By Oliveira H.B. No. 997
Substitute the following for H.B. No. 997:
By Yost C.S.H.B. No. 997
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to receipt of funds in the Water Assistance Fund and Water
1-3 Development Fund, to further the implementation of the program to
1-4 assist economically distressed areas, to enhance the economic
1-5 development of economically distressed areas and border counties
1-6 and 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) that 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) that 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 state wide 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) that the further implementation of the Economically
1-19 Distressed Area program can provide greater benefits to the long
1-20 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) that innovative science and technologies have and will
2-1 be further advanced through the use of funds provided by the
2-2 economically distressed area program; and
2-3 (e) that the state, in cooperation with local governments in
2-4 counties with economically distressed areas, working with the water
2-5 research and technology community and with funds that may hereafter
2-6 be received from the federal government have used and can continue
2-7 to use the funds made available in the economically distressed
2-8 areas program to create innovations in the provision of water
2-9 supply and wastewater service.
2-10 SECTION 2. Sections 15.001(11) and 15.012(b), Water Code,
2-11 are amended to read as follows:
2-12 Sec. 15.001. Definitions. In this chapter:
2-13 (11) "Economically Distressed area" means: (A) an
2-14 area in which water supply or sewer services are inadequate to meet
2-15 minimal needs of residential users as defined by board rules and in
2-16 which financial resources are inadequate to provide water supply or
2-17 sewer services that will satisfy those needs; or (B) for purposes
2-18 of any federal funds for colonias deposited into the Water
2-19 Assistance Fund, an area that meets the federal criteria for use of
2-20 such funds.
2-21 Sec. 15.012. Management of Fund. (b) Money <Revenues
2-22 accumulated pursuant to Article VIII, Section 24(b), of the Texas
2-23 Constitution and money> appropriated by the legislature to the
2-24 fund shall be deposited in this fund. Gifts or grants from the
2-25 United States government, local or regional governments, private
3-1 sources or other sources may be deposited in this fund.
3-2 SECTION 3. Section 17.0112(a), Water Code, is amended to
3-3 read as follows:
3-4 Sec. 17.0112. Authorization of Certain Bonds for Financial
3-5 Assistance. (a) The board may issue not more than $25 million in
3-6 bonds dedicated under Section 17.011 of this code during a fiscal
3-7 <calendar> year to provide financial assistance for water supply
3-8 and sewer services as provided under Subchapter K of this chapter.
3-9 SECTION 4. Section 17.072(j), Water Code, is amended to
3-10 read as follows:
3-11 Sec. 17.072. Development Fund. (j) Proceeds from the sale
3-12 of bonds pursuant to Section 17.0111 of this code, together with
3-13 proceeds, other than accrued interest, from the sale, refunding, or
3-14 prepayment of political subdivision bonds acquired in carrying out
3-15 the purposes provided by Subchapter K of this chapter, shall be
3-16 deposited in a special account in the development fund designated
3-17 as the economically distressed areas account, with other money for
3-18 deposit in that account as provided by this chapter, the General
3-19 Appropriations Act, or other law of this state. Money from gifts
3-20 or grants from the United States government, local or regional
3-21 governments, private sources or other sources for the purposes of
3-22 assisting economically distressed areas also may be deposited into
3-23 the economically distressed areas account. Within the economically
3-24 distressed areas account, separate accounts may be created for
3-25 bonds issued for purposes of Article III, Section 49-c, of the
4-1 Texas Constitution, and bonds issued for purposes of Article III,
4-2 Section 49-d-1, of the Texas Constitution.
4-3 SECTION 5. Sections 17.922, 17.924, 17.929(a), 17.930(b),
4-4 and 17.933(a), (c), (d) and (e) are amended to read as follows:
4-5 Sec. 17.922. Financial Assistance. (a) The economically
4-6 distressed areas account may be used by the board to provide
4-7 financial assistance to political subdivisions for the
4-8 construction, acquisition, or improvement of water supply and sewer
4-9 services, including providing funds from the account for the
4-10 state's participation in federal programs that provide assistance
4-11 to political subdivisions.
4-12 (b) To the extent practicable, the board shall use the funds
4-13 in the economically distressed areas account in conjunction with
4-14 the other financial assistance available through the board to
4-15 encourage the use of cost effective water supply and wastewater
4-16 systems, including regional systems, to maximize the long term
4-17 economic development of counties eligible for financial assistance
4-18 under the economically distressed areas program. Any savings
4-19 derived from the construction of a regional system which includes
4-20 or serves an economically distressed area project shall be factored
4-21 into the board's determination of financial assistance for the
4-22 economically distressed area in a manner that assures the
4-23 economically distressed area receives appropriate benefits from the
4-24 savings. In no event shall financial assistance provided from the
4-25 economically distressed areas account be used to provide water
5-1 supply or wastewater service to any area not defined as an
5-2 economically distressed area pursuant to Section 17.921(1)(A) of
5-3 this code.
