provided in
this code; and
(5) the ability of the board to maximize the portion of
financial assistance for which repayment is required based on the
political subdivision's ability to repay the assistance, as
provided by board rule.
SECTION 8. Section 17.936(d), Water Code, is amended to
read as follows:
(d) The provider of water or wastewater utility or
residential 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 9. This Act takes effect September 1, 2023.