BILL ANALYSIS

 

 

Senate Research Center                                                                                                        S.J.R. 20

80R1834 RMB-D                                                                                                               By: Lucio

                                                                                                         International Relations & Trade

                                                                                                                                              3/1/2007

                                                                                                                                              As Filed

 

 

AUTHOR'S / SPONSOR'S STATEMENT OF INTENT

 

S.B. 2, 71st Legislature, Regular Session, 1989, established the Economically Distressed Area Program (EDAP) which provided financial assistance in the form of grants and loans for water and wastewater service to economically distressed areas.  This bill designated the Texas Water Development Board (TWDB) as the administrator of EDAP.  H.B. 467, 79th Legislature, Regular Session, 2005, expanded EDAP on a statewide basis by allowing counties in which an economically distressed area exists to apply for assistance under EDAP.  TWDB has reported that there is an estimated $5.4 billion in water and wastewater needs in economically distressed communities of this state.  EDAP was originally financed in the early 1990s through voter-approved constitutional amendments that authorized the board to issue up to $250 million in general obligation bonds.  Now, only a fraction of the bonds remain to address the outstanding water and wastewater needs of distressed communities.

 

S.J.R. 20 proposes a constitutional amendment to authorize the Texas Water Development Board to issue up to $250 million in general obligation bonds for assistance to economically distressed areas.

 

RULEMAKING AUTHORITY

 

This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.

 

SECTION BY SECTION ANALYSIS

 

SECTION 1.  Amends Article III, Texas Constitution, by adding Section 49-d-10, as follows:

 

Sec. 49-d-10.  (a)  Authorizes the Texas Water Development Board to issue additional general obligation bonds, at its determination, for the economically distressed areas program account of the Texas Water Development Fund II, in an amount not to exceed $250 million.  Requires the bonds to be used to provide financial assistance to economically distressed areas of the state as defined by law.

 

(b)  Provides that Section 49-d-8(e) (regarding the principal of and interest on the general obligation bonds issued for an account of the Texas Water Development Fund II) of this article applies to the bonds authorized by this section.

 

SECTION 2.  Requires the proposed constitutional amendment to be submitted to the voters at an election to be held November 6, 2007.  Sets forth the required language of the ballot.