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.