HBA-NIK S.B. 1421 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1421 By: Lucio Land & Resource Management 5/2/1999 Engrossed BACKGROUND AND PURPOSE Currently, the Texas Water Development Board is the only state agency with statutory authority to ensure the diversity of water and wastewater services to colonias, and it is the only agency with appropriate state funds to finance the construction of colonia infrastructure projects. The needs of the 392,000 colonia residents include clean water and adequate sewer systems. S.B. 1421 establishes provisions regarding the regulations of the subdivision or development of land in certain economically distressed areas, including colonias, and certain other areas. This bill also provides certain penalties for violations of the regulations. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Natural Resource Conservation Commission in SECTION 28 (Section 5.124, Water Code) and SECTION 30 (Section 13.241, Water Code), and the Texas Water Development Board in SECTION 33 (Section 15.407, Water Code) and SECTION 34 (Section 16.343, Water Code), of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 103.001, Local Government Code, to provide that a municipality subject to Section 16.356, Water Code, must include in its financial statement a specific report on compliance with that section. SECTION 2. Amends Section 212.012, Local Government Code, as follows: (a) Makes no changes. (b) Provides that the prohibition established by Subsection (a) applies to a water supply or sewer service corporation organized and operating under Chapter 67 (Nonprofit Water Supply or Sewer Service Corporations), Water Code, rather than Chapter 76, Acts of the 43rd Legislature, 1st Called Session, 1933 (Article 1434a, V.T.C.S.), that provides any of those services. (c) Authorizes an entity described by Subsection (b) to serve or connect land with water, sewer, electricity, gas, or other utility service if the municipal authority responsible for approving plats issues a certificate stating the land was not subdivided after September 1, 1995, and water service is available within 500 feet or water service is available more than 500 feet away and extension of water service may be feasible. Makes conforming and nonsubstantive changes. (d) Makes a conforming change. (e) Makes a conforming change. (f) Authorizes a person requesting service to obtain a certificate under Subsection (c)(4)(B) (relating to land which was not subdivided after September 1, 1995) only if the person provides to the municipal authority responsible for approving plats an affidavit that states that the property was not sold or conveyed to that person from a subdivider or the subdivider's agent after September 1, 1995. (g) Created from existing text of Subsection (f). (h)-(i) Redesignated from (g)-(h). SECTION 3. Amends the heading to Subchapter B, Chapter 232, Local Government Code, as follows: SUBCHAPTER B. New title: SUBDIVISION PLATTING REQUIREMENTS IN COUNTY NEAR INTERNATIONAL BORDER. Deletes "Economically Distressed Counties" from existing title. SECTION 4. Amends Section 232.021, Local Government Code, as follows: Sec. 232.021. DEFINITIONS. Deletes the definition for "affected county." Redefines "floodplain" to mean any area in the 100-year floodplain that is susceptible to being inundated by water from any source or, rather than and, that is identified by the Federal Emergency Management Agency. Updates statutory references. Makes conforming changes. SECTION 5. Amends Section 232.022, Local Government Code, to provide this subchapter applies only to a county any part of which is located within 50 miles of an international border. Provides that this subchapter applies only to land that is subdivided into two, rather than four, or more lots that are intended primarily for residential use in the jurisdiction of the county, rather than an affected county. Provides that for the purposes of this section, land is considered to be in the jurisdiction of a county if the land is located in the county and outside the corporate limits of municipalities, rather than outside the extraterritorial jurisdiction of municipalities, as determined under Chapter 42 (Extraterritorial Jurisdiction of Municipalities). Makes nonsubstantive changes. SECTION 6. Amends Subsection (a), Section 232.023, Local Government Code, to make a conforming change. SECTION 7. Amends Section 232.024, Local Government Code, by adding Subsection (d), to authorize the commissioners court of the county in which the land is located to establish a planning commission as provided by Subchapter D. Provides that the planning commission, including its findings and decisions, is subject to the same provisions applicable to the commissioners court under this subchapter, including Section 232.034 (Conflict of Interest; Penalty) relating to conflicts of interest. SECTION 8. Amends Subsection (c), Section 232.026, Local Government Code, to make a conforming change. SECTION 9. Amends Section 232.029, Local Government Code, as follows: (a) Makes no change. (b) Makes no change. (c) Authorizes a specified utility service to serve or connect subdivided land with other specified utility services if the utility is provided with a certificate issued by the commissioners court that states that the subdivided land before September 1, 1995, rather than before July 1, 1995, was sold or conveyed the person requesting