By: Zaffirini S.B. No. 312
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the review and functions of the Texas Water Development
1-3 Board.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The legislature finds that:
1-6 (1) economically distressed subdivisions commonly
1-7 called colonias are found throughout those counties located within
1-8 50 miles of the international border of this state;
1-9 (2) a substantial number of homes in the economically
1-10 distressed subdivisions lack an adequate potable water supply and
1-11 sewer services, creating a serious and unacceptable health hazard
1-12 from contagious and other serious illnesses and posing a clear and
1-13 substantial threat not only to the environment of the border region
1-14 but also to the environment of the entire state;
1-15 (3) although significant improvement has been made by
1-16 this state and the political subdivisions of the border area in
1-17 addressing the public health hazard created in those economically
1-18 distressed subdivisions, many of those economically distressed
1-19 subdivisions are located in isolated rural areas far from water or
1-20 wastewater providers or are otherwise situated so as to make the
1-21 provision of water or wastewater services by political subdivisions
1-22 to those areas difficult or impossible using conventional capital
1-23 improvement strategies;
1-24 (4) the lack of an adequate potable water supply and
1-25 wastewater services, coupled with the location of those
2-1 subdivisions, erodes the economic stability of the counties that
2-2 contain those subdivisions and that depend on a healthy and safe
2-3 environment for the residents of the subdivisions and counties;
2-4 (5) the economic stability of those counties is
2-5 necessary for the mutual development of trade, transportation, and
2-6 commerce in the border region and affects not only the border
2-7 region, but all regions of the state involved in those reciprocal
2-8 economic activities;
2-9 (6) alternative capital improvement mechanisms are
2-10 necessary to ensure that the maximum number of economically
2-11 distressed subdivisions obtain adequate water or wastewater
2-12 services to eliminate public health problems and encourage the
2-13 development and diversification of the economy in those counties
2-14 and the entire state;
2-15 (7) nonprofit organizations have succeeded in
2-16 planning, platting, engineering, designing, and constructing water
2-17 and wastewater projects to serve those inaccessible, economically
2-18 distressed subdivisions using assistance from the residents
2-19 immediately benefiting from the water or wastewater services, thus
2-20 creating an alternative capital improvement mechanism with a proven
2-21 record of success that deserves state support;
2-22 (8) many residents of colonias are motivated to
2-23 improve their situation and have worked with nonprofit
2-24 organizations on self-help projects to build their own
2-25 infrastructure, ultimately saving on the total cost of water and
2-26 wastewater projects; and
3-1 (9) creating a program to provide public funds to
3-2 those nonprofit organizations for self-help projects will assist in
3-3 the reduction of the public health problems created by the lack of
3-4 adequate water and wastewater services and will encourage the
3-5 development and diversification of the economy of the counties in
3-6 which those subdivisions are located as well as throughout the
3-7 entire state.
3-8 SECTION 2. Section 6.013, Water Code, is amended to read as
3-9 follows:
3-10 Sec. 6.013. SUNSET PROVISION. The Texas Water Development
3-11 Board is subject to review under Chapter 325, Government Code
3-12 (Texas Sunset Act), but is not abolished under that chapter. The
3-13 board shall be reviewed during the period in which state agencies
3-14 abolished in 2013 [2001] and every 12th year after 2013 [2001] are
3-15 reviewed.
3-16 SECTION 3. Subsection (c), Section 6.052, Water Code, is
3-17 amended to read as follows:
3-18 (c) Appointments to the board shall be made without regard
3-19 to the race, color, disability [handicap], sex, religion, age, or
3-20 national origin of the appointees.
3-21 SECTION 4. Sections 6.054, 6.057, and 6.058, Water Code, are
3-22 amended to read as follows:
3-23 Sec. 6.054. REMOVAL OF BOARD MEMBERS. (a) It is a ground
3-24 for removal from the board that [if] a member:
3-25 (1) does not have at the time of taking office
3-26 [appointment] the qualifications required for appointment to the
4-1 board;
4-2 (2) does not maintain during [the] service on the
4-3 board the qualifications required for appointment to the board;
4-4 (3) is ineligible for membership under [violates a
4-5 prohibition established by] Sections 6.053, 6.057, and 6.058 [of
4-6 this code];
4-7 (4) cannot, because of illness or disability, [is
4-8 unable to] discharge the member's [his] duties for a substantial
4-9 part [portion] of the member's term [for which he was appointed
4-10 because of illness or disability]; or
4-11 (5) is absent from more than half [one-half] of the
4-12 regularly scheduled board meetings that the member is eligible to
4-13 attend during a [each] calendar year without an excuse approved[,
4-14 except when the absence is excused] by a majority vote of the
4-15 board.
4-16 (b) The validity of an action of the board is not affected
4-17 by the fact that it is [was] taken when a ground for removal of a
4-18 board member exists [of the board existed].
4-19 (c) If the executive administrator [a board member] has
4-20 knowledge that a potential ground for removal exists, the executive
4-21 administrator [he] shall notify the chairman of the board of the
4-22 potential [that] ground. The chairman of the board shall then
4-23 notify the governor and the attorney general that a potential
4-24 ground for removal exists. If the potential ground for removal
4-25 includes the chairman of the board, the executive administrator
4-26 shall notify the next highest ranking officer of the board, who
5-1 shall then notify the governor and the attorney general that a
5-2 potential ground for removal exists.
5-3 Sec. 6.057. CONFLICT OF INTEREST. (a) In this section,
5-4 "Texas trade association" means a cooperative and voluntarily
5-5 joined association of business or professional competitors in this
5-6 state designed to assist its members and its industry or profession
5-7 in dealing with mutual business or professional problems and in
5-8 promoting their common interest.
5-9 (b) A person may not be a member of the board and may not be
5-10 a board employee employed in a "bona fide executive,
5-11 administrative, or professional capacity," as that phrase is used
5-12 for purposes of establishing an exemption to the overtime
5-13 provisions of the federal Fair Labor Standards Act of 1938 (29
5-14 U.S.C. Section 201 et seq.), and its subsequent amendments, if:
5-15 (1) the person is an officer, employee, or paid
5-16 consultant of a Texas trade association in the field of water
5-17 planning or water financing; or
5-18 (2) the person's spouse is an officer, employee, or
5-19 paid consultant of a Texas trade association in the field of water
5-20 planning or water financing. [An officer, employee, or paid
5-21 consultant of a trade association in an industry regulated by the
5-22 board may not be a member or employee of the board, nor may a
5-23 person who cohabits with or is the spouse of an officer, managerial
5-24 employee, or paid consultant of a trade association in an industry
5-25 regulated by the board be a member of the board or an employee of
5-26 the board grade 17 or over, including exempt employees, according
6-1 to the position classification schedule under the General
6-2 Appropriations Act.]
