By Zaffirini                                           S.B. No. 312
         77R1051 QS-D                           
                                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. Section 6.013, Water Code, is amended to read as
 1-6     follows:
 1-7           Sec. 6.013.  SUNSET PROVISION. The Texas Water Development
 1-8     Board is subject to review under Chapter 325, Government Code
 1-9     (Texas Sunset Act), but is not abolished under that chapter.  The
1-10     board shall be reviewed during the period in which state agencies
1-11     abolished in 2013 [2001] and every 12th year after 2013 [2001] are
1-12     reviewed.
1-13           SECTION 2. Section 6.052(c), Water Code, is amended to read
1-14     as follows:
1-15           (c)  Appointments to the board shall be made without regard
1-16     to the race, color, disability [handicap], sex, religion, age, or
1-17     national origin of the appointees.
1-18           SECTION 3. Sections 6.054, 6.057, and 6.058, Water Code, are
1-19     amended to read as follows:
1-20           Sec. 6.054.  REMOVAL OF BOARD MEMBERS. (a)  It is a ground
1-21     for removal from the board that [if] a member:
1-22                 (1)  does not have at the time of taking office
1-23     [appointment] the qualifications required for appointment to the
1-24     board;
 2-1                 (2)  does not maintain during [the] service on the
 2-2     board the qualifications required for appointment to the board;
 2-3                 (3)  is ineligible for membership under [violates a
 2-4     prohibition established by] Sections 6.053, 6.057, and 6.058 [of
 2-5     this code];
 2-6                 (4)  cannot, because of illness or disability, [is
 2-7     unable to] discharge the member's [his] duties for a substantial
 2-8     part [portion] of the member's term [for which he was appointed
 2-9     because of illness or disability]; or
2-10                 (5)  is absent from more than half [one-half] of the
2-11     regularly scheduled board meetings that the member is eligible to
2-12     attend during a [each] calendar year without an excuse approved[,
2-13     except when the absence is excused] by a majority vote of the
2-14     board.
2-15           (b)  The validity of an action of the board is not affected
2-16     by the fact that it is [was] taken when a ground for removal of a
2-17     board member exists [of the board existed].
2-18           (c)  If the executive administrator [a board member] has
2-19     knowledge that a potential ground for removal exists, the executive
2-20     administrator [he] shall notify the chairman of the board of the
2-21     potential [that] ground.  The chairman of the board shall then
2-22     notify the governor and the attorney general that a potential
2-23     ground for removal exists.  If the potential ground for removal
2-24     includes the chairman of the board, the executive administrator
2-25     shall notify the next highest ranking officer of the board, who
2-26     shall then notify the governor and the attorney general that a
2-27     potential ground for removal exists.
 3-1           Sec. 6.057.  CONFLICT OF INTEREST. (a) In this section,
 3-2     "Texas trade association" means a cooperative and voluntarily
 3-3     joined association of business or professional competitors in this
 3-4     state designed to assist its members and its industry or profession
 3-5     in dealing with mutual business or professional problems and in
 3-6     promoting their common interest.
 3-7           (b)  A person may not be a member of the board and may not be
 3-8     a board employee employed in a "bona fide executive,
 3-9     administrative, or professional capacity," as that phrase is used
3-10     for purposes of establishing an exemption to the overtime
3-11     provisions of the federal Fair Labor Standards Act of 1938 (29
3-12     U.S.C. Section 201 et seq.), and its subsequent amendments, if:
3-13                 (1)  the person is an officer, employee, or paid
3-14     consultant of a Texas trade association in the field of water
3-15     planning or water financing; or
3-16                 (2)  the person's spouse is an officer, employee, or
3-17     paid consultant of a Texas trade association in the field of water
3-18     planning or water financing.  [An officer, employee, or paid
3-19     consultant of a trade association in an industry regulated by the
3-20     board may not be a member or employee of the board, nor may a
3-21     person who cohabits with or is the spouse of an officer, managerial
3-22     employee, or paid consultant of a trade association in an industry
3-23     regulated by the board be a member of the board or an employee of
3-24     the board grade 17 or over, including exempt employees, according
3-25     to the position classification schedule under the General
3-26     Appropriations Act.]
3-27           Sec. 6.058.  LOBBYIST PROHIBITION. A person may not be a
 4-1     member of the board or act as the general counsel to the board if
 4-2     the person [who] is required to register as a lobbyist under
 4-3     Chapter 305, Government Code, because of the person's [by virtue of
 4-4     his] activities for compensation [in or] on behalf of a profession
 4-5     related to the operation of the board [may not serve as a member of
 4-6     the board or act as the general counsel to the board].
 4-7           SECTION 4. Section 6.060, Water Code, is amended by adding
 4-8     Subsection (d) to read as follows:
 4-9           (d)  The board shall meet annually with the board of the
4-10     Texas Department of Housing and Community Affairs to address the
4-11     agencies' progress in meeting the needs of colonia residents and to
4-12     receive an update and recommendations from the Colonia Water and
4-13     Wastewater Infrastructure Advisory Committee, as provided by
4-14     Section 2306.5851, Government Code.  For purposes of this
4-15     subsection, "colonia" has the meaning assigned by Section 2306.581,
4-16     Government Code.
