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.
3-43 * * * * *