76R12744 DB-F
By Hill, Howard, Ehrhardt H.B. No. 1260
Substitute the following for H.B. No. 1260:
By Hill C.S.H.B. No. 1260
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to financial assistance to provide for water development
1-3 in disadvantaged communities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 17, Water Code, is amended by adding
1-6 Subchapter M to read as follows:
1-7 SUBCHAPTER M. ASSISTANCE TO DISADVANTAGED COMMUNITIES
1-8 Sec. 17.991. DEFINITIONS. In this subchapter:
1-9 (1) "Disadvantaged community" means an area:
1-10 (A) in which water supply or sewer services are
1-11 inadequate to meet minimal needs of residential users as defined by
1-12 board rules;
1-13 (B) in which the median family income averaged
1-14 25 percent or more below the state median family income for the
1-15 most recent year for which statistics are available;
1-16 (C) in which rates paid by residential users are
1-17 determined by the board to make financial resources of the area
1-18 inadequate to provide water supply or sewer services to satisfy the
1-19 minimal needs of residential users;
1-20 (D) that is not eligible for assistance under
1-21 Subchapter K; and
1-22 (E) that is located outside the boundary of a
1-23 municipality.
1-24 (2) "Sewer service facilities" means:
2-1 (A) treatment works; or
2-2 (B) individual, on-site, or cluster treatment
2-3 systems such as septic tanks, and includes drainage facilities or
2-4 other improvements for proper functioning of the sewer services and
2-5 other facilities.
2-6 Sec. 17.992. APPLICATION FOR FINANCIAL ASSISTANCE. A
2-7 political subdivision may apply to the board for financial
2-8 assistance under this subchapter for the construction, acquisition,
2-9 or improvement of water supply projects or sewer service facilities
2-10 to serve disadvantaged communities by submitting to the board:
2-11 (1) an application on a form adopted by the board; and
2-12 (2) a plan for providing water supply or sewer
2-13 services to a disadvantaged community under rules adopted by the
2-14 board.
2-15 Sec. 17.993. CONSIDERATION OF APPLICATION. In reviewing an
2-16 application for financial assistance submitted under this
2-17 subchapter, the board shall consider:
2-18 (1) the need of the disadvantaged community for the
2-19 water supply project or sewer service facilities;
2-20 (2) the availability of revenue to the political
2-21 subdivision from all sources for the ultimate repayment of the cost
2-22 of the water supply project or sewer service facilities; and
2-23 (3) the need for a low-interest or zero-interest loan
2-24 to finance the water supply project or sewer service facilities.
2-25 Sec. 17.994. APPROVAL OF APPLICATION. (a) The board may
2-26 approve an application for financial assistance under this
2-27 subchapter if, after considering the factors listed in Section
3-1 17.993 and any other relevant factors, the board determines that:
3-2 (1) the public interest requires state assistance in
3-3 the project;
3-4 (2) the applicant cannot reasonably finance the water
3-5 supply project or sewer service facilities without state
3-6 assistance; and
3-7 (3) in the board's opinion, the revenue or taxes
3-8 pledged by the applicant will be sufficient to meet all the
3-9 obligations assumed by the applicant during the succeeding period
3-10 of not more than 50 years.
3-11 (b) Before the board grants an application or provides any
3-12 funds under an application, an applicant must meet the requirements
3-13 of Sections 17.125(b), (c), and (e).
3-14 Sec. 17.995. METHOD OF FINANCIAL ASSISTANCE. (a) To the
3-15 extent provided by legislative appropriation, the board may make
3-16 loans available from funds in the financial assistance account of
3-17 the Texas Water Development Fund II at low-interest or
3-18 zero-interest loan rates to political subdivisions for the
3-19 construction, acquisition, or improvement of water supply projects
3-20 and sewer service facilities to serve disadvantaged communities.
3-21 (b) The board may also purchase political subdivision bonds
3-22 from funds in the financial assistance account of the Texas Water
3-23 Development Fund II as a means of providing financial assistance
3-24 under this subchapter.