6-3 Sec. 6.058. LOBBYIST PROHIBITION. A person may not be a
6-4 member of the board or act as the general counsel to the board if
6-5 the person [who] is required to register as a lobbyist under
6-6 Chapter 305, Government Code, because of the person's [by virtue of
6-7 his] activities for compensation [in or] on behalf of a profession
6-8 related to the operation of the board [may not serve as a member of
6-9 the board or act as the general counsel to the board].
6-10 SECTION 5. Section 6.060, Water Code, is amended by adding
6-11 Subsection (d) to read as follows:
6-12 (d) The board shall meet annually with the board of the
6-13 Texas Department of Housing and Community Affairs or the successor
6-14 agency that administers the portion of the federal community
6-15 development block grant nonentitlement program that addresses the
6-16 infrastructure needs of colonias to assess the agencies' progress
6-17 in meeting the needs of colonia residents. For purposes of this
6-18 subsection, "colonia" has the meaning assigned by Section 2306.581,
6-19 Government Code.
6-20 SECTION 6. Subchapter C, Chapter 6, Water Code, is amended
6-21 by adding Section 6.062 to read as follows:
6-22 Sec. 6.062. REQUIRED TRAINING FOR BOARD MEMBERS. (a) A
6-23 person who is appointed to and qualifies for office as a member of
6-24 the board may not vote, deliberate, or be counted as a member in
6-25 attendance at a meeting of the board until the person completes a
6-26 training program that complies with this section.
7-1 (b) The training program must provide the person with
7-2 information regarding:
7-3 (1) the legislation that created the board;
7-4 (2) the programs operated by the board;
7-5 (3) the role and functions of the board;
7-6 (4) the rules of the board, with an emphasis on the
7-7 rules that relate to disciplinary and investigatory authority;
7-8 (5) the current budget for the board;
7-9 (6) the results of the most recent formal audit of the
7-10 board;
7-11 (7) the requirements of:
7-12 (A) the open meetings law, Chapter 551,
7-13 Government Code;
7-14 (B) the public information law, Chapter 552,
7-15 Government Code;
7-16 (C) the administrative procedure law, Chapter
7-17 2001, Government Code; and
7-18 (D) other laws relating to public officials,
7-19 including conflict of interest laws; and
7-20 (8) any applicable ethics policies adopted by the
7-21 board or the Texas Ethics Commission.
7-22 (c) A person appointed to the board is entitled to
7-23 reimbursement, as provided by the General Appropriations Act, for
7-24 the travel expenses incurred in attending the training program
7-25 regardless of whether the attendance at the program occurs before
7-26 or after the person qualifies for office.
8-1 SECTION 7. Section 6.106, Water Code, is amended to read as
8-2 follows:
8-3 Sec. 6.106. STANDARDS OF CONDUCT. The executive
8-4 administrator or the executive administrator's designee [board]
8-5 shall provide to [its] members of the board and to agency[,
8-6 appointees, and] employees, as often as is necessary, information
8-7 regarding the requirements for office or employment [their
8-8 qualifications] under this code, including information regarding a
8-9 person's [and their] responsibilities under applicable laws
8-10 relating to standards of conduct for state officers or [and]
8-11 employees.
8-12 SECTION 8. Subchapter D, Chapter 6, Water Code, is amended
8-13 by adding Sections 6.110 and 6.111 to read as follows:
8-14 Sec. 6.110. CAPITAL SPENDING PLAN. (a) Each biennium, the
8-15 executive administrator shall develop and submit to the board for
8-16 its approval a capital spending plan for state-funded programs,
8-17 including the Texas Water Development Fund II, the agricultural
8-18 water conservation fund, and the water assistance fund.
8-19 (b) The plan must:
8-20 (1) identify water funding needs in the state and set
8-21 forth a basis for allocating state-supported funding to address
8-22 those needs; and
8-23 (2) if applicable, provide details about:
8-24 (A) the reasons state-supported funding was not
8-25 allocated according to the methodologies identified in prior plans;
8-26 and
9-1 (B) any adjustments to the plan from prior plans
9-2 in response to changing water priorities.
9-3 (c) In developing the plan, the executive administrator
9-4 shall consider:
9-5 (1) any commission compliance issues;
9-6 (2) information derived from facility needs
9-7 assessments or other water and wastewater needs assessments;
9-8 (3) regional planning group plans required under
9-9 Section 16.053; and
9-10 (4) any other appropriate information.
9-11 (d) The board shall consider the plan at a regularly
9-12 scheduled meeting and, on approval, submit it to the legislature
9-13 and the Legislative Budget Board before January 1 of each
9-14 odd-numbered year. The board may include the plan as part of its
9-15 legislative appropriations request.
9-16 Sec. 6.111. SEPARATION OF RESPONSIBILITIES. The board shall
9-17 develop and implement policies that clearly separate the
9-18 policymaking responsibilities of the board and the management
9-19 responsibilities of the executive administrator and the staff of
9-20 the board.
9-21 SECTION 9. Sections 6.154, 6.155, and 6.188, Water Code, are
9-22 amended to read as follows:
9-23 Sec. 6.154. COMPLAINT FILE. (a) The board shall maintain a
9-24 file on each written complaint filed with the board. The file must
9-25 include:
9-26 (1) the name of the person who filed the complaint;
10-1 (2) the date the complaint is received by the board;
10-2 (3) the subject matter of the complaint;
10-3 (4) the name of each person contacted in relation to
10-4 the complaint;
10-5 (5) a summary of the results of the review or
10-6 investigation of the complaint; and
10-7 (6) an explanation of the reason the file was closed,
10-8 if the agency closed the file without taking action other than to
10-9 investigate the complaint.
10-10 (b) The board shall provide to the person filing the
10-11 complaint and to each person who is a subject of the complaint a
10-12 copy of the board's policies and procedures relating to complaint
10-13 investigation and resolution [keep an information file about each
10-14 complaint filed with the board relating to an entity regulated by
10-15 the board].