service, or the land is not subdivided after September 1, 1995, and water service is available within 500 feet of the subdivided land, or water service is available more than 500 feet from the subdivided land and the extension of water service to the land may be feasible, subject to a final determination by the water service provider. (d) Makes conforming changes. (e) Makes conforming changes. (f) Authorizes a person requesting service to obtain a certificate under Subsection (c)(2)(relating to land which was not subdivided after September 1, 1995) only if the person provides to the commissioners court an affidavit that states the property was not sold or conveyed to that person from a subdivider or the subdivider's agent after September 1, 1995. (g) Created from existing text of existing Subsection (f). (h)-(j) Redesignated from (g)-(i). SECTION 10. Amends Subsection (b), Section 232.030, Local Government Code, to include that as provided by Section 232.043 (Variances from Replatting Requirements), Water Code, the commissioners court may not grant a variance or adopt regulations that waive any requirements of this subchapter. SECTION 11. Amends Subchapter B, Chapter 232, Local Government Code, by adding Section 232.0305, as follows: Sec. 232.0305. COUNTY INSPECTOR. Authorizes the commissioners court to impose a fee on a subdivider of property under this subchapter for an inspection of the property to ensure compliance with the subdivision regulations adopted under this subchapter, Section 16.343 (Minimum State Standards and Model Political Subdivision Rules), Water Code, or other law. Authorizes fees collected under this section to be used only to fund inspections conducted under this section. SECTION 12. Amends Subsection (b), Section 232.035, Local Government Code, to make a conforming change. SECTION 13. Amends Subsection (a), Section 232.037, Local Government Code, to make a conforming change. SECTION 14. Amends Section 232.037, Local Government Code, by adding Subsection (d), to provide that this subchapter is subject to the applicable enforcement provisions prescribed by Sections 16.352, 16.353, 16.354, 16.3545, Water Code. SECTION 15. Amends Section 232.038, Local Government Code, to make a conforming change. SECTION 16. Amends Subsection (a), Section 232.039, Local Government Code, to make a conforming change. SECTION 17. Amends Subsection (c), Section 232.040, Local Government Code, to delete the provision stating that Subsection (b) does not apply if a seller other than a subdivider or agent of a subdivider purchases the lot through a contract for deed, which provides that the subsection does not apply if a seller other than a subdivider or agent of a subdivider resides on the lot. SECTION 18. Amends the heading to Section 232.042, Local Government Code, as follows: Sec. 232.042 New title: VARIANCES FROM REPLATTING REQUIREMENTS. SECTION 19. Amends Subchapter B, Chapter 232, Local Government Code, by adding Section 232.043, as follows: Sec. 232.043, VARIANCES FROM PLATTING REQUIREMENTS. (a) Authorizes the commissioners court of a county on request of a subdivider or resident purchaser to grant a delay or variance from compliance with the subdivision requirements prescribed by Section 232.023(b)(8) or (9) (Plat Required), 232.025(1), (2), (3), (4), or (5), or 232.030(c)(2), (3), (5) (Subdivision Requirements), or (6) (Subdivision Regulation; County Authority); or a delay or variance for an individual lot from compliance with the requirements prescribed by the model subdivision rules adopted under Section 16.343, Water Code, for the distance that a structure must be set back from roads or property lines, or the number of single-family, detached dwellings that may be located on a lot. (b) Authorizes the commissioners court to grant a delay or variance under this section if the commissioners court makes a written finding that the subdivider who created the unplatted subdivision no longer owns property in the subdivision, only if the enumerated requirements exist. (c) Authorizes the commissioners court to grant a provisional delay or variance only if the requirements of Subsection (b) are satisfied. Authorizes the court to issue a final grant of the delay or variance only if, before the 91st day after the date the commissioners court submits the record of its proceedings to the attorney general as prescribed by Subsection (d), the commissioners court has not received objections from the attorney general, and has filed a lien on the property in the subdivision owned by the subdivider, excluding property subject to a contract of sale or contract for deed, to recover the value of platting the subdivision and providing infrastructure to the property owned by the subdivider. (d) Requires the commissioners court, if it grants a delay or variance under this section, to make specified findings, keep a certain record, and submit a copy of the record to the attorney general. (e) Provides that the failure of the attorney general to comment or object to a delay or variance granted under this section does not constitute a waiver of or consent to the validity of the delay or variance. (f) Provides that this section does not affect a civil suit filed against, a criminal prosecution of, or the validity of a penalty imposed on a subdivider for a violation of law, regardless of the date on which the violation occurred. SECTION 20. Amends the