BILL ANALYSIS


                                                        H.B. 2875
                                            By: Johnson (Sponsor)
                                                Natural Resources
                                                          5-11-95
                              Senate Committee Report (Unamended)
BACKGROUND

Under the Economically Distressed Areas Program, counties that
receive facility planning funds may not be eligible for
construction funding if economic improvements occur within the
county.

PURPOSE

As proposed, H.B. 2875 authorizes the continued eligibility for
assistance of certain areas formerly classified as economically
distressed areas.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not grant any
additional rulemaking authority to a state officer, institution, or
agency.

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 15.407, Water Code, by adding Subsection
(g), to provide that a political subdivision continues to be
eligible for the funds under this section for the cost of facility
engineering in economically distressed areas if, after submission
of an application under this section a county has an increase in
average per capita income or a decrease in unemployment rate
average so that the county no longer meets the definition of an
affected county in Section 16.341.  Requires the Texas Water
Development Board (board) to process the application for facility
engineering and, if the application is approved, to provide funds
for the facility engineering plan to the political subdivision.

SECTION 2. Amends Section 17.926, Water Code, to provide that the
political subdivision that submits an application under Subchapter
K relating to water supply and sewer service projects or an
application for funds under Section 15.407 continues to be eligible
for the financial assistance under this subchapter under certain
conditions.

SECTION 3. Provides that the change in law made by Section
15.407(g), Water Code, and Section 17.926, Water Code, as amended
by this Act, applies only to an application for assistance
submitted by a political subdivision receiving funds on the
effective date of this Act from the board for the payment of costs
of preparation of a facility engineering plan in an economically
distressed area, or to an application that is pending before the
board on the effective date of this Act or submitted to the board
on or after the effective date of this Act.

SECTION 4. Emergency clause.
           Effective date: upon passage.