H.B. No. 997
1-1 AN ACT
1-2 relating to receipt of funds in the water assistance fund and water
1-3 development fund, to furthering the implementation of the program
1-4 to assist economically distressed areas, and to enhancing the
1-5 economic development of economically distressed areas and border
1-6 counties; declaring an emergency.
1-7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-8 SECTION 1. The legislature finds that:
1-9 (a) an adequate water supply and wastewater
1-10 infrastructure is necessary and integral to the long-term economic
1-11 growth and industrial development in the counties eligible for
1-12 funding under the economically distressed areas program;
1-13 (b) economically distressed areas, by definition, are
1-14 located in counties where unemployment over the most recent three
1-15 consecutive years averages 25 percent above the statewide average
1-16 and where the per capita income for the most recent three
1-17 consecutive years averaged 25 percent below the state average;
1-18 (c) the further implementation of the economically
1-19 distressed areas program can provide greater benefits to the
1-20 long-term economic growth of the areas eligible for such funding by
1-21 considering the feasibility of regional facilities for water supply
1-22 and wastewater service;
1-23 (d) innovative science and technologies have and will
2-1 be further advanced through the use of funds provided by the
2-2 economically distressed areas program; and
2-3 (e) the state, in cooperation with local governments
2-4 in counties with economically distressed areas, working with the
2-5 water research and technology community and with funds that may be
2-6 received from the federal government has used and can continue to
2-7 use the funds made available in the economically distressed areas
2-8 program to create innovations in the provision of water supply and
2-9 wastewater service.
2-10 SECTION 2. Section 15.001(11), Water Code, is amended to
2-11 read as follows:
2-12 (11) "Economically distressed area" means:
2-13 (A) an area in which water supply or sewer
2-14 services are inadequate to meet minimal needs of residential users
2-15 as defined by board rules and in which financial resources are
2-16 inadequate to provide water supply or sewer services that will
2-17 satisfy those needs; or
2-18 (B) for purposes of any federal funds for
2-19 colonias deposited in the water assistance fund, an area that meets
2-20 the federal criteria for use of such funds.
2-21 SECTION 3. Section 15.012(b), Water Code, is amended to read
2-22 as follows:
2-23 (b) Money <Revenues accumulated pursuant to Article VIII,
2-24 Section 24(b), of the Texas Constitution and money> appropriated by
2-25 the legislature to the fund shall be deposited in this fund. Gifts
3-1 or grants from the United States government, local or regional
3-2 governments, private sources, or other sources may be deposited in
3-3 this fund.
3-4 SECTION 4. Section 17.0112(a), Water Code, is amended to
3-5 read as follows:
3-6 (a) The board may issue not more than $25 million in bonds
3-7 dedicated under Section 17.0111 of this code during a fiscal
3-8 <calendar> year to provide financial assistance for water supply
3-9 and sewer services as provided under Subchapter K of this chapter.
3-10 SECTION 5. Section 17.072(j), Water Code, is amended to read
3-11 as follows:
3-12 (j) Proceeds from the sale of bonds pursuant to Section
3-13 17.0111 of this code, together with proceeds, other than accrued
3-14 interest, from the sale, refunding, or prepayment of political
3-15 subdivision bonds acquired in carrying out the purposes provided by
3-16 Subchapter K of this chapter, shall be deposited in a special
3-17 account in the development fund designated as the economically
3-18 distressed areas account, with other money for deposit in that
3-19 account as provided by this chapter, the General Appropriations
3-20 Act, or other law of this state. Money from gifts or grants from
3-21 the United States government, local or regional governments,
3-22 private sources, or other sources for the purposes of assisting
3-23 economically distressed areas also may be deposited in the
3-24 economically distressed areas account. Within the economically
3-25 distressed areas account, separate accounts may be created for
4-1 bonds issued for purposes of Article III, Section 49-c, of the
4-2 Texas Constitution, and bonds issued for purposes of Article III,
4-3 Section 49-d-1, of the Texas Constitution.
4-4 SECTION 6. Sections 17.922 and 17.924, Water Code, are
4-5 amended to read as follows:
4-6 Sec. 17.922. Financial Assistance. (a) The economically
4-7 distressed areas account may be used by the board to provide
4-8 financial assistance to political subdivisions for the
4-9 construction, acquisition, or improvement of water supply and sewer
4-10 services, including providing funds from the account for the
4-11 state's participation in federal programs that provide assistance
4-12 to political subdivisions.
4-13 (b) To the extent practicable, the board shall use the funds
4-14 in the economically distressed areas account in conjunction with
4-15 the other financial assistance available through the board to
4-16 encourage the use of cost-effective water supply and wastewater
4-17 systems, including regional systems, to maximize the long-term
4-18 economic development of counties eligible for financial assistance
4-19 under the economically distressed areas program. Any savings
4-20 derived from the construction of a regional system that includes or
4-21 serves an economically distressed area project shall be factored
4-22 into the board's determination of financial assistance for the
4-23 economically distressed area in a manner that assures the
4-24 economically distressed area receives appropriate benefits from the
4-25 savings. In no event shall financial assistance provided from the
5-1 economically distressed areas account be used to provide water
5-2 supply or wastewater service to any area not defined as an
5-3 economically distressed area pursuant to Section 17.921(1)(A) of
5-4 this code.