4-17           SECTION 5. Subchapter C, Chapter 6, Water Code, is amended by
4-18     adding Section 6.062 to read as follows:
4-19           Sec. 6.062.  REQUIRED TRAINING FOR BOARD MEMBERS. (a)  A
4-20     person who is appointed to and qualifies for office as a member of
4-21     the board may not vote, deliberate, or be counted as a member in
4-22     attendance at a meeting of the board until the person completes a
4-23     training program that complies with this section.
4-24           (b)  The training program must provide the person with
4-25     information regarding:
4-26                 (1)  the legislation that created the board;
4-27                 (2)  the programs operated by the board;
 5-1                 (3)  the role and functions of the board;
 5-2                 (4)  the rules of the board, with an emphasis on the
 5-3     rules that relate to disciplinary and investigatory authority;
 5-4                 (5)  the current budget for the board;
 5-5                 (6)  the results of the most recent formal audit of the
 5-6     board;
 5-7                 (7)  the requirements of:
 5-8                       (A)  the open meetings law, Chapter 551,
 5-9     Government Code;
5-10                       (B)  the public information law, Chapter 552,
5-11     Government Code;
5-12                       (C)  the administrative procedure law, Chapter
5-13     2001, Government Code; and
5-14                       (D)  other laws relating to public officials,
5-15     including conflict of interest laws; and
5-16                 (8)  any applicable ethics policies adopted by the
5-17     board or the Texas Ethics Commission.
5-18           (c)  A person appointed to the board is entitled to
5-19     reimbursement, as provided by the General Appropriations Act, for
5-20     the travel expenses incurred in attending the training program
5-21     regardless of whether the attendance at the program occurs before
5-22     or after the person qualifies for office.
5-23           SECTION 6. Section 6.106, Water Code, is amended to read as
5-24     follows:
5-25           Sec. 6.106.  STANDARDS OF CONDUCT. The executive
5-26     administrator or the executive administrator's designee [board]
5-27     shall provide to [its] members of the board and to agency[,
 6-1     appointees, and] employees, as often as is necessary, information
 6-2     regarding the requirements for office or employment [their
 6-3     qualifications] under this code, including information regarding a
 6-4     person's [and their] responsibilities under applicable laws
 6-5     relating to standards of conduct for state officers or [and]
 6-6     employees.
 6-7           SECTION 7. Subchapter D, Chapter 6, Water Code, is amended by
 6-8     adding Sections 6.110 and 6.111 to read as follows:
 6-9           Sec. 6.110.  CAPITAL SPENDING PLAN. (a)  Each biennium, the
6-10     executive administrator shall develop and submit to the board for
6-11     its approval a capital spending plan setting water project
6-12     priorities to be supported by state-funded programs, including the
6-13     Texas water development fund, the agricultural water conservation
6-14     fund, and the water assistance fund.
6-15           (b)  The plan must:
6-16                 (1)  identify water funding needs in the state and set
6-17     forth a basis for allocating state-supported funding to address
6-18     those needs; and
6-19                 (2)  if applicable, provide details about:
6-20                       (A)  the reasons projects that did not meet the
6-21     goals identified in prior plans received funding; and
6-22                       (B)  any adjustments to the plan from prior plans
6-23     in response to changing water priorities.
6-24           (c)  In developing the plan, the executive administrator
6-25     shall consider:
6-26                 (1)  any commission compliance issues;
6-27                 (2)  information derived from facility needs
 7-1     assessments or other water and wastewater needs assessments;
 7-2                 (3)  regional planning group plans required under
 7-3     Section 16.053; and
 7-4                 (4)  any other appropriate information.
 7-5           (d)  The board shall consider the plan at a regularly
 7-6     scheduled meeting and, on approval, submit it to the legislature
 7-7     and the Legislative Budget Board before January 1 of each
 7-8     odd-numbered year.  The board may include the plan as part of its
 7-9     legislative appropriations request.
7-10           Sec. 6.111.  SEPARATION OF RESPONSIBILITIES. The board shall
7-11     develop and implement policies that clearly separate the
7-12     policy-making responsibilities of the board and the management
7-13     responsibilities of the executive administrator and the staff of
7-14     the board.
7-15           SECTION 8. Sections 6.154, 6.155, and 6.188, Water Code, are
7-16     amended to read as follows:
7-17           Sec. 6.154.  COMPLAINT FILE. (a)  The board shall maintain a
7-18     file on each written complaint filed with the board.  The file must
7-19     include:
7-20                 (1)  the name of the person who filed the complaint;
7-21                 (2)  the date the complaint is received by the board;
7-22                 (3)  the subject matter of the complaint;
7-23                 (4)  the name of each person contacted in relation to
7-24     the complaint;
7-25                 (5)  a summary of the results of the review or
7-26     investigation of the complaint; and
7-27                 (6)  an explanation of the reason the file was closed,
 8-1     if the agency closed the file without taking action other than to
 8-2     investigate the complaint.
