1-1 By: Zaffirini S.B. No. 312
1-2 (In the Senate - Filed March 7, 2001; March 8, 2001, read
1-3 first time and referred to Committee on Natural Resources;
1-4 April 20, 2001, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 5, Nays 0; April 20, 2001,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 312 By: Bivins
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the review and functions of the Texas Water Development
1-11 Board.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. The legislature finds that:
1-14 (1) economically distressed subdivisions commonly
1-15 called colonias are found throughout those counties located within
1-16 50 miles of the international border of this state;
1-17 (2) a substantial number of homes in the economically
1-18 distressed subdivisions lack an adequate potable water supply and
1-19 sewer services, creating a serious and unacceptable health hazard
1-20 from contagious and other serious illnesses and posing a clear and
1-21 substantial threat not only to the environment of the border region
1-22 but also to the environment of the entire state;
1-23 (3) although significant improvement has been made by
1-24 this state and the political subdivisions of the border area in
1-25 addressing the public health hazard created in those economically
1-26 distressed subdivisions, many of those economically distressed
1-27 subdivisions are located in isolated rural areas far from water or
1-28 wastewater providers or are otherwise situated so as to make the
1-29 provision of water or wastewater services by political subdivisions
1-30 to those areas difficult or impossible using conventional capital
1-31 improvement strategies;
1-32 (4) the lack of an adequate potable water supply and
1-33 wastewater services, coupled with the location of those
1-34 subdivisions, erodes the economic stability of the counties that
1-35 contain those subdivisions and that depend on a healthy and safe
1-36 environment for the residents of the subdivisions and counties;
1-37 (5) the economic stability of those counties is
1-38 necessary for the mutual development of trade, transportation, and
1-39 commerce in the border region and affects not only the border
1-40 region, but all regions of the state involved in those reciprocal
1-41 economic activities;
1-42 (6) alternative capital improvement mechanisms are
1-43 necessary to ensure that the maximum number of economically
1-44 distressed subdivisions obtain adequate water or wastewater
1-45 services to eliminate public health problems and encourage the
1-46 development and diversification of the economy in those counties
1-47 and the entire state;
1-48 (7) nonprofit organizations have succeeded in
1-49 planning, platting, engineering, designing, and constructing water
1-50 and wastewater projects to serve those inaccessible, economically
1-51 distressed subdivisions using assistance from the residents
1-52 immediately benefiting from the water or wastewater services, thus
1-53 creating an alternative capital improvement mechanism with a proven
1-54 record of success that deserves state support;
1-55 (8) many residents of colonias are motivated to
1-56 improve their situation and have worked with nonprofit
1-57 organizations on self-help projects to build their own
1-58 infrastructure, ultimately saving on the total cost of water and
1-59 wastewater projects; and
1-60 (9) creating a program to provide public funds to
1-61 those nonprofit organizations for self-help projects will assist in
1-62 the reduction of the public health problems created by the lack of
1-63 adequate water and wastewater services and will encourage the
1-64 development and diversification of the economy of the counties in
2-1 which those subdivisions are located as well as throughout the
2-2 entire state.
2-3 SECTION 2. Section 6.013, Water Code, is amended to read as
2-4 follows:
2-5 Sec. 6.013. SUNSET PROVISION. The Texas Water Development
2-6 Board is subject to review under Chapter 325, Government Code
2-7 (Texas Sunset Act), but is not abolished under that chapter. The
2-8 board shall be reviewed during the period in which state agencies
2-9 abolished in 2013 [2001] and every 12th year after 2013 [2001] are
2-10 reviewed.
2-11 SECTION 3. Subsection (c), Section 6.052, Water Code, is
2-12 amended to read as follows:
2-13 (c) Appointments to the board shall be made without regard
2-14 to the race, color, disability [handicap], sex, religion, age, or
2-15 national origin of the appointees.
2-16 SECTION 4. Sections 6.054, 6.057, and 6.058, Water Code, are
2-17 amended to read as follows:
2-18 Sec. 6.054. REMOVAL OF BOARD MEMBERS. (a) It is a ground
2-19 for removal from the board that [if] a member:
2-20 (1) does not have at the time of taking office
2-21 [appointment] the qualifications required for appointment to the
2-22 board;
2-23 (2) does not maintain during [the] service on the
2-24 board the qualifications required for appointment to the board;
2-25 (3) is ineligible for membership under [violates a
2-26 prohibition established by] Sections 6.053, 6.057, and 6.058 [of
2-27 this code];
2-28 (4) cannot, because of illness or disability, [is
2-29 unable to] discharge the member's [his] duties for a substantial
2-30 part [portion] of the member's term [for which he was appointed
2-31 because of illness or disability]; or
2-32 (5) is absent from more than half [one-half] of the
2-33 regularly scheduled board meetings that the member is eligible to
2-34 attend during a [each] calendar year without an excuse approved[,
2-35 except when the absence is excused] by a majority vote of the
2-36 board.
2-37 (b) The validity of an action of the board is not affected
2-38 by the fact that it is [was] taken when a ground for removal of a
2-39 board member exists [of the board existed].
2-40 (c) If the executive administrator [a board member] has
2-41 knowledge that a potential ground for removal exists, the executive
2-42 administrator [he] shall notify the chairman of the board of the
2-43 potential [that] ground. The chairman of the board shall then
2-44 notify the governor and the attorney general that a potential
2-45 ground for removal exists. If the potential ground for removal
2-46 includes the chairman of the board, the executive administrator
2-47 shall notify the next highest ranking officer of the board, who
2-48 shall then notify the governor and the attorney general that a
2-49 potential ground for removal exists.
2-50 Sec. 6.057. CONFLICT OF INTEREST. (a) In this section,
2-51 "Texas trade association" means a cooperative and voluntarily
2-52 joined association of business or professional competitors in this
2-53 state designed to assist its members and its industry or profession
2-54 in dealing with mutual business or professional problems and in
2-55 promoting their common interest.
