By:  Truan, et al.                                     S.B. No. 953
                                 A BILL TO BE ENTITLED
                                        AN ACT
    1-1  relating to regional planning of water supply or sewer services for
    1-2  an area eligible for economically distressed area program financial
    1-3  assistance.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 13.244, Water Code, is amended by adding
    1-6  Subsection (d) to read as follows:
    1-7        (d)  Each applicant for a certificate for an area eligible
    1-8  for financial assistance under Subchapter K, Chapter 17, shall file
    1-9  with the commission evidence that the applicant's proposed water
   1-10  supply or sewer services have been certified as consistent with
   1-11  regional water supply and sewer service planning under Section
   1-12  17.952.  This subsection does not apply to an applicant for a
   1-13  certificate for an area located in a region described by Section
   1-14  17.958.
   1-15        SECTION 2.  Section 13.246, Water Code, is amended by adding
   1-16  Subsections (d) and (e) to read as follows:
   1-17        (d)  The commission shall deny an application for a
   1-18  certificate to serve an area eligible for financial assistance
   1-19  under Subchapter K, Chapter 17, unless the application is certified
   1-20  to be consistent with regional water supply and sewer service
   1-21  planning under Section 17.952.  This subsection does not apply to
   1-22  an applicant for a certificate for an area located in a region
   1-23  described by Section 17.958.
    2-1        (e)  The commission shall deny an application for a
    2-2  certificate to serve an area eligible for financial assistance
    2-3  under Subchapter K, Chapter 17, if the area is included in a
    2-4  certificate held by a retail public utility that is indebted to the
    2-5  United States government under a program administered under 7
    2-6  U.S.C. Section 1926.
    2-7        SECTION 3.  Chapter 17, Water Code, is amended by adding
    2-8  Subchapter L to read as follows:
    2-9     SUBCHAPTER L.  REGIONAL PLANNING OF WATER AND SEWER SERVICES
   2-10        Sec. 17.951.  DEFINITION.  In this subchapter, "hazardous
   2-11  flood zone" means an area identified as within the 100-year
   2-12  floodplain by the Federal Emergency Management Agency pursuant to
   2-13  the National Flood Insurance Act of 1968, as amended (42 U.S.C.
   2-14  Sections 4001 through 4127).
   2-15        Sec. 17.952.  WATER SUPPLY AND SEWER SERVICE CERTIFICATION.
   2-16  (a)  A person who proposes to supply water or sewer services within
   2-17  an economically distressed area eligible for financial assistance
   2-18  under Subchapter K shall apply to the regional planning commission
   2-19  created for the area under Chapter 391, Local Government Code, for
   2-20  certification that the proposed  water supply or sewer services do
   2-21  not conflict with any regional water supply or sewer service plan
   2-22  or policy.
   2-23        (b)  Not later than 10 days after the date that the
   2-24  application is made, the applicant shall publish public notice of
   2-25  its application in a newspaper of general circulation in the
    3-1  economically distressed area and, by mail, shall notify of its
    3-2  application any potentially involved county, municipality, or
    3-3  provider of water supply or sewer services identified by the
    3-4  regional planning commission.  The notice shall request that
    3-5  objections to the application be delivered to the regional planning
    3-6  commission within 30 days after the date of the notice.
    3-7        (c)  If the regional planning commission does not receive an
    3-8  objection to the proposed water supply or sewer services before the
    3-9  31st day after the date the notice is published and mailed, the
   3-10  regional planning commission may certify that the services are
   3-11  consistent with regional water supply and sewer service planning
   3-12  without a hearing.
   3-13        (d)  If the regional planning commission receives an
   3-14  objection to the proposed water supply or sewer services before the
   3-15  31st day after the date that notice is given, the regional planning
   3-16  commission shall set a public hearing on the application.  The
   3-17  regional planning commission shall provide notice of the hearing to
   3-18  all interested parties and shall publish public notice in a
   3-19  newspaper of general circulation in the economically distressed
   3-20  area not later than the 14th day before the date of the hearing.
   3-21        (e)  The regional planning commission may combine hearings on
   3-22  competing proposals for water supply or sewer services after notice
   3-23  is given as provided by Subsections (b) and (d).
   3-24        (f)  The regional planning commission may consider written
   3-25  testimony concerning an objection to the proposed services.  The
    4-1  regional planning commission shall make written testimony available
    4-2  for public examination.
    4-3        (g)  The regional planning commission may call a recess on
    4-4  the motion of an interested party or on its own motion to allow
    4-5  parties to negotiate a settlement of any issue in dispute.  The
    4-6  regional planning commission may provide mediation services to
    4-7  negotiating parties.
    4-8        (h)  In determining whether the proposed water supply or
    4-9  sewer services are consistent with regional planning for the
   4-10  services, the regional planning commission shall consider:
   4-11              (1)  whether the proposed services best meet the needs
   4-12  of the economically distressed area;
   4-13              (2)  any alternative proposals for water supply or
   4-14  sewer services;
   4-15              (3)  the criteria for obtaining a certificate of
   4-16  convenience and necessity under Sections 13.246(b) and (c);
   4-17              (4)  the factors for approval of financial assistance
   4-18  provided by Section 17.929 or under a federal financial assistance
   4-19  program, to the degree applicable;
   4-20              (5)  whether the proposed services comply with minimum
   4-21  state standards for water supply and sewer services adopted under
   4-22  Section 16.342 and the model rules prepared under Section 16.343;
   4-23              (6)  whether the proposed services would interfere with
   4-24  other service providers;
   4-25              (7)  whether the area to be served or any proposed
    5-1  service facility is in a flood zone; and
    5-2              (8)  other factors the commission determines are
    5-3  applicable.