 8-3           (b)  The board shall provide to the person filing the
 8-4     complaint and to each person who is a subject of the complaint a
 8-5     copy of the board's policies and procedures relating to complaint
 8-6     investigation and resolution [keep an information file about each
 8-7     complaint filed with the board relating to an entity regulated by
 8-8     the board].
 8-9           Sec. 6.155.  NOTICE OF COMPLAINT. The [If a written complaint
8-10     is filed with the board relating to an entity regulated by the
8-11     board, the] board, at least [as frequently as] quarterly [and]
8-12     until final disposition of the complaint, shall notify the person
8-13     filing the complaint and each person who is a subject of [parties
8-14     to] the complaint of the status of the investigation [complaint]
8-15     unless the notice would jeopardize an undercover investigation.
8-16           Sec. 6.188.  EQUAL EMPLOYMENT OPPORTUNITY POLICY. (a)  The
8-17     executive administrator or the executive administrator's [his]
8-18     designee shall prepare and maintain a written policy statement that
8-19     implements [to assure implementation of] a program of equal
8-20     employment opportunity to ensure that all personnel decisions
8-21     [whereby all personnel transactions] are made without regard to
8-22     race, color, disability [handicap], sex, religion, age, or national
8-23     origin.
8-24           (b)  The policy statement must include:
8-25                 (1)  personnel policies, including policies relating to
8-26     recruitment, evaluation, selection, [appointment,] training, and
8-27     promotion of personnel, that show the intent of the board to avoid
 9-1     the unlawful employment practices described by Chapter 21, Labor
 9-2     Code; and
 9-3                 (2)  an [a comprehensive] analysis of the extent to
 9-4     which the composition of the board's personnel is in accordance
 9-5     with state and federal law and a description of reasonable methods
 9-6     to achieve compliance with state and federal law.
 9-7           (c)  The policy statement must:
 9-8                 (1)  be updated annually;
 9-9                 (2)  be reviewed by the state Commission on Human
9-10     Rights for compliance with Subsection (b)(1); and
9-11                 (3)  be filed with the governor's office [work force
9-12     that meets federal and state guidelines;]
9-13                 [(3)  procedures by which a determination can be made
9-14     of significant underutilization in the board's work force of all
9-15     persons for whom federal or state guidelines encourage a more
9-16     equitable balance; and]
9-17                 [(4)  reasonable methods to address appropriately areas
9-18     of significant underutilization in the board's work force of all
9-19     persons for whom federal or state guidelines encourage a more
9-20     equitable balance.]
9-21           [(b)  The policy statement shall be filed with the governor's
9-22     office before November 1, 1985, cover an annual period, and be
9-23     updated at least annually.  The governor's office shall develop a
9-24     biennial report to the legislature based on the information
9-25     submitted.  This report may be made individually or as a part of
9-26     other biennial reports made to the legislature].
9-27           SECTION 9. Subchapter F, Chapter 6, Water Code, is amended by
 10-1    adding Section 6.196 to read as follows:
 10-2          Sec. 6.196.  TRAINING ON STATE EMPLOYEE INCENTIVE PROGRAM.
 10-3    The executive administrator or the executive administrator's
 10-4    designee shall provide to agency employees information and training
 10-5    on the benefits and methods of participation in the state employee
 10-6    incentive program under Subchapter B, Chapter 2108, Government
 10-7    Code.
 10-8          SECTION 10. Section 15.011(b), Water Code, is amended to read
 10-9    as follows:
10-10          (b)  After notice and hearing and subject to any limitations
10-11    established by the General Appropriations Act, the board may
10-12    transfer money from the fund to the loan fund created under
10-13    Subchapter C of this chapter, the storage acquisition fund created
10-14    under Subchapter E of this chapter, the research and planning fund
10-15    created under Subchapter F of this chapter, the hydrographic survey
10-16    account created under Subchapter M of this chapter, provided the
10-17    hydrographic survey account transfer does not exceed $425,000,
10-18    [and] the aquatic vegetation management fund created under
10-19    Subchapter N of this chapter, and the rural community water and
10-20    wastewater loan fund created under Subchapter O of this chapter.
10-21          SECTION 11. Section 15.012(c), Water Code, is amended to read
10-22    as follows:
10-23          (c)  Money appropriated to the fund by the legislature for a
10-24    specific purpose stated in Subchapter C, E, F, M, [or] N, or O of
10-25    this chapter shall be placed in the appropriate fund created by
10-26    that subchapter.
10-27          SECTION 12. Section 15.601(a), Water Code, is amended to read
 11-1    as follows:
 11-2          (a)  The state water pollution control revolving fund shall
 11-3    be administered by the board under this subchapter and rules
 11-4    adopted by the board.  The fund shall be used to provide financial
 11-5    assistance to political subdivisions for construction of treatment
 11-6    works and to private entities for nonpoint source pollution control
 11-7    and abatement projects under Section 15.603(h), in accordance with
 11-8    the capitalization grant program established under the Federal
 11-9    Water Pollution Control Act (33 U.S.C. 1251 et seq.).
