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