1-1 By: Truan S.B. No. 649
1-2 (In the Senate - Filed February 12, 2001; February 13, 2001,
1-3 read first time and referred to Committee on Natural Resources;
1-4 February 22, 2001, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 5, Nays 0;
1-6 February 22, 2001, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 649 By: Lucio
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to training requirements for applicants for and recipients
1-11 of financial assistance for water and sewer services under the
1-12 economically distressed areas program.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. Chapter 17, Water Code, is amended by adding
1-15 Subchapter M to read as follows:
1-16 SUBCHAPTER M. REQUIRED TRAINING FOR APPLICANTS FOR AND RECIPIENTS
1-17 OF ECONOMICALLY DISTRESSED AREAS PROGRAM FINANCIAL ASSISTANCE
1-18 Sec. 17.991. DEFINITIONS. In this subchapter:
1-19 (1) "Operating entity" means the governing body of a
1-20 political subdivision responsible for providing water supply and
1-21 sewer services and the management of its water and sewer system, as
1-22 defined by rules of the board.
1-23 (2) "Political subdivision" has the meaning assigned
1-24 by Section 17.921.
1-25 Sec. 17.992. TRAINING FOR APPLICANTS. The board by rule
1-26 shall require the operating entity of a political subdivision that
1-27 applies for financial assistance under Subchapter K to complete a
1-28 training program approved by the board.
1-29 Sec. 17.993. TRAINING FOR OPERATING ENTITIES. (a) The
1-30 commission or the board may evaluate whether an operating entity
1-31 needs training if the operating entity:
1-32 (1) requests additional funding;
1-33 (2) requests more time to meet its obligations under a
1-34 repayment schedule;
1-35 (3) does not provide required documentation; or
1-36 (4) has a history of compliance problems, as
1-37 determined by the commission.
1-38 (b) The board or the commission may determine that training
1-39 is necessary if, after an examination and evaluation of the
1-40 operating entity's managerial, financial, and technical
1-41 capabilities, the board or commission finds that the operating
1-42 entity's managerial, financial, or technical capabilities are
1-43 inadequate to ensure the project will meet program requirements or
1-44 remain financially viable.
1-45 (c) The commission by rule shall establish a preenforcement
1-46 threshold of noncompliance at which the commission may notify the
1-47 board that an operating entity needs training.
1-48 (d) If the commission assesses a penalty against an
1-49 operating entity in an enforcement action, the enforcement order
1-50 must contain a provision requiring that the operating entity
1-51 receive training as ordered by the board. The commission shall
1-52 notify the board when the commission assesses a penalty against an
1-53 operating entity.
1-54 Sec. 17.994. TRAINING REQUIREMENTS. (a) The board by order
1-55 shall require an operating entity to undergo appropriate training
1-56 if the board:
1-57 (1) receives an application for funding;
1-58 (2) determines that training is necessary under
1-59 Section 17.993(a) or (b); or
1-60 (3) receives notice from the commission that the
1-61 commission finds that training is necessary under Section 17.993.
1-62 (b) The board shall refer the operating entity to an
1-63 appropriate individual, association, business organization, or
1-64 governmental entity for training required by the order.
2-1 (c) The person providing the training shall conduct an
2-2 assessment of the operating entity for which training is ordered,
2-3 determine who needs training, and devise a training program to
2-4 address the deficiencies identified in the assessment.
2-5 (d) The person providing the training shall present a
2-6 proposed training program to the board for approval. If the
2-7 training program is approved by the board, the person shall conduct
2-8 the required training.
2-9 (e) On completion of the training, the person who provided
2-10 the training shall issue a certificate of completion to the
2-11 participants in the training and to the board.
2-12 (f) A political subdivision shall reimburse a participant in
2-13 training for reasonable expenses incurred in completing the
2-14 training.
2-15 (g) Not later than January 15 each year, each person who
2-16 provides training under this section shall report to the board a
2-17 list of political subdivisions for which the person provided
2-18 training required under this section during the previous calendar
2-19 year.