10-16 Sec. 6.155. NOTICE OF COMPLAINT. The [If a written
10-17 complaint is filed with the board relating to an entity regulated
10-18 by the board, the] board, at least [as frequently as] quarterly
10-19 [and] until final disposition of the complaint, shall notify the
10-20 person filing the complaint and each person who is a subject of
10-21 [parties to] the complaint of the status of the investigation
10-22 [complaint] unless the notice would jeopardize an undercover
10-23 investigation.
10-24 Sec. 6.188. EQUAL EMPLOYMENT OPPORTUNITY POLICY. (a) The
10-25 executive administrator or the executive administrator's [his]
10-26 designee shall prepare and maintain a written policy statement that
11-1 implements [to assure implementation of] a program of equal
11-2 employment opportunity to ensure that all personnel decisions
11-3 [whereby all personnel transactions] are made without regard to
11-4 race, color, disability [handicap], sex, religion, age, or national
11-5 origin.
11-6 (b) The policy statement must include:
11-7 (1) personnel policies, including policies relating to
11-8 recruitment, evaluation, selection, [appointment,] training, and
11-9 promotion of personnel, that show the intent of the board to avoid
11-10 the unlawful employment practices described by Chapter 21, Labor
11-11 Code; and
11-12 (2) an [a comprehensive] analysis of the extent to
11-13 which the composition of the board's personnel is in accordance
11-14 with state and federal law and a description of reasonable methods
11-15 to achieve compliance with state and federal law.
11-16 (c) The policy statement must:
11-17 (1) be updated annually;
11-18 (2) be reviewed by the state Commission on Human
11-19 Rights for compliance with Subsection (b)(1); and
11-20 (3) be filed with the governor's office [work force
11-21 that meets federal and state guidelines;]
11-22 [(3) procedures by which a determination can be made
11-23 of significant underutilization in the board's work force of all
11-24 persons for whom federal or state guidelines encourage a more
11-25 equitable balance; and]
11-26 [(4) reasonable methods to address appropriately areas
12-1 of significant underutilization in the board's work force of all
12-2 persons for whom federal or state guidelines encourage a more
12-3 equitable balance.]
12-4 [(b) The policy statement shall be filed with the governor's
12-5 office before November 1, 1985, cover an annual period, and be
12-6 updated at least annually. The governor's office shall develop a
12-7 biennial report to the legislature based on the information
12-8 submitted. This report may be made individually or as a part of
12-9 other biennial reports made to the legislature].
12-10 SECTION 10. Subchapter F, Chapter 6, Water Code, is amended
12-11 by adding Section 6.196 to read as follows:
12-12 Sec. 6.196. TRAINING ON STATE EMPLOYEE INCENTIVE PROGRAM.
12-13 The executive administrator or the executive administrator's
12-14 designee shall provide to agency employees information and training
12-15 on the benefits and methods of participation in the state employee
12-16 incentive program under Subchapter B, Chapter 2108, Government
12-17 Code.
12-18 SECTION 11. Section 15.008, Water Code, is amended to read
12-19 as follows:
12-20 Sec. 15.008. GRANT STANDARDS. The law regarding uniform
12-21 grants and contract management, Chapter 783, Government Code,
12-22 [Uniform Grant and Contract Management Act of 1981 (Article
12-23 4413(32g), Vernon's Texas Civil Statutes)] does not apply to a
12-24 contract under Subchapter F, H, [or] K, or P [of this chapter].
12-25 SECTION 12. Subsection (b), Section 15.011, Water Code, is
12-26 amended to read as follows:
13-1 (b) After notice and hearing and subject to any limitations
13-2 established by the General Appropriations Act, the board may
13-3 transfer money from the fund to the loan fund created under
13-4 Subchapter C of this chapter, the storage acquisition fund created
13-5 under Subchapter E of this chapter, the research and planning fund
13-6 created under Subchapter F of this chapter, the hydrographic survey
13-7 account created under Subchapter M of this chapter, provided the
13-8 hydrographic survey account transfer does not exceed $425,000,
13-9 [and] the aquatic vegetation management fund created under
13-10 Subchapter N of this chapter, the rural community water and
13-11 wastewater loan fund created under Subchapter O of this chapter,
13-12 and the colonia self-help account under Subchapter P of this
13-13 chapter.
13-14 SECTION 13. Subsection (c), Section 15.012, Water Code, is
13-15 amended to read as follows:
13-16 (c) Money appropriated to the fund by the legislature for a
13-17 specific purpose stated in Subchapter C, E, F, M, [or] N, or O of
13-18 this chapter shall be placed in the appropriate fund created by
13-19 that subchapter.
13-20 SECTION 14. Subsection (b), Section 15.102, Water Code, is
13-21 amended to read as follows:
13-22 (b) The loan fund may also be used by the board to provide
13-23 grants for projects:
13-24 (1) that include supplying water and wastewater
13-25 services in economically distressed areas, including projects
13-26 involving retail distribution of those services;
14-1 (2) for which federal grant funds are placed in the
14-2 loan fund; or
14-3 (3) on specific legislative appropriation for those
14-4 projects.
14-5 SECTION 15. Section 15.104, Water Code, is amended to read
14-6 as follows:
14-7 Sec. 15.104. FINDINGS REGARDING PERMITS. (a) The board
14-8 shall not release funds for the construction of that portion of a
14-9 project that proposes surface water or groundwater development
14-10 [deliver funds pursuant to an application for financial assistance
14-11 from the loan fund] until the executive administrator makes a
14-12 written finding:
14-13 (1) that an applicant proposing surface-water
14-14 development has the necessary water right authorizing it to
14-15 appropriate and use the water that the project will provide; or
14-16 (2) that an applicant proposing underground water
14-17 development has the right to use water that the project will
14-18 provide.
14-19 (b) The board may release funds for the costs of planning,
14-20 engineering, architectural, legal, title, fiscal, or economic
14-21 investigation, studies, surveys, or designs before making the
14-22 finding required under Subsection (a) if the executive
14-23 administrator determines that a reasonable expectation exists that
14-24 the finding will be made before the release of funds for
14-25 construction.