2-56 (b) A person may not be a member of the board and may not be
2-57 a board employee employed in a "bona fide executive,
2-58 administrative, or professional capacity," as that phrase is used
2-59 for purposes of establishing an exemption to the overtime
2-60 provisions of the federal Fair Labor Standards Act of 1938 (29
2-61 U.S.C. Section 201 et seq.), and its subsequent amendments, if:
2-62 (1) the person is an officer, employee, or paid
2-63 consultant of a Texas trade association in the field of water
2-64 planning or water financing; or
2-65 (2) the person's spouse is an officer, employee, or
2-66 paid consultant of a Texas trade association in the field of water
2-67 planning or water financing. [An officer, employee, or paid
2-68 consultant of a trade association in an industry regulated by the
2-69 board may not be a member or employee of the board, nor may a
3-1 person who cohabits with or is the spouse of an officer, managerial
3-2 employee, or paid consultant of a trade association in an industry
3-3 regulated by the board be a member of the board or an employee of
3-4 the board grade 17 or over, including exempt employees, according
3-5 to the position classification schedule under the General
3-6 Appropriations Act.]
3-7 Sec. 6.058. LOBBYIST PROHIBITION. A person may not be a
3-8 member of the board or act as the general counsel to the board if
3-9 the person [who] is required to register as a lobbyist under
3-10 Chapter 305, Government Code, because of the person's [by virtue of
3-11 his] activities for compensation [in or] on behalf of a profession
3-12 related to the operation of the board [may not serve as a member of
3-13 the board or act as the general counsel to the board].
3-14 SECTION 5. Section 6.060, Water Code, is amended by adding
3-15 Subsection (d) to read as follows:
3-16 (d) The board shall meet annually with the board of the
3-17 Texas Department of Housing and Community Affairs or the successor
3-18 agency that administers the portion of the federal community
3-19 development block grant nonentitlement program that addresses the
3-20 infrastructure needs of colonias to assess the agencies' progress
3-21 in meeting the needs of colonia residents. For purposes of this
3-22 subsection, "colonia" has the meaning assigned by Section 2306.581,
3-23 Government Code.
3-24 SECTION 6. Subchapter C, Chapter 6, Water Code, is amended
3-25 by adding Section 6.062 to read as follows:
3-26 Sec. 6.062. REQUIRED TRAINING FOR BOARD MEMBERS. (a) A
3-27 person who is appointed to and qualifies for office as a member of
3-28 the board may not vote, deliberate, or be counted as a member in
3-29 attendance at a meeting of the board until the person completes a
3-30 training program that complies with this section.
3-31 (b) The training program must provide the person with
3-32 information regarding:
3-33 (1) the legislation that created the board;
3-34 (2) the programs operated by the board;
3-35 (3) the role and functions of the board;
3-36 (4) the rules of the board, with an emphasis on the
3-37 rules that relate to disciplinary and investigatory authority;
3-38 (5) the current budget for the board;
3-39 (6) the results of the most recent formal audit of the
3-40 board;
3-41 (7) the requirements of:
3-42 (A) the open meetings law, Chapter 551,
3-43 Government Code;
3-44 (B) the public information law, Chapter 552,
3-45 Government Code;
3-46 (C) the administrative procedure law, Chapter
3-47 2001, Government Code; and
3-48 (D) other laws relating to public officials,
3-49 including conflict of interest laws; and
3-50 (8) any applicable ethics policies adopted by the
3-51 board or the Texas Ethics Commission.
3-52 (c) A person appointed to the board is entitled to
3-53 reimbursement, as provided by the General Appropriations Act, for
3-54 the travel expenses incurred in attending the training program
3-55 regardless of whether the attendance at the program occurs before
3-56 or after the person qualifies for office.
3-57 SECTION 7. Section 6.106, Water Code, is amended to read as
3-58 follows:
3-59 Sec. 6.106. STANDARDS OF CONDUCT. The executive
3-60 administrator or the executive administrator's designee [board]
3-61 shall provide to [its] members of the board and to agency[,
3-62 appointees, and] employees, as often as is necessary, information
3-63 regarding the requirements for office or employment [their
3-64 qualifications] under this code, including information regarding a
3-65 person's [and their] responsibilities under applicable laws
3-66 relating to standards of conduct for state officers or [and]
3-67 employees.
3-68 SECTION 8. Subchapter D, Chapter 6, Water Code, is amended
3-69 by adding Sections 6.110 and 6.111 to read as follows:
4-1 Sec. 6.110. CAPITAL SPENDING PLAN. (a) Each biennium, the
4-2 executive administrator shall develop and submit to the board for
4-3 its approval a capital spending plan for state-funded programs,
4-4 including the Texas Water Development Fund II, the agricultural
4-5 water conservation fund, and the water assistance fund.
4-6 (b) The plan must:
4-7 (1) identify water funding needs in the state and set
4-8 forth a basis for allocating state-supported funding to address
4-9 those needs; and
4-10 (2) if applicable, provide details about:
4-11 (A) the reasons state-supported funding was not
4-12 allocated according to the methodologies identified in prior plans;
4-13 and
4-14 (B) any adjustments to the plan from prior plans
4-15 in response to changing water priorities.
4-16 (c) In developing the plan, the executive administrator
4-17 shall consider:
4-18 (1) any commission compliance issues;
4-19 (2) information derived from facility needs
4-20 assessments or other water and wastewater needs assessments;
4-21 (3) regional planning group plans required under
4-22 Section 16.053; and
4-23 (4) any other appropriate information.
4-24 (d) The board shall consider the plan at a regularly
4-25 scheduled meeting and, on approval, submit it to the legislature
4-26 and the Legislative Budget Board before January 1 of each
4-27 odd-numbered year. The board may include the plan as part of its
4-28 legislative appropriations request.
4-29 Sec. 6.111. SEPARATION OF RESPONSIBILITIES. The board shall
4-30 develop and implement policies that clearly separate the
4-31 policymaking responsibilities of the board and the management
4-32 responsibilities of the executive administrator and the staff of
4-33 the board.
4-34 SECTION 9. Sections 6.154, 6.155, and 6.188, Water Code, are
4-35 amended to read as follows:
4-36 Sec. 6.154. COMPLAINT FILE. (a) The board shall maintain a
4-37 file on each written complaint filed with the board. The file must
4-38 include:
4-39 (1) the name of the person who filed the complaint;
4-40 (2) the date the complaint is received by the board;
4-41 (3) the subject matter of the complaint;
4-42 (4) the name of each person contacted in relation to
4-43 the complaint;
4-44 (5) a summary of the results of the review or
4-45 investigation of the complaint; and
4-46 (6) an explanation of the reason the file was closed,
4-47 if the agency closed the file without taking action other than to
4-48 investigate the complaint.