heading to Subchapter C, Chapter 232, Local Government Code, as follows: SUBCHAPTER C. New title: "SUBDIVISION PLATTING REQUIREMENTS IN CERTAIN ECONOMICALLY DISTRESSED COUNTIES." Deletes "Alternate" and "Other" from existing text. SECTION 21. Amends Section 232.071, Local Government Code, to provide that this subchapter applies only to the subdivision of land located outside the corporate limits of a municipality, rather than the extraterritorial jurisdiction of a municipality. SECTION 22. Amends Section 232.073, Local Government Code, as follows: (b) Authorizes the commissioners court of the county in which the land is located to establish a planning commission as provided by Subchapter D. Provides that the planning commission, including its findings and decisions, is subject to the same provisions applicable to the commissioners court under this subchapter, including Section 232.078 (Conflict of Interest; Penalty) relating to conflicts of interest. SECTION 23. Amends Subchapter C, Chapter 232, Local Government Code, by adding Section 232.0775, as follows: Sec. 232.0775. COUNTY INSPECTOR. Authorizes the commissioners court to impose a fee on a subdivider of property under this subchapter for an inspection of the property to ensure compliance with the subdivision regulations adopted under this subchapter, Section 16.343, Water Code, or other law. Authorizes fees collected under this section to be used only to fund inspections conducted under this section. SECTION 24. Amends Section 232.080, Local Government Code, by adding Subsection (c), to provide that this subchapter is subject to the applicable enforcement provisions prescribed by Sections 16.353, 16.354, and 16.3545, Water Code. SECTION 25. Amends Chapter 232, Local Government Code, by adding Subchapter D, as follows: SUBCHAPTER D. COUNTY PLANNING COMMISSION Sec. 232.091. APPLICABILITY. Provides that this subchapter applies only to a county authorized to established a planning commission under Subchapter B or C, and in which the commissioners court by order elects to operate under this subchapter. Sec. 232.092. ESTABLISHMENT AND ABOLITION OF PLANNING COMMISSION. (a) Authorizes the commissioners court of a county by order to establish a planning commission under this section, and abolish a planning commission established under this section. (b) Authorizes the commissioners court to authorize the planning commission to act on behalf of the commissioners court in matters relating to the duties and authority of the commissioners court under specified subchapters, and land use, health and safety, planning and development, or other enforcement provisions specifically authorized by law. (c) Requires the commissioners court by order to adopt reasonable rules and procedures necessary to administer this subchapter. Sec. 232.093. APPOINTMENT OF MEMBERS OF PLANNING COMMISSION. (a) Authorizes the commissioners court to appoint a planning commission consisting of five members. Provides that members are appointed for staggered terms of two years. (b) Provides that a person appointed as a member of the planning commission must be a citizen of the United States and reside in the county. (c) Requires the commissioners court to file with the county clerk a certificate of appointment for each commission member. (d) Requires the commissioners court to fill any vacancy on the commission. (e) Provides that before a planning commission member undertakes the duties of the office, the member must take the official oath, and swear in writing that the member will promote the interest of the county as a whole and not only a private interest or in the interest of a special group or location in the county. (f) Provides that a member of the planning commission serves at the pleasure of the commissioners court and is subject to removal as provided by Chapter 87 (Removal of County Officers from Office; Filling of Vacancies), Local Government Code. Sec. 232.094. FINANCIAL DISCLOSURE. (a) Requires a member of the planning commission to file a financial disclosure report in the same manner as required for county officers under Subchapter B (Financial Disclosure by Other County Officers and Employees), Chapter 159. (b) Requires the planning commission member to file a financial disclosure report in the same manner as required for county officers under Subchapter A (Financial Disclosure by Certain County Officers), Chapter 159, if the commissioners court of the county in which the planing commission member serves has not adopted a financial disclosure reporting system under Subchapter B, Chapter 159. Sec. 232.095. OFFICERS, QUORUM, AND MEETINGS. (a) Requires the planning commission, at the first meeting of each calender year, to elect a presiding officer and assistant presiding officer. Provides that the presiding officer presides over the meetings and executes all documentation required on behalf of the planning commission. Provides that the assistant presiding officer represents the presiding officer during the presiding officer's absence. (b) Provides that there is no limitation on the number of terms a member may serve on the commission. (c) Provides that the minutes of the planning commission's proceedings must be filed with the county clerk or other officer or employee designated by the commissioners court. Provides that the minutes of the planning commission's proceedings are a public record. (d) Provides that