1-1     By:  Truan                                             S.B. No. 715
 1-2           (In the Senate - Filed February 25, 1999; March 1, 1999, read
 1-3     first time and referred to Special Committee on Border Affairs;
 1-4     April 7, 1999, reported favorably by the following vote:  Yeas 5,
 1-5     Nays 0; April 7, 1999, sent to printer.)
 1-6                            A BILL TO BE ENTITLED
 1-7                                   AN ACT
 1-8     relating to the authority of the Texas Water Development Board to
 1-9     set performance standards for certain colonias contracts and to
1-10     deny an application for financial assistance or terminate a
1-11     contract for inability to perform.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Section 15.407, Water Code, is amended by adding
1-14     new Subsections (c) and (d), relettering existing Subsections (c),
1-15     (d), (e), (f), and (g) as Subsections (e), (f), (g), (h), and (i),
1-16     and adding Subsection (j) to read as follows:
1-17           (c)  The selection process used by a political subdivision to
1-18     procure engineering services necessary for facility engineering is
1-19     subject to review by and approval of the executive administrator.
1-20     The executive administrator may assist a political subdivision in
1-21     the selection of the provider of engineering services necessary for
1-22     facility engineering in economically distressed areas.
1-23           (d)  The board shall adopt rules governing the procurement of
1-24     facility engineering services by a political subdivision awarded
1-25     funds under this subchapter and may adopt other rules necessary to
1-26     carry out the board's powers and duties under this subchapter.
1-27           (e)  A political subdivision that desires money from the
1-28     research and planning fund for facility engineering in an
1-29     economically distressed area shall submit a written application to
1-30     the board in the manner and form required by board rules.
1-31           (f) [(d)]  The application shall include:
1-32                 (1)  the name of the political subdivision;
1-33                 (2)  a citation to the laws under which the political
1-34     subdivision was created and is operating;
1-35                 (3)  the amount requested from the board for facility
1-36     engineering in an economically distressed area; and
1-37                 (4)  any other information required by the board in its
1-38     rules or specifically requested by the board.
1-39           (g) [(e)]  After notice and hearing, the board may award the
1-40     applicant all or part of the requested funds that are considered
1-41     necessary by the board for the political subdivision to carry out
1-42     adequate facility engineering in an economically distressed area.
1-43           (h) [(f)]  If the board grants an application under this
1-44     section and awards funds for facility engineering in an
1-45     economically distressed area, the board shall enter into a contract
1-46     with the political subdivision that includes:
1-47                 (1)  a detailed statement of the purpose for which the
1-48     money is to be used;
1-49                 (2)  the total amount of money to be paid from the
1-50     research and planning fund under the contract; and
1-51                 (3)  any other terms and conditions required by board
1-52     rules or agreed to by the contracting parties.
1-53           (i) [(g)]  If, after submission of an application under this
1-54     section, a county has an increase in average per capita income or a
1-55     decrease in unemployment rate average so that the county no longer
1-56     meets the definition of an affected county in Section 16.341, the
1-57     political subdivision that submits the application continues to be
1-58     eligible for the funds under this section, and the board shall
1-59     process the application for facility engineering and, if the
1-60     application is approved, shall provide funds for the facility
1-61     engineering plan to the political subdivision.
1-62           (j)  If the board determines that planning activities
1-63     undertaken by a political subdivision for which the board has
1-64     committed funds under this subchapter have been inadequate or not
 2-1     completed in a timely manner, the board may terminate the contract
 2-2     with the political subdivision and on behalf of and in consultation
 2-3     with the political subdivision may perform or contract for facility
 2-4     engineering in the economically distressed area.