11-10          SECTION 13. Section 15.603, Water Code, is amended by
11-11    amending Subsection (a) and adding Subsection (h) to read as
11-12    follows:
11-13          (a)  The revolving fund is held separately from other funds
11-14    by the board outside the State Treasury to provide financial
11-15    assistance to political subdivisions, and to private entities from
11-16    the account established by Subsection (h), for construction of
11-17    treatment works.
11-18          (h)  The board may establish a separate account in the
11-19    revolving fund, to be used solely for providing financial
11-20    assistance to private entities for nonpoint source pollution
11-21    control and abatement projects.  The account shall be composed
11-22    solely of funds appropriated by the legislature, funds provided as
11-23    gifts or grants by the United States, interest earnings on amounts
11-24    credited to the account, and repayments of loans made from the
11-25    account.  The board shall adopt rules establishing the criteria for
11-26    eligibility  and the terms of assistance for private entities that
11-27    receive financial assistance from the account.
 12-1          SECTION 14. Chapter 15, Water Code, is amended by adding
 12-2    Subchapter O to read as follows:
 12-3           SUBCHAPTER O.  PILOT PROGRAM FOR WATER AND WASTEWATER
 12-4                        LOANS FOR RURAL COMMUNITIES
 12-5          Sec. 15.901.  DEFINITIONS. In this subchapter:
 12-6                (1)  "Fund" means the rural community water and
 12-7    wastewater loan fund.
 12-8                (2)  "Political subdivision" means a city, a county, or
 12-9    a district or authority created under Section 52, Article III, or
12-10    Section 59, Article XVI, Texas Constitution.
12-11                (3)  "Rural community" means a political subdivision
12-12    with a population of less than 5,000.
12-13          Sec. 15.902.  RURAL COMMUNITY WATER AND WASTEWATER LOAN FUND.
12-14    (a)  The rural community water and wastewater loan fund is an
12-15    account in the water assistance fund.
12-16          (b)  The fund consists of:
12-17                (1)  money transferred to the fund from the water
12-18    assistance fund under Section 15.011(b);
12-19                (2)  proceeds from the sale of political subdivision
12-20    bonds by the board to the Texas Water Resources Finance Authority
12-21    as provided by Section 17.0871; and
12-22                (3)  repayments of loans made from the fund.
12-23          Sec. 15.903.  FINANCIAL ASSISTANCE. (a)  The fund may be used
12-24    by the board to provide loans of financial assistance to rural
12-25    communities for the construction, acquisition, or improvement of
12-26    water and wastewater projects that serve a public purpose, as
12-27    required by federal income tax law.
 13-1          (b)  The board may make financial assistance available to a
 13-2    rural community by entering into a loan agreement with the rural
 13-3    community, as provided by this subchapter.  A rural community may
 13-4    apply for and accept the financial assistance.
 13-5          (c)  The loan agreement must provide for the payment of
 13-6    principal and interest on the debt incurred for the project at a
 13-7    rate to be determined by the board.
 13-8          (d)  A loan provided under this subchapter may not exceed
 13-9    $250,000 for each project, and the term of a loan may not exceed 20
13-10    years.
13-11          Sec. 15.904.  USE OF SALES TAX AS LOAN SECURITY. (a)  A rural
13-12    community that is a city or county may pledge a percentage of the
13-13    sales and use tax revenue received under Chapter 321 or 323, Tax
13-14    Code, as applicable, to the payment of debt incurred under a loan
13-15    agreement entered into with the board under this subchapter if a
13-16    majority of the voters voting at an election called and held for
13-17    that purpose authorize the city or county to pledge a portion of
13-18    that revenue for that purpose.
13-19          (b)  Sections 321.506, 321.507, and 323.505, Tax Code, do not
13-20    apply to taxes pledged under this subchapter.
13-21          Sec. 15.905.  REVIEW AND APPROVAL OF LOAN AGREEMENT BY
13-22    ATTORNEY GENERAL. (a)  Before a loan agreement may be executed, a
13-23    record of the proceedings of the board and the rural community
13-24    authorizing the execution of the loan agreement, the loan
13-25    agreement, and any contract providing revenue or security to pay
13-26    the obligation evidenced by the loan agreement must be submitted to
13-27    the attorney general for review.
 14-1          (b)  If the attorney general finds that the loan agreement,
 14-2    contract, and other authorizing proceedings conform to the
 14-3    requirements of the Texas Constitution and this subchapter, the
 14-4    attorney general shall approve them and deliver to the comptroller,
 14-5    the board, and the rural community a copy of the attorney general's
 14-6    legal opinion stating that approval.
 14-7          (c)  The board and the rural community may execute the loan
 14-8    agreement after receipt of the attorney general's opinion.
 14-9          Sec. 15.906.  REGISTRATION. On receipt of the documents
14-10    required by Section 15.905(b), the comptroller shall register the
14-11    record of the proceedings relating to the execution of a loan
14-12    agreement.