14-26 (c) If an applicant includes a proposal for a waste water
15-1 treatment plant, the board may not deliver funds for the waste
15-2 water treatment plant until the applicant has received a permit for
15-3 construction and operation of the waste water treatment plant and
15-4 approval of the plans and specifications from the commission. If
15-5 the applicant proposes a waste water treatment plant that is
15-6 located outside of the jurisdiction of this state and that is not
15-7 subject to the permitting authority of the commission, the board
15-8 must review the plans and specifications in coordination with the
15-9 commission and find that the waste water treatment plant is capable
15-10 of producing effluent that will meet federal and state-approved
15-11 water quality standards.
15-12 SECTION 16. Subsection (a), Section 15.601, Water Code, is
15-13 amended to read as follows:
15-14 (a) The state water pollution control revolving fund shall
15-15 be administered by the board under this subchapter and rules
15-16 adopted by the board. The fund shall be used to provide financial
15-17 assistance to political subdivisions for construction of treatment
15-18 works and to persons for nonpoint source pollution control and
15-19 abatement projects under Section 15.603(h), in accordance with the
15-20 capitalization grant program established under the Federal Water
15-21 Pollution Control Act (33 U.S.C. 1251 et seq.).
15-22 SECTION 17. Section 15.603, Water Code, is amended by
15-23 amending Subsection (a) and adding Subsection (h) to read as
15-24 follows:
15-25 (a) The revolving fund is held separately from other funds
15-26 by the board outside the State Treasury to provide financial
16-1 assistance to political subdivisions for construction of treatment
16-2 works and to persons for nonpoint source pollution control and
16-3 abatement projects under Subsection (h).
16-4 (h) The board may establish a separate account in the
16-5 revolving fund, to be used solely for providing financial
16-6 assistance to persons for nonpoint source pollution control and
16-7 abatement projects. The account shall be composed solely of funds
16-8 appropriated by the legislature, funds provided as gifts or grants
16-9 by the United States, interest earnings on amounts credited to the
16-10 account, and repayments of loans made from the account. The board
16-11 shall adopt rules establishing the criteria for eligibility and
16-12 the terms of assistance for persons that receive financial
16-13 assistance from the account.
16-14 SECTION 18. Subsection (a), Section 15.804, Water Code, is
16-15 amended to read as follows:
16-16 (a) On the request of a political subdivision or agency of
16-17 this state or a neighboring state or a federal agency, the board
16-18 may perform [for the political subdivision] a hydrographic survey
16-19 in this state or outside of this state if the information collected
16-20 will benefit this state. The board may perform a survey under this
16-21 section:
16-22 (1) to determine:
16-23 (A) reservoir storage capacity;
16-24 (B) sedimentation levels;
16-25 (C) rates of sedimentation;
16-26 (D) projected water supply availability; or
17-1 [and]
17-2 (E) potential mitigative measures; [and]
17-3 (2) to conduct [for] other bathymetric studies; or
17-4 (3) to collect information relating to water-bearing
17-5 formations.
17-6 SECTION 19. Chapter 15, Water Code, is amended by adding
17-7 Subchapter O to read as follows:
17-8 SUBCHAPTER O. PILOT PROGRAM FOR WATER AND WASTEWATER
17-9 LOANS FOR RURAL COMMUNITIES
17-10 Sec. 15.901. DEFINITIONS. In this subchapter:
17-11 (1) "Fund" means the rural community water and
17-12 wastewater loan fund.
17-13 (2) "Political subdivision" means a municipality, a
17-14 county, or a district or authority created under Section 52,
17-15 Article III, or Section 59, Article XVI, Texas Constitution.
17-16 (3) "Rural community" means:
17-17 (A) a municipality or county with a population
17-18 of less than 5,000; or
17-19 (B) a district or authority created under
17-20 Section 52, Article III, or Section 59, Article XVI, Texas
17-21 Constitution, with a population of less than 5,000 that is located
17-22 outside the boundaries or extraterritorial jurisdiction of a
17-23 municipality.
17-24 Sec. 15.902. RURAL COMMUNITY WATER AND WASTEWATER LOAN FUND.
17-25 (a) The rural community water and wastewater loan fund is an
17-26 account in the water assistance fund.
18-1 (b) The fund consists of:
18-2 (1) money transferred to the fund from the water
18-3 assistance fund under Section 15.011(b);
18-4 (2) proceeds from the sale of political subdivision
18-5 bonds by the board to the Texas Water Resources Finance Authority
18-6 as provided by Section 17.0871; and
18-7 (3) repayments of loans made from the fund.
18-8 Sec. 15.903. FINANCIAL ASSISTANCE. (a) The fund may be
18-9 used by the board to provide loans of financial assistance to rural
18-10 communities for the construction, acquisition, or improvement of
18-11 water and wastewater projects.
18-12 (b) The board may make financial assistance available to a
18-13 rural community by entering into a loan agreement and promissory
18-14 note with the rural community, as provided by this subchapter. A
18-15 rural community may apply for and accept the financial assistance.
18-16 (c) The loan agreement must provide for the payment of
18-17 principal and interest on the debt incurred for the project at a
18-18 rate to be determined by the board.
18-19 (d) The loan agreement must provide for the issuance of a
18-20 promissory note payable to the board to evidence the obligation of
18-21 the rural community to repay the loan made in accordance with the
18-22 terms of the loan agreement.
18-23 (e) A loan provided under this subchapter may not exceed
18-24 $250,000 for each project, and the term of a loan may not exceed 20
18-25 years.
18-26 Sec. 15.904. USE OF SALES TAX AS LOAN SECURITY. (a) A
19-1 rural community that is a municipality or county may pledge a
19-2 percentage of the sales and use tax revenue received under Chapter
19-3 321 or 323, Tax Code, as applicable, to the payment of debt
19-4 incurred under a loan agreement entered into with the board under
19-5 this subchapter if a majority of the voters voting at an election
19-6 called and held for that purpose authorize the municipality or
19-7 county to pledge a portion of that revenue for that purpose.
19-8 (b) Sections 321.506, 321.507, and 323.505, Tax Code, do not
19-9 apply to taxes pledged under this subchapter.
19-10 Sec. 15.905. REVIEW AND APPROVAL OF LOAN AGREEMENT BY
19-11 ATTORNEY GENERAL. (a) Before a loan agreement may become
19-12 effective, a record of the proceedings of the board and the rural
19-13 community authorizing the execution of the loan agreement, the loan
19-14 agreement, the promissory note, and any contract providing revenue
19-15 or security to pay the promissory note must be submitted to the
19-16 attorney general for review and approval.
