1-1  By:  Oliveira, et al. (Senate Sponsor - Montford)      H.B. No. 997
    1-2        (In the Senate - Received from the House April 26, 1993;
    1-3  April 27, 1993, read first time and referred to Committee on
    1-4  Natural Resources; April 28, 1993, rereferred to Committee on
    1-5  International Relations, Trade, and Technology; May 5, 1993,
    1-6  reported adversely, with favorable Committee Substitute by the
    1-7  following vote:  Yeas 7, Nays 0; May 5, 1993, sent to printer.)
    1-8                            COMMITTEE VOTE
    1-9                          Yea     Nay      PNV      Absent 
   1-10        Truan              x                               
   1-11        Barrientos         x                               
   1-12        Bivins             x                               
   1-13        Brown                                          x   
   1-14        Carriker                                       x   
   1-15        Harris of Tarrant  x                               
   1-16        Lucio              x                               
   1-17        Rosson             x                               
   1-18        Wentworth          x                               
   1-19  COMMITTEE SUBSTITUTE FOR H.B. No. 997                    By:  Truan
   1-20                         A BILL TO BE ENTITLED
   1-21                                AN ACT
   1-22  relating to receipt of funds in the water assistance fund and water
   1-23  development fund, to furthering the implementation of the program
   1-24  to assist economically distressed areas, and to enhancing the
   1-25  economic development of economically distressed areas and border
   1-26  counties; declaring an emergency.
   1-27        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-28        SECTION 1.  The legislature finds that:
   1-29              (a)  an adequate water supply and wastewater
   1-30  infrastructure is necessary and integral to the long-term economic
   1-31  growth and industrial development in the counties eligible for
   1-32  funding under the economically distressed areas program;
   1-33              (b)  economically distressed areas, by definition, are
   1-34  located in counties where unemployment over the most recent three
   1-35  consecutive years averages 25 percent above the statewide average
   1-36  and where the per capita income for the most recent three
   1-37  consecutive years averaged 25 percent below the state average;
   1-38              (c)  the further implementation of the economically
   1-39  distressed areas program can provide greater benefits to the
   1-40  long-term economic growth of the areas eligible for such funding by
   1-41  considering the feasibility of regional facilities for water supply
   1-42  and wastewater service;
   1-43              (d)  innovative science and technologies have and will
   1-44  be further advanced through the use of funds provided by the
   1-45  economically distressed areas program; and
   1-46              (e)  the state, in cooperation with local governments
   1-47  in counties with economically distressed areas, working with the
   1-48  water research and technology community and with funds that may be
   1-49  received from the federal government has used and can continue to
   1-50  use the funds made available in the economically distressed areas
   1-51  program to create innovations in the provision of water supply and
   1-52  wastewater service.
   1-53        SECTION 2.  Section 15.001(11), Water Code, is amended to
   1-54  read as follows:
   1-55              (11)  "Economically distressed area" means:
   1-56                    (A)  an area in which water supply or sewer
   1-57  services are inadequate to meet minimal needs of residential users
   1-58  as defined by board rules and in which financial resources are
   1-59  inadequate to provide water supply or sewer services that will
   1-60  satisfy those needs; or
   1-61                    (B)  for purposes of any federal funds for
   1-62  colonias deposited into the water assistance fund, an area that
   1-63  meets the federal criteria for use of such funds.
   1-64        SECTION 3.  Section 15.012(b), Water Code, is amended to read
   1-65  as follows:
   1-66        (b)  Money <Revenues accumulated pursuant to Article VIII,
   1-67  Section 24(b), of the Texas Constitution and money> appropriated by
   1-68  the legislature to the fund shall be deposited in this fund.  Gifts
    2-1  or grants from the United States government, local or regional
    2-2  governments, private sources, or other sources may be deposited in
    2-3  this fund.
    2-4        SECTION 4.  Sections 17.0112(a), Water Code, is amended to
    2-5  read as follows:
    2-6        (a)  The board may issue not more than $25 million in bonds
    2-7  dedicated under Section 17.0111 of this code during a fiscal
    2-8  <calendar> year to provide financial assistance for water supply
    2-9  and sewer services as provided under Subchapter K of this chapter.
