SRC-DPW H.B. 1260 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 1260
By: Hill (Ellis)
Natural Resources
5/10/1999
Engrossed


DIGEST 

Currently, state programs associated with colonias are applicable only in
the border region of Texas. Meetings held throughout Texas during the
interim between the 75th and 76th legislatures revealed that colonias exist
all over the state.  This bill would set forth guidelines for the provision
of financial assistance for water development in such disadvantaged
communities. 

PURPOSE

As proposed, H.B. 1260 sets forth guidelines for the provision of financial
assistance for water development in disadvantaged communities. 

RULEMAKING AUTHORITY

Rulemaking authority is granted to the Texas Water Development Board in
SECTION 1 (Section 17.999, Water Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 17, Water Code, by adding Subchapter M, as
follows: 

SUBCHAPTER M. ASSISTANCE TO DISADVANTAGED COMMUNITIES

Sec. 17.991. DEFINITIONS. Defines "disadvantaged community" and "sewer
service facilities." 

Sec. 17.992. APPLICATION FOR FINANCIAL ASSISTANCE. Authorizes a political
subdivision to apply to the Texas Water Development Board (board) for
financial assistance under this subchapter by submitting an application on
a form adopted by the board, and a plan for providing water supply or sewer
services to a disadvantaged community under rules adopted by the board. 

Sec. 17.993. CONSIDERATION OF APPLICATION. Requires the board to make
certain considerations regarding a need for a water supply project, the
availability of revenue, and the need for low-interest or zero-interest
loans, in reviewing an application for financial assistance submitted under
this subchapter.   

Sec. 17.994. APPROVAL OF APPLICATION. Authorizes the board to approve an
application, after making considerations required under Section 17.993,  if
the board determines that: the public interest requires state assistance in
the project; the applicant cannot reasonably finance the water supply
project or sewer service facilities without state assistance; and the
revenue or taxes pledged by the applicant will be sufficient to meet all
the obligations assumed by the applicant during the succeeding 50 years.
Requires an applicant to meet the requirements of Sections 17.125(b), (c),
and (e), before the board grants an application or provides any funds under
an application. 

Sec. 17.995. METHOD OF FINANCIAL ASSISTANCE. Authorizes the board to make
loans available from funds in the financial assistance account of the Texas
Water Development Fund II (fund II) at low-interest or zero-interest loan
rates.  Authorizes the board to purchase political subdivision bonds from
funds in fund II.  Authorizes the board to provide financial assistance in
any manner that the board considers feasible. 
 
Sec. 17.996. FINDINGS REGARDING PERMITS. Prohibits the board from
delivering funds under an application for financial assistance until the
board makes the findings described by Sections 17.123 and 17.278. 

Sec. 17.997. CONTRACT MANAGEMENT STANDARDS. Provides that the Chapter 783,
Government Code (the Uniform Grant and Contract Management Act), does not
apply to financial assistance provided under this subchapter.  

Sec. 17.998. AUTHORITY TO PARTICIPATE IN PROGRAM. Authorizes a political
subdivision to exercise any authority necessary to participate in a program
under this chapter and carry out the terms and conditions under which the
funds or the financial assistance is provided.  Authorizes a political
subdivision, other than a nonprofit water supply corporation eligible for
financial assistance under this subchapter, to issue bonds for acquiring,
constructing, improving, extending, or repairing water supply projects or
sewer service facilities.  Requires bonds to be issued in accordance with
and a political subdivision is authorized to exercise powers granted by
specified articles of the Texas Statutes. 

Sec. 17.999. RULEMAKING AUTHORITY. Requires the board to adopt rules
necessary to accomplish the purposes of this subchapter. 

SECTION 2. Amends Section 17.172, Water Code, to provide that this
subchapter applies to financial assistance made available under Subchapters
D, F, G, K, L, and M from the economically distressed areas account of the
Texas Water Development Fund or the economically distressed areas program
account and the financial assistance account of the Texas Water Development
Fund II, rather than under Subchapters D, F, G, and K of this chapter. 

SECTION 3. Effective date: September 1, 1999.

SECTION 4. Emergency clause.