19-17 (b) If the attorney general finds that the loan agreement
19-18 and the promissory note are valid and binding obligations of the
19-19 rural community, the attorney general shall approve the documents
19-20 and deliver them to the comptroller, the board, and the rural
19-21 community, together with a copy of the attorney general's legal
19-22 opinion stating that approval.
19-23 Sec. 15.906. REGISTRATION. On receipt of the documents
19-24 required by Section 15.905(b), the comptroller shall register the
19-25 record of the proceedings relating to the execution of a loan
19-26 agreement.
20-1 Sec. 15.907. VALIDITY AND INCONTESTABILITY. On approval by
20-2 the attorney general and registration by the comptroller, the loan
20-3 agreement, the promissory note, a contract providing revenue or
20-4 security, and any other obligation evidencing the debt are
20-5 incontestable in a court and are valid, binding, and enforceable
20-6 according to their terms.
20-7 Sec. 15.908. ENFORCEMENT BY MANDAMUS. Payment of
20-8 obligations incurred under a loan agreement and other requirements
20-9 of this subchapter may be enforced in a court by mandamus or other
20-10 appropriate proceedings.
20-11 Sec. 15.909. RULES. The board shall adopt necessary rules
20-12 to administer this subchapter, including rules establishing
20-13 procedures for application for and award of loans.
20-14 Sec. 15.910. APPLICATION FOR ASSISTANCE. (a) In an
20-15 application to the board for financial assistance from the fund,
20-16 the rural community must include:
20-17 (1) the name of the rural community and its principal
20-18 officers;
20-19 (2) a citation of the law under which the rural
20-20 community operates and was created;
20-21 (3) a description of the water or wastewater project
20-22 for which the financial assistance will be used;
20-23 (4) the total cost of the project;
20-24 (5) the amount of state financial assistance
20-25 requested;
20-26 (6) the plan for repaying the total cost of the
21-1 project; and
21-2 (7) any other information the board requires in order
21-3 to perform its duties and to protect the public interest.
21-4 (b) The board may not accept an application for a loan of
21-5 financial assistance from the fund unless it is submitted in
21-6 affidavit form by the officials of the rural community. The board
21-7 shall prescribe the affidavit form in its rules.
21-8 (c) If a rural community has a program of water
21-9 conservation, the rural community shall state in the application
21-10 that the rural community has such a program.
21-11 Sec. 15.911. FINDINGS REGARDING PERMITS. (a) The board may
21-12 not release funds for the construction phase of that portion of a
21-13 project that proposes surface water or groundwater development
21-14 until the executive administrator makes a written finding:
21-15 (1) that a rural community proposing surface water
21-16 development has the necessary water right authorizing it to
21-17 appropriate and use the water that the project will provide; or
21-18 (2) that a rural community proposing underground water
21-19 development has the right to use water that the project will
21-20 provide.
21-21 (b) If a rural community includes a proposal for a
21-22 wastewater treatment project, the board may not release funds for
21-23 the project construction until the rural community has received a
21-24 permit for the construction and operation of the project and
21-25 approval of the plans and specifications for the project in a
21-26 manner that will satisfy commission requirements for design
22-1 criteria and permit conditions that apply to construction
22-2 activities.
22-3 Sec. 15.912. CONSIDERATIONS IN ACTING ON APPLICATION. In
22-4 acting on an application for financial assistance, the board shall
22-5 consider:
22-6 (1) the needs of the area to be served by the project
22-7 and the benefit of the project to the area in relation to the needs
22-8 of other areas requiring state assistance in any manner and the
22-9 benefits of those projects to the other areas;
22-10 (2) the availability of revenue to the rural community
22-11 from all sources for the ultimate repayment of the cost of the
22-12 project, including all interest;
22-13 (3) the relationship of the project to overall
22-14 statewide needs; and
22-15 (4) any other factors that the board considers
22-16 relevant.
22-17 Sec. 15.913. APPROVAL OF APPLICATION. The board by
22-18 resolution may approve an application for a loan if, after
22-19 considering the factors listed in Section 15.912 and any other
22-20 relevant factors, the board finds that:
22-21 (1) the public interest requires state participation
22-22 in the project; and
22-23 (2) the revenue or taxes pledged by the rural
22-24 community will be sufficient to meet all the obligations assumed by
22-25 the rural community during the succeeding period of not more than
22-26 20 years.
23-1 Sec. 15.914. CONSTRUCTION CONTRACT REQUIREMENTS. The
23-2 governing body of each rural community receiving financial
23-3 assistance from the board under this subchapter shall require in
23-4 all contracts for the construction of a project that:
23-5 (1) each bidder furnish a bid guarantee equivalent to
23-6 five percent of the bid price;
23-7 (2) each contractor awarded a construction contract
23-8 furnish performance and payment bonds as follows:
23-9 (A) the performance bond must include guarantees
23-10 that work done under the contract will be completed and performed
23-11 according to approved plans and specifications and in accordance
23-12 with sound construction principles and practices; and
23-13 (B) the performance and payment bonds must be in
23-14 a penal sum of not less than 100 percent of the contract price and
23-15 remain in effect for one year after the date of approval by the
23-16 engineer of the political subdivision;
23-17 (3) payment be made in partial payments as the work
23-18 progresses;
23-19 (4) each partial payment not exceed 95 percent of the
23-20 amount due at the time of the payment as shown by the engineer of
23-21 the project, but, if the project is substantially complete, a
23-22 partial release of the five percent retainage may be made by the
23-23 rural community with approval of the executive administrator;
23-24 (5) payment of the retainage remaining due on
23-25 completion of the contract be made only after:
23-26 (A) approval by the engineer for the rural
24-1 community as required under the bond proceedings;
24-2 (B) approval by the governing body of the rural
24-3 community by a resolution or other formal action; and
24-4 (C) certification by the executive administrator
24-5 in accordance with the rules of the board that the work to be done
24-6 under the contract has been completed and performed in a
24-7 satisfactory manner and in accordance with sound engineering
24-8 principles and practices;
24-9 (6) no valid approval be granted unless the work done
24-10 under the contract has been completed and performed in a
24-11 satisfactory manner according to approved plans and specifications;
24-12 and
24-13 (7) labor from inside the rural community be used to
24-14 the extent possible.