the planning commission is subject to Chapter 551 (Open Meetings) and 552 (Public Information), Government Code. (e) Authorizes the planning commission to adopt rules necessary to administer this subchapter. Provides that rules adopted under this subsection are subject to approval by the commissioners court. Sec. 232.096. TIMELY APPROVAL OF PLATS. (a) Requires the planning commission to issue a written list of the documentation and other information that must be submitted with a plat application. Provides that the documentation or other information must relate to a requirement authorized by law. Provides that an application submitted to the planning commission that contains the documents and other information on the list is considered complete. (b) Requires the planning commission or its designee, if a person submits an incomplete plat application to the planning commission, to notify, not later than the 30th business day after the date the planning commission or its designee receives the application, to notify the applicant of the missing documents or other information. Requires the planning commission or its designee to allow an applicant to timely submit the missing documents or other information. (c) Provides that an application is considered complete on the date all documentation and other information required by Subsection (a) is received by the planning commission. (d) Requires the planning commission, if the approval of the plat is within its exclusive jurisdiction, to take final action on a plat application, including the resolution of all appeals, not later than the 120th day after the date a completed plat application is received by the planning commission. (e) Authorizes the time period prescribed by Subsection (d) to be extended for a reasonable period if requested by the applicant, and an additional 120 days if the county is required under Chapter 2007(Governmental Action Affecting Private Property), Government Code, to perform a takings impact assessment in connection with a plat submitted for approval. (f) Prohibits the planning commission from compelling an applicant to waive the time limits prescribed by this section. (g) Authorizes the applicant to apply to a district court in the county in which the land is located for an injunction to compel the planning commission to approve or disapprove the plat if the planning commission fails to take final action on the completed plat application as required by this section. Requires a planning commission enjoined by a final order of a court under this subsection to make a decision approving or disapproving the plat not later than the 20th business day after the date a copy of the injunction is served on the presiding officer of the planning commission. Requires the planning commission, if it approves the plat, to refund the greater of the unexpended portion of any plat application or deposit or 50 percent of a plat application fee or deposit that has been paid, determine the appropriate amount of any bond or other financial guarantee required in connection with the plat approval, and issue documents recognizing the plat's approval. (h) Provides that except as provided by this subsection, an approval of a plat by the commission is final on the 31st day after the date the planning commission votes to approve the plat. Requires the commissioners court, on the request of the county commissioner, to review a plat approved by the planning commission not later than the 30th day after the date the planning commission votes to approve the plat. Authorizes the commissioners court to disapprove the plat if the plat fails to comply with state law or rules adopted by the county or the planning commission. Provides that if the commissioners court fails to take action within the 30-day period prescribed by this subsection, the decision of the planning commission is final. (i) Provides that in this section, "business day" means a day other than Saturday, Sunday, or holiday recognized by this state. Sec. 232.097. REASONS FOR DISAPPROVAL OF PLAT REQUIRED. Requires the planning commission to provide to the person requesting approval a notice specifying the reason for the disapproval if the planning commission refuses to approve a plat. SECTION 26. Amends Section 242.001, Local Government Code, to extend the application of this section to a county operating under Subchapter B or C, Chapter 232 (County Regulation of Subdivisions). Makes a conforming changes. SECTION 27. Amends Section 12.002(d), Property Code, to make conforming and nonsubstantive changes. SECTION 28. Amends Subchapter D, Chapter 5, Water Code, by adding Section 5.124, as follows: Sec. 5.124. AUTHORITY TO AWARD GRANTS. (a) Authorizes the executive director, with the consent of the Texas Natural Resource Commission (TNRCC), to award grants for any purpose regarding resource conservation or environmental protection in accordance with this section. (b) Requires the commission, by rule, to establish procedures for awarding a grant, for making any determination related to awarding a grant, and for making grant payments. (c) Provides that each activity funded by a grant must directly relate to a purpose specified in the grant. Authorizes a grant to be awarded only for a purpose consistent with TNRCC's jurisdiction and purposes under law, including certain enumerated plans relating to conservation. (d) Authorizes a grant to be awarded to