83R10732 JAM-D
 
  By: Burnam H.B. No. 3605
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the evaluation by the Texas Water Development Board of
  applications for financial assistance for certain retail public
  utilities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter D, Chapter 17, Water Code, is amended
  by adding Section 17.1245 to read as follows:
         Sec. 17.1245.  EVALUATION AND MODIFICATION OF CERTAIN
  APPLICATIONS.  (a) In passing on an application for financial
  assistance from a retail public utility that provides potable water
  service to 3,300 or more connections, the board shall evaluate the
  utility's system water loss based on the most recent audit prepared
  under Section 16.0121.
         (b)  If an evaluation conducted under Subsection (a)
  indicates that a utility's system water loss exceeds 15 percent
  annually, the board:
               (1)  shall require the utility to amend the utility's
  application for financial assistance to include a plan to reduce
  the utility's system water loss to less than 15 percent annually;
  and
               (2)  may require that a portion of financial assistance
  awarded under this chapter be used to mitigate the system water loss
  or award additional financial assistance for that purpose.
         (c)  The board, by a two-thirds vote, may exempt from the
  application of Subsection (b) a utility whose system water loss
  exceeds 15 percent.
         SECTION 2.  Section 17.1245, Water Code, as added by this
  Act, applies only to an application for financial assistance
  submitted on or after the effective date of this Act. An
  application for financial assistance submitted before the
  effective date of this Act is governed by the law in effect on the
  date the application was submitted, and the former law is continued
  in effect for that purpose.
         SECTION 3.  This Act takes effect September 1, 2013.