1-1  By:  Yost (Senate Sponsor - Armbrister)               H.B. No. 1269
    1-2        (In the Senate - Received from the House May 3, 1993;
    1-3  May 4, 1993, read first time and referred to Committee on Natural
    1-4  Resources; May 7, 1993, reported adversely, with favorable
    1-5  Committee Substitute by the following vote:  Yeas 9, Nays 0;
    1-6  May 7, 1993, sent to printer.)
    1-7                            COMMITTEE VOTE
    1-8                          Yea     Nay      PNV      Absent 
    1-9        Sims               x                               
   1-10        Truan              x                               
   1-11        Armbrister         x                               
   1-12        Barrientos         x                               
   1-13        Bivins             x                               
   1-14        Brown              x                               
   1-15        Carriker           x                               
   1-16        Lucio              x                               
   1-17        Montford                                       x   
   1-18        Ratliff                                        x   
   1-19        Shelley            x                               
   1-20  COMMITTEE SUBSTITUTE FOR H.B. No. 1269              By:  Armbrister
   1-21                         A BILL TO BE ENTITLED
   1-22                                AN ACT
   1-23  relating to the powers of the Texas Water Development Board and the
   1-24  executive administrator of the board.
   1-25        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-26        SECTION 1.  Section 6.183, Water Code, is amended to read as
   1-27  follows:
   1-28        Sec. 6.183.  EMPLOYMENT OF PERSONNEL.  The executive
   1-29  administrator shall employ necessary personnel for the board.  The
   1-30  executive administrator may delegate powers and duties to deputy
   1-31  executive administrators.
   1-32        SECTION 2.  Section 15.011(b), Water Code, is amended to read
   1-33  as follows:
   1-34        (b)  After notice and hearing and subject to any limitations
   1-35  established by the General Appropriations Act, the board may
   1-36  transfer money from the fund to the loan fund created under
   1-37  Subchapter C of this chapter, the storage acquisition fund created
   1-38  under Subchapter E of this chapter, <and> the research and planning
   1-39  fund created under Subchapter F of this chapter, and the
   1-40  hydrographic survey account created under Subchapter M <L> of this
   1-41  chapter, provided the hydrographic survey account transfer does not
   1-42  exceed $425,000.
   1-43        SECTION 3.  Subsections 15.012(c) and (d), Water Code, are
   1-44  amended to read as follows:
   1-45        (c)  Money appropriated to the fund by the legislature for a
   1-46  specific purpose stated in Subchapter C, E, <or> F, or M <L> of
   1-47  this chapter shall be placed in the appropriate fund created by
   1-48  that subchapter.
   1-49        (d)  The money held in the fund may <will> be invested as
   1-50  provided by law for investment of money under Section 404.024,
   1-51  Government Code < in the water development fund in accordance with
   1-52  procedures in Chapter 401, Acts of the 60th Legislature, 1967, as
   1-53  amended (Article 6252-5a, Vernon's Texas Civil Statutes)>.
   1-54        SECTION 4.  Subchapter L, Chapter 15, Water Code, as added by
   1-55  Chapter 3, Acts of the 72nd Legislature, 1st Called Session, 1991,
   1-56  is relettered as Subchapter M, Chapter 15, Water Code, in order to
   1-57  eliminate duplicate citations, as follows:
   1-58            SUBCHAPTER M <L>.  HYDROGRAPHIC SURVEY PROGRAM
   1-59        SECTION 5.  Section 15.431(c), Water Code, is amended to read
   1-60  as follows:
   1-61        (c)  Money in the agricultural trust fund may be invested in
   1-62  the manner provided for investment of money under Section 404.024,
   1-63  Government Code <in the permanent school fund>.
   1-64        SECTION 6.  Section 15.602(1), Water Code, is amended to read
   1-65  as follows:
   1-66        Sec. 15.602.  Definitions.  In this subchapter:
   1-67              (1)  "Authorized investments" means<:>
   1-68                    <(A)  direct obligations of the United States;>
    2-1                    <(B)  other obligations unconditionally guaranteed
    2-2  by the United States;>
    2-3                    <(C)  obligations of the State of Texas;>
    2-4                    <(D)  obligations of cities, counties, and other
    2-5  political subdivisions of the state, except bonds issued to finance
    2-6  a project or treatment works described in this chapter; and>
    2-7                    <(E)>  any authorized investments described in
    2-8  Section 404.024, Government Code <2.014, Chapter 240, Acts of the
    2-9  69th Legislature, Regular Session, 1985 (Article 4393-1, Vernon's
   2-10  Texas Civil Statutes)>.