2-20 SECTION 2. Subsection (b), Section 17.927, Water Code, is
2-21 amended to read as follows:
2-22 (b) The application and plan must:
2-23 (1) comply with board requirements;
2-24 (2) describe in detail the method for delivering water
2-25 supply and sewer services and the persons to whom the services will
2-26 be provided;
2-27 (3) describe the method for complying with minimum
2-28 state standards for water supply and sewer services adopted by the
2-29 board under Section 16.342 of this code;
2-30 (4) include a budget that estimates the total cost of
2-31 providing water supply and sewer services to the economically
2-32 distressed area and a proposed schedule and method for repayment of
2-33 financial assistance consistent with board rules and guidelines;
2-34 (5) describe existing water supply and sewer
2-35 facilities located in the economically distressed area and include
2-36 with the description:
2-37 (A) the county map required by Section 366.036,
2-38 Health and Safety Code; or
2-39 (B) a document prepared and certified by an
2-40 engineer registered to practice in this state describing the plan
2-41 for providing water supply and sewer services to the economically
2-42 distressed area;
2-43 (6) provide proof that the appropriate political
2-44 subdivision has adopted the model rules developed under Section
2-45 16.343 of this code;
2-46 (7) include information on the ability of potential
2-47 customers to pay for the services provided by the project including
2-48 composite data prepared by the applicant pursuant to board rules
2-49 and guidelines from surveys of those potential customers covering
2-50 income, family size, personal expenses, employment status, and
2-51 other information required by board rule;
2-52 (8) include an estimate of the per household cost of
2-53 providing the services contemplated by the project with supporting
2-54 data;
2-55 (9) describe the procedures to be used to collect
2-56 money from residents who use the proposed water supply and sewer
2-57 services including procedures for collection of delinquent
2-58 accounts;
2-59 (10) include a requirement that a contractor who
2-60 agrees to acquire, construct, extend, or provide water supply and
2-61 sewer services executes a performance bond in the amount of 100
2-62 percent of the contract price;
2-63 (11) contain an agreement to comply with applicable
2-64 procurement procedures in contract awards for water supply and
2-65 sewer services;
2-66 (12) if located in the service area of a retail public
2-67 utility or public utility that has a certificate of public
2-68 convenience and necessity under Chapter 13 of this code, include a
2-69 document in the form of an affidavit signed by the chief executive
3-1 officer of the utility, which shall cooperate with the political
3-2 subdivision, stating that the utility does not object to the
3-3 construction and operation of the services and facilities in its
3-4 service area;
3-5 (13) include a map of the economically distressed area
3-6 together with supporting information relating to dwellings in the
3-7 area;
3-8 (14) describe in detail the methods for incorporating
3-9 water conservation into the provision of water and sewer services
3-10 to the economically distressed area;
3-11 (15) include, on request of the board, a written
3-12 determination by the commission on the managerial, financial, and
3-13 technical capabilities [capacity] of the applicant to operate the
3-14 system for which assistance is being requested; and
3-15 (16) include any other information required by the
3-16 board.
3-17 SECTION 3. Subsection (b), Section 17.930, Water Code, is
3-18 amended to read as follows:
3-19 (b) After making the considerations provided by Section
3-20 17.929 of this code, the board by resolution shall:
3-21 (1) approve the plan and application as submitted;
3-22 (2) approve the plan and application subject to the
3-23 requirements identified by the commission for the applicant to
3-24 obtain the managerial, financial, and technical capabilities
3-25 [capacity] to operate the system and any other requirements,
3-26 including training under Subchapter M, the board considers
3-27 appropriate;
3-28 (3) deny the application and identify the requirements
3-29 or remedial steps the applicant must complete before the applicant
3-30 may be reconsidered for financial assistance;
3-31 (4) if the board finds that the applicant will be
3-32 unable to obtain the managerial, financial, or technical
3-33 capabilities [capacity] to build and operate a system, deny the
3-34 application and issue a determination that a service provider other
3-35 than the applicant is necessary or appropriate to undertake the
3-36 proposed project; or
3-37 (5) deny the application.
3-38 SECTION 4. (a) This Act takes effect September 1, 2001.
3-39 (b) Section 17.992, Water Code, as added by this Act,
3-40 applies only to an applicant for financing under Subchapter K,
3-41 Chapter 17, Water Code, whose application is filed on or after that
3-42 date.
3-43 * * * * *