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  By: Lucio  S.B. No. 2284
         (In the Senate - Filed March 13, 2009; March 31, 2009, read
  first time and referred to Committee on International Relations and
  Trade; April 16, 2009, reported favorably by the following vote:  
  Yeas 6, Nays 0; April 16, 2009, sent to printer.)
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the issuance of grants by the Texas Water Development
  Board for water and wastewater system improvements in economically
  distressed areas.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsections (b) and (c), Section 17.933, Water
  Code, are amended to read as follows:
         (b)  In providing financial assistance to an applicant under
  this subchapter, the board may not provide to the applicant
  financial assistance in the form of a grant [for which repayment is
  not required] in an amount that exceeds 50 percent of the total cost
  of a proposed project [amount of the financial assistance plus
  interest on any amount that must be repaid,] unless the Texas
  Department of State Health Services issues a determination 
  [finding] that a nuisance dangerous to the public health and safety
  exists resulting from water supply and sanitation problems in the
  area to be served by the proposed project. The board and the
  applicant shall provide to the Texas Department of State Health
  Services information necessary to make a determination, and the
  board and the Texas Department of State Health Services may enter
  into necessary memoranda of understanding to carry out this
  subsection.
         (c)  In providing financial assistance under this
  subchapter, the board may combine a grant made under this
  subchapter with a loan from any other source, including another
  program administered by the board [The total amount of financial
  assistance provided by the board to political subdivisions under
  this subchapter from state-issued bonds for which repayment is not
  required may not exceed at any time 90 percent of the total
  principal amount of issued and unissued bonds authorized under
  Article III of the Texas Constitution, for purposes of this
  subchapter plus outstanding interest on those bonds].
         SECTION 2.  This Act takes effect September 1, 2009.
 
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