   2-11        SECTION 7.  Section 15.803, Water Code, is amended to read as
   2-12  follows:
   2-13        Sec. 15.803.  Use of Account.  Money in the account may be
   2-14  used only to pay the costs of surveys, the costs of insurance for
   2-15  watercraft and capital equipment, and the costs of capital
   2-16  equipment and personnel necessary to administer the program.
   2-17        SECTION 8.  Section 17.083, Water Code, is amended to read as
   2-18  follows:
   2-19        Sec. 17.083.  Investment of Reserve Money.  The board may
   2-20  invest any money credited to the development fund and not
   2-21  immediately required for its intended use and money in the interest
   2-22  and sinking fund and in the economically distressed areas interest
   2-23  and sinking fund, including the reserve portions of the interest
   2-24  and sinking fund and the economically distressed areas interest and
   2-25  sinking fund, in investments authorized by law for state deposits
   2-26  under Section 404.024, Government Code.
   2-27        SECTION 9.  Section 17.124, Water Code, is amended to read as
   2-28  follows:
   2-29        Sec. 17.124.  Considerations in Passing on Applications.
   2-30        <(a)>  In passing on an application from a political
   2-31  subdivision for financial assistance for a water supply project,
   2-32  the board shall consider:
   2-33              (1)  the needs of the area to be served by the water
   2-34  supply project, <and> the benefit of the water supply project to
   2-35  the area, the relationship of the water supply project to the
   2-36  overall, statewide water needs, and the relationship of the water
   2-37  supply project to the state water plan; and <in relation to the
   2-38  needs of other areas requiring state assistance in any manner and
   2-39  the benefits of those water supply projects to the other areas;>
   2-40              (2)  the availability of revenue to the political
   2-41  subdivision, from all sources, for the ultimate repayment of the
   2-42  cost of the water supply project, including interest. <;>
   2-43              <(3)  whether the political subdivision can reasonably
   2-44  finance the water supply project without assistance from the state;>
   2-45              <(4)  the relationship of the water supply project to
   2-46  the overall, statewide water needs; and>
   2-47              <(5)  the relationship of the water supply project to
   2-48  the state water plan.>
   2-49        <(b)  In passing on an application for financial assistance
   2-50  for regional facilities, water facilities for a political
   2-51  subdivision that is converting from groundwater to the use of
   2-52  surface water, or a water supply project that includes flood
   2-53  control, the board shall consider the factors set out for political
   2-54  subdivisions in Subsection (a) of this section except the board is
   2-55  not required to consider the factor set out in Subsection (3) of
   2-56  this subsection.>
   2-57        SECTION 10.  Section 17.125(a), Water Code, is amended to
   2-58  read as follows:
   2-59        Sec. 17.125.  Approval of Application.  (a)  The board by
   2-60  resolution may approve an application if, after considering the
   2-61  factors listed in Section 17.124 of this code and any other
   2-62  relevant factors, the board finds:
   2-63              (1)  that the public interest requires state assistance
   2-64  <participation> in the water supply project;
   2-65              (2)  <that the political subdivision cannot reasonably
   2-66  finance the water supply project without state assistance in the
   2-67  amount finally approved by the board;> and
   2-68              <(3)>  that in its opinion the revenue or taxes pledged
   2-69  by the political subdivision will be sufficient to meet all the
   2-70  obligations assumed by the political subdivision during the
    3-1  succeeding period of not more than 50 years.
    3-2        SECTION 11.  Section 17.126, Water Code, is repealed.