24-15 Sec. 15.915. FILING CONSTRUCTION CONTRACT. The rural
24-16 community shall file with the board a certified copy of each
24-17 construction contract it enters into for the construction of all or
24-18 part of a project. Each contract must contain or have attached to
24-19 it the specifications, plans, and details of all work included in
24-20 the contract.
24-21 Sec. 15.916. INSPECTION OF PROJECTS. (a) The board may
24-22 inspect the construction of a project at any time to assure that:
24-23 (1) the contractor is substantially complying with the
24-24 approved engineering plans of the project; and
24-25 (2) the contractor is constructing the project in
24-26 accordance with sound engineering principles.
25-1 (b) Inspection of a project by the board does not subject
25-2 the state to any civil liability.
25-3 Sec. 15.917. ALTERATION OF PLANS. After the executive
25-4 administrator approves the engineering plans, a rural community may
25-5 not make any substantial or material alteration in the plans unless
25-6 the executive administrator authorizes the alteration. The board
25-7 shall review and approve or disapprove plans and specifications for
25-8 all sewage collection, treatment, and disposal systems for which
25-9 financial assistance is provided from the fund in a manner that
25-10 will satisfy commission requirements for design criteria and permit
25-11 conditions that apply to construction activities.
25-12 Sec. 15.918. CERTIFICATE OF APPROVAL. The executive
25-13 administrator may consider the following as grounds for refusal to
25-14 give a certificate of approval for any construction contract:
25-15 (1) failure to construct the project according to the
25-16 approved plans;
25-17 (2) failure to construct the works in accordance with
25-18 sound engineering principles; or
25-19 (3) failure to comply with any term of the contract.
25-20 Sec. 15.919. REPORT TO LEGISLATURE. (a) Not later than
25-21 January 1, 2005, the board shall report to the legislature on the
25-22 program established under this subchapter.
25-23 (b) The report must include:
25-24 (1) the number of applications received;
25-25 (2) the number of loans funded;
25-26 (3) the types of projects funded;
26-1 (4) the total funds allocated;
26-2 (5) available performance measures; and
26-3 (6) the expected feasibility of and demand for an
26-4 expanded rural community water and wastewater loan program.
26-5 Sec. 15.920. AUTHORITY OF RURAL COMMUNITIES. Rural
26-6 communities that receive financial assistance from the fund are
26-7 granted all necessary authority to enter into loan agreements and
26-8 issue promissory notes in connection with the financial assistance
26-9 granted under this subchapter.
26-10 SECTION 20. Chapter 15, Water Code, is amended by adding
26-11 Subchapter P to read as follows:
26-12 SUBCHAPTER P. COLONIA SELF-HELP PROGRAM
26-13 Sec. 15.951. DEFINITIONS. In this subchapter:
26-14 (1) "Account" means the colonia self-help account.
26-15 (2) "Colonia" means a geographic area that:
26-16 (A) is an economically distressed area as
26-17 defined by Section 17.921; and
26-18 (B) is located in a county any part of which is
26-19 within 50 miles of an international border.
26-20 (3) "Program" means the colonia self-help program
26-21 established under this subchapter.
26-22 (4) "Retail public utility" has the meaning assigned
26-23 by Section 13.002.
26-24 (5) "Self-help project" means a project in which the
26-25 people who will benefit from the project actively participate.
26-26 Sec. 15.952. CREATION OF ACCOUNT. (a) The colonia
27-1 self-help account is an account in the general revenue fund that
27-2 may be appropriated only for the purposes of this subchapter.
27-3 (b) The account consists of:
27-4 (1) money transferred by the legislature directly to
27-5 the account;
27-6 (2) money transferred at the board's discretion from
27-7 the fund;
27-8 (3) gifts, grants, or donations to the account; and
27-9 (4) interest earned on money credited to the account.
27-10 (c) Sections 403.095 and 404.071, Government Code, do not
27-11 apply to the account.
27-12 Sec. 15.953. USE OF ACCOUNT. (a) The board may use funds
27-13 in the account only to reimburse nonprofit organizations eligible
27-14 under Section 15.954 for expenses incurred in a self-help project
27-15 that results in the provision of adequate water or wastewater
27-16 services to a colonia. Expenses that may be reimbursed include:
27-17 (1) construction expenses;
27-18 (2) facility planning expenses;
27-19 (3) platting expenses;
27-20 (4) surveying expenses;
27-21 (5) engineering expenses;
27-22 (6) equipment expenses; and
27-23 (7) other expenses necessary to provide water or
27-24 wastewater services to the colonia, as determined appropriate by
27-25 the board.
27-26 (b) The board may award a grant under the program directly
28-1 to a nonprofit organization to reimburse the organization for
28-2 expenses incurred in a self-help project described by Subsection
28-3 (a).
28-4 Sec. 15.954. ELIGIBLE NONPROFIT ORGANIZATIONS. To be
28-5 eligible to receive a grant under the program, an organization
28-6 must:
28-7 (1) apply for the grant;
28-8 (2) qualify for an exemption from federal income taxes
28-9 under Section 501(c)(3), Internal Revenue Code of 1986, as amended;
28-10 and
28-11 (3) as of January 1, 2001, have a demonstrated record
28-12 of completing in coordination with a retail public utility
28-13 construction of self-help projects described by Section 15.953(a).
28-14 Sec. 15.955. GRANT APPLICATION. An eligible nonprofit
28-15 organization must apply to the board for a grant under the program
28-16 before incurring any expense associated with a self-help project
28-17 described by Section 15.953(a). The application must include:
28-18 (1) the name of the nonprofit organization, the names
28-19 of the organization's principal officers, and verification of the
28-20 organization's 501(c)(3) status;
28-21 (2) a description of the project area, the anticipated
28-22 number of water and wastewater connections to be made, and the
28-23 anticipated number of colonia residents to be served;
28-24 (3) a description of the existing water and wastewater
28-25 facilities in the colonia;
28-26 (4) a description of the project and the aspect of the
29-1 project for which the grant will be used;
29-2 (5) a description of the anticipated participation in
29-3 the project by residents of the colonia;
29-4 (6) the estimated total cost of both the project and
29-5 the aspect of the project for which the grant will be used;
29-6 (7) the amount of the grant that is requested from the
29-7 colonia self-help account and the sources of funding for the entire
29-8 project;
29-9 (8) from a retail public utility authorized to provide
29-10 water or wastewater services to the colonia, a resolution in which
29-11 the retail public utility:
29-12 (A) agrees to inspect the project during and
29-13 after construction to ensure the adequacy of the project; and
29-14 (B) commits to provide the water or wastewater
29-15 services that the project intends to use; and
29-16 (9) any other information required by the board.
