BILL ANALYSIS
By: Strama
Committee Report (Substituted)
BACKGROUND AND PURPOSE
In 2001, the legislature created the Pilot Program for Water and Wastewater Services to provide resources for rural communities that need water and wastewater loans. The Texas Water Development Board has administered this program and has used it to address certain communities in need of assistance. C.S.H.B. 3029 would permit neighborhoods of less than 5,000 to receive funds for water and wastewater services, and political subdivisions across the state that demonstrate need would now be eligible under this program for additional funding. The Texas Water Development Board would have power to administer the program and the program would become permanent, rather than remaining a pilot program.
RULEMAKING AUTHORITY
It is the committee's opinion that rulemaking authority is expressly granted to the Texas Water Development Board in SECTION 8 of this bill.
ANALYSIS
SECTION 1. Renames the Pilot Program for Water and Wastewater Loans for Rural Communities the "Program for Water and Wastewater Financial Assistance for Disadvantaged Rural Communities."
SECTION 2. Amends program definitions in Section 15.901, Water Code to provide that the term "rural community" includes any portion of a political subdivision with a service population of less than 5,000 located outside a municipality or its extra-territorial jurisdiction, and defines "disadvantaged rural community" as a rural community where median household income is not greater than 75% of median state household income.
SECTION 3. Amends the heading of Section 15.902, Water Code to reflect the changes to the program and to specify that financial assistance is not restricted to loans.
SECTION 4. Amends the text of Section 15.902(a), Water Code to refer to the proper fund.
SECTION 5. Amends Section 15.903, Water Code, to allow the board to provide grants to political subdivisions or water supply corporations for service to rural communities. Subdivision (b) is amended to allow the board to provide grants in addition to loans to political subdivisions and water supply corporations instead of rural communities. Subdivision (d) is amended to change the eligible governmental units from rural communities to political subdivisions and water supply corporations.
SECTION 6. Amends Section 15.904(a), Water Code, to allow water supply corporations or political subdivisions to pledge a portion of incoming revenue to repayment of program loans.
SECTION 7. Amends Section 15.905 (a) and (b), Water Code, to specify political subdivisions and water supply corporations instead of rural communities.
SECTION 8. Amends Section 15.909, Water Code, to allow the water development board to adopt the necessary rules to administer grants in addition to loans under Subchapter O.
SECTION 9. Amends Section 15.910(a), Water Code, to specify what political subdivisions and water supply corporations rather than rural communities must include in an application for financial assistance under the program. Amends subpart (b) to require that political subdivisions and water supply corporations must include household surveys for the area to be served to show median household income for the project area and support of the community for the project.
SECTION 10. Amends Section 15.911, Water Code, to specify that political subdivisions and water supply corporations and not rural communities are covered under the provisions in the section and have the rights and obligations formerly designated to rural communities.
SECTION 11. Amends Section 15.912, Water Code, to require the board to consider the availability of revenue from a political subdivision or water supply corporation instead of a rural community to repay the project.
SECTION 12. Amends Section 15.913, Water Code, to require for approval of an application that the board find that revenue or taxes pledged by political subdivisions or water supply corporations will be sufficient to meet the obligations these organizations assume, regardless of the duration such obligations.
SECTION 13. Amends Section 15.914, Water Code, to delete language concerning rural communities and replace such language with language applicable to political subdivisions or water supply corporations. The changes conform requirements concerning bonds and financial provisions to political subdivisions rather than rural communities.
SECTION 14. Amends Section 15.915, Water Code, to require that the political subdivision or water supply corporation instead of a rural community must file copies of construction contracts with the board.
SECTION 15. Amends Section 15.917, Water Code, to require that a political subdivision or water supply corporation rather than a rural community must comply with engineering plans.
SECTION 16. Amends Section 15.920, Water Code, to require that political subdivisions or water supply corporations have the authority rather than rural communities to enter into grant agreements and issue promissory notes.
SECTION 17. Repeals Sections 15.901(2), 15.903(e), and 15.919, Water Code.
SECTION 18. Provides that the program only applies to applications made on or after the bill's effective date.
EFFECTIVE DATE
C.S.H.B. 3029 takes effect immediately if it receives a 2/3rds vote in both chambers, otherwise it takes effect Sept. 1, 2005.
COMPARISON OF ORIGINAL TO SUBSTITUTE
The original bill changed the Economically Distressed Areas Program (EDAP) by amending one section each of Chapters 15, 16, and 17 of the Code. The substitute concerns the eligibility of non-border areas for state assistance, but does so in a more targeted way, amending Subchapter O of Chapter 15 of the Water Code alone. Each of the 18 sections in the substitute are different from the 4 sections in the original bill. The substitute is a partial revision of Sections 15.901 through 15.919 of the Water Code.