4-49 (b) The board shall provide to the person filing the
4-50 complaint and to each person who is a subject of the complaint a
4-51 copy of the board's policies and procedures relating to complaint
4-52 investigation and resolution [keep an information file about each
4-53 complaint filed with the board relating to an entity regulated by
4-54 the board].
4-55 Sec. 6.155. NOTICE OF COMPLAINT. The [If a written
4-56 complaint is filed with the board relating to an entity regulated
4-57 by the board, the] board, at least [as frequently as] quarterly
4-58 [and] until final disposition of the complaint, shall notify the
4-59 person filing the complaint and each person who is a subject of
4-60 [parties to] the complaint of the status of the investigation
4-61 [complaint] unless the notice would jeopardize an undercover
4-62 investigation.
4-63 Sec. 6.188. EQUAL EMPLOYMENT OPPORTUNITY POLICY. (a) The
4-64 executive administrator or the executive administrator's [his]
4-65 designee shall prepare and maintain a written policy statement that
4-66 implements [to assure implementation of] a program of equal
4-67 employment opportunity to ensure that all personnel decisions
4-68 [whereby all personnel transactions] are made without regard to
4-69 race, color, disability [handicap], sex, religion, age, or national
5-1 origin.
5-2 (b) The policy statement must include:
5-3 (1) personnel policies, including policies relating to
5-4 recruitment, evaluation, selection, [appointment,] training, and
5-5 promotion of personnel, that show the intent of the board to avoid
5-6 the unlawful employment practices described by Chapter 21, Labor
5-7 Code; and
5-8 (2) an [a comprehensive] analysis of the extent to
5-9 which the composition of the board's personnel is in accordance
5-10 with state and federal law and a description of reasonable methods
5-11 to achieve compliance with state and federal law.
5-12 (c) The policy statement must:
5-13 (1) be updated annually;
5-14 (2) be reviewed by the state Commission on Human
5-15 Rights for compliance with Subsection (b)(1); and
5-16 (3) be filed with the governor's office [work force
5-17 that meets federal and state guidelines;]
5-18 [(3) procedures by which a determination can be made
5-19 of significant underutilization in the board's work force of all
5-20 persons for whom federal or state guidelines encourage a more
5-21 equitable balance; and]
5-22 [(4) reasonable methods to address appropriately areas
5-23 of significant underutilization in the board's work force of all
5-24 persons for whom federal or state guidelines encourage a more
5-25 equitable balance.]
5-26 [(b) The policy statement shall be filed with the governor's
5-27 office before November 1, 1985, cover an annual period, and be
5-28 updated at least annually. The governor's office shall develop a
5-29 biennial report to the legislature based on the information
5-30 submitted. This report may be made individually or as a part of
5-31 other biennial reports made to the legislature].
5-32 SECTION 10. Subchapter F, Chapter 6, Water Code, is amended
5-33 by adding Section 6.196 to read as follows:
5-34 Sec. 6.196. TRAINING ON STATE EMPLOYEE INCENTIVE PROGRAM.
5-35 The executive administrator or the executive administrator's
5-36 designee shall provide to agency employees information and training
5-37 on the benefits and methods of participation in the state employee
5-38 incentive program under Subchapter B, Chapter 2108, Government
5-39 Code.
5-40 SECTION 11. Section 15.008, Water Code, is amended to read
5-41 as follows:
5-42 Sec. 15.008. GRANT STANDARDS. The law regarding uniform
5-43 grants and contract management, Chapter 783, Government Code,
5-44 [Uniform Grant and Contract Management Act of 1981 (Article
5-45 4413(32g), Vernon's Texas Civil Statutes)] does not apply to a
5-46 contract under Subchapter F, H, [or] K, or P [of this chapter].
5-47 SECTION 12. Subsection (b), Section 15.011, Water Code, is
5-48 amended to read as follows:
5-49 (b) After notice and hearing and subject to any limitations
5-50 established by the General Appropriations Act, the board may
5-51 transfer money from the fund to the loan fund created under
5-52 Subchapter C of this chapter, the storage acquisition fund created
5-53 under Subchapter E of this chapter, the research and planning fund
5-54 created under Subchapter F of this chapter, the hydrographic survey
5-55 account created under Subchapter M of this chapter, provided the
5-56 hydrographic survey account transfer does not exceed $425,000,
5-57 [and] the aquatic vegetation management fund created under
5-58 Subchapter N of this chapter, the rural community water and
5-59 wastewater loan fund created under Subchapter O of this chapter,
5-60 and the colonia self-help account under Subchapter P of this
5-61 chapter.
5-62 SECTION 13. Subsection (c), Section 15.012, Water Code, is
5-63 amended to read as follows:
5-64 (c) Money appropriated to the fund by the legislature for a
5-65 specific purpose stated in Subchapter C, E, F, M, [or] N, or O of
5-66 this chapter shall be placed in the appropriate fund created by
5-67 that subchapter.
5-68 SECTION 14. Subsection (b), Section 15.102, Water Code, is
5-69 amended to read as follows:
6-1 (b) The loan fund may also be used by the board to provide
6-2 grants for projects:
6-3 (1) that include supplying water and wastewater
6-4 services in economically distressed areas, including projects
6-5 involving retail distribution of those services;
6-6 (2) for which federal grant funds are placed in the
6-7 loan fund; or
6-8 (3) on specific legislative appropriation for those
6-9 projects.
6-10 SECTION 15. Section 15.104, Water Code, is amended to read
6-11 as follows:
6-12 Sec. 15.104. FINDINGS REGARDING PERMITS. (a) The board
6-13 shall not release funds for the construction of that portion of a
6-14 project that proposes surface water or groundwater development
6-15 [deliver funds pursuant to an application for financial assistance
6-16 from the loan fund] until the executive administrator makes a
6-17 written finding:
6-18 (1) that an applicant proposing surface-water
6-19 development has the necessary water right authorizing it to
6-20 appropriate and use the water that the project will provide; or
6-21 (2) that an applicant proposing underground water
6-22 development has the right to use water that the project will
6-23 provide.
6-24 (b) The board may release funds for the costs of planning,
6-25 engineering, architectural, legal, title, fiscal, or economic
6-26 investigation, studies, surveys, or designs before making the
6-27 finding required under Subsection (a) if the executive
6-28 administrator determines that a reasonable expectation exists that
6-29 the finding will be made before the release of funds for
6-30 construction.