any person that meets the eligibility requirements of the grant. Requires the executive director of TNRCC (executive director) to establish requirements for each grant appropriate to the purpose of and activities under the grant and the method of selecting the recipient. (e) Provides that the selection of grant recipients must be by solicitation of a proposal or application except as provided by Subsections (f) and (g). Authorizes the executive director to specify any selection criterion the executive director considers relevant to the grant. Sets forth that which the selection criteria must address. (f) Authorizes grant to be made by direct award only if certain enumerated qualifications are met. (g) Provides that if a solicitation of a proposal is made for the purpose of identifying a partner for a joint application for a federal grant that is subsequently awarded to TNRCC, the executive director is not required to make an additional solicitation for entering into a pass-through grant with an identified partner. (h) Requires the executive director to publish information regarding a solicitation related to a grant to be awarded under this section on the TNRCC's electronic business daily in the manner provided by Section 2155.074 (Best Value Standard for Purchase of Goods or Services), Government Code, as added by Section 1, Chapter 508, Acts of the 75th Legislature, Regular Session, 1997. (i) Authorizes TNRCC or a grant awarded under this section, to use money appropriated for grant-making purposes, federal money granted for making pass-through grants, and state or federal grant money appropriated for a purpose that the executive director determines is consistent with a purpose of the grant from TNRCC. SECTION 29. Amends Subdivision (26), Section 13.002, Water Code, to redefine "affected county." SECTION 30. Amends Section 13.241, Water Code, by adding Subsection (e), as follows: (e) Requires TNRCC, by rule, to develop a standardized method for determining under Section 13.246(f) which of two or more retail public utilities or water supply or sewer service corporations that apply for a certificate of public convenience and necessity to provide water or sewer utility service to an uncertificated area located in an economically distressed area is more capable financially, managerially, and technically of providing continuous and adequate service. Provides that in this subsection, "economically distressed area" has the meaning assigned by Section 15.001 (Definitions), Water Code. SECTION 31. Amends Section 13.246, Water Code, to add the enforcement of rules adopted under Section 16.343 to that which TNRCC is required to consider. Requires TNRCC to grant the certificate to the retail public utility or water supply or sewer service corporation that is more capable financially, managerially, and technically of providing continuous and adequate service subject to judicial review under Section 13.381 if two or more retail public utilities or water supply or sewer service corporations apply for a certificate of public convenience and necessity to provide water or sewer utility service to an uncertificated area located in an economically distressed area and otherwise meet the requirements for obtaining a new certificate. Provides that "economically distressed area" has the meaning assigned by Section 15.001. SECTION 32. Amends Section 13.381, Water Code, to authorize a retail public utility or water supply or sewer service corporation that is denied a certificate of public convenience and necessity to provide water or sewer utility service to an uncertificated area located in an economically distressed area on the ground that another retail public utility or water supply or sewer service corporation is more capable financially, managerially, and technically of providing continuous and adequate service to file a motion for rehearing as provided by Section 2001.146 (Motions for Rehearing: Procedures), Government Code. In this subsection, "economically distressed area" has the meaning assigned by Section 15.001. SECTION 33. Amends Section 15.407, Water Code, by adding new Subsections (c) and (d), redesignating Subsections (c), (d), (e), (f), and (g) as Subsections (e), (f), (g), (h), and (i), and adding Subsection (j), as follows: (c) Provides that the selection process used by a political subdivision to procure engineering services necessary for facility engineering is subject to review by and approval of the executive administrator. Authorizes the executive administrator to assist a political subdivision in the selection of the provider of engineering services necessary for facility engineering in economically distressed areas. (d) Requires the Texas Water Development Board (board) to adopt rules governing the procurement of facility engineering services by a political subdivision awarded funds under this subchapter (Research and Planning Program) and authorizes the board to adopt other rules necessary to carry out the board's powers and duties under this subchapter. (e) Created from existing text of existing Subsection (c). (f)-(i) Redesignated from (d)-(g). (j) Authorizes the board to terminate the contract with the political subdivision and on behalf of and in consultation with the political subdivision to perform or contract for facility engineering in the economically distressed area if the board determines that the planning activities