1-1  By:  Truan, et al.                                     S.B. No. 953
    1-2        (In the Senate - Filed March 7, 1995; March 7, 1995, read
    1-3  first time and referred to Committee on Natural Resources;
    1-4  April 18, 1955, reported adversely, with favorable Committee
    1-5  Substitute by the following vote:  Yeas 9, Nays 0; April 18, 1995,
    1-6  sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 953                    By:  Truan
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to regional planning of water supply or sewer services for
   1-11  an area eligible for economically distressed area program financial
   1-12  assistance.
   1-13        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-14        SECTION 1.  Section 13.244, Water Code, is amended by adding
   1-15  Subsection (d) to read as follows:
   1-16        (d)  Each applicant for a certificate for an area eligible
   1-17  for financial assistance under Subchapter K, Chapter 17, shall file
   1-18  with the commission evidence that the applicant's proposed water
   1-19  supply or sewer services have been certified as consistent with
   1-20  regional water supply and sewer service planning under Section
   1-21  17.952.  This subsection does not apply to an applicant for a
   1-22  certificate for an area located in a region described by Section
   1-23  17.958.
   1-24        SECTION 2.  Section 13.246, Water Code, is amended by adding
   1-25  Subsections (d) and (e) to read as follows:
   1-26        (d)  The commission shall deny an application for a
   1-27  certificate to serve an area eligible for financial assistance
   1-28  under Subchapter K, Chapter 17, unless the application is certified
   1-29  to be consistent with regional water supply and sewer service
   1-30  planning under Section 17.952.  This subsection does not apply to
   1-31  an applicant for a certificate for an area located in a region
   1-32  described by Section 17.958.
   1-33        (e)  The commission shall deny an application for a
   1-34  certificate to serve an area eligible for financial assistance
   1-35  under Subchapter K, Chapter 17, if the area is included in a
   1-36  certificate held by a retail public utility that is indebted to the
   1-37  United States government under a program administered under 7
   1-38  U.S.C. Section 1926.
   1-39        SECTION 3.  Chapter 17, Water Code, is amended by adding
   1-40  Subchapter L to read as follows:
   1-41     SUBCHAPTER L.  REGIONAL PLANNING OF WATER AND SEWER SERVICES
   1-42        Sec. 17.951.  DEFINITION.  In this subchapter, "hazardous
   1-43  flood zone" means an area identified as within the 100-year
   1-44  floodplain by the Federal Emergency Management Agency pursuant to
   1-45  the National Flood Insurance Act of 1968, as amended (42 U.S.C.
   1-46  Sections 4001 through 4127).
   1-47        Sec. 17.952.  WATER SUPPLY AND SEWER SERVICE CERTIFICATION.
   1-48  (a)  A person who proposes to supply water or sewer services within
   1-49  an economically distressed area eligible for financial assistance
   1-50  under Subchapter K shall apply to the regional planning commission
   1-51  created for the area under Chapter 391, Local Government Code, for
   1-52  certification that the proposed  water supply or sewer services do
   1-53  not conflict with any regional water supply or sewer service plan
   1-54  or policy.
   1-55        (b)  Not later than 10 days after the date that the
   1-56  application is made, the applicant shall publish public notice of
   1-57  its application in a newspaper of general circulation in the
   1-58  economically distressed area and, by mail, shall notify of its
   1-59  application any potentially involved county, municipality, or
   1-60  provider of water supply or sewer services identified by the
   1-61  regional planning commission.  The notice shall request that
   1-62  objections to the application be delivered to the regional planning
   1-63  commission within 30 days after the date of the notice.
   1-64        (c)  If the regional planning commission does not receive an
   1-65  objection to the proposed water supply or sewer services before the
   1-66  31st day after the date the notice is published and mailed, the
   1-67  regional planning commission may certify that the services are
   1-68  consistent with regional water supply and sewer service planning
    2-1  without a hearing.
    2-2        (d)  If the regional planning commission receives an
    2-3  objection to the proposed water supply or sewer services before the
    2-4  31st day after the date that notice is given, the regional planning
    2-5  commission shall set a public hearing on the application.  The
    2-6  regional planning commission shall provide notice of the hearing to
    2-7  all interested parties and shall publish public notice in a
    2-8  newspaper of general circulation in the economically distressed
    2-9  area not later than the 14th day before the date of the hearing.
   2-10        (e)  The regional planning commission may combine hearings on
   2-11  competing proposals for water supply or sewer services after notice
   2-12  is given as provided by Subsections (b) and (d).
   2-13        (f)  The regional planning commission may consider written
   2-14  testimony concerning an objection to the proposed services.  The
   2-15  regional planning commission shall make written testimony available
   2-16  for public examination.
   2-17        (g)  The regional planning commission may call a recess on
   2-18  the motion of an interested party or on its own motion to allow
   2-19  parties to negotiate a settlement of any issue in dispute.  The
   2-20  regional planning commission may provide mediation services to
   2-21  negotiating parties.
   2-22        (h)  In determining whether the proposed water supply or
   2-23  sewer services are consistent with regional planning for the
   2-24  services, the regional planning commission shall consider:
   2-25              (1)  whether the proposed services best meet the needs
   2-26  of the economically distressed area;
   2-27              (2)  any alternative proposals for water supply or
   2-28  sewer services;
   2-29              (3)  the criteria for obtaining a certificate of
   2-30  convenience and necessity under Sections 13.246(b) and (c);
   2-31              (4)  the factors for approval of financial assistance
   2-32  provided by Section 17.929 or under a federal financial assistance
   2-33  program, to the degree applicable;
   2-34              (5)  whether the proposed services comply with minimum
   2-35  state standards for water supply and sewer services adopted under
   2-36  Section 16.342 and the model rules prepared under Section 16.343;
   2-37              (6)  whether the proposed services would interfere with
   2-38  other service providers;
   2-39              (7)  whether the area to be served or any proposed
   2-40  service facility is in a flood zone; and
   2-41              (8)  other factors the commission determines are
   2-42  applicable.