6-31 (c) If an applicant includes a proposal for a waste water
6-32 treatment plant, the board may not deliver funds for the waste
6-33 water treatment plant until the applicant has received a permit for
6-34 construction and operation of the waste water treatment plant and
6-35 approval of the plans and specifications from the commission. If
6-36 the applicant proposes a waste water treatment plant that is
6-37 located outside of the jurisdiction of this state and that is not
6-38 subject to the permitting authority of the commission, the board
6-39 must review the plans and specifications in coordination with the
6-40 commission and find that the waste water treatment plant is capable
6-41 of producing effluent that will meet federal and state-approved
6-42 water quality standards.
6-43 SECTION 16. Subsection (a), Section 15.601, Water Code, is
6-44 amended to read as follows:
6-45 (a) The state water pollution control revolving fund shall
6-46 be administered by the board under this subchapter and rules
6-47 adopted by the board. The fund shall be used to provide financial
6-48 assistance to political subdivisions for construction of treatment
6-49 works and to persons for nonpoint source pollution control and
6-50 abatement projects under Section 15.603(h), in accordance with the
6-51 capitalization grant program established under the Federal Water
6-52 Pollution Control Act (33 U.S.C. 1251 et seq.).
6-53 SECTION 17. Section 15.603, Water Code, is amended by
6-54 amending Subsection (a) and adding Subsection (h) to read as
6-55 follows:
6-56 (a) The revolving fund is held separately from other funds
6-57 by the board outside the State Treasury to provide financial
6-58 assistance to political subdivisions for construction of treatment
6-59 works and to persons for nonpoint source pollution control and
6-60 abatement projects under Subsection (h).
6-61 (h) The board may establish a separate account in the
6-62 revolving fund, to be used solely for providing financial
6-63 assistance to persons for nonpoint source pollution control and
6-64 abatement projects. The account shall be composed solely of funds
6-65 appropriated by the legislature, funds provided as gifts or grants
6-66 by the United States, interest earnings on amounts credited to the
6-67 account, and repayments of loans made from the account. The board
6-68 shall adopt rules establishing the criteria for eligibility and
6-69 the terms of assistance for persons that receive financial
7-1 assistance from the account.
7-2 SECTION 18. Subsection (a), Section 15.804, Water Code, is
7-3 amended to read as follows:
7-4 (a) On the request of a political subdivision or agency of
7-5 this state or a neighboring state or a federal agency, the board
7-6 may perform [for the political subdivision] a hydrographic survey
7-7 in this state or outside of this state if the information collected
7-8 will benefit this state. The board may perform a survey under this
7-9 section:
7-10 (1) to determine:
7-11 (A) reservoir storage capacity;
7-12 (B) sedimentation levels;
7-13 (C) rates of sedimentation;
7-14 (D) projected water supply availability; or
7-15 [and]
7-16 (E) potential mitigative measures; [and]
7-17 (2) to conduct [for] other bathymetric studies; or
7-18 (3) to collect information relating to water-bearing
7-19 formations.
7-20 SECTION 19. Chapter 15, Water Code, is amended by adding
7-21 Subchapter O to read as follows:
7-22 SUBCHAPTER O. PILOT PROGRAM FOR WATER AND WASTEWATER
7-23 LOANS FOR RURAL COMMUNITIES
7-24 Sec. 15.901. DEFINITIONS. In this subchapter:
7-25 (1) "Fund" means the rural community water and
7-26 wastewater loan fund.
7-27 (2) "Political subdivision" means a municipality, a
7-28 county, or a district or authority created under Section 52,
7-29 Article III, or Section 59, Article XVI, Texas Constitution.
7-30 (3) "Rural community" means:
7-31 (A) a municipality or county with a population
7-32 of less than 5,000; or
7-33 (B) a district or authority created under
7-34 Section 52, Article III, or Section 59, Article XVI, Texas
7-35 Constitution, with a population of less than 5,000 that is located
7-36 outside the boundaries or extraterritorial jurisdiction of a
7-37 municipality.
7-38 Sec. 15.902. RURAL COMMUNITY WATER AND WASTEWATER LOAN FUND.
7-39 (a) The rural community water and wastewater loan fund is an
7-40 account in the water assistance fund.
7-41 (b) The fund consists of:
7-42 (1) money transferred to the fund from the water
7-43 assistance fund under Section 15.011(b);
7-44 (2) proceeds from the sale of political subdivision
7-45 bonds by the board to the Texas Water Resources Finance Authority
7-46 as provided by Section 17.0871; and
7-47 (3) repayments of loans made from the fund.
7-48 Sec. 15.903. FINANCIAL ASSISTANCE. (a) The fund may be
7-49 used by the board to provide loans of financial assistance to rural
7-50 communities for the construction, acquisition, or improvement of
7-51 water and wastewater projects.
7-52 (b) The board may make financial assistance available to a
7-53 rural community by entering into a loan agreement and promissory
7-54 note with the rural community, as provided by this subchapter. A
7-55 rural community may apply for and accept the financial assistance.
7-56 (c) The loan agreement must provide for the payment of
7-57 principal and interest on the debt incurred for the project at a
7-58 rate to be determined by the board.
7-59 (d) The loan agreement must provide for the issuance of a
7-60 promissory note payable to the board to evidence the obligation of
7-61 the rural community to repay the loan made in accordance with the
7-62 terms of the loan agreement.
7-63 (e) A loan provided under this subchapter may not exceed
7-64 $250,000 for each project, and the term of a loan may not exceed 20
7-65 years.
7-66 Sec. 15.904. USE OF SALES TAX AS LOAN SECURITY. (a) A
7-67 rural community that is a municipality or county may pledge a
7-68 percentage of the sales and use tax revenue received under Chapter
7-69 321 or 323, Tax Code, as applicable, to the payment of debt
8-1 incurred under a loan agreement entered into with the board under
8-2 this subchapter if a majority of the voters voting at an election
8-3 called and held for that purpose authorize the municipality or
8-4 county to pledge a portion of that revenue for that purpose.
8-5 (b) Sections 321.506, 321.507, and 323.505, Tax Code, do not
8-6 apply to taxes pledged under this subchapter.
