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SECTION 2. Section 49.181,
Water Code, is amended by amending Subsection (f) and adding Subsections
(i), (j), (k), (l), (m), (n), (o), (p), (q), (r), (s), and (t) to read as
follows:
(f) The commission shall
determine whether the project to be financed by the bonds is feasible and
issue an order either approving or disapproving, as appropriate, the
issuance of the bonds.
The commission may not
disapprove the issuance of bonds for all or a portion of a project or
require that the funding for all or a portion of a project be escrowed on
the basis that the construction of the project is not complete at the time
of the commission's determination. The commission shall retain a copy
of the order and send a copy of the order to the district.
(i) In reviewing an engineer's report submitted with an
application for approval under this section, the commission shall give
deference to the professional opinions and determinations of the licensed
civil engineer who signed and sealed the application, the engineer's
report, or documents included in the application or engineer's report.
(j) An application for
the approval of bonds under this section may include financing for payment
of creation and organization expenses. Expenses are creation and
organization expenses if the expenses were incurred through the date of the
canvassing of the confirmation election. A commission rule regarding
continuous construction periods or the length of time for the payment of
expenses during construction periods does not apply to expenses described
by this section.
(k) The commission shall issue a notice of deficiency before
issuing an order disapproving an application for expedited review of the
issuance of bonds. The commission shall issue the notice not later than
the 45th day after the date the application for expedited review is
considered administratively complete. A notice of deficiency under this
subsection must contain:
(1) a description of the deficiency;
(2) an explanation of the reasoning for the disapproval; and
(3) a citation to the specific statute or rule that supports
the reasoning for the disapproval.
(l) The commission shall issue a notice of deficiency before
issuing an order disapproving the issuance of bonds to finance all or a
portion of a project. In the event that the commission fails to issue the
notice of deficiency, the commission may only disapprove the issuance of
bonds if the project financed fails to meet the requirements for economic
feasibility. The commission shall issue the notice of deficiency:
(1) not later than the 90th day after the date the application
for approval is considered administratively complete for an application for
approval that qualifies for expedited review under commission rule; or
(2) not later than the 45th day after the date the application
for approval is considered administratively complete for an application for
approval that does not qualify for expedited review under commission rule.
(m) A notice of deficiency under Subsection (l) must contain:
(1) a description of the deficiency;
(2) an explanation of the reasoning for the disapproval; and
(3) a citation to the specific statute or rule that authorizes
the disapproval.
(n) A citation to this section or to 30 T.A.C. Section
293.43(6) is not sufficient for the purposes of Subsection (k) or (m).
(o) The district may respond to a notice of deficiency issued
under Subsection (k) or (l) not later than the 10th day after the date the
district receives the notice.
(p) On receipt of a memorandum and draft order issued by the
commission recommending disapproval of the issuance of bonds to finance all
or a portion of a project, the district may:
(1) concur with all or part of the recommendations;
(2) respond to the recommendations; or
(3) dispute all or part of the recommendations.
(q) If the district disputes a portion of the recommendation
under Subsection (p), the commission shall provide for the escrow of the
funding for the disputed portion. This subsection does not apply if the
disputed portion of the financing would result in noncompliance with the
commission's rules regarding economic feasibility.
(r) The commission shall
approve an application to issue bonds to finance the costs of spreading and
compacting fill to remove property from the 100-year floodplain made by a
levee improvement district.
(s) The commission shall
approve an application to issue bonds to finance the costs of spreading and
compacting fill to provide drainage that is made by a municipal utility
district or a district with the powers of a municipal utility district if
the costs are less than the cost of constructing or improving drainage
facilities.
(t) If a district is
approved for the issuance of bonds by the commission to use a certain
return flow of wastewater, the approval applies to subsequent
authorizations unless the district seeks approval to use a different return
flow of wastewater.
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SECTION 1. Section 49.181,
Water Code, is amended by amending Subsection (f) and adding Subsections
(i), (j), (k), and (l) to read as follows:
(f) The commission shall
determine whether the project to be financed by the bonds is feasible and
issue an order either approving or disapproving, as appropriate, the
issuance of the bonds. If the
commission determines that an application for the approval of bonds
complies with the requirements for financial feasibility and the district
submitting the application is not required to comply with rules regarding
project completion,
the commission may not
disapprove the issuance of bonds for all or a portion of a project or
require that the funding for all or a portion of a project be escrowed solely on the basis that the
construction of the project is not complete at the time of the commission's
determination. The commission shall retain a copy of the order and
send a copy of the order to the district.
(i) An application for
the approval of bonds under this section may include financing for payment
of creation and organization expenses. Expenses are creation and
organization expenses if the expenses were incurred through the date of the
canvassing of the confirmation election. A commission rule regarding
continuous construction periods or the length of time for the payment of
expenses during construction periods does not apply to expenses described
by this section.
(j) The commission shall
approve an application to issue bonds to finance the costs of spreading and
compacting fill to remove property from the 100-year floodplain made by a
levee improvement district if the
application otherwise meets all applicable requirements for bond
applications.
(k) The commission shall
approve an application to issue bonds to finance the costs of spreading and
compacting fill to provide drainage that is made by a municipal utility
district or a district with the powers of a municipal utility district if
the costs are less than the cost of constructing or improving drainage
facilities.
(l) If a district is
approved for the issuance of bonds by the commission to use a certain
return flow of wastewater, the approval applies to subsequent bond authorizations unless the district
seeks approval to use a different return flow of wastewater.
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SECTION 3. Section
49.273(i), Water Code, is amended to read as follows:
(i) If changes in plans or
specifications are necessary or convenient,
as determined by the board,
after the performance of the
contract is begun, or if it is necessary or convenient, as determined by the board, to decrease
or increase the quantity of the work to be performed or of the materials,
equipment, or supplies to be furnished, the board may approve change orders
making the changes. A change order
may be outside the scope of the original project.
The board may grant authority
to an official or employee responsible for purchasing or for administering
a contract to approve a change order that involves an increase or decrease
of $50,000 or less. The aggregate of the change orders that [may
not] increase the original contract price by more than 25 percent[.
Additional change orders] may be issued only as a result of
unanticipated conditions encountered during construction, repair, or
renovation or changes in regulatory criteria or to facilitate project coordination
with other political entities. A change order is not subject to the
requirements of Subsection (d) or (e).
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SECTION 2. Section
49.273(i), Water Code, is amended to read as follows:
(i) If changes in plans,
[or] specifications, or scope
of work are necessary or beneficial
to the district, as determined by the board, after the
performance of the contract is begun, or if it is necessary or beneficial to the district, as
determined by the board, to decrease or increase the quantity of the
work to be performed or of the materials, equipment, or supplies to be
furnished, the board may approve change orders making the changes.
The board may grant authority
to an official or employee responsible for purchasing or for administering
a contract to approve a change order that involves an increase or decrease
of $50,000 or less. The aggregate of the change orders that [may
not] increase the original contract price by more than 25 percent[.
Additional change orders] may be issued only as a result of unanticipated
conditions encountered during construction, repair, or renovation or
changes in regulatory criteria or to facilitate project coordination with
other political entities. A change order is not subject to the
requirements of Subsection (d) or (e).
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