    5-4        (i)  The regional planning commission shall certify as
    5-5  consistent with regional planning for water supply or sewer
    5-6  services an applicant's proposed water supply or sewer service plan
    5-7  if the proposed plan was in existence before September 1, 1995, and
    5-8  any portion of the plan was financed, constructed, or providing
    5-9  services before September 1, 1995.
   5-10        (j)  The commission and the board shall assist the regional
   5-11  planning commission in conducting the hearing, evaluating proposals
   5-12  and testimony, and coordinating any negotiation by or mediation
   5-13  between the parties.
   5-14        (k)  This section does not apply to water supply or sewer
   5-15  services proposed for an area not served by a regional planning
   5-16  commission created under Chapter 391, Local Government Code.
   5-17        Sec. 17.953.  COORDINATION OF REGIONAL WATER SUPPLY AND SEWER
   5-18  SERVICES IN CERTAIN AREAS.  (a)  A regional planning commission
   5-19  created under Chapter 391, Local Government Code, whose region
   5-20  contains an area eligible for financial assistance under Subchapter
   5-21  K of this chapter shall coordinate water supply and sewer service
   5-22  planning in the eligible area.
   5-23        (b)  The regional planning commission shall assess and foster
   5-24  opportunities to address inadequate water supply or sewer services
   5-25  in the eligible area:
    6-1              (1)  by cooperation of political subdivisions and other
    6-2  entities able to provide the services;
    6-3              (2)  with a single, regionwide, water and sewer
    6-4  development policy; and
    6-5              (3)  through peer review to enhance the efficiency and
    6-6  quality of proposals for water supply or sewer service projects.
    6-7        (c)  The regional planning commission shall assist and advise
    6-8  a political subdivision that applies for financial assistance to
    6-9  construct a water supply or sewer service project in the eligible
   6-10  area.
   6-11        (d)  The commission and the board shall assist the regional
   6-12  planning commission in performing its duties under this subchapter
   6-13  by training regional planning commission staff and advising the
   6-14  regional planning commission on substantive and procedural issues
   6-15  relating to water and sewer service development.
   6-16        Sec. 17.954.  RELOCATION FINANCING.  (a)  The board may use
   6-17  the funds in the economically distressed areas account, which are
   6-18  not restricted in use under the constitution, law, or agreement
   6-19  pursuant to which the funds have been deposited in such account, to
   6-20  provide financial assistance to a regional planning commission
   6-21  created under Chapter 391, Local Government Code, that undertakes
   6-22  to relocate individuals who are living in a hazardous flood zone
   6-23  within an economically distressed area, as defined by Section
   6-24  17.921 of this code.
   6-25        (b)  Money from the account, which is not restricted in use
    7-1  under the constitution, law, or agreement pursuant to which the
    7-2  funds have been deposited in such account, may be used to purchase
    7-3  property in a hazardous flood zone and for expenses related to
    7-4  relocation of individuals living in the flood zone.
    7-5        Sec. 17.955.  REIMBURSEMENT FOR REGIONAL PLANNING EXPENSES.
    7-6  On application of a regional planning commission created under
    7-7  Chapter 391, Local Government Code, whose region contains an area
    7-8  eligible for financial assistance under Subchapter K of this
    7-9  chapter, the board shall use money in the economically distressed
   7-10  areas account, which is not restricted in use under the
   7-11  constitution, law, or agreement pursuant to which the funds have
   7-12  been deposited in such account, to reimburse the regional planning
   7-13  commission for necessary expenses incurred in performing its duties
   7-14  under this subchapter.
   7-15        Sec. 17.956.  APPLICATIONS AND CONSIDERATIONS FOR RELOCATION
   7-16  AND REIMBURSEMENT COSTS.  (a)  The board shall adopt rules which
   7-17  identify the form and substance of an application for financial
   7-18  assistance under Section 17.954.
   7-19        (b)  The board shall adopt rules which identify the form and
   7-20  substance of an application for reimbursement of the necessary
   7-21  expenses incurred by a regional planning commission created under
   7-22  Chapter 391, Local Government Code, in performing its duties under
   7-23  this subchapter.
   7-24        Sec. 17.957.  COORDINATION OF PRESENTATIONS TO BORDER
   7-25  ENVIRONMENTAL COOPERATION COUNCIL.  A regional planning commission
    8-1  created under Chapter 391, Local Government Code, whose region
    8-2  contains an area eligible for financial assistance under Subchapter
    8-3  K of this chapter may coordinate and facilitate presentations to
    8-4  the Border Environmental Cooperation Council that concern water
    8-5  supply and wastewater issues in the area.
    8-6        Sec. 17.958.  APPLICABILITY.  This subchapter does not apply
    8-7  to a proposal to supply water or sewer services in a region for
    8-8  which a regional planning commission was created under Chapter 391,
    8-9  Local Government Code, if the planning commission's region includes
   8-10  a county that:
   8-11              (1)  is located on an international border; and
   8-12              (2)  has a population of more than 575,000.
   8-13        SECTION 4.  This Act takes effect September 1, 1995.
   8-14        SECTION 5.  The importance of this legislation and the
   8-15  crowded condition of the calendars in both houses create an
   8-16  emergency and an imperative public necessity that the
   8-17  constitutional rule requiring bills to be read on three several
   8-18  days in each house be suspended, and this rule is hereby suspended.