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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