8-7 Sec. 15.905. REVIEW AND APPROVAL OF LOAN AGREEMENT BY
8-8 ATTORNEY GENERAL. (a) Before a loan agreement may become
8-9 effective, a record of the proceedings of the board and the rural
8-10 community authorizing the execution of the loan agreement, the loan
8-11 agreement, the promissory note, and any contract providing revenue
8-12 or security to pay the promissory note must be submitted to the
8-13 attorney general for review and approval.
8-14 (b) If the attorney general finds that the loan agreement
8-15 and the promissory note are valid and binding obligations of the
8-16 rural community, the attorney general shall approve the documents
8-17 and deliver them to the comptroller, the board, and the rural
8-18 community, together with a copy of the attorney general's legal
8-19 opinion stating that approval.
8-20 Sec. 15.906. REGISTRATION. On receipt of the documents
8-21 required by Section 15.905(b), the comptroller shall register the
8-22 record of the proceedings relating to the execution of a loan
8-23 agreement.
8-24 Sec. 15.907. VALIDITY AND INCONTESTABILITY. On approval by
8-25 the attorney general and registration by the comptroller, the loan
8-26 agreement, the promissory note, a contract providing revenue or
8-27 security, and any other obligation evidencing the debt are
8-28 incontestable in a court and are valid, binding, and enforceable
8-29 according to their terms.
8-30 Sec. 15.908. ENFORCEMENT BY MANDAMUS. Payment of
8-31 obligations incurred under a loan agreement and other requirements
8-32 of this subchapter may be enforced in a court by mandamus or other
8-33 appropriate proceedings.
8-34 Sec. 15.909. RULES. The board shall adopt necessary rules
8-35 to administer this subchapter, including rules establishing
8-36 procedures for application for and award of loans.
8-37 Sec. 15.910. APPLICATION FOR ASSISTANCE. (a) In an
8-38 application to the board for financial assistance from the fund,
8-39 the rural community must include:
8-40 (1) the name of the rural community and its principal
8-41 officers;
8-42 (2) a citation of the law under which the rural
8-43 community operates and was created;
8-44 (3) a description of the water or wastewater project
8-45 for which the financial assistance will be used;
8-46 (4) the total cost of the project;
8-47 (5) the amount of state financial assistance
8-48 requested;
8-49 (6) the plan for repaying the total cost of the
8-50 project; and
8-51 (7) any other information the board requires in order
8-52 to perform its duties and to protect the public interest.
8-53 (b) The board may not accept an application for a loan of
8-54 financial assistance from the fund unless it is submitted in
8-55 affidavit form by the officials of the rural community. The board
8-56 shall prescribe the affidavit form in its rules.
8-57 (c) If a rural community has a program of water
8-58 conservation, the rural community shall state in the application
8-59 that the rural community has such a program.
8-60 Sec. 15.911. FINDINGS REGARDING PERMITS. (a) The board may
8-61 not release funds for the construction phase of that portion of a
8-62 project that proposes surface water or groundwater development
8-63 until the executive administrator makes a written finding:
8-64 (1) that a rural community proposing surface water
8-65 development has the necessary water right authorizing it to
8-66 appropriate and use the water that the project will provide; or
8-67 (2) that a rural community proposing underground water
8-68 development has the right to use water that the project will
8-69 provide.
9-1 (b) If a rural community includes a proposal for a
9-2 wastewater treatment project, the board may not release funds for
9-3 the project construction until the rural community has received a
9-4 permit for the construction and operation of the project and
9-5 approval of the plans and specifications for the project in a
9-6 manner that will satisfy commission requirements for design
9-7 criteria and permit conditions that apply to construction
9-8 activities.
9-9 Sec. 15.912. CONSIDERATIONS IN ACTING ON APPLICATION. In
9-10 acting on an application for financial assistance, the board shall
9-11 consider:
9-12 (1) the needs of the area to be served by the project
9-13 and the benefit of the project to the area in relation to the needs
9-14 of other areas requiring state assistance in any manner and the
9-15 benefits of those projects to the other areas;
9-16 (2) the availability of revenue to the rural community
9-17 from all sources for the ultimate repayment of the cost of the
9-18 project, including all interest;
9-19 (3) the relationship of the project to overall
9-20 statewide needs; and
9-21 (4) any other factors that the board considers
9-22 relevant.
9-23 Sec. 15.913. APPROVAL OF APPLICATION. The board by
9-24 resolution may approve an application for a loan if, after
9-25 considering the factors listed in Section 15.912 and any other
9-26 relevant factors, the board finds that:
9-27 (1) the public interest requires state participation
9-28 in the project; and
9-29 (2) the revenue or taxes pledged by the rural
9-30 community will be sufficient to meet all the obligations assumed by
9-31 the rural community during the succeeding period of not more than
9-32 20 years.
9-33 Sec. 15.914. CONSTRUCTION CONTRACT REQUIREMENTS. The
9-34 governing body of each rural community receiving financial
9-35 assistance from the board under this subchapter shall require in
9-36 all contracts for the construction of a project that:
9-37 (1) each bidder furnish a bid guarantee equivalent to
9-38 five percent of the bid price;
9-39 (2) each contractor awarded a construction contract
9-40 furnish performance and payment bonds as follows:
9-41 (A) the performance bond must include guarantees
9-42 that work done under the contract will be completed and performed
9-43 according to approved plans and specifications and in accordance
9-44 with sound construction principles and practices; and
9-45 (B) the performance and payment bonds must be in
9-46 a penal sum of not less than 100 percent of the contract price and
9-47 remain in effect for one year after the date of approval by the
9-48 engineer of the political subdivision;
9-49 (3) payment be made in partial payments as the work
9-50 progresses;
9-51 (4) each partial payment not exceed 95 percent of the
9-52 amount due at the time of the payment as shown by the engineer of
9-53 the project, but, if the project is substantially complete, a
9-54 partial release of the five percent retainage may be made by the
9-55 rural community with approval of the executive administrator;
9-56 (5) payment of the retainage remaining due on
9-57 completion of the contract be made only after:
9-58 (A) approval by the engineer for the rural
9-59 community as required under the bond proceedings;
9-60 (B) approval by the governing body of the rural
9-61 community by a resolution or other formal action; and
9-62 (C) certification by the executive administrator
9-63 in accordance with the rules of the board that the work to be done
9-64 under the contract has been completed and performed in a
9-65 satisfactory manner and in accordance with sound engineering
9-66 principles and practices;
9-67 (6) no valid approval be granted unless the work done
9-68 under the contract has been completed and performed in a
9-69 satisfactory manner according to approved plans and specifications;
10-1 and
10-2 (7) labor from inside the rural community be used to
10-3 the extent possible.