29-17 Sec. 15.956. BOARD CONSIDERATIONS IN EVALUATING GRANT
29-18 APPLICATION. In evaluating an application for a grant under the
29-19 program, the board shall consider:
29-20 (1) the number, quality, and character of projects
29-21 previously completed by the applicant; and
29-22 (2) the capability of the retail public utility to
29-23 provide water or wastewater services to the colonia on completion
29-24 of the project.
29-25 Sec. 15.957. ACTION ON GRANT APPLICATION. (a) Not later
29-26 than the 60th day after the date the board receives a complete
30-1 application for a grant under the program, the board by written
30-2 resolution shall:
30-3 (1) approve the application; or
30-4 (2) disapprove the application.
30-5 (b) On approval of an application, the board shall authorize
30-6 the executive administrator of the board to execute a contract with
30-7 the applicant for a grant to reimburse eligible expenses. The
30-8 contract may provide a budget, schedule, terms for payment of
30-9 funds, and any other terms the board or its executive administrator
30-10 considers appropriate.
30-11 Sec. 15.958. RULES. The board shall adopt rules necessary
30-12 to administer the program established under this subchapter.
30-13 Sec. 15.959. CO-ADMINISTRATION. The program shall be
30-14 co-administered by the office of the secretary of state until the
30-15 second anniversary of the date on which the program begins
30-16 operations under this subchapter.
30-17 SECTION 21. Subchapter B, Chapter 16, Water Code, is amended
30-18 by amending Section 16.021 and adding Section 16.022 to read as
30-19 follows:
30-20 Sec. 16.021. TEXAS NATURAL RESOURCES INFORMATION SYSTEM.
30-21 (a) The executive administrator shall establish the Texas Natural
30-22 Resources Information System (TNRIS) to serve Texas agencies and
30-23 citizens as a centralized clearinghouse and referral center for
30-24 natural resource, census, and other socioeconomic data.
30-25 (b) The executive administrator may, on behalf of TNRIS,
30-26 enter into partnerships with private entities to provide additional
31-1 funding for improved access to TNRIS information. The board shall
31-2 adopt administrative rules to describe the process of establishing
31-3 partnerships, define the types of partnerships that may be formed,
31-4 establish the fee collection process, and define the
31-5 nondiscriminatory methods used to determine which private entities
31-6 may enter into partnerships. Any process developed by the board
31-7 must comply with all applicable laws regarding ethics, purchasing,
31-8 and contracts.
31-9 (c) The Texas Geographic Information Council (TGIC) is
31-10 created to provide strategic planning and coordination in the
31-11 acquisition and use of geo-spatial data and related technologies in
31-12 the State of Texas. The executive administrator and the executive
31-13 director of the Department of Information Resources shall designate
31-14 entities to be members of the TGIC. The chief administrative
31-15 officer of each member entity shall select one representative to
31-16 serve on the TGIC. The duties of the TGIC shall include providing
31-17 guidance to the executive administrator in carrying out the
31-18 executive administrator's [his] duties under this section and
31-19 guidance to the Department of Information Resources for development
31-20 of rules related to statewide geo-spatial data and technology
31-21 standards.
31-22 (d) Member entities of the TGIC that are state agencies
31-23 shall, and member entities that are not state agencies may, provide
31-24 information to the TGIC about their investments in geographic
31-25 information and plans for its use. Not later than September 1 of
31-26 each even-numbered year, the TGIC shall prepare and provide to the
32-1 board, the Department of Information Resources, the governor, and
32-2 the legislature a plan that inventories known state agency
32-3 geographic information systems projects and recommends initiatives
32-4 to improve the state's geographic information systems programs.
32-5 (e) [(c)] Under the guidance of the TGIC, the executive
32-6 administrator shall:
32-7 (1) further develop the Texas Natural Resources
32-8 Information System by promoting and providing for effective
32-9 acquisition, archiving, documentation, indexing, and dissemination
32-10 of natural resource and related digital and nondigital data and
32-11 information;
32-12 (2) obtain information in response to disagreements
32-13 regarding names and name spellings for natural and cultural
32-14 features in the state and provide this information to the Board on
32-15 Geographic Names of the United States Department of the Interior;
32-16 (3) make recommendations to the Board on Geographic
32-17 Names of the United States Department of the Interior for naming
32-18 any natural or cultural feature subject to the limitations provided
32-19 by Subsection (f) [(d) of this section];
32-20 (4) make recommendations to the Department of
32-21 Information Resources to adopt and promote standards that
32-22 facilitate sharing of digital natural resource data and related
32-23 socioeconomic data among federal, state, and local governments and
32-24 other interested parties;
32-25 (5) acquire and disseminate natural resource and
32-26 related socioeconomic data describing the Texas-Mexico border
33-1 region; and
33-2 (6) coordinate, conduct, and facilitate the
33-3 development, maintenance, and use of mutually compatible statewide
33-4 digital base maps depicting natural resources and man-made
33-5 features.
33-6 (f) [(d)] A recommendation may not be made under
33-7 [Subdivision (3) of] Subsection (e)(3) [(c) of this section] for:
33-8 (1) a feature previously named under statutory
33-9 authority or recognized by an agency of the federal government, the
33-10 state, or a political subdivision of the state;
33-11 (2) a feature located on private property for which
33-12 consent of the property owner cannot be obtained; or
33-13 (3) naming a natural or cultural feature for a living
33-14 person.
33-15 Sec. 16.022. WATER CONSERVATION STUDY. (a) The board and
33-16 the State Soil and Water Conservation Board shall jointly conduct a
33-17 study of the ways to improve or expand water conservation efforts
33-18 and report to the legislature.