5-5 Sec. 17.924. Municipality Eligible for Financial Assistance.
5-6 A municipality that is located in a county that is eligible for
5-7 financial assistance under Section 17.923 <17.883> of this code is
5-8 eligible for financial assistance under this subchapter if the
5-9 municipality adopts the model rules developed under Section 16.343
5-10 of this code.
5-11 SECTION 7. Section 17.929(a), Water Code, is amended to read
5-12 as follows:
5-13 (a) In passing on an application for financial assistance,
5-14 the board shall consider:
5-15 (1) the need of the economically distressed area to be
5-16 served by the water supply and sewer services in relation to the
5-17 need of other political subdivisions requiring financial assistance
5-18 under this subchapter and the relative costs and benefits of all
5-19 applications;
5-20 (2) efforts by the residents of the economically
5-21 distressed area to provide necessary water supply and sewer
5-22 services;
5-23 (3) the proposed use of labor from inside the
5-24 political subdivision to perform contracts for providing water
5-25 supply and sewer services;
6-1 (4) the relationship of the proposed water supply and
6-2 sewer services to minimum state standards for water supply and
6-3 sewer services adopted under Section 16.343 of this code;
6-4 (5) the financing of the proposed water supply and
6-5 sewer project including consideration of:
6-6 (A) the budget and repayment schedule submitted
6-7 under Section 17.927(b)(4) <17.887(b)(4)> of this code;
6-8 (B) other items included in the application
6-9 relating to financing; and
6-10 (C) other financial information and data
6-11 available to the board;<.>
6-12 (6) whether the applicant has proposed methods for
6-13 incorporating water conservation into the provision of water and
6-14 sewer services to the economically distressed area;
6-15 (7) whether the county has adopted model rules
6-16 pursuant to Section 16.343 of this code and the manner of
6-17 enforcement of model rules;
6-18 (8) the feasibility of creating a conservation and
6-19 reclamation district under Article XVI, Section 59, of the Texas
6-20 Constitution, to provide the services and finance the water supply
6-21 and sewer services covered by the application with district bonds
6-22 issued and sold through the regular bond market; <and>
6-23 (9) the percentage of the total project cost that the
6-24 financial assistance will comprise; and
6-25 (10) the feasibility of achieving cost savings by
7-1 providing a regional facility for water supply or wastewater
7-2 service and the feasibility of financing the facility by using
7-3 funds from the economically distressed areas account or any other
7-4 financial assistance.
7-5 SECTION 8. Section 17.930(b), Water Code, is amended to read
7-6 as follows:
7-7 (b) After making the considerations provided by Section
7-8 17.929 <17.889> of this code, the board by resolution shall approve
7-9 or disapprove the application and shall notify the applicant in
7-10 writing of its decision.
7-11 SECTION 9. Sections 17.933(a), (c), (d), and (e), Water
7-12 Code, are amended to read as follows:
7-13 (a) The board may use money in the economically distressed
7-14 areas account to provide financial assistance to a political
7-15 subdivision to be repaid in the form, manner, and time provided by
7-16 board rules and in the agreement between the board and the
7-17 political subdivision taking into consideration the information
7-18 provided by Section 17.927(b)(7) <17.887(b)(7)> of this code.
7-19 (c) The total amount of financial assistance provided by the
7-20 board to political subdivisions under this subchapter from
7-21 state-issued bonds for which repayment is not required may not
7-22 exceed at any time 90 <75> percent of the total principal amount of
7-23 issued and unissued bonds authorized under Article III, Section
7-24 49-d-7, of the Texas Constitution, for purposes of this subchapter
7-25 plus outstanding interest on those bonds.
8-1 (d) In determining the amount and form of financial
8-2 assistance and the amount and form of repayment, if any, the board
8-3 shall consider:
8-4 (1) rates, fees, and charges that the average customer
8-5 to be served by the project will be able to pay based on a
8-6 comparison of what other families of similar income who are
8-7 similarly situated pay for comparable services;
8-8 (2) sources of funding available to the political
8-9 subdivision from federal and private funds and from other state
8-10 funds; <and>
8-11 (3) any local funds of the political subdivision to be
8-12 served by the project if the economically distressed area to be
8-13 served by the board's financial assistance is within the boundary
8-14 of the political subdivision; and
8-15 (4) the just, fair, and reasonable charges for water
8-16 and wastewater service as provided in this code.
8-17 (e) In making its determination under Subsection (d)(1)
8-18 <(b)(1)> of this section, the board may consider any study, survey,
8-19 data, criteria, or standard developed or prepared by any federal,
8-20 state, or local agency, private foundation, banking or financial
8-21 institution, or other reliable source of statistical or financial
8-22 data or information.
8-23 SECTION 10. The importance of this legislation and the
8-24 crowded condition of the calendars in both houses create an
8-25 emergency and an imperative public necessity that the
9-1 constitutional rule requiring bills to be read on three several
9-2 days in each house be suspended, and this rule is hereby suspended,
9-3 and that this Act take effect and be in force from and after its
9-4 passage, and it is so enacted.