    3-3        <Sec. 17.126.  Findings for Regional Facilities.>
    3-4        <In approving an application for financial assistance for
    3-5  regional facilities, water facilities for a political subdivision
    3-6  that is converting from the use of groundwater to the use of
    3-7  surface water, or flood control measures, the board shall make the
    3-8  findings required by Subsection (a), Section 17.125 of this code,
    3-9  except the board is not required to make the finding set out in
   3-10  Subsection (2) of that subsection.>
   3-11        SECTION 12.  Section 17.275, Water Code, is amended to read
   3-12  as follows:
   3-13        Sec. 17.275.  Considerations in Passing on Application.
   3-14        <(a)>  In passing on an application from a political
   3-15  subdivision for financial assistance for water quality enhancement
   3-16  purposes, the board shall consider:
   3-17              (1)  the water quality needs of the waters into which
   3-18  effluent from the treatment works will be discharged, <and> the
   3-19  benefit of the treatment works to such water quality needs, the
   3-20  relationship of the treatment works to the overall, statewide water
   3-21  quality needs; and the relationship of the treatment works to water
   3-22  quality planning for the state; <in relation to the needs of other
   3-23  waters requiring state assistance in any manner and the benefits of
   3-24  those treatment works to the other waters;>
   3-25              (2)  the availability of revenue to the political
   3-26  subdivision, from all sources, for the ultimate repayment of the
   3-27  cost of the treatment works, including interest; and
   3-28              (3)  <whether the political subdivision can reasonably
   3-29  finance the treatment works without assistance from the state;>
   3-30              <(4)  the relationship of the treatment works to the
   3-31  overall, statewide water quality needs;>
   3-32              <(5)  the relationship of the treatment works to water
   3-33  quality planning for the state; and>
   3-34              <(6)>  whether the political subdivision has been
   3-35  designated, pursuant to Section 26.082 of this code, to provide a
   3-36  regional system to serve all or part of the waste disposal needs of
   3-37  a defined area, the development of such systems being the declared
   3-38  policy of the legislature.
   3-39        <(b)  In passing on an application for financial assistance
   3-40  for regional facilities, the board shall consider the factors set
   3-41  out for political subdivisions in Subsection (a) of this section
   3-42  except the board is not required to consider the factor set out in
   3-43  Subdivision (3) of that subsection.>
   3-44        SECTION 13.  Section 17.276(d) and (e), Water Code, is
   3-45  amended to read as follows:
   3-46        Sec. 17.276.  Action on Application.
   3-47        (d)  The board <commission> shall review and approve or
   3-48  disapprove plans and specifications for all sewerage collection,
   3-49  treatment, and disposal systems for which financial assistance is
   3-50  provided in any amount from water quality enhancement funds or
   3-51  funds granted under the Federal Water Pollution Control Act, as
   3-52  amended, in a manner that will satisfy commission requirements for
   3-53  <for compliance with> design criteria and permit conditions that
   3-54  apply to construction activities.  <established by the commission
   3-55  for sewerage system.>  <To avoid duplicate review and approval by two
   3-56  or more state agencies, review and approval of plans and
   3-57  specifications under this subsection by the Texas Department of
   3-58  Health is not required.>
   3-59        (e)  <Except as provided by Subsection (d) of this section,>
   3-60  The <the> deliberations, proposals, decisions, and other actions of
   3-61  the board under this subchapter do not require the concurrence or
   3-62  approval of any other governmental agency, board, commission,
   3-63  council, political subdivision, or other governmental entity.
   3-64        SECTION 14.  Section 17.277, Water Code, is amended to read
   3-65  as follows:
   3-66        Sec. 17.277.  Approval of Application.  (a)  The board by
   3-67  resolution may approve an application if, after considering the
   3-68  factors listed in Section 17.275 of this code and any other
   3-69  relevant factors, the board finds<:>
   3-70              <(1)>  that the public interest will benefit from state
    4-1  assistance <participation> in the financing of the treatment
    4-2  works.<; and>
    4-3              <(2)  that the political subdivision cannot reasonably
    4-4  finance the treatment works without state assistance in the amount
    4-5  finally approved by the board.>
    4-6        (b)  <In approving an application for financial assistance
    4-7  for regional facilities, the board shall make the finding required
    4-8  by Subsection (a)(1) of this section.>
    4-9        <(c)>  Before the board grants the application or provides any
   4-10  funds under an application, it shall require an applicant to adopt
   4-11  a program of water conservation for the more efficient use of water
   4-12  that incorporates the practices, techniques, or technology
   4-13  prescribed by Subdivision (23)(B), Section 17.001, of this code and
   4-14  that the board determines will meet reasonably anticipated local
   4-15  needs and conditions.  The program may include but is not limited
   4-16  to any or all of the following:
   4-17              (1)  restrictions on discretionary water uses, such as
   4-18  lawn watering;
   4-19              (2)  plumbing code standards for water conservation in
   4-20  new building construction;
   4-21              (3)  retrofit programs to improve water use efficiency
   4-22  in existing buildings;
   4-23              (4)  educational programs;
   4-24              (5)  universal metering;
   4-25              (6)  conservation-oriented water rate structures;
   4-26              (7)  drought contingency plans; and
   4-27              (8)  distribution system leak detection and repair.