10-4 Sec. 15.915. FILING CONSTRUCTION CONTRACT. The rural
10-5 community shall file with the board a certified copy of each
10-6 construction contract it enters into for the construction of all or
10-7 part of a project. Each contract must contain or have attached to
10-8 it the specifications, plans, and details of all work included in
10-9 the contract.
10-10 Sec. 15.916. INSPECTION OF PROJECTS. (a) The board may
10-11 inspect the construction of a project at any time to assure that:
10-12 (1) the contractor is substantially complying with the
10-13 approved engineering plans of the project; and
10-14 (2) the contractor is constructing the project in
10-15 accordance with sound engineering principles.
10-16 (b) Inspection of a project by the board does not subject
10-17 the state to any civil liability.
10-18 Sec. 15.917. ALTERATION OF PLANS. After the executive
10-19 administrator approves the engineering plans, a rural community may
10-20 not make any substantial or material alteration in the plans unless
10-21 the executive administrator authorizes the alteration. The board
10-22 shall review and approve or disapprove plans and specifications for
10-23 all sewage collection, treatment, and disposal systems for which
10-24 financial assistance is provided from the fund in a manner that
10-25 will satisfy commission requirements for design criteria and permit
10-26 conditions that apply to construction activities.
10-27 Sec. 15.918. CERTIFICATE OF APPROVAL. The executive
10-28 administrator may consider the following as grounds for refusal to
10-29 give a certificate of approval for any construction contract:
10-30 (1) failure to construct the project according to the
10-31 approved plans;
10-32 (2) failure to construct the works in accordance with
10-33 sound engineering principles; or
10-34 (3) failure to comply with any term of the contract.
10-35 Sec. 15.919. REPORT TO LEGISLATURE. (a) Not later than
10-36 January 1, 2005, the board shall report to the legislature on the
10-37 program established under this subchapter.
10-38 (b) The report must include:
10-39 (1) the number of applications received;
10-40 (2) the number of loans funded;
10-41 (3) the types of projects funded;
10-42 (4) the total funds allocated;
10-43 (5) available performance measures; and
10-44 (6) the expected feasibility of and demand for an
10-45 expanded rural community water and wastewater loan program.
10-46 Sec. 15.920. AUTHORITY OF RURAL COMMUNITIES. Rural
10-47 communities that receive financial assistance from the fund are
10-48 granted all necessary authority to enter into loan agreements and
10-49 issue promissory notes in connection with the financial assistance
10-50 granted under this subchapter.
10-51 SECTION 20. Chapter 15, Water Code, is amended by adding
10-52 Subchapter P to read as follows:
10-53 SUBCHAPTER P. COLONIA SELF-HELP PROGRAM
10-54 Sec. 15.951. DEFINITIONS. In this subchapter:
10-55 (1) "Account" means the colonia self-help account.
10-56 (2) "Colonia" means a geographic area that:
10-57 (A) is an economically distressed area as
10-58 defined by Section 17.921; and
10-59 (B) is located in a county any part of which is
10-60 within 50 miles of an international border.
10-61 (3) "Program" means the colonia self-help program
10-62 established under this subchapter.
10-63 (4) "Retail public utility" has the meaning assigned
10-64 by Section 13.002.
10-65 (5) "Self-help project" means a project in which the
10-66 people who will benefit from the project actively participate.
10-67 Sec. 15.952. CREATION OF ACCOUNT. (a) The colonia
10-68 self-help account is an account in the general revenue fund that
10-69 may be appropriated only for the purposes of this subchapter.
11-1 (b) The account consists of:
11-2 (1) money transferred by the legislature directly to
11-3 the account;
11-4 (2) money transferred at the board's discretion from
11-5 the fund;
11-6 (3) gifts, grants, or donations to the account; and
11-7 (4) interest earned on money credited to the account.
11-8 (c) Sections 403.095 and 404.071, Government Code, do not
11-9 apply to the account.
11-10 Sec. 15.953. USE OF ACCOUNT. (a) The board may use funds
11-11 in the account only to reimburse nonprofit organizations eligible
11-12 under Section 15.954 for expenses incurred in a self-help project
11-13 that results in the provision of adequate water or wastewater
11-14 services to a colonia. Expenses that may be reimbursed include:
11-15 (1) construction expenses;
11-16 (2) facility planning expenses;
11-17 (3) platting expenses;
11-18 (4) surveying expenses;
11-19 (5) engineering expenses;
11-20 (6) equipment expenses; and
11-21 (7) other expenses necessary to provide water or
11-22 wastewater services to the colonia, as determined appropriate by
11-23 the board.
11-24 (b) The board may award a grant under the program directly
11-25 to a nonprofit organization to reimburse the organization for
11-26 expenses incurred in a self-help project described by Subsection
11-27 (a).
11-28 Sec. 15.954. ELIGIBLE NONPROFIT ORGANIZATIONS. To be
11-29 eligible to receive a grant under the program, an organization
11-30 must:
11-31 (1) apply for the grant;
11-32 (2) qualify for an exemption from federal income taxes
11-33 under Section 501(c)(3), Internal Revenue Code of 1986, as amended;
11-34 and
11-35 (3) as of January 1, 2001, have a demonstrated record
11-36 of completing in coordination with a retail public utility
11-37 construction of self-help projects described by Section 15.953(a).
11-38 Sec. 15.955. GRANT APPLICATION. An eligible nonprofit
11-39 organization must apply to the board for a grant under the program
11-40 before incurring any expense associated with a self-help project
11-41 described by Section 15.953(a). The application must include:
11-42 (1) the name of the nonprofit organization, the names
11-43 of the organization's principal officers, and verification of the
11-44 organization's 501(c)(3) status;
11-45 (2) a description of the project area, the anticipated
11-46 number of water and wastewater connections to be made, and the
11-47 anticipated number of colonia residents to be served;
11-48 (3) a description of the existing water and wastewater
11-49 facilities in the colonia;
11-50 (4) a description of the project and the aspect of the
11-51 project for which the grant will be used;
11-52 (5) a description of the anticipated participation in
11-53 the project by residents of the colonia;
11-54 (6) the estimated total cost of both the project and
11-55 the aspect of the project for which the grant will be used;
11-56 (7) the amount of the grant that is requested from the
11-57 colonia self-help account and the sources of funding for the entire
11-58 project;
11-59 (8) from a retail public utility authorized to provide
11-60 water or wastewater services to the colonia, a resolution in which
11-61 the retail public utility:
11-62 (A) agrees to inspect the project during and
11-63 after construction to ensure the adequacy of the project; and
11-64 (B) commits to provide the water or wastewater
11-65 services that the project intends to use; and
11-66 (9) any other information required by the board.
