By: Montford S.B. No. 879
73R5450 MI-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to financial assistance for and economic development of
1-3 economically distressed areas and border counties.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The legislature finds that:
1-6 (1) an adequate water supply and wastewater
1-7 infrastructure is necessary and integral to the long-term economic
1-8 growth and industrial development in the counties eligible for
1-9 funding under the economically distressed areas program;
1-10 (2) economically distressed areas, by definition, are
1-11 located in counties in which unemployment over the most recent
1-12 three consecutive years averages 25 percent above the statewide
1-13 average and in which the per capita income for the most recent
1-14 three consecutive years averaged 25 percent below the state
1-15 average;
1-16 (3) the further implementation of the economically
1-17 distressed areas program can provide greater benefits to the
1-18 long-term economic growth of the areas eligible for that funding by
1-19 considering the feasibility of regional facilities for water supply
1-20 and wastewater service;
1-21 (4) innovative science and technologies have been and
1-22 will be further advanced through the use of funds provided by the
1-23 economically distressed areas program; and
1-24 (5) the state, in cooperation with local governments
2-1 in counties with economically distressed areas, working with the
2-2 water research and technology community and with funds that may be
2-3 received from the federal government, has used and can continue to
2-4 use the funds made available in the economically distressed areas
2-5 program to create innovations in the provision of water supply and
2-6 wastewater service.
2-7 SECTION 2. Section 15.001(11), Water Code, is amended to
2-8 read as follows:
2-9 (11) "Economically distressed area" means:
2-10 (A) an area in which water supply or sewer
2-11 services are inadequate to meet minimal needs of residential users
2-12 as defined by board rules and in which financial resources are
2-13 inadequate to provide water supply or sewer services that will
2-14 satisfy those needs; or
2-15 (B) for purposes of any federal funds received
2-16 for assistance for low-income areas and deposited into the water
2-17 assistance fund, an area that meets the federal criteria for use of
2-18 the federal funds.
2-19 SECTION 3. Section 15.012(b), Water Code, is amended to read
2-20 as follows:
2-21 (b) Money <Revenues accumulated pursuant to Article VIII,
2-22 Section 24(b), of the Texas Constitution and money> appropriated by
2-23 the legislature to the fund shall be deposited in this fund. Gifts
2-24 or grants from the federal government, state agencies, local or
2-25 regional governments, private sources, or other sources may be
2-26 deposited in this fund.
2-27 SECTION 4. Section 17.0112(a), Water Code, is amended to
3-1 read as follows:
3-2 (a) The board may issue not more than $25 million in bonds
3-3 dedicated under Section 17.0111 of this code during a fiscal
3-4 <calendar> year to provide financial assistance for water supply
3-5 and sewer services as provided under Subchapter K of this chapter.
3-6 SECTION 5. Section 17.072(j), Water Code, is amended to read
3-7 as follows:
3-8 (j) Proceeds from the sale of bonds pursuant to Section
3-9 17.0111 of this code, together with proceeds, other than accrued
3-10 interest, from the sale, refunding, or prepayment of political
3-11 subdivision bonds acquired in carrying out the purposes provided by
3-12 Subchapter K of this chapter, shall be deposited in a special
3-13 account in the development fund designated as the economically
3-14 distressed areas account, with other money for deposit in that
3-15 account as provided by this chapter, the General Appropriations
3-16 Act, or other law of this state. Money from gifts or grants from
3-17 the federal government, state agencies, local or regional
3-18 governments, private sources, or other sources for the purposes of
3-19 assisting economically distressed areas also may be deposited into
3-20 the economically distressed areas account. Within the economically
3-21 distressed areas account, separate accounts may be created for
3-22 bonds issued for purposes of Article III, Section 49-c, of the
3-23 Texas Constitution, and bonds issued for purposes of Article III,
3-24 Section 49-d-1, of the Texas Constitution.
3-25 SECTION 6. Section 17.922, Water Code, is amended to read as
3-26 follows:
3-27 Sec. 17.922. Financial Assistance. The economically
4-1 distressed areas account may be used by the board to provide
4-2 financial assistance to political subdivisions for the
4-3 construction, acquisition, or improvement of water supply and sewer
4-4 services, including providing funds from the account for the
4-5 state's participation in federal programs that provide assistance
4-6 to political subdivisions. To the extent practicable, the board
4-7 shall use the money in the economically distressed areas account in
4-8 conjunction with other financial assistance available through the
4-9 board to encourage the use of cost-effective water supply and
4-10 wastewater systems, including regional systems, to maximize the
4-11 long-term economic development of counties eligible for financial
4-12 assistance under the economically distressed areas program.
4-13 SECTION 7. Section 17.924, Water Code, is amended to read as
4-14 follows:
4-15 Sec. 17.924. Municipality Eligible for Financial Assistance.