   2-10        SECTION 5.  Section 17.072(j), Water Code, is amended to read
   2-11  as follows:
   2-12        (j)  Proceeds from the sale of bonds pursuant to Section
   2-13  17.0111 of this code, together with proceeds, other than accrued
   2-14  interest, from the sale, refunding, or prepayment of political
   2-15  subdivision bonds acquired in carrying out the purposes provided by
   2-16  Subchapter K of this chapter, shall be deposited in a special
   2-17  account in the development fund designated as the economically
   2-18  distressed areas account, with other money for deposit in that
   2-19  account as provided by this chapter, the General Appropriations
   2-20  Act, or other law of this state.  Money from gifts or grants from
   2-21  the United States government, local or regional governments,
   2-22  private sources, or other sources for the purposes of assisting
   2-23  economically distressed areas also may be deposited into the
   2-24  economically distressed areas account.  Within the economically
   2-25  distressed areas account, separate accounts may be created for
   2-26  bonds issued for purposes of Article III, Section 49-c, of the
   2-27  Texas Constitution, and bonds issued for purposes of Article III,
   2-28  Section 49-d-1, of the Texas Constitution.
   2-29        SECTION 6.  Sections 17.922 and 17.924, Water Code, are
   2-30  amended to read as follows:
   2-31        Sec. 17.922.  Financial Assistance.  (a)  The economically
   2-32  distressed areas account may be used by the board to provide
   2-33  financial assistance to political subdivisions for the
   2-34  construction, acquisition, or improvement of water supply and sewer
   2-35  services, including providing funds from the account for the
   2-36  state's participation in federal programs that provide assistance
   2-37  to political subdivisions.
   2-38        (b)  To the extent practicable, the board shall use the funds
   2-39  in the economically distressed areas account in conjunction with
   2-40  the other financial assistance available through the board to
   2-41  encourage the use of cost-effective water supply and wastewater
   2-42  systems, including regional systems, to maximize the long-term
   2-43  economic development of counties eligible for financial assistance
   2-44  under the economically distressed areas program.  Any savings
   2-45  derived from the construction of a regional system which includes
   2-46  or serves an economically distressed area project shall be factored
   2-47  into the board's determination of financial assistance for the
   2-48  economically distressed area in a manner that assures the
   2-49  economically distressed area receives appropriate benefits from the
   2-50  savings.  In no event shall financial assistance provided from the
   2-51  economically distressed areas account to be used to provide water
   2-52  supply or wastewater service to any area not defined as an
   2-53  economically distressed area pursuant to Section 17.921(1)(A) of
   2-54  this code.
   2-55        Sec. 17.924.  Municipality Eligible for Financial Assistance.
   2-56  A municipality that is located in a county that is eligible for
   2-57  financial assistance under Section 17.923 <17.883> of this code is
   2-58  eligible for financial assistance under this subchapter if the
   2-59  municipality adopts the model rules developed under Section 16.343
   2-60  of this code.
   2-61        SECTION 7.  Section 17.929(a), Water Code, is amended to read
   2-62  as follows:
   2-63        (a)  In passing on an application for financial assistance,
   2-64  the board shall consider:
   2-65              (1)  the need of the economically distressed area to be
   2-66  served by the water supply and sewer services in relation to the
   2-67  need of other political subdivisions requiring financial assistance
   2-68  under this subchapter and the relative costs and benefits of all
   2-69  applications;
   2-70              (2)  efforts by the residents of the economically
    3-1  distressed area to provide necessary water supply and sewer
    3-2  services;
    3-3              (3)  the proposed use of labor from inside the
    3-4  political subdivision to perform contracts for providing water
    3-5  supply and sewer services;
    3-6              (4)  the relationship of the proposed water supply and
    3-7  sewer services to minimum state standards for water supply and
    3-8  sewer services adopted under Section 16.343 of this code;
    3-9              (5)  the financing of the proposed water supply and
   3-10  sewer project including consideration of:
   3-11                    (A)  the budget and repayment schedule submitted
   3-12  under Section 17.927(b)(4) <17.887(b)(4)> of this code;
   3-13                    (B)  other items included in the application
   3-14  relating to financing; and
   3-15                    (C)  other financial information and data
   3-16  available to the board;<.>
   3-17              (6)  whether the applicant has proposed methods for
   3-18  incorporating water conservation into the provision of water and
   3-19  sewer services to the economically distressed area;
   3-20              (7)  whether the county has adopted model rules
   3-21  pursuant to Section 16.343 of this code and the manner of
   3-22  enforcement of model rules;
   3-23              (8)  the feasibility of creating a conservation and
   3-24  reclamation district under Article XVI, Section 59, of the Texas
   3-25  Constitution, to provide the services and finance the water supply
   3-26  and sewer services covered by the application with district bonds
   3-27  issued and sold through the regular bond market; <and>
   3-28              (9)  the percentage of the total project cost that the
   3-29  financial assistance will comprise; and
   3-30              (10)  the feasibility of achieving cost savings by
   3-31  providing a regional facility for water supply and/or wastewater
   3-32  service and the feasibility of financing such facility by using
   3-33  funds from the economically distressed areas account and/or any
   3-34  other financial assistance.
