By Truan S.B. No. 715
76R2560 MI-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the authority of the Texas Water Development Board to
1-3 set performance standards for certain colonias contracts and to
1-4 deny an application for financial assistance or terminate a
1-5 contract for inability to perform.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. Section 15.407, Water Code, is amended by adding
1-8 new Subsections (c) and (d), relettering existing Subsections (c),
1-9 (d), (e), (f), and (g) as Subsections (e), (f), (g), (h), and (i),
1-10 and adding Subsection (j) to read as follows:
1-11 (c) The selection process used by a political subdivision to
1-12 procure engineering services necessary for facility engineering is
1-13 subject to review by and approval of the executive administrator.
1-14 The executive administrator may assist a political subdivision in
1-15 the selection of the provider of engineering services necessary for
1-16 facility engineering in economically distressed areas.
1-17 (d) The board shall adopt rules governing the procurement of
1-18 facility engineering services by a political subdivision awarded
1-19 funds under this subchapter and may adopt other rules necessary to
1-20 carry out the board's powers and duties under this subchapter.
1-21 (e) A political subdivision that desires money from the
1-22 research and planning fund for facility engineering in an
1-23 economically distressed area shall submit a written application to
1-24 the board in the manner and form required by board rules.
2-1 (f) [(d)] The application shall include:
2-2 (1) the name of the political subdivision;
2-3 (2) a citation to the laws under which the political
2-4 subdivision was created and is operating;
2-5 (3) the amount requested from the board for facility
2-6 engineering in an economically distressed area; and
2-7 (4) any other information required by the board in its
2-8 rules or specifically requested by the board.
2-9 (g) [(e)] After notice and hearing, the board may award the
2-10 applicant all or part of the requested funds that are considered
2-11 necessary by the board for the political subdivision to carry out
2-12 adequate facility engineering in an economically distressed area.
2-13 (h) [(f)] If the board grants an application under this
2-14 section and awards funds for facility engineering in an
2-15 economically distressed area, the board shall enter into a contract
2-16 with the political subdivision that includes:
2-17 (1) a detailed statement of the purpose for which the
2-18 money is to be used;
2-19 (2) the total amount of money to be paid from the
2-20 research and planning fund under the contract; and
2-21 (3) any other terms and conditions required by board
2-22 rules or agreed to by the contracting parties.
2-23 (i) [(g)] If, after submission of an application under this
2-24 section, a county has an increase in average per capita income or a
2-25 decrease in unemployment rate average so that the county no longer
2-26 meets the definition of an affected county in Section 16.341, the
2-27 political subdivision that submits the application continues to be
3-1 eligible for the funds under this section, and the board shall
3-2 process the application for facility engineering and, if the
3-3 application is approved, shall provide funds for the facility
3-4 engineering plan to the political subdivision.
3-5 (j) If the board determines that planning activities
3-6 undertaken by a political subdivision for which the board has
3-7 committed funds under this subchapter have been inadequate or not
3-8 completed in a timely manner, the board may terminate the contract
3-9 with the political subdivision and on behalf of and in consultation
3-10 with the political subdivision may perform or contract for facility
3-11 engineering in the economically distressed area.