4-16 A municipality that is located in a county that is eligible for
4-17 financial assistance under Section 17.923 <17.883> of this code is
4-18 eligible for financial assistance under this subchapter if the
4-19 municipality adopts the model rules developed under Section 16.343
4-20 of this code.
4-21 SECTION 8. Section 17.929(a), Water Code, is amended to read
4-22 as follows:
4-23 (a) In passing on an application for financial assistance,
4-24 the board shall consider:
4-25 (1) the need of the economically distressed area to be
4-26 served by the water supply and sewer services in relation to the
4-27 need of other political subdivisions requiring financial assistance
5-1 under this subchapter and the relative costs and benefits of all
5-2 applications;
5-3 (2) efforts by the residents of the economically
5-4 distressed area to provide necessary water supply and sewer
5-5 services;
5-6 (3) the proposed use of labor from inside the
5-7 political subdivision to perform contracts for providing water
5-8 supply and sewer services;
5-9 (4) the relationship of the proposed water supply and
5-10 sewer services to minimum state standards for water supply and
5-11 sewer services adopted under Section 16.343 of this code;
5-12 (5) the financing of the proposed water supply and
5-13 sewer project including consideration of:
5-14 (A) the budget and repayment schedule submitted
5-15 under Section 17.927(b)(4) <17.887(b)(4)> of this code;
5-16 (B) other items included in the application
5-17 relating to financing; and
5-18 (C) other financial information and data
5-19 available to the board;<.>
5-20 (6) whether the applicant has proposed methods for
5-21 incorporating water conservation into the provision of water and
5-22 sewer services to the economically distressed area;
5-23 (7) whether the county as adopted model rules pursuant
5-24 to Section 16.343 of this code and the manner of enforcement of
5-25 model rules;
5-26 (8) the feasibility of creating a conservation and
5-27 reclamation district under Article XVI, Section 59, of the Texas
6-1 Constitution, to provide the services and finance the water supply
6-2 and sewer services covered by the application with district bonds
6-3 issued and sold through the regular bond market; <and>
6-4 (9) the percentage of the total project cost that the
6-5 financial assistance will comprise; and
6-6 (10) the feasibility of achieving cost savings by
6-7 providing a regional facility for water supply or wastewater
6-8 service and of financing that facility by using money from the
6-9 economically distressed areas account or any other financial
6-10 assistance.
6-11 SECTION 9. Section 17.930(b), Water Code, is amended to read
6-12 as follows:
6-13 (b) After making the considerations provided by Section
6-14 17.929 <17.889> of this code, the board by resolution shall approve
6-15 or disapprove the application and shall notify the applicant in
6-16 writing of its decision.
6-17 SECTION 10. Sections 17.933(a), (c), (d), and (e), Water
6-18 Code, are amended to read as follows:
6-19 (a) The board may use money in the economically distressed
6-20 areas account to provide financial assistance to a political
6-21 subdivision to be repaid in the form, manner, and time provided by
6-22 board rules and in the agreement between the board and the
6-23 political subdivision taking into consideration the information
6-24 provided by Section 17.927 <17.887>(b)(7) of this code.
6-25 (c) The total amount of financial assistance provided by the
6-26 board to political subdivisions under this subchapter from
6-27 state-issued bonds for which repayment is not required may not
7-1 exceed at any time 75 percent of the total principal amount of
7-2 issued and unissued bonds authorized under Article III, Section
7-3 49-d-7, of the Texas Constitution, for purposes of this subchapter
7-4 plus outstanding interest on those bonds.
7-5 (d) In determining the amount and form of financial
7-6 assistance and the amount and form of repayment, if any, the board
7-7 shall consider:
7-8 (1) rates, fees, and charges that the average customer
7-9 to be served by the project will be able to pay based on a
7-10 comparison of what other families of similar income who are
7-11 similarly situated pay for comparable services;
7-12 (2) sources of funding available to the political
7-13 subdivision from federal and private funds and from other state
7-14 funds; and
7-15 (3) any local funds of the political subdivision to be
7-16 served by the project if the economically distressed area to be
7-17 served by the board's financial assistance is within the boundary
7-18 of the political subdivision; and
7-19 (4) the funding necessary for the applicant to realize
7-20 any cost savings that may be achieved by providing a regional
7-21 facility for water supply or wastewater service for areas beyond
7-22 the economically distressed area under consideration.
7-23 (e) In making its determination under Subsection
7-24 (d) <(b)>(1) of this section, the board may consider any study,
7-25 survey, data, criteria, or standard developed or prepared by any
7-26 federal, state, or local agency, private foundation, banking or
7-27 financial institution, or other reliable source of statistical or
8-1 financial data or information.
8-2 SECTION 11. The importance of this legislation and the
8-3 crowded condition of the calendars in both houses create an
8-4 emergency and an imperative public necessity that the
8-5 constitutional rule requiring bills to be read on three several
8-6 days in each house be suspended, and this rule is hereby suspended,
8-7 and that this Act take effect and be in force from and after its
8-8 passage, and it is so enacted.