11-67 Sec. 15.956. BOARD CONSIDERATIONS IN EVALUATING GRANT
11-68 APPLICATION. In evaluating an application for a grant under the
11-69 program, the board shall consider:
12-1 (1) the number, quality, and character of projects
12-2 previously completed by the applicant; and
12-3 (2) the capability of the retail public utility to
12-4 provide water or wastewater services to the colonia on completion
12-5 of the project.
12-6 Sec. 15.957. ACTION ON GRANT APPLICATION. (a) Not later
12-7 than the 60th day after the date the board receives a complete
12-8 application for a grant under the program, the board by written
12-9 resolution shall:
12-10 (1) approve the application; or
12-11 (2) disapprove the application.
12-12 (b) On approval of an application, the board shall authorize
12-13 the executive administrator of the board to execute a contract with
12-14 the applicant for a grant to reimburse eligible expenses. The
12-15 contract may provide a budget, schedule, terms for payment of
12-16 funds, and any other terms the board or its executive administrator
12-17 considers appropriate.
12-18 Sec. 15.958. RULES. The board shall adopt rules necessary
12-19 to administer the program established under this subchapter.
12-20 Sec. 15.959. CO-ADMINISTRATION. The program shall be
12-21 co-administered by the office of the secretary of state until the
12-22 second anniversary of the date on which the program begins
12-23 operations under this subchapter.
12-24 SECTION 21. Subchapter B, Chapter 16, Water Code, is amended
12-25 by amending Section 16.021 and adding Section 16.022 to read as
12-26 follows:
12-27 Sec. 16.021. TEXAS NATURAL RESOURCES INFORMATION SYSTEM.
12-28 (a) The executive administrator shall establish the Texas Natural
12-29 Resources Information System (TNRIS) to serve Texas agencies and
12-30 citizens as a centralized clearinghouse and referral center for
12-31 natural resource, census, and other socioeconomic data.
12-32 (b) The executive administrator may, on behalf of TNRIS,
12-33 enter into partnerships with private entities to provide additional
12-34 funding for improved access to TNRIS information. The board shall
12-35 adopt administrative rules to describe the process of establishing
12-36 partnerships, define the types of partnerships that may be formed,
12-37 establish the fee collection process, and define the
12-38 nondiscriminatory methods used to determine which private entities
12-39 may enter into partnerships. Any process developed by the board
12-40 must comply with all applicable laws regarding ethics, purchasing,
12-41 and contracts.
12-42 (c) The Texas Geographic Information Council (TGIC) is
12-43 created to provide strategic planning and coordination in the
12-44 acquisition and use of geo-spatial data and related technologies in
12-45 the State of Texas. The executive administrator and the executive
12-46 director of the Department of Information Resources shall designate
12-47 entities to be members of the TGIC. The chief administrative
12-48 officer of each member entity shall select one representative to
12-49 serve on the TGIC. The duties of the TGIC shall include providing
12-50 guidance to the executive administrator in carrying out the
12-51 executive administrator's [his] duties under this section and
12-52 guidance to the Department of Information Resources for development
12-53 of rules related to statewide geo-spatial data and technology
12-54 standards.
12-55 (d) Member entities of the TGIC that are state agencies
12-56 shall, and member entities that are not state agencies may, provide
12-57 information to the TGIC about their investments in geographic
12-58 information and plans for its use. Not later than September 1 of
12-59 each even-numbered year, the TGIC shall prepare and provide to the
12-60 board, the Department of Information Resources, the governor, and
12-61 the legislature a plan that inventories known state agency
12-62 geographic information systems projects and recommends initiatives
12-63 to improve the state's geographic information systems programs.
12-64 (e) [(c)] Under the guidance of the TGIC, the executive
12-65 administrator shall:
12-66 (1) further develop the Texas Natural Resources
12-67 Information System by promoting and providing for effective
12-68 acquisition, archiving, documentation, indexing, and dissemination
12-69 of natural resource and related digital and nondigital data and
13-1 information;
13-2 (2) obtain information in response to disagreements
13-3 regarding names and name spellings for natural and cultural
13-4 features in the state and provide this information to the Board on
13-5 Geographic Names of the United States Department of the Interior;
13-6 (3) make recommendations to the Board on Geographic
13-7 Names of the United States Department of the Interior for naming
13-8 any natural or cultural feature subject to the limitations provided
13-9 by Subsection (f) [(d) of this section];
13-10 (4) make recommendations to the Department of
13-11 Information Resources to adopt and promote standards that
13-12 facilitate sharing of digital natural resource data and related
13-13 socioeconomic data among federal, state, and local governments and
13-14 other interested parties;
13-15 (5) acquire and disseminate natural resource and
13-16 related socioeconomic data describing the Texas-Mexico border
13-17 region; and
13-18 (6) coordinate, conduct, and facilitate the
13-19 development, maintenance, and use of mutually compatible statewide
13-20 digital base maps depicting natural resources and man-made
13-21 features.
13-22 (f) [(d)] A recommendation may not be made under
13-23 [Subdivision (3) of] Subsection (e)(3) [(c) of this section] for:
13-24 (1) a feature previously named under statutory
13-25 authority or recognized by an agency of the federal government, the
13-26 state, or a political subdivision of the state;
13-27 (2) a feature located on private property for which
13-28 consent of the property owner cannot be obtained; or
13-29 (3) naming a natural or cultural feature for a living
13-30 person.
13-31 Sec. 16.022. WATER CONSERVATION STUDY. (a) The board and
13-32 the State Soil and Water Conservation Board shall jointly conduct a
13-33 study of the ways to improve or expand water conservation efforts
13-34 and report to the legislature.