33-19 (b) The report must include:
33-20 (1) an assessment of both agricultural and municipal
33-21 water conservation issues;
33-22 (2) information on existing conservation efforts by
33-23 the board and the State Soil and Water Conservation Board;
33-24 (3) information on existing conservation efforts by
33-25 municipalities receiving funding from the board, as specified in
33-26 water conservation plans submitted by the municipalities as part of
34-1 their applications for assistance;
34-2 (4) a discussion of future conservation needs;
34-3 (5) an analysis of programmatic approaches and funding
34-4 for additional conservation efforts;
34-5 (6) an assessment of existing statutory authority and
34-6 whether changes are needed to more effectively promote and fund
34-7 conservation projects; and
34-8 (7) an assessment of the board's agricultural water
34-9 conservation program.
34-10 (c) The report shall be issued as part of, or as a
34-11 supplement to, the state water plan.
34-12 SECTION 22. Subsection (j), Section 16.053, Water Code, is
34-13 amended to read as follows:
34-14 (j) The board may provide financial assistance to political
34-15 subdivisions under Subchapters E and F of this chapter, Subchapters
34-16 C, D, E, F, [and] J, and O, Chapter 15, and Subchapters D, I, K,
34-17 and L, Chapter 17, for water supply projects only if:
34-18 (1) the board determines that the needs to be
34-19 addressed by the project will be addressed in a manner that is
34-20 consistent with the state water plan; and
34-21 (2) beginning January 5, 2002, the board:
34-22 (A) has approved a regional water plan as
34-23 provided by Subsection (i), and any required updates of the plan,
34-24 for the region of the state that includes the area benefiting from
34-25 the proposed project; and
34-26 (B) determines that the needs to be addressed by
35-1 the project will be addressed in a manner that is consistent with
35-2 that regional water plan.
35-3 SECTION 23. Section 16.136, Water Code, is amended to read
35-4 as follows:
35-5 Sec. 16.136. FACILITIES WANTED BY POLITICAL SUBDIVISION.
35-6 The board may acquire all or part [up to 50 percent] of any
35-7 authorized facility to the extent that the board finds that the
35-8 political subdivision:
35-9 (1) is willing and reasonably able to finance that
35-10 portion [at least 50 percent] of the cost of the facility that the
35-11 board does not acquire;
35-12 (2) has obtained all necessary permits;
35-13 (3) has proposals that are consistent with the
35-14 objectives of the state water plan; and
35-15 (4) has a program of water conservation for the more
35-16 efficient use of water as required by Section 15.106 of this code.
35-17 SECTION 24. Subsection (g), Section 16.343, Water Code, is
35-18 amended to read as follows:
35-19 (g) Before [filing] an application for funds [for facility
35-20 engineering] under Section 15.407 or Subchapter P, Chapter 15, [of
35-21 this code] or [financial assistance under] Subchapter K, Chapter
35-22 17, may be considered by the board [of this code], a political
35-23 subdivision must adopt the model rules pursuant to this section.
35-24 If the applicant is [or, in the case of] a district, [or] nonprofit
35-25 water supply corporation, or colonia, the applicant must be located
35-26 in a city or county that has adopted such rules. Applicants for
36-1 funds under Section 15.407 or Subchapter P, Chapter 15, or
36-2 Subchapter K, Chapter 17, may not receive funds under those
36-3 provisions unless the applicable political subdivision [An affected
36-4 county may not receive funds under either Section 15.407 of this
36-5 code or Subchapter K, Chapter 17, of this code unless the county]
36-6 adopts and enforces the model rules.
36-7 SECTION 25. Subsection (g), Section 17.0871, Water Code, is
36-8 amended to read as follows:
36-9 (g) The accrued interest portion of proceeds from the sale
36-10 of political subdivision bonds shall be disposed of as otherwise
36-11 provided by this chapter. Money not applied to discharges,
36-12 payments, or redemptions shall be deposited in the development
36-13 fund, the administrative fund, the water assistance fund, or the
36-14 agricultural water conservation fund, as appropriate, to be used
36-15 for the purposes provided by law.
36-16 SECTION 26. Section 17.123, Water Code, is amended to read
36-17 as follows:
36-18 Sec. 17.123. FINDINGS REGARDING PERMITS. (a) The board
36-19 shall not release funds for the construction of that portion of a
36-20 project that proposes surface water or groundwater development
36-21 [deliver funds pursuant to an application for financial assistance]
36-22 until the executive administrator makes a written finding:
36-23 (1) that an applicant proposing surface-water
36-24 development has the necessary water right authorizing it to
36-25 appropriate and use the water which the water supply project will
36-26 provide; or
37-1 (2) that an applicant proposing underground water
37-2 development has the right to use water that the water supply
37-3 project will provide.
37-4 (b) The board may release funds for the costs of planning,
37-5 engineering, architectural, legal, title, fiscal, or economic
37-6 investigation, studies, surveys, or designs before making the
37-7 finding required under Subsection (a) if the executive
37-8 administrator determines that a reasonable expectation exists that
37-9 the finding will be made before the release of funds for
37-10 construction.
37-11 SECTION 27. (a) The Texas Water Development Board shall
37-12 adopt, not later than March 1, 2002, necessary rules to administer
37-13 the pilot program for water and wastewater loans for rural
37-14 communities created by Subchapter O, Chapter 15, Water Code, as
37-15 added by this Act.
37-16 (b) The Texas Water Development Board shall begin, not later
37-17 than September 1, 2002, to provide loans under Subchapter O,
37-18 Chapter 15, Water Code, as added by this Act.
37-19 SECTION 28. The Texas Water Development Board is required to
37-20 implement the colonia self-help program under Subchapter P, Chapter
37-21 15, Water Code, as added by this Act, only if the legislature
37-22 appropriates money specifically for that purpose. If the
37-23 legislature does not appropriate money specifically for that
37-24 purpose, the Texas Water Development Board may, but is not required
37-25 to, implement the colonia self-help program using other
37-26 appropriations available for that purpose.
38-1 SECTION 29. The changes in law made by this Act in the
38-2 prohibitions and qualifications applying to members of the Texas
38-3 Water Development Board do not affect the entitlement of a member
38-4 serving on the board immediately before September 1, 2001, to
38-5 continue to serve and function as a member of the board for the
38-6 remainder of the member's term. The changes in law apply only to a
38-7 member appointed on or after September 1, 2001.
38-8 SECTION 30. This Act takes effect September 1, 2001.