By: Truan, Zaffirini S.B. No. 649
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to training requirements for applicants for and recipients
1-3 of financial assistance for water and sewer services under the
1-4 economically distressed areas program.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Chapter 17, Water Code, is amended by adding
1-7 Subchapter M to read as follows:
1-8 SUBCHAPTER M. REQUIRED TRAINING FOR APPLICANTS
1-9 FOR AND RECIPIENTS OF ECONOMICALLY DISTRESSED AREAS
1-10 PROGRAM FINANCIAL ASSISTANCE
1-11 Sec. 17.991. DEFINITIONS. In this subchapter:
1-12 (1) "Operating entity" means the governing body of a
1-13 political subdivision responsible for providing water supply and
1-14 sewer services and the management of its water and sewer system, as
1-15 defined by rules of the board.
1-16 (2) "Political subdivision" has the meaning assigned
1-17 by Section 17.921.
1-18 Sec. 17.992. TRAINING FOR APPLICANTS. The board by rule
1-19 shall require the operating entity of a political subdivision that
1-20 applies for financial assistance under Subchapter K to complete a
1-21 training program approved by the board.
1-22 Sec. 17.993. TRAINING FOR OPERATING ENTITIES. (a) The
1-23 commission or the board may evaluate whether an operating entity
1-24 needs training if the operating entity:
1-25 (1) requests additional funding;
2-1 (2) requests more time to meet its obligations under a
2-2 repayment schedule;
2-3 (3) does not provide required documentation; or
2-4 (4) has a history of compliance problems, as
2-5 determined by the commission.
2-6 (b) The board or the commission may determine that training
2-7 is necessary if, after an examination and evaluation of the
2-8 operating entity's managerial, financial, and technical
2-9 capabilities, the board or commission finds that the operating
2-10 entity's managerial, financial, or technical capabilities are
2-11 inadequate to ensure the project will meet program requirements or
2-12 remain financially viable.
2-13 (c) The commission by rule shall establish a preenforcement
2-14 threshold of noncompliance at which the commission may notify the
2-15 board that an operating entity needs training.
2-16 (d) If the commission assesses a penalty against an
2-17 operating entity in an enforcement action, the enforcement order
2-18 must contain a provision requiring that the operating entity
2-19 receive training as ordered by the board. The commission shall
2-20 notify the board when the commission assesses a penalty against an
2-21 operating entity.
2-22 Sec. 17.994. TRAINING REQUIREMENTS. (a) The board by order
2-23 shall require an operating entity to undergo appropriate training
2-24 if the board:
2-25 (1) receives an application for funding;
2-26 (2) determines that training is necessary under
3-1 Section 17.993(a) or (b); or
3-2 (3) receives notice from the commission that the
3-3 commission finds that training is necessary under Section 17.993.
3-4 (b) The board shall refer the operating entity to an
3-5 appropriate individual, association, business organization, or
3-6 governmental entity for training required by the order.
3-7 (c) The person providing the training shall conduct an
3-8 assessment of the operating entity for which training is ordered,
3-9 determine who needs training, and devise a training program to
3-10 address the deficiencies identified in the assessment.
3-11 (d) The person providing the training shall present a
3-12 proposed training program to the board for approval. If the
3-13 training program is approved by the board, the person shall conduct
3-14 the required training.
3-15 (e) On completion of the training, the person who provided
3-16 the training shall issue a certificate of completion to the
3-17 participants in the training and to the board.
3-18 (f) A political subdivision shall reimburse a participant in
3-19 training for reasonable expenses incurred in completing the
3-20 training.
3-21 (g) Not later than January 15 each year, each person who
3-22 provides training under this section shall report to the board a
3-23 list of political subdivisions for which the person provided
3-24 training required under this section during the previous calendar
3-25 year.