14-13          Sec. 15.907.  VALIDITY AND INCONTESTABILITY.  On approval by
14-14    the attorney general, registration by the comptroller, and
14-15    execution of the loan agreement, the loan agreement, a contract
14-16    providing revenue or security, and any obligation evidenced by the
14-17    loan agreement are incontestable in a court and are valid, binding,
14-18    and enforceable according to their terms.
14-19          Sec. 15.908.  ENFORCEMENT BY MANDAMUS. Payment of obligations
14-20    incurred under a loan agreement and other requirements of this
14-21    subchapter may be enforced in a court by mandamus or other
14-22    appropriate proceedings.
14-23          Sec. 15.909.  RULES. The board shall adopt necessary rules to
14-24    administer this subchapter, including rules establishing procedures
14-25    for application for and award of loans, distribution of loans, and
14-26    administration of loans and the program established under this
14-27    subchapter.
 15-1          Sec. 15.910.  APPLICATION FOR ASSISTANCE. (a)  In an
 15-2    application to the board for financial assistance from the fund,
 15-3    the applicant must include:
 15-4                (1)  the name of the rural community and its principal
 15-5    officers;
 15-6                (2)  a citation of the law under which the rural
 15-7    community operates and was created;
 15-8                (3)  a description of the water or wastewater project
 15-9    for which the financial assistance will be used;
15-10                (4)  the total cost of the project;
15-11                (5)  the amount of state financial assistance
15-12    requested;
15-13                (6)  the plan for repaying the total cost of the
15-14    project; and
15-15                (7)  any other information the board requires in order
15-16    to perform its duties and to protect the public interest.
15-17          (b)  The board may not accept an application for a loan of
15-18    financial assistance from the fund unless it is submitted in
15-19    affidavit form by the officials of the rural community.  The board
15-20    shall prescribe the affidavit form in its rules.
15-21          (c)  The rules may not restrict or prohibit the board from
15-22    requiring additional factual material from an applicant.
15-23          (d)  If an applicant has a program of water conservation, the
15-24    applicant shall state in the application that the applicant has
15-25    such a program and shall describe that program in the manner
15-26    required by board rules.
15-27          Sec. 15.911.  FINDINGS REGARDING PERMITS. (a)  The board may
 16-1    not deliver funds under an application for financial assistance
 16-2    from the fund until the executive administrator makes a written
 16-3    finding:
 16-4                (1)  that an applicant proposing surface water
 16-5    development has the necessary water right authorizing it to
 16-6    appropriate and use the water that the project will provide; or
 16-7                (2)  that an applicant proposing underground water
 16-8    development has the right to use water that the project will
 16-9    provide.
16-10          (b)  If an applicant includes a proposal for a wastewater
16-11    treatment plant, the board may not deliver funds for the plant
16-12    until the applicant has received a permit for the construction and
16-13    operation of the plant and approval of the plans and specifications
16-14    for the plant from the commission. If the applicant proposes a
16-15    wastewater treatment plant that is located outside the jurisdiction
16-16    of this state and that is not subject to the permitting authority
16-17    of the commission, the board may not deliver funds for the plant
16-18    until the board reviews the plans and specifications in
16-19    coordination with the commission and finds that:
16-20                (1)  the plant is capable of producing effluent that
16-21    will meet federal and state-approved water quality standards; and
16-22                (2)  the effluent produced will result in water being
16-23    available for use in or for the benefit of the state.
16-24          Sec. 15.912.  CONSIDERATIONS IN ACTING ON APPLICATION. (a)
16-25    In acting on an application from a rural community for financial
16-26    assistance for a water project, the board shall consider:
16-27                (1)  the needs of the area to be served by the project,
 17-1    the benefit of the project to the area, the relationship of the
 17-2    project to overall statewide water needs, and the relationship of
 17-3    the project to the state water plan; and
 17-4                (2)  the availability of revenue to the rural community
 17-5    from all sources for the ultimate repayment of the cost of the
 17-6    project, including interest.
 17-7          (b)  In passing on an application from a rural community for
 17-8    financial assistance for a wastewater project, the board shall
 17-9    consider:
17-10                (1)  the water quality needs of the waters into which
17-11    effluent from the treatment works will be discharged, the benefit
17-12    of the treatment works to such water quality needs, the
17-13    relationship of the treatment works to overall statewide water
17-14    quality needs, and the relationship of the treatment works to water
17-15    quality planning for the state;
17-16                (2)  the availability of revenue to the rural
17-17    community, from all sources, for the ultimate repayment of the cost
17-18    of the treatment works, including interest; and
17-19                (3)  whether the rural community has been designated
17-20    under Section 26.082 to provide a regional system to serve all or
17-21    part of the waste disposal needs of a defined area, the development
17-22    of such systems being the declared policy of the legislature.
17-23          Sec. 15.913.  APPROVAL OF APPLICATION. The board by
17-24    resolution may approve an application for a loan if, after
17-25    considering the factors listed in Section 15.912 and any other
17-26    relevant factors, the board finds that:
17-27                (1)  the public interest requires state participation
 18-1    in the project; and
 18-2                (2)  the revenue or taxes pledged by the rural
 18-3    community will be sufficient to meet all the obligations assumed by
 18-4    the rural community during the succeeding period of not more than
 18-5    20 years.