undertaken by a political subdivision for which the board has committed funds under this subchapter have been inadequate or not completed in a timely manner. SECTION 34. Amends Section 16.343, Water Code, to require the board, rather than, after consultation with the attorney general and TNRCC, rather than in conjunction with the board, to prepare and adopt model rules to assure that minimum standards for safe and sanitary water supply and sewer services in residential areas of political subdivisions, including rules of any state agency relating to septic tanks and other waste disposal systems, are met. SECTION 35. Amends Section 16.345(b), Water Code, to make conforming changes. SECTION 36. Amends Subchapter J, Chapter 16, Water Code, by adding Sections 16.352, 16.353, 16.3535, 16.354, and 16.3545, as follows: Sec. 16.352. ENFORCEMENT OF RULES. Provides that a person who violates a rule adopted by a municipality or county under this subchapter (Economically Distressed Areas) or under Subchapter B or C, Chapter 232, Local Government Code, is liable to the municipality or county for a civil penalty of not less than $500 and not more than $1,000 for each violation and for each day of a violation. Provides that the maximum civil penalty that may accrue each day is $5,000. Authorizes the appropriate attorney representing the municipality or county to sue to collect the penalty. Requires the recovered penalty to be deposited in the general fund of the municipality or county. Sec. 16.353. INJUNCTION. Authorizes the attorney general, the municipal attorney of the municipality in which a violation under Section 16.352 occurs, or the county or district attorney of the county in which a violation under Section 16.352 occurs to apply to a district court for, and the district court to grant, the state or the political subdivision an appropriate prohibitory or mandatory order, including a temporary restraining order or a temporary or permanent injunction, enjoining a violation of this subchapter, the rules described by Section 16.352, or Subchapter B or C, Chapter 232, Local Government Code. Authorizes an injunction issued under this section to be issued without the requirement of a bond or other undertaking. Sec. 16.3535. DAMAGES. Authorizes the attorney general or the county or district attorney of the county in which a violation under Section 16.352 occurs to apply to a district court for, and the district court to grant, monetary damages to cover the cost of enforcing this subchapter, rules adopted under this subchapter, or Subchapter B or C, Chapter 232, Local Government Code. Sec. 16.354. ATTORNEY GENERAL ENFORCEMENT. Sets forth enumerated circumstances in which the attorney general may file suit. Sec. 16.3545. VENUE. Authorizes a suit brought under this subchapter for injunctive relief or the recovery of a civil penalty or damages to be brought in a district court in the county in which the defendant resides, the county in which the alleged violation or threat of violation occurs, or Travis County. SECTION 37. Amends Subchapter J, Chapter 16, Water Code, by adding Section 16.356, as follows: Sec. 16.356. USE OF REVENUE FROM OPERATION OF WATER SUPPLY OR SEWER SERVICE PROJECTS. Prohibits a political subdivision that receives financial assistance from the economically distressed areas program under Subchapter K(Assistance to Economically Distressed Areas For Water Supply and Sewer Service Projects), Chapter 17, from using any revenue received from fees collected from a water supply or sewer service constructed in whole or in part from funds from the economically distressed areas program account for purposes other than utility purposes. Provides that the annual financial statement prepared by a municipality under Section 103.001(Annual Audit; Financial Statement), Local Government Code, must include a specific report on compliance with this section. Authorizes the attorney general to file suit to enjoin an actual or threatened violation of this section at the request of the board or on the attorney general's own initiative. SECTION 38. Amends Section 17.927(b), Water Code, to add that the application and plan must include, on request of the board, a written determination by TNRCC on the managerial, financial, and technical capacity of the applicant to operate the system for which assistance is being requested. SECTION 39. Amends Sections 17.930(b) and (c), Water Code, to require the board, by resolution, to approve the plan and application as submitted; approve the plan and application subject to the requirements identified by TNRCC for the applicant to obtain the managerial, financial, and technical capacity to operate the system and any other requirements the board considers appropriate; deny the application and identify the requirements or remedial steps the applicant must complete before the applicant may be reconsidered for financial assistance; if the board finds that the applicant will be unable to obtain the managerial, financial, or technical capacity to build and operate a system, deny the application and issue a determination that a service provider other than the applicant is necessary or appropriate to undertake the proposed project; or deny the application. Requires the board to notify the applicant in writing of its decision. Makes a nonsubstantive change. SECTION 40. Amends Section 26.001(20), Water Code, to make a conforming