   2-43        (i)  The regional planning commission shall certify as
   2-44  consistent with regional planning for water supply or sewer
   2-45  services an applicant's proposed water supply or sewer service plan
   2-46  if the proposed plan was in existence before September 1, 1995, and
   2-47  any portion of the plan was financed, constructed, or providing
   2-48  services before September 1, 1995.
   2-49        (j)  The commission and the board shall assist the regional
   2-50  planning commission in conducting the hearing, evaluating proposals
   2-51  and testimony, and coordinating any negotiation by or mediation
   2-52  between the parties.
   2-53        (k)  This section does not apply to water supply or sewer
   2-54  services proposed for an area not served by a regional planning
   2-55  commission created under Chapter 391, Local Government Code.
   2-56        Sec. 17.953.  COORDINATION OF REGIONAL WATER SUPPLY AND SEWER
   2-57  SERVICES IN CERTAIN AREAS.  (a)  A regional planning commission
   2-58  created under Chapter 391, Local Government Code, whose region
   2-59  contains an area eligible for financial assistance under Subchapter
   2-60  K of this chapter shall coordinate water supply and sewer service
   2-61  planning in the eligible area.
   2-62        (b)  The regional planning commission shall assess and foster
   2-63  opportunities to address inadequate water supply or sewer services
   2-64  in the eligible area:
   2-65              (1)  by cooperation of political subdivisions and other
   2-66  entities able to provide the services;
   2-67              (2)  with a single, regionwide, water and sewer
   2-68  development policy; and
   2-69              (3)  through peer review to enhance the efficiency and
   2-70  quality of proposals for water supply or sewer service projects.
    3-1        (c)  The regional planning commission shall assist and advise
    3-2  a political subdivision who applies for financial assistance to
    3-3  construct a water supply or sewer service project in the eligible
    3-4  area.
    3-5        (d)  The commission and the board shall assist the regional
    3-6  planning commission in performing its duties under this subchapter
    3-7  by training regional planning commission staff and advising the
    3-8  regional planning commission on substantive and procedural issues
    3-9  relating to water and sewer service development.
   3-10        Sec. 17.954.  RELOCATION FINANCING.  (a)  The board may use
   3-11  the funds in the economically distressed areas account, which are
   3-12  not restricted in use under the constitution, law, or agreement
   3-13  pursuant to which the funds have been deposited in such account, to
   3-14  provide financial assistance to a regional planning commission
   3-15  created under Chapter 391, Local Government Code, that undertakes
   3-16  to relocate individuals who are living in a hazardous flood zone
   3-17  within an economically distressed area, as defined by Section
   3-18  17.921 of this code.
   3-19        (b)  Money from the account, which is not restricted in use
   3-20  under the constitution, law, or agreement pursuant to which the
   3-21  funds have been deposited in such account, may be used to purchase
   3-22  property in a hazardous flood zone and for expenses related to
   3-23  relocation of individuals living in the flood zone.
   3-24        Sec. 17.955.  REIMBURSEMENT FOR REGIONAL PLANNING EXPENSES.
   3-25  On application of a regional planning commission created under
   3-26  Chapter 391, Local Government Code, whose region contains an area
   3-27  eligible for financial assistance under Subchapter K of this
   3-28  chapter, the board shall use money in the economically distressed
   3-29  areas account, which is not restricted in use under the
   3-30  constitution, law, or agreement pursuant to which the funds have
   3-31  been deposited in such account, to reimburse the regional planning
   3-32  commission for necessary expenses incurred in performing its duties
   3-33  under this subchapter.
   3-34        Sec. 17.956.  APPLICATIONS AND CONSIDERATIONS FOR RELOCATION
   3-35  AND REIMBURSEMENT COSTS.  (a)  The board shall adopt rules which
   3-36  identify the form and substance of an application for financial
   3-37  assistance under Section 17.954.
   3-38        (b)  The board shall adopt rules which identify the form and
   3-39  substance of an application for reimbursement of the necessary
   3-40  expenses incurred by a regional planning commission created under
   3-41  Chapter 391, Local Government Code, in performing its duties under
   3-42  this subchapter.
   3-43        Sec. 17.957.  COORDINATION OF PRESENTATIONS TO BORDER
   3-44  ENVIRONMENTAL COOPERATION COUNCIL.  A regional planning commission
   3-45  created under Chapter 391, Local Government Code, whose region
   3-46  contains an area eligible for financial assistance under Subchapter
   3-47  K of this chapter may coordinate and facilitate presentations to
   3-48  the Border Environmental Cooperation Council that concern water
   3-49  supply and wastewater issues in the area.
   3-50        Sec. 17.958.  APPLICABILITY.  This subchapter does not apply
   3-51  to a proposal to supply water or sewer services in a region for
   3-52  which a regional planning commission was created under Chapter 391,
   3-53  Local Government Code, if the planning commission's region includes
   3-54  a county that:
   3-55              (1)  is located on an international border; and
   3-56              (2)  has a population of more than 575,000.
   3-57        SECTION 4.  This Act takes effect September 1, 1995.
   3-58        SECTION 5.  The importance of this legislation and the
   3-59  crowded condition of the calendars in both houses create an
   3-60  emergency and an imperative public necessity that the
   3-61  constitutional rule requiring bills to be read on three several
   3-62  days in each house be suspended, and this rule is hereby suspended.
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