 18-6          Sec. 15.914.  LIMITATION ON USE OF FUNDS. If there is
 18-7    insufficient money available to fund all applications under this
 18-8    subchapter, the board shall give preference to applications from
 18-9    rural communities that the board finds cannot reasonably finance
18-10    the project without assistance from the state.
18-11          Sec. 15.915.  CONSTRUCTION CONTRACT REQUIREMENTS. The
18-12    governing body of each rural community receiving financial
18-13    assistance from the board under this subchapter shall require in
18-14    all contracts for the construction of a project that:
18-15                (1)  each bidder furnish a bid guarantee equivalent to
18-16    five percent of the bid price;
18-17                (2)  each contractor awarded a construction contract
18-18    furnish performance and payment bonds as follows:
18-19                      (A)  the performance bond must include guarantees
18-20    that work done under the contract will be completed and performed
18-21    according to approved plans and specifications and in accordance
18-22    with sound construction principles and practices; and
18-23                      (B)  the performance and payment bonds must be in
18-24    a penal sum of not less than 100 percent of the contract price and
18-25    remain in effect for one year after the date of approval by the
18-26    engineer of the political subdivision;
18-27                (3)  payment be made in partial payments as the work
 19-1    progresses;
 19-2                (4)  each partial payment not exceed 95 percent of the
 19-3    amount due at the time of the payment as shown by the engineer of
 19-4    the project, but, if the project is substantially complete, a
 19-5    partial release of the five percent retainage may be made by the
 19-6    rural community with approval of the executive administrator;
 19-7                (5)  payment of the retainage remaining due on
 19-8    completion of the contract be made only after:
 19-9                      (A)  approval by the engineer for the rural
19-10    community as required under the bond proceedings;
19-11                      (B)  approval by the governing body of the rural
19-12    community by a resolution or other formal action; and
19-13                      (C)  certification by the fund manager in
19-14    accordance with the rules of the board that the work to be done
19-15    under the contract has been completed and performed in a
19-16    satisfactory manner and in accordance with sound engineering
19-17    principles and practices;
19-18                (6)  no valid approval be granted unless the work done
19-19    under the contract has been completed and performed in a
19-20    satisfactory manner according to approved plans and specifications;
19-21    and
19-22                (7)  labor from inside the rural community be used to
19-23    the extent possible.
19-24          Sec. 15.916.  FILING CONSTRUCTION CONTRACT. The rural
19-25    community shall file with the board a certified copy of each
19-26    construction contract it enters into for the construction of all or
19-27    part of a project.  Each contract must contain or have attached to
 20-1    it the specifications, plans, and details of all work included in
 20-2    the contract.
 20-3          Sec. 15.917.  INSPECTION OF PROJECTS. (a)  The board may
 20-4    inspect the construction of a project at any time to assure that:
 20-5                (1)  the contractor is substantially complying with the
 20-6    approved engineering plans of the project; and
 20-7                (2)  the contractor is constructing the project in
 20-8    accordance with sound engineering principles.
 20-9          (b)  Inspection of a project by the board does not subject
20-10    the state to any civil liability.
20-11          Sec. 15.918.  ALTERATION OF PLANS. After the executive
20-12    administrator approves of engineering plans, a rural community may
20-13    not make any substantial or material alteration in the plans unless
20-14    the executive administrator authorizes the alteration.  For a
20-15    wastewater treatment plant or other facility required to have
20-16    commission approval of plans and specifications, the commission
20-17    must give its approval before a substantial or material alteration
20-18    is made in those plans.
20-19          Sec. 15.919.  CERTIFICATE OF APPROVAL. The executive
20-20    administrator may consider the following as grounds for refusal to
20-21    give a certificate of approval for any construction contract:
20-22                (1)  failure to construct the project according to the
20-23    approved plans;
20-24                (2)  failure to construct the works in accordance with
20-25    sound engineering principles; or
20-26                (3)  failure to comply with any term of the contract.
20-27          Sec. 15.920.  REPORT TO LEGISLATURE. (a)  Not later than
 21-1    January 1, 2005, the board shall report to the legislature on the
 21-2    program established under this subchapter.
 21-3          (b)  The report must include:
 21-4                (1)  the number of applications received;
 21-5                (2)  the number of applicants funded;
 21-6                (3)  the types of projects funded;
 21-7                (4)  the total funds allocated;
 21-8                (5)  available performance measures; and
 21-9                (6)  the expected feasibility of and demand for an
21-10    expanded water loan program.
21-11          SECTION 15.  Subchapter B, Chapter 16, Water Code, is amended
21-12    by amending Section 16.021 and adding Section 16.022 to read as
21-13    follows:
21-14          Sec. 16.021.  TEXAS NATURAL RESOURCES INFORMATION SYSTEM.