change. SECTION 41. Amends Section 26.001(26), Water Code, to make a conforming change. SECTION 42. Amends Title 7, Government Code, by adding Chapter 775, as follows: CHAPTER 775. COORDINATION OF COLONIA INITIATIVES Sec. 775.001. DEFINITIONS. Defines "agency" and "colonia." Sec. 775.002. INTERAGENCY COORDINATION OF COLONIA INITIATIVES. (a) Authorizes the governor to designate an agency to act as the state's colonia initiatives coordinator. (b) Requires the colonia initiatives coordinator to coordinate colonia initiatives within the agency and with the other agencies and local officials involved in colonia projects in the state. (c) Authorizes the colonia initiatives coordinator to work with the other agencies and local officials involved in colonia projects in the state to perform enumerated functions. (d) Requires the office of the attorney general, the Texas Department of Health, the Texas Department of Housing and Community Affairs, the Texas Natural Resource Conservation Commission, and the Texas Water Development Board to designate an officer or employee of the agency to serve as the agency's liaison for colonia initiatives. (e) Provides that each agency's liaison for colonia initiatives under Subsection (d) must be a deputy executive director or a person of equivalent or higher authority at the agency. Provides that this subsection does not authorize the creation of a new position for colonia coordination at a state agency. Sec. 775.003. COLONIA OMBUDSMAN PROGRAM. Authorizes the colonia initiatives coordinator to appoint a colonia ombudsman in each of the six border counties that the coordinator determines have the largest colonia populations. SECTION 43. Amends Section 3, Article 6243-101, V.T.C.S. (The Plumbing License Law) to provide that plumbing work, limited to the provision of a residential potable water supply or residential sanitary sewer connections, for a project in a geographic area that is located in a county any part of which is within 50 miles of an international border that is done by a specified organization. Updates a statutory referenc. SECTION 44. Requires the agencies designated by Subsection (d), Section 775.002, Government Code, on or before November 1, 1999, to designate an officer or employee to serve as that agency's colonia initiative liaison as provided by that section. SECTION 45. (a) Provides that the changes in law made by Section 5.124, Water Code, as added by this Act, apply only to a grant made by TNRCC on or after the effective date of this Act and to a grant being considered by TNRCC on the effective date of this Act. (b) Provides that changes in law made by Section 5.124, Water Code, as added by this Act, do not affect the validity of or apply to a grant TNRCC made before the effective date of this Act. (c) Authorizes TNRCC to award a grant that, on the effective date of this Act, is being considered under, or for which a solicitation for proposals has been issued or an application has been received under, authority other than Section 5.124, Water Code, as added by this Act under the other authority without regard to the requirements of Section 5.124, Water Code, or under the authority of Section 5.124, Water Code, notwithstanding that the grant was considered, the solicitation was issued, or the application was received under the other authority. SECTION 46. Provides that the changes in law made by this Act to Sections 13.241, 13.246, and 13.381, Water Code, apply only to an application for a new certificate of public convenience and necessity filed on or after the effective date of this Act. Provides that an application for a new certificate of public convenience and necessity filed before the effective date of this Act is governed by the law in effect on the date the application was filed, and that law is continued in effect for that purpose. SECTION 47. Provides that the changes in law made by this Act to Sections 15.407, 17.927, and 17.930, Water Code, apply only to an application for assistance under those provisions that is pending before or submitted to the Texas Water Development Board on or after September 1, 1999, and a contract under Section 15.407 (Facility Engineering in Economically Distressed Areas), Water Code, regardless of the date the contract was made. SECTION 48. (a) Provides that the change in law made by this Act by adding Section 16.352, Water Code, applies only to the violation of a rule adopted by a municipality or county under Subchapter J, Chapter 16, Water Code, or Section 232.030, Local Government Code, that occurs on or after the effective date of this Act. Provides that, for purposes of this section, a violation occurs before the effective date of this Act if any element of the violation occurs before that date. (b) Provides that a violation of a rule adopted by a municipality or county under Subchapter J, Chapter 16, Water Code, or Section 232.030, Local Government Code, that occurs before the effective date of this Act is governed by the law in effect when the violation occurred, and the former law is continued in effect for that purpose. SECTION 49. Provides that the change in law made by Section 16.356, Water Code, applies only to a political subdivision subject to that section as of the first day of the submission's fiscal year that begins on or after the effective date of this Act. SECTION 50. Effective date: September 1, 1999. SECTION 51. Emergency clause.