By Shapleigh                                           S.B. No. 914
         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.
 1-7           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.