21-15    (a) The executive administrator shall establish the Texas Natural
21-16    Resources Information System (TNRIS) to serve Texas agencies and
21-17    citizens as a centralized clearinghouse and referral center for
21-18    natural resource, census, and other socioeconomic data.
21-19          (b)  The executive administrator may, on behalf of TNRIS,
21-20    enter into partnerships with private entities to provide additional
21-21    funding for improved access to TNRIS information.  The board shall
21-22    adopt administrative rules to describe the process of establishing
21-23    partnerships, define the types of partnerships that may be formed,
21-24    establish the fee collection process, and define the
21-25    nondiscriminatory methods used to determine which private entities
21-26    may enter into partnerships.  Any process developed by the board
21-27    must comply with all applicable laws regarding ethics, purchasing,
 22-1    and contracts.
 22-2          (c)  The Texas Geographic Information Council (TGIC) is
 22-3    created to provide strategic planning and coordination in the
 22-4    acquisition and use of geo-spatial data and related technologies in
 22-5    the State of Texas.  The executive administrator and the executive
 22-6    director of the Department of Information Resources shall designate
 22-7    entities to be members of the TGIC. The chief administrative
 22-8    officer of each member entity shall select one representative to
 22-9    serve on the TGIC. The duties of the TGIC shall include providing
22-10    guidance to the executive administrator in carrying out his duties
22-11    under this section and guidance to the Department of Information
22-12    Resources for development of rules related to statewide geo-spatial
22-13    data and technology standards.
22-14          (d)  Member entities of the TGIC that are state agencies
22-15    shall, and member entities that are not state agencies may, provide
22-16    information to the TGIC about their investments in geographic
22-17    information and plans for its use.  Not later than September 1 of
22-18    each even-numbered year, the TGIC shall prepare and provide to the
22-19    board, the Department of Information Resources, the governor, and
22-20    the legislature a plan that inventories known state agency
22-21    geographic information systems projects and recommends initiatives
22-22    to improve the state's geographic information systems programs.
22-23          (e) [(c)]  Under the guidance of the TGIC, the executive
22-24    administrator shall:
22-25                (1)  further develop the Texas Natural Resources
22-26    Information System by promoting and providing for effective
22-27    acquisition, archiving, documentation, indexing, and dissemination
 23-1    of natural resource and related digital and nondigital data and
 23-2    information;
 23-3                (2)  obtain information in response to disagreements
 23-4    regarding names and name spellings for natural and cultural
 23-5    features in the state and provide this information to the Board on
 23-6    Geographic Names of the United States Department of the Interior;
 23-7                (3)  make recommendations to the Board on Geographic
 23-8    Names of the United States Department of the Interior for naming
 23-9    any natural or cultural feature subject to the limitations provided
23-10    by Subsection (f) [(d) of this section];
23-11                (4)  make recommendations to the Department of
23-12    Information Resources to adopt and promote standards that
23-13    facilitate sharing of digital natural resource data and related
23-14    socioeconomic data among federal, state, and local governments and
23-15    other interested parties;
23-16                (5)  acquire and disseminate natural resource and
23-17    related socioeconomic data describing the Texas-Mexico border
23-18    region; and
23-19                (6)  coordinate, conduct, and facilitate the
23-20    development, maintenance, and use of mutually compatible statewide
23-21    digital base maps depicting natural resources and man-made
23-22    features.
23-23          (f) [(d)]  A recommendation may not be made under
23-24    [Subdivision (3) of] Subsection (e)(3) [(c) of this section] for:
23-25                (1)  a feature previously named under statutory
23-26    authority or recognized by an agency of the federal government, the
23-27    state, or a political subdivision of the state;
 24-1                (2)  a feature located on private property for which
 24-2    consent of the property owner cannot be obtained; or
 24-3                (3)  naming a natural or cultural feature for a living
 24-4    person.
 24-5          Sec. 16.022.  WATER CONSERVATION STUDY.  (a)  The board and
 24-6    the State Soil and Water Conservation Board shall jointly conduct a
 24-7    study of the ways to improve or expand water conservation efforts
 24-8    and report to the legislature.
 24-9          (b)  The report must include:
24-10                (1)  an assessment of both agricultural and municipal
24-11    water conservation issues;
24-12                (2)  information on existing conservation efforts by
24-13    the board and the State Soil and Water Conservation Board;
24-14                (3)  information on existing conservation efforts by
24-15    municipalities receiving funding from the board, as specified in
24-16    water conservation plans submitted by the municipalities as part of
24-17    their applications for assistance;
24-18                (4)  a discussion of future conservation needs;
24-19                (5)  an analysis of programmatic approaches and funding
24-20    for additional conservation efforts;
24-21                (6)  an assessment of existing statutory authority and
24-22    whether changes are needed to more effectively promote and fund
24-23    conservation projects; and
24-24                (7)  an assessment of the board's agricultural water
24-25    conservation program.
24-26          (c)  The report shall be issued as part of, or as a
24-27    supplement to, the state water plan.
