SRC-DBM S.B. 630 76(R)   BILL ANALYSIS


Senate Research Center   S.B. 630
76R5148  SMH-DBy: Truan
Border Affairs - Special
3/9/1999
As Filed


DIGEST 

Currently, state assistance to build projects under the Economically
Distressed Area Program (EDAP) is a combination of grant and loan.  The
grant/loan ratio is determined by the ability of the residents to repay a
loan through their utility bills.  Grant/loan ratios approved by the Texas
Water Development Board range as high as 98 percent depending on the
ability of the residents to pay which is based on a survey and analysis by
a financial consultant.  S.B. 630 would reformulate the repayment of a
political subdivision's use of state financial assistance for water and
sewer service projects in economically distressed areas. 

PURPOSE

As proposed, S.B. 630 reformulates the repayment of a political
subdivision's use of state financial assistance for water supply and sewer
service projects in economically distressed areas. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 16J, Water Code, by adding Section 16.532, as
follows: 

Sec. 16.532.  USE OF REVENUE FROM OPERATION OF WATER SUPPLY OR SEWER
PROJECTS.  Requires a political subdivision that receives state financial
assistance for the construction of a water supply or sewer project under
Subchapter K, Chapter 17, that is required to be repaid to apply to the
repayment of the financial assistance or maintenance and operation of the
project an amount not less than the revenue from the operation of the
project multiplied by a fraction, the numerator of which is the amount of
state financial assistance received for the construction of the project and
the denominator of which is the total cost of the construction of the
project.  Authorizes the attorney general, at the request of the Texas
Water Development Board or on the attorney general's own initiative, to
file suit to enjoin an actual or threatened violation of this section. 

SECTION 2.Emergency clause.
  Effective date: upon passage.