3-12 SECTION 2. Section 17.927(b), Water Code, is amended to read
3-13 as follows:
3-14 (b) The application and plan must:
3-15 (1) comply with board requirements;
3-16 (2) describe in detail the method for delivering water
3-17 supply and sewer services and the persons to whom the services will
3-18 be provided;
3-19 (3) describe the method for complying with minimum
3-20 state standards for water supply and sewer services adopted by the
3-21 board under Section 16.342 of this code;
3-22 (4) include a budget that estimates the total cost of
3-23 providing water supply and sewer services to the economically
3-24 distressed area and a proposed schedule and method for repayment of
3-25 financial assistance consistent with board rules and guidelines;
3-26 (5) describe existing water supply and sewer
3-27 facilities located in the economically distressed area and include
4-1 with the description:
4-2 (A) the county map required by Section 366.036,
4-3 Health and Safety Code; or
4-4 (B) a document prepared and certified by an
4-5 engineer registered to practice in this state describing the plan
4-6 for providing water supply and sewer services to the economically
4-7 distressed area;
4-8 (6) provide proof that the appropriate political
4-9 subdivision has adopted the model rules developed under Section
4-10 16.343 of this code;
4-11 (7) include information on the ability of potential
4-12 customers to pay for the services provided by the project including
4-13 composite data prepared by the applicant pursuant to board rules
4-14 and guidelines from surveys of those potential customers covering
4-15 income, family size, personal expenses, employment status, and
4-16 other information required by board rule;
4-17 (8) include an estimate of the per household cost of
4-18 providing the services contemplated by the project with supporting
4-19 data;
4-20 (9) describe the procedures to be used to collect
4-21 money from residents who use the proposed water supply and sewer
4-22 services including procedures for collection of delinquent
4-23 accounts;
4-24 (10) include a requirement that a contractor who
4-25 agrees to acquire, construct, extend, or provide water supply and
4-26 sewer services executes a performance bond in the amount of 100
4-27 percent of the contract price;
5-1 (11) contain an agreement to comply with applicable
5-2 procurement procedures in contract awards for water supply and
5-3 sewer services;
5-4 (12) if located in the service area of a retail public
5-5 utility or public utility that has a certificate of public
5-6 convenience and necessity under Chapter 13 of this code, include a
5-7 document in the form of an affidavit signed by the chief executive
5-8 officer of the utility, which shall cooperate with the political
5-9 subdivision, stating that the utility does not object to the
5-10 construction and operation of the services and facilities in its
5-11 service area;
5-12 (13) include a map of the economically distressed area
5-13 together with supporting information relating to dwellings in the
5-14 area;
5-15 (14) describe in detail the methods for incorporating
5-16 water conservation into the provision of water and sewer services
5-17 to the economically distressed area; [and]
5-18 (15) include, on request of the board, a written
5-19 determination by the Texas Natural Resource Conservation Commission
5-20 on the managerial, financial, and technical capacity of the
5-21 applicant to operate the system for which assistance is being
5-22 requested; and
5-23 (16) include any other information required by the
5-24 board.
5-25 SECTION 3. Sections 17.930(b) and (c), Water Code, are
5-26 amended to read as follows:
5-27 (b) After making the considerations provided by Section
6-1 17.929 of this code, the board by resolution shall:
6-2 (1) approve [or disapprove] the plan and application
6-3 as submitted;
6-4 (2) approve the plan and application subject to the
6-5 requirements identified by the commission for the applicant to
6-6 obtain the managerial, financial, and technical capacity to operate
6-7 the facility and any other requirements the board considers
6-8 appropriate;
6-9 (3) deny the application and identify the requirements
6-10 or remedial steps the applicant must complete before the applicant
6-11 may be reconsidered for financial assistance;
6-12 (4) if the board finds that the applicant will be
6-13 unable to obtain the managerial, financial, or technical capacity
6-14 to build and operate a system, deny the application and issue a
6-15 determination that a service provider other than the applicant is
6-16 necessary or appropriate to undertake the proposed project; or
6-17 (5) deny the application.
6-18 (c) The board [and] shall notify the applicant in writing of
6-19 its decision.
6-20 (d) [(c)] The board may require the applicant to provide
6-21 local funds in an amount approved by the board under this
6-22 subchapter, and the board shall provide the remaining funds from
6-23 the economically distressed areas account.
6-24 SECTION 4. This Act takes effect September 1, 1999.
6-25 SECTION 5. The changes in law made by this Act apply only
6-26 to:
6-27 (1) an application for assistance under Section
7-1 15.407, Water Code, or Subchapter K, Chapter 17, Water Code, that
7-2 is pending before or submitted to the Texas Water Development Board
7-3 on or after September 1, 1999; and
7-4 (2) a contract under Section 15.407, Water Code,
7-5 regardless of the date the contract was entered into.
7-6 SECTION 6. The importance of this legislation and the
7-7 crowded condition of the calendars in both houses create an
7-8 emergency and an imperative public necessity that the
7-9 constitutional rule requiring bills to be read on three several
7-10 days in each house be suspended, and this rule is hereby suspended.