JBM S.B. 844 75(R) BILL ANALYSIS NATURAL RESOURCES S.B. 844 By: Truan, Lucio, West (Oliveira) 5-15-97 Committee Report (Amended) BACKGROUND The International Relations, Trade & Technology Committee (IRTT Committee) study on the progress of the correction of problems in the colonias found that the Economically Distressed Areas Program (EDAP), which builds water and sewer service systems in the colonias, is making good progress. However, EDAP does not provide the connections between residences and the water or sewer systems. It only provides the systems. S.B. 844 would allow money in the colonias set-aside fund to be used to pay for hookups for homes in the colonias where EDAP has provided water and wastewater systems, or where those systems will be finished promptly. The IRTT Committee also found that a low rate of hookups could endanger the financial viability of some colonias projects. An average of 13 percent of the water customers and 63 percent of sewer service customers have not yet connected to EDAP systems in their communities. Part of that has been corrected with a mandatory connection requirement. But if a family does not have the money, there is little that can be done. Once these homes are connected, the additional revenue to the utility systems in the border region will be as much as $15 million by 2002. The colonias set-aside will work in conjunction with the Water Development Board's Colonias Plumbing Loan Program. The bill will also streamline the application process by providing for a coordinated effort between the Texas Department of Housing and Community Affairs and the Water Development Board. PURPOSE As proposed, S.B. 844 authorizes the use of the colonias set-aside fund to provide financial assistance in economically distressed areas to pay for residential service lines and hookups associated with being connected to a water supply or sewer service system financed under the economically distressed areas program. RULEMAKING AUTHORITY It is the committee's opinion that SB 844 expressly grants additional rulemaking authority to the Texas Department of Housing and Community Affairs under SECTION 1 of the bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 2306.098, Government Code, to require the Texas Department of Housing and Community Affairs (TDHCA) by rule to provide that an application for assistance in paying for residential service lines, hookups, and plumbing improvements associated with being connected to a water supply or sewer service system may be submitted after construction of a water supply or sewer service system begins. Requires TDHCA to approve or disapprove a timely application before the construction of the water supply or sewer service system is completed in order to eliminate delay in hookups once construction is completed. Requires TDHCA and the Texas Water Development Board (TWDB) to coordinate the application process for hookup funds under this subsection and under Chapter 15L, Water Code, and to share information elicited by each agency's application procedure in order to avoid duplication and to eliminate the need for applicants to complete different forms with similar information. Authorizes TDHCA to use money in the colonias set-aside fund for funding for the provision of water and sewer service connections in accordance with Section 2306.589(b), Government Code. Makes conforming changes. SECTION 2. Effective date: September 1, 1997. SECTION 3. Emergency clause. EXPLANATION OF AMENDMENTS COMMITTEE AMENDMENT NO. 1: Deletes the language in SECTION 1, proposed Section 2306.589(b), Government Code, that allows the application for assistance to apply to plumbing improvements. Inserts a sentence prohibiting money in the colonias set-aside fund from being used to pay for indoor plumbing facilities and fixtures.