   3-35        SECTION 8.  Section 17.930(b), Water Code, is amended to read
   3-36  as follows:
   3-37        (b)  After making the considerations provided by Section
   3-38  17.929 <17.889> of this code, the board by resolution shall approve
   3-39  or disapprove the application and shall notify the applicant in
   3-40  writing of its decision.
   3-41        SECTION 9.  Sections 17.933(a), (c), (d), and (e), Water
   3-42  Code, are amended to read as follows:
   3-43        (a)  The board may use money in the economically distressed
   3-44  areas account to provide financial assistance to a political
   3-45  subdivision to be repaid in the form, manner, and time provided by
   3-46  board rules and in the agreement between the board and the
   3-47  political subdivision taking into consideration the information
   3-48  provided by Section 17.927(b)(7) <17.887(b)(7)> of this code.
   3-49        (c)  The total amount of financial assistance provided by the
   3-50  board to political subdivisions under this subchapter from
   3-51  state-issued bonds for which repayment is not required may not
   3-52  exceed at any time 90 <75> percent of the total principal amount of
   3-53  issued and unissued bonds authorized under Article III, Section
   3-54  49-d-7, of the Texas Constitution, for purposes of this subchapter
   3-55  plus outstanding interest on those bonds.
   3-56        (d)  In determining the amount and form of financial
   3-57  assistance and the amount and form of repayment, if any, the board
   3-58  shall consider:
   3-59              (1)  rates, fees, and charges that the average customer
   3-60  to be served by the project will be able to pay based on a
   3-61  comparison of what other families of similar income who are
   3-62  similarly situated pay for comparable services;
   3-63              (2)  sources of funding available to the political
   3-64  subdivision from federal and private funds and from other state
   3-65  funds; <and>
   3-66              (3)  any local funds of the political subdivision to be
   3-67  served by the project if the economically distressed area to be
   3-68  served by the board's financial assistance is within the boundary
   3-69  of the political subdivision; and
   3-70              (4)  the just, fair, and reasonable charges for water
    4-1  and wastewater service as provided in this code.
    4-2        (e)  In making its determination under Subsection (d)(1)
    4-3  <(b)(1)> of this section, the board may consider any study, survey,
    4-4  data, criteria, or standard developed or prepared by any federal,
    4-5  state, or local agency, private foundation, banking or financial
    4-6  institution, or other reliable source of statistical or financial
    4-7  data or information.
    4-8        SECTION 10.  The importance of this legislation and the
    4-9  crowded condition of the calendars in both houses create an
   4-10  emergency and an imperative public necessity that the
   4-11  constitutional rule requiring bills to be read on three several
   4-12  days in each house be suspended, and this rule is hereby suspended,
   4-13  and that this Act take effect and be in force from and after its
   4-14  passage, and it is so enacted.
   4-15                               * * * * *
   4-16                                                         Austin,
   4-17  Texas
   4-18                                                         May 5, 1993
   4-19  Hon. Bob Bullock
   4-20  President of the Senate
   4-21  Sir:
   4-22  We, your Committee on International Relations, Trade, and
   4-23  Technology to which was referred H.B. No. 997, have had the same
   4-24  under consideration, and I am instructed to report it back to the
   4-25  Senate with the recommendation that it do not pass, but that the
   4-26  Committee Substitute adopted in lieu thereof do pass and be
   4-27  printed.
   4-28                                                         Truan,
   4-29  Chairman
   4-30                               * * * * *
   4-31                               WITNESSES
   4-32                                                  FOR   AGAINST  ON
   4-33  ___________________________________________________________________
   4-34  Name:  Mr. Craig Pedersen                                      x
   4-35  Representing:  Tx Water Dev Bd
   4-36  City:  Austin
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   4-38  Name:  Rev. Ramon Duran                          x
   4-39  Representing:  Tx Industrial Areas Found.
   4-40  City:  El Paso
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