   4-28        (c)<(d)>  The board may not require a program of water
   4-29  conservation to be adopted under Subsection (b) (c) of this section
   4-30  if:
   4-31              (1)  an emergency exists as determined by the board;
   4-32              (2)  the amount of financial assistance to be provided
   4-33  is $500,000 or less; or
   4-34              (3)  the applicant demonstrates and the board finds
   4-35  that the submission of such a program is not reasonably necessary
   4-36  to facilitate conservation or conservation measures.
   4-37        (d)<(e)>  To the extent funds are available, the board shall
   4-38  establish an educational and technical assistance program to assist
   4-39  political subdivisions in developing comprehensive water
   4-40  conservation plans required by this section and other sections of
   4-41  this code.
   4-42        (e)<(f)>  If the political subdivision will utilize the
   4-43  project to furnish water or services to another political
   4-44  subdivision that in turn will furnish the water or services to the
   4-45  ultimate consumer, the requirements of the board relative to water
   4-46  conservation can be met through contractual agreements between the
   4-47  political subdivisions providing for establishment of a water
   4-48  conservation plan and other measures.
   4-49        (f)<(g)>  Rules adopted under this section must state the
   4-50  criteria for preparation, review, and enforcement of an applicant's
   4-51  conservation program.
   4-52        SECTION 15.  Section 17.899(a), Water Code, is amended to
   4-53  read as follows:
   4-54        (a)  The board may approve an application if, after
   4-55  considering the factors in Section 17.898 and other relevant
   4-56  factors, the board finds that:
   4-57              (1)  the public interest would be served in granting
   4-58  the application;
   4-59              (2)  a lender district has the ability to make
   4-60  conservation loans, manage a conservation loan program, and repay
   4-61  the loan to the board;
   4-62              (3)  a borrower district has the ability to repay
   4-63  <prepay> the conservation loan; and
   4-64              (4)  granting the application will further water
   4-65  conservation in the state.
   4-66        SECTION 16.  The importance of this legislation and the
   4-67  crowded condition of the calendars in both houses create an
   4-68  emergency and an imperative public necessity that the
   4-69  constitutional rule requiring bills to be read on three several
   4-70  days in each house be suspended, and this rule is hereby suspended,
    5-1  and that this Act take effect and be in force from and after its
    5-2  passage, and it is so enacted.
    5-3                               * * * * *
    5-4                                                         Austin,
    5-5  Texas
    5-6                                                         May 7, 1993
    5-7  Hon. Bob Bullock
    5-8  President of the Senate
    5-9  Sir:
   5-10  We, your Committee on Natural Resources to which was referred H.B.
   5-11  No. 1269, have had the same under consideration, and I am
   5-12  instructed to report it back to the Senate with the recommendation
   5-13  that it do not pass, but that the Committee Substitute adopted in
   5-14  lieu thereof do pass and be printed.
   5-15                                                         Sims,
   5-16  Chairman
   5-17                               * * * * *
   5-18                               WITNESSES
   5-19                                                  FOR   AGAINST  ON
   5-20  ___________________________________________________________________
   5-21  Name:  Dan A. Black                                            x
   5-22  Representing:  Tx Water Development Board
   5-23  City:  Austin
   5-24  -------------------------------------------------------------------
   5-25  Name:  Craig Pedersen                                          x
   5-26  Representing:  Tx Water Development Board
   5-27  City:  Austin
   5-28  -------------------------------------------------------------------