5-4 Sec. 17.924. Municipality Eligible for Financial Assistance.
5-5 A municipality that is located in a county that is eligible for
5-6 financial assistance under Section 17.923 <17.883> of this code is
5-7 eligible for financial assistance under this subchapter if the
5-8 municipality adopts the model rules developed under Section 16.343
5-9 of this code.
5-10 Sec. 17.929. Considerations in Passing on Application. (a)
5-11 In passing on an application for financial assistance, the board
5-12 shall consider:
5-13 (1) the need of the economically distressed area to be
5-14 served by the water supply and sewer services in relation to the
5-15 need of other political subdivisions requiring financial assistance
5-16 under this subchapter and the relative costs and benefits of all
5-17 applications;
5-18 (2) efforts by the residents of the economically
5-19 distressed area to provide necessary water supply and sewer
5-20 services;
5-21 (3) the proposed use of labor from inside the
5-22 political subdivision to perform contracts for providing water
5-23 supply and sewer services;
5-24 (4) the relationship of the proposed water supply and
5-25 sewer services to minimum state standards for water supply and
6-1 sewer services adopted under Section 16.343 of this code;
6-2 (5) the financing of the proposed water supply and
6-3 sewer project including consideration of:
6-4 (A) the budget and repayment schedule submitted
6-5 under Section 17.927(b)(4) <17.887(b)(4)> of this code;
6-6 (B) other items included in the application
6-7 relating to financing; and
6-8 (C) other financial information and data
6-9 available to the board.
6-10 (6) whether the applicant has proposed methods for
6-11 incorporating water conservation into the provision of water and
6-12 sewer services to the economically distressed area;
6-13 (7) whether the county as adopted model rules pursuant
6-14 to Section 16.343 of this code and the manner of enforcement of
6-15 model rules;
6-16 (8) the feasibility of creating a conservation and
6-17 reclamation district under Article XVI, Section 59, of the Texas
6-18 Constitution, to provide the services and finance the water supply
6-19 and sewer services covered by the application with district bonds
6-20 issued and sold through the regular bond market; <and>
6-21 (9) the percentage of the total project cost that the
6-22 financial assistance will comprise; and
6-23 (10) the feasibility of achieving cost savings by
6-24 providing a regional facility for water supply and/or wastewater
6-25 service and the feasibility of financing such facility by using
7-1 funds from the economically distressed areas account and/or any
7-2 other financial assistance.
7-3 Sec. 17.930. Approval or Disapproval of Application. (b)
7-4 After making the considerations provided by Section 17.929 <17.889>
7-5 of this code, the board by resolution shall approve or disapprove
7-6 the application and shall notify the applicant in writing of its
7-7 decision.
7-8 Sec. 17.933. Terms of Financial Assistance. (a) The board
7-9 may use money in the economically distressed areas account to
7-10 provide financial assistance to a political subdivision to be
7-11 repaid in the form, manner, and time provided by board rules and in
7-12 the agreement between the board and the political subdivision
7-13 taking into consideration the information provided by Section
7-14 17.927(b)(7) <17.887(b)(7)> of this code.
7-15 (c) The total amount of financial assistance provided by the
7-16 board to political subdivisions under this subchapter from
7-17 state-issued bonds for which repayment is not required may not
7-18 exceed at any time 75 percent of the total principal amount of
7-19 issued and unissued bonds authorized under Article III, Section
7-20 49-d-7, of the Texas Constitution, for purposes of this subchapter
7-21 plus outstanding interest on those bonds.
7-22 (d) In determining the amount and form of financial
7-23 assistance and the amount and form of repayment, if any, the board
7-24 shall consider:
7-25 (1) rates, fees and charges that the average customer
8-1 to be served by the project will be able to pay based on a
8-2 comparison of what other families of similar income who are
8-3 similarly situated pay for comparable services;
8-4 (2) sources of funding available to the political
8-5 subdivision from federal and private funds and from other state
8-6 funds; <and>
8-7 (3) any local funds of the political subdivision to be
8-8 served by the project if the economically distressed area to be
8-9 served by the board's financial assistance is within the boundary
8-10 of the political subdivision; and
8-11 (4) the just, fair and reasonable charges for water
8-12 and wastewater service as provided in this code.
8-13 (e) In making its determination under Subsection (d)<(b)>(1)
8-14 of this section, the board may consider any study, survey, data,
8-15 criteria, or standard developed or prepared by any federal, state,
8-16 or local agency, private foundation, banking or financial
8-17 institution, or other reliable source of statistical or financial
8-18 data or information.
8-19 SECTION 6. EMERGENCY. The importance of this legislation
8-20 and the crowded condition of the calendars in both houses create an
8-21 emergency and imperative public necessity that the constitutional
8-22 rule requiring bills to be read on three several days in each house
8-23 be suspended, and this rule is hereby suspended, and that this Act
8-24 take effect and be in force from and after its passage, and it is
8-25 so enacted.