3-25 (c) The board may also provide financial assistance in any
3-26 other manner that the board considers feasible, including:
3-27 (1) contracts or agreements with a political
4-1 subdivision for acceptance of financial assistance that establish
4-2 any repayment and that establish requirements for acceptance of
4-3 this assistance; or
4-4 (2) contracts or agreements for providing financial
4-5 assistance in any federal or federally assisted project or program.
4-6 Sec. 17.996. FINDINGS REGARDING PERMITS. The board may not
4-7 deliver funds under an application for financial assistance until
4-8 the board makes the findings described in Sections 17.123 and
4-9 17.278.
4-10 Sec. 17.997. CONTRACT MANAGEMENT STANDARDS. The Uniform
4-11 Grant and Contract Management Act of 1981 (Chapter 783, Government
4-12 Code) does not apply to financial assistance provided under this
4-13 subchapter.
4-14 Sec. 17.998. AUTHORITY TO PARTICIPATE IN PROGRAM. (a) A
4-15 political subdivision may exercise any authority necessary to
4-16 participate in a program under this subchapter and carry out the
4-17 terms and conditions under which the funds or the financial
4-18 assistance is provided.
4-19 (b) In addition to any other authority to issue bonds or
4-20 other obligations or incur any debt, a political subdivision other
4-21 than a nonprofit water supply corporation eligible for financial
4-22 assistance under this subchapter may issue bonds payable from and
4-23 secured by a pledge of the revenues derived or to be derived from
4-24 the operation of water supply or sewer service systems for the
4-25 purpose of acquiring, constructing, improving, extending, or
4-26 repairing water supply projects or sewer service facilities. The
4-27 bonds shall be issued in accordance with and a political
5-1 subdivision may exercise the powers granted by Articles 1111
5-2 through 1118, Revised Statutes; Chapters 249 and 250, Acts of the
5-3 51st Legislature, Regular Session, 1949 (Articles 1111a and 1111b,
5-4 Vernon's Texas Civil Statutes); Chapter 428, Acts of the 52nd
5-5 Legislature, 1951 (Article 1111c, Vernon's Texas Civil Statutes);
5-6 Chapter 122, Acts of the 43rd Legislature, Regular Session, 1933
5-7 (Articles 1114a, 1114b, and 1114c, Vernon's Texas Civil Statutes);
5-8 and Chapter 56, Acts of the 45th Legislature, 2nd Called Session,
5-9 1937 (Article 1114d, Vernon's Texas Civil Statutes); by the Bond
5-10 Procedures Act of 1981 (Article 717k-6, Vernon's Texas Civil
5-11 Statutes); by Chapter 656, Acts of the 68th Legislature, Regular
5-12 Session, 1983 (Article 717q, Vernon's Texas Civil Statutes); and by
5-13 other laws of the state.
5-14 Sec. 17.999. RULEMAKING AUTHORITY. The board shall adopt
5-15 rules necessary to accomplish the purposes of this subchapter.
5-16 SECTION 2. Section 17.172, Water Code, is amended to read as
5-17 follows:
5-18 Sec. 17.172. APPLICABILITY. This subchapter applies to
5-19 financial assistance made available under Subchapters D, F, G, K,
5-20 L, and M from:
5-21 (1) the water supply account, the water quality
5-22 enhancement account, the flood control account, and the
5-23 economically distressed areas account of the Texas Water
5-24 Development Fund; or
5-25 (2) the economically distressed areas program account
5-26 and the financial assistance account of the Texas Water Development
5-27 Fund II [under Subchapters D, F, G, and K of this chapter].
6-1 SECTION 3. This Act takes effect September 1, 1999.
6-2 SECTION 4. The importance of this legislation and the
6-3 crowded condition of the calendars in both houses create an
6-4 emergency and an imperative public necessity that the
6-5 constitutional rule requiring bills to be read on three several
6-6 days in each house be suspended, and this rule is hereby suspended.