13-35 (b) The report must include:
13-36 (1) an assessment of both agricultural and municipal
13-37 water conservation issues;
13-38 (2) information on existing conservation efforts by
13-39 the board and the State Soil and Water Conservation Board;
13-40 (3) information on existing conservation efforts by
13-41 municipalities receiving funding from the board, as specified in
13-42 water conservation plans submitted by the municipalities as part of
13-43 their applications for assistance;
13-44 (4) a discussion of future conservation needs;
13-45 (5) an analysis of programmatic approaches and funding
13-46 for additional conservation efforts;
13-47 (6) an assessment of existing statutory authority and
13-48 whether changes are needed to more effectively promote and fund
13-49 conservation projects; and
13-50 (7) an assessment of the board's agricultural water
13-51 conservation program.
13-52 (c) The report shall be issued as part of, or as a
13-53 supplement to, the state water plan.
13-54 SECTION 22. Subsection (j), Section 16.053, Water Code, is
13-55 amended to read as follows:
13-56 (j) The board may provide financial assistance to political
13-57 subdivisions under Subchapters E and F of this chapter, Subchapters
13-58 C, D, E, F, [and] J, and O, Chapter 15, and Subchapters D, I, K,
13-59 and L, Chapter 17, for water supply projects only if:
13-60 (1) the board determines that the needs to be
13-61 addressed by the project will be addressed in a manner that is
13-62 consistent with the state water plan; and
13-63 (2) beginning January 5, 2002, the board:
13-64 (A) has approved a regional water plan as
13-65 provided by Subsection (i), and any required updates of the plan,
13-66 for the region of the state that includes the area benefiting from
13-67 the proposed project; and
13-68 (B) determines that the needs to be addressed by
13-69 the project will be addressed in a manner that is consistent with
14-1 that regional water plan.
14-2 SECTION 23. Section 16.136, Water Code, is amended to read
14-3 as follows:
14-4 Sec. 16.136. FACILITIES WANTED BY POLITICAL SUBDIVISION.
14-5 The board may acquire all or part [up to 50 percent] of any
14-6 authorized facility to the extent that the board finds that the
14-7 political subdivision:
14-8 (1) is willing and reasonably able to finance that
14-9 portion [at least 50 percent] of the cost of the facility that the
14-10 board does not acquire;
14-11 (2) has obtained all necessary permits;
14-12 (3) has proposals that are consistent with the
14-13 objectives of the state water plan; and
14-14 (4) has a program of water conservation for the more
14-15 efficient use of water as required by Section 15.106 of this code.
14-16 SECTION 24. Subsection (g), Section 16.343, Water Code, is
14-17 amended to read as follows:
14-18 (g) Before [filing] an application for funds [for facility
14-19 engineering] under Section 15.407 or Subchapter P, Chapter 15, [of
14-20 this code] or [financial assistance under] Subchapter K, Chapter
14-21 17, may be considered by the board [of this code], a political
14-22 subdivision must adopt the model rules pursuant to this section.
14-23 If the applicant is [or, in the case of] a district, [or] nonprofit
14-24 water supply corporation, or colonia, the applicant must be located
14-25 in a city or county that has adopted such rules. Applicants for
14-26 funds under Section 15.407 or Subchapter P, Chapter 15, or
14-27 Subchapter K, Chapter 17, may not receive funds under those
14-28 provisions unless the applicable political subdivision [An affected
14-29 county may not receive funds under either Section 15.407 of this
14-30 code or Subchapter K, Chapter 17, of this code unless the county]
14-31 adopts and enforces the model rules.
14-32 SECTION 25. Subsection (g), Section 17.0871, Water Code, is
14-33 amended to read as follows:
14-34 (g) The accrued interest portion of proceeds from the sale
14-35 of political subdivision bonds shall be disposed of as otherwise
14-36 provided by this chapter. Money not applied to discharges,
14-37 payments, or redemptions shall be deposited in the development
14-38 fund, the administrative fund, the water assistance fund, or the
14-39 agricultural water conservation fund, as appropriate, to be used
14-40 for the purposes provided by law.
14-41 SECTION 26. Section 17.123, Water Code, is amended to read
14-42 as follows:
14-43 Sec. 17.123. FINDINGS REGARDING PERMITS. (a) The board
14-44 shall not release funds for the construction of that portion of a
14-45 project that proposes surface water or groundwater development
14-46 [deliver funds pursuant to an application for financial assistance]
14-47 until the executive administrator makes a written finding:
14-48 (1) that an applicant proposing surface-water
14-49 development has the necessary water right authorizing it to
14-50 appropriate and use the water which the water supply project will
14-51 provide; or
14-52 (2) that an applicant proposing underground water
14-53 development has the right to use water that the water supply
14-54 project will provide.
14-55 (b) The board may release funds for the costs of planning,
14-56 engineering, architectural, legal, title, fiscal, or economic
14-57 investigation, studies, surveys, or designs before making the
14-58 finding required under Subsection (a) if the executive
14-59 administrator determines that a reasonable expectation exists that
14-60 the finding will be made before the release of funds for
14-61 construction.
14-62 SECTION 27. (a) The Texas Water Development Board shall
14-63 adopt, not later than March 1, 2002, necessary rules to administer
14-64 the pilot program for water and wastewater loans for rural
14-65 communities created by Subchapter O, Chapter 15, Water Code, as
14-66 added by this Act.
14-67 (b) The Texas Water Development Board shall begin, not later
14-68 than September 1, 2002, to provide loans under Subchapter O,
14-69 Chapter 15, Water Code, as added by this Act.
15-1 SECTION 28. The Texas Water Development Board is required to
15-2 implement the colonia self-help program under Subchapter P, Chapter
15-3 15, Water Code, as added by this Act, only if the legislature
15-4 appropriates money specifically for that purpose. If the
15-5 legislature does not appropriate money specifically for that
15-6 purpose, the Texas Water Development Board may, but is not required
15-7 to, implement the colonia self-help program using other
15-8 appropriations available for that purpose.
15-9 SECTION 29. The changes in law made by this Act in the
15-10 prohibitions and qualifications applying to members of the Texas
15-11 Water Development Board do not affect the entitlement of a member
15-12 serving on the board immediately before September 1, 2001, to
15-13 continue to serve and function as a member of the board for the
15-14 remainder of the member's term. The changes in law apply only to a
15-15 member appointed on or after September 1, 2001.
15-16 SECTION 30. This Act takes effect September 1, 2001.
15-17 * * * * *