 25-1          SECTION 16.  Section 17.0871(e), Water Code, is amended to
 25-2    read as follows:
 25-3          (e)  Proceeds from the sale excluding accrued interest may be
 25-4    used by the board together with other available money including
 25-5    money in the interest and sinking fund and reserve fund and other
 25-6    amounts that are pledged to repayment of bonds to be discharged,
 25-7    paid, or redeemed, to discharge, pay, or redeem, in whole or in
 25-8    part, outstanding water development bonds, water quality
 25-9    enhancement bonds, agricultural water conservation bonds, and
25-10    obligations of the board under contracts entered into under
25-11    Subchapter E, [of] Chapter 16, and to provide loans of financial
25-12    assistance to political subdivisions under Subchapter O, Chapter 15
25-13    [of this code].
25-14          SECTION 17.  The heading to Subchapter Z, Chapter 2306,
25-15    Government Code, is amended to read as follows:
25-16            SUBCHAPTER Z.  COLONIAS [COLONIA SELF-HELP CENTERS]
25-17          SECTION 18.  Sections 2306.584 and 2306.585, Government Code,
25-18    are amended to read as follows:
25-19          Sec. 2306.584.  COLONIA SELF-HELP CENTER ADVISORY COMMITTEE.
25-20    (a)  The department shall appoint not fewer than five persons who
25-21    are residents of colonias to serve on the Colonia Self-Help Center
25-22    Advisory Committee [an advisory committee].  The members of the
25-23    advisory committee shall be selected from lists of candidates
25-24    submitted to the department by local nonprofit organizations and
25-25    the commissioners court of a county in which a self-help center is
25-26    located.
25-27          (b)  The department shall appoint one committee member to
 26-1    represent each of the counties in which self-help centers are
 26-2    located.  Each committee member:
 26-3                (1)  must be a resident of a colonia in the county the
 26-4    member represents; and
 26-5                (2)  may not be a board member, contractor, or employee
 26-6    of or have any ownership interest in an entity that is awarded a
 26-7    contract under this subchapter.
 26-8          Sec. 2306.585.  DUTIES OF COLONIA SELF-HELP CENTER ADVISORY
 26-9    COMMITTEE. (a)  The Colonia Self-Help Center Advisory Committee
26-10    [committee] shall advise the department regarding:
26-11                (1)  the needs of colonia residents;
26-12                (2)  appropriate and effective programs that are
26-13    proposed or are operated through the self-help centers; and
26-14                (3)  activities that may be undertaken through the
26-15    self-help centers to better serve the needs of colonia residents.
26-16          (b)  The committee shall meet before the 30th day preceding
26-17    the date on which a contract is scheduled to be awarded for the
26-18    operation of a self-help center and may meet at other times.
26-19          SECTION 19. Subchapter Z, Chapter 2306, Government Code, is
26-20    amended by adding Section 2306.5851 to read as follows:
26-21          Sec. 2306.5851.  COLONIA WATER AND WASTEWATER INFRASTRUCTURE
26-22    ADVISORY COMMITTEE.  (a)  The Colonia Water and Wastewater
26-23    Infrastructure Advisory Committee is composed of seven members
26-24    appointed by the governor as follows:
26-25                (1)  one colonia resident;
26-26                (2)  one representative of a nonprofit organization
26-27    that serves colonia residents;
 27-1                (3)  one local government representative;
 27-2                (4)  one person to represent private interests in
 27-3    banking or land development;
 27-4                (5)  one representative of a nonprofit utility;
 27-5                (6)  one representative of an engineering consultant
 27-6    firm involved in economically distressed areas program projects
 27-7    under Subchapter K, Chapter 17, Water Code; and
 27-8                (7)  one public member.
 27-9          (b)  Each committee member, except the public member, must
27-10    reside within 100 miles of the Texas-Mexico border.
27-11          (c)  The secretary of state is an ex officio member of the
27-12    committee.
27-13          (d)  The committee shall review the progress of water and
27-14    wastewater infrastructure projects affecting colonias.
27-15          (e)  The committee shall present an update and make
27-16    recommendations to the board and the Texas Water Development Board
27-17    annually at the joint meeting required by Section 6.060(d), Water
27-18    Code, regarding:
27-19                (1)  efforts to ensure that colonia residents are
27-20    connected to the infrastructure funded by state agencies;
27-21                (2)  the financial, managerial, and technical
27-22    capabilities of project owners and operators;
27-23                (3)  the agencies' management of their colonia programs
27-24    and the effectiveness of their policies regarding underperforming
27-25    projects; and
27-26                (4)  any other issues related to the effect of
27-27    state-managed infrastructure programs on colonia residents.
 28-1          SECTION 20.  (a) The Texas Water Development Board shall
 28-2    adopt, not later than March 1, 2002, necessary rules to administer
 28-3    the pilot program for water and wastewater loans for rural
 28-4    communities created by Subchapter O, Chapter 15, Water Code, as
 28-5    added by this Act.
 28-6          (b)  The Texas Water Development Board shall begin, not later
 28-7    than September 1, 2002, to provide loans under Subchapter O,
 28-8    Chapter 15, Water Code, as added by this Act.
 28-9          SECTION 21.  This Act takes effect September 1, 2001.