 2-5           SECTION 2.  Subsection (b), Section 17.927, Water Code, is
 2-6     amended to read as follows:
 2-7           (b)  The application and plan must:
 2-8                 (1)  comply with board requirements;
 2-9                 (2)  describe in detail the method for delivering water
2-10     supply and sewer services and the persons to whom the services will
2-11     be provided;
2-12                 (3)  describe the method for complying with minimum
2-13     state standards for water supply and sewer services adopted by the
2-14     board under Section 16.342 of this code;
2-15                 (4)  include a budget that estimates the total cost of
2-16     providing water supply and sewer services to the economically
2-17     distressed area and a proposed schedule and method for repayment of
2-18     financial assistance consistent with board rules and guidelines;
2-19                 (5)  describe existing water supply and sewer
2-20     facilities located in the economically distressed area and include
2-21     with the description:
2-22                       (A)  the county map required by Section 366.036,
2-23     Health and Safety Code; or
2-24                       (B)  a document prepared and certified by an
2-25     engineer registered to practice in this state describing the plan
2-26     for providing water supply and sewer services to the economically
2-27     distressed area;
2-28                 (6)  provide proof that the appropriate political
2-29     subdivision has adopted the model rules developed under Section
2-30     16.343 of this code;
2-31                 (7)  include information on the ability of potential
2-32     customers to pay for the services provided by the project including
2-33     composite data prepared by the applicant pursuant to board rules
2-34     and guidelines from surveys of those potential customers covering
2-35     income, family size, personal expenses, employment status, and
2-36     other information required by board rule;
2-37                 (8)  include an estimate of the per household cost of
2-38     providing the services contemplated by the project with supporting
2-39     data;
2-40                 (9)  describe the procedures to be used to collect
2-41     money from residents who use the proposed water supply and sewer
2-42     services including procedures for collection of delinquent
2-43     accounts;
2-44                 (10)  include a requirement that a contractor who
2-45     agrees to acquire, construct, extend, or provide water supply and
2-46     sewer services executes a performance bond in the amount of 100
2-47     percent of the contract price;
2-48                 (11)  contain an agreement to comply with applicable
2-49     procurement procedures in contract awards for water supply and
2-50     sewer services;
2-51                 (12)  if located in the service area of a retail public
2-52     utility or public utility that has a certificate of public
2-53     convenience and necessity under Chapter 13 of this code, include a
2-54     document in the form of an affidavit signed by the chief executive
2-55     officer of the utility, which shall cooperate with the political
2-56     subdivision, stating that the utility does not object to the
2-57     construction and operation of the services and facilities in its
2-58     service area;
2-59                 (13)  include a map of the economically distressed area
2-60     together with supporting information relating to dwellings in the
2-61     area;
2-62                 (14)  describe in detail the methods for incorporating
2-63     water conservation into the provision of water and sewer services
2-64     to the economically distressed area; [and]
2-65                 (15)  include, on request of the board, a written
2-66     determination by the Texas Natural Resource Conservation Commission
2-67     on the managerial, financial, and technical capacity of the
2-68     applicant to operate the system for which assistance is being
2-69     requested; and
 3-1                 (16)  include any other information required by the
 3-2     board.
 3-3           SECTION 3.  Subsections (b) and (c), Section 17.930, Water
 3-4     Code, are amended to read as follows:
 3-5           (b)  After making the considerations provided by Section
 3-6     17.929 of this code, the board by resolution shall:
 3-7                 (1)  approve [or disapprove] the plan and application
 3-8     as submitted;
 3-9                 (2)  approve the plan and application subject to the
3-10     requirements identified by the commission for the applicant to
3-11     obtain the managerial, financial, and technical capacity to operate
3-12     the facility and any other requirements the board considers
3-13     appropriate;
3-14                 (3)  deny the application and identify the requirements
3-15     or remedial steps the applicant must complete before the applicant
3-16     may be reconsidered for financial assistance;
3-17                 (4)  if the board finds that the applicant will be
3-18     unable to obtain the managerial, financial, or technical capacity
3-19     to build and operate a system, deny the application and issue a
3-20     determination that a service provider other than the applicant is
3-21     necessary or appropriate to undertake the proposed project; or
3-22                 (5)  deny the application.
3-23           (c)  The board [and] shall notify the applicant in writing of
3-24     its decision.
3-25           (d) [(c)]  The board may require the applicant to provide
3-26     local funds in an amount approved by the board under this
3-27     subchapter, and the board shall provide the remaining funds from
3-28     the economically distressed areas account.
3-29           SECTION 4.  This Act takes effect September 1, 1999.
3-30           SECTION 5.  The changes in law made by this Act apply only
3-31     to:
3-32                 (1)  an application for assistance under Section
3-33     15.407, Water Code, or Subchapter K, Chapter 17, Water Code, that
3-34     is pending before or submitted to the Texas Water Development Board
3-35     on or after September 1, 1999; and
3-36                 (2)  a contract under Section 15.407, Water Code,
3-37     regardless of the date the contract was entered into.
3-38           SECTION 6.  The importance of this legislation and the
3-39     crowded condition of the calendars in both houses create an
3-40     emergency and an imperative public necessity that the
3-41     constitutional rule requiring bills to be read on three several
3-42     days in each house be suspended, and this rule is hereby suspended.
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