3-26 SECTION 2. Subsection (b), Section 17.927, Water Code, is
4-1 amended to read as follows:
4-2 (b) The application and plan must:
4-3 (1) comply with board requirements;
4-4 (2) describe in detail the method for delivering water
4-5 supply and sewer services and the persons to whom the services will
4-6 be provided;
4-7 (3) describe the method for complying with minimum
4-8 state standards for water supply and sewer services adopted by the
4-9 board under Section 16.342 of this code;
4-10 (4) include a budget that estimates the total cost of
4-11 providing water supply and sewer services to the economically
4-12 distressed area and a proposed schedule and method for repayment of
4-13 financial assistance consistent with board rules and guidelines;
4-14 (5) describe existing water supply and sewer
4-15 facilities located in the economically distressed area and include
4-16 with the description:
4-17 (A) the county map required by Section 366.036,
4-18 Health and Safety Code; or
4-19 (B) a document prepared and certified by an
4-20 engineer registered to practice in this state describing the plan
4-21 for providing water supply and sewer services to the economically
4-22 distressed area;
4-23 (6) provide proof that the appropriate political
4-24 subdivision has adopted the model rules developed under Section
4-25 16.343 of this code;
4-26 (7) include information on the ability of potential
5-1 customers to pay for the services provided by the project including
5-2 composite data prepared by the applicant pursuant to board rules
5-3 and guidelines from surveys of those potential customers covering
5-4 income, family size, personal expenses, employment status, and
5-5 other information required by board rule;
5-6 (8) include an estimate of the per household cost of
5-7 providing the services contemplated by the project with supporting
5-8 data;
5-9 (9) describe the procedures to be used to collect
5-10 money from residents who use the proposed water supply and sewer
5-11 services including procedures for collection of delinquent
5-12 accounts;
5-13 (10) include a requirement that a contractor who
5-14 agrees to acquire, construct, extend, or provide water supply and
5-15 sewer services executes a performance bond in the amount of 100
5-16 percent of the contract price;
5-17 (11) contain an agreement to comply with applicable
5-18 procurement procedures in contract awards for water supply and
5-19 sewer services;
5-20 (12) if located in the service area of a retail public
5-21 utility or public utility that has a certificate of public
5-22 convenience and necessity under Chapter 13 of this code, include a
5-23 document in the form of an affidavit signed by the chief executive
5-24 officer of the utility, which shall cooperate with the political
5-25 subdivision, stating that the utility does not object to the
5-26 construction and operation of the services and facilities in its
6-1 service area;
6-2 (13) include a map of the economically distressed area
6-3 together with supporting information relating to dwellings in the
6-4 area;
6-5 (14) describe in detail the methods for incorporating
6-6 water conservation into the provision of water and sewer services
6-7 to the economically distressed area;
6-8 (15) include, on request of the board, a written
6-9 determination by the commission on the managerial, financial, and
6-10 technical capabilities [capacity] of the applicant to operate the
6-11 system for which assistance is being requested; and
6-12 (16) include any other information required by the
6-13 board.
6-14 SECTION 3. Subsection (b), Section 17.930, Water Code, is
6-15 amended to read as follows:
6-16 (b) After making the considerations provided by Section
6-17 17.929 of this code, the board by resolution shall:
6-18 (1) approve the plan and application as submitted;
6-19 (2) approve the plan and application subject to the
6-20 requirements identified by the commission for the applicant to
6-21 obtain the managerial, financial, and technical capabilities
6-22 [capacity] to operate the system and any other requirements,
6-23 including training under Subchapter M, the board considers
6-24 appropriate;
6-25 (3) deny the application and identify the requirements
6-26 or remedial steps the applicant must complete before the applicant
7-1 may be reconsidered for financial assistance;
7-2 (4) if the board finds that the applicant will be
7-3 unable to obtain the managerial, financial, or technical
7-4 capabilities [capacity] to build and operate a system, deny the
7-5 application and issue a determination that a service provider other
7-6 than the applicant is necessary or appropriate to undertake the
7-7 proposed project; or
7-8 (5) deny the application.
7-9 SECTION 4. (a) This Act takes effect September 1, 2001.
7-10 (b) Section 17.992, Water Code, as added by this Act,
7-11 applies only to an applicant for financing under Subchapter K,
7-12 Chapter 17, Water Code, whose application is filed on or after that
7-13 date.