88R4350 JAM-D
 
  By: Johnson S.B. No. 1823
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the provision by the Texas Water Development Board of
  financial assistance for the development of residential drainage
  projects in economically distressed areas.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The heading to Subchapter K, Chapter 17, Water
  Code, is amended to read as follows:
  SUBCHAPTER K. ASSISTANCE TO ECONOMICALLY DISTRESSED AREAS FOR
  WATER SUPPLY, [AND] SEWER SERVICE, AND RESIDENTIAL DRAINAGE
  PROJECTS
         SECTION 2.  Sections 17.921(1) and (2), Water Code, are
  amended to read as follows:
               (1)  "Economically distressed area" means an area in
  which:
                     (A)  water supply, [or] sewer, or residential
  drainage services are inadequate to meet minimal needs of
  residential users as defined by board rules;
                     (B)  financial resources are inadequate to
  provide water supply, [or] sewer, or residential drainage services
  that will satisfy those needs; and
                     (C)  an established residential subdivision was
  located on June 1, 2005, as determined by the board.
               (2)  "Financial assistance" means the funds provided by
  the board to political subdivisions for water supply, [and] sewer,
  and residential drainage services under this subchapter.
         SECTION 3.  Sections 17.922 and 17.9226, Water Code, are
  amended to read as follows:
         Sec. 17.922.  FINANCIAL ASSISTANCE. (a)  The board shall use
  the economically distressed areas account to provide financial
  assistance to political subdivisions for the construction,
  acquisition, or improvement of water supply, [and] sewer, and
  residential drainage services, including providing funds from the
  account for the state's participation in federal programs that
  provide assistance solely for projects intended to serve
  economically distressed areas.
         (b)  To the extent practicable, the board shall use money in
  the economically distressed areas account in conjunction with the
  other financial assistance available through the board to encourage
  the use of cost-effective water supply, [and] wastewater, and
  residential drainage systems, including regional systems, to
  maximize the long-term economic development of political
  subdivisions eligible for financial assistance under the
  economically distressed areas program.  Any savings derived from
  the construction of a regional system that includes or serves an
  economically distressed area project shall be factored into the
  board's determination of financial assistance for the economically
  distressed area in a manner that assures the economically
  distressed area receives appropriate benefits from the savings.  In
  no event shall financial assistance provided from the economically
  distressed areas account be used to provide water supply, [or]
  wastewater, or residential drainage service to any area that is not
  an economically distressed area.
         Sec. 17.9226.  USE OF CERTAIN GENERAL OBLIGATION BONDS.  The
  board may:
               (1)  maximize the effectiveness of the additional
  general obligation bonds authorized by Section 49-d-14, Article
  III, Texas Constitution, by using the additional bonds in
  conjunction with other sources of financial assistance, including
  nonpublic funds, to provide financial assistance to political
  subdivisions for the construction, acquisition, or improvement of
  water supply, [and] sewer, and residential drainage services; and
               (2)  use the additional general obligation bonds
  authorized by Section 49-d-14, Article III, Texas Constitution, to
  promote and support public-private partnerships that the board
  determines:
                     (A)  are financially viable;
                     (B)  will diversify the methods of financing
  available for water supply, [and] sewer, and residential drainage
  services; and
                     (C)  will reduce reliance on the issuance of bonds
  supported with general revenue.
         SECTION 4.  Sections 17.927(a) and (b), Water Code, are
  amended to read as follows:
         (a)  A political subdivision may apply to the board for
  financial assistance under this subchapter by submitting an
  application together with a plan for providing water supply, [and]
  sewer, or residential drainage services to an economically
  distressed area for which the financial assistance is to be used.
         (b)  The application and plan must include:
               (1)  the name of the political subdivision and its
  principal officers;
               (2)  a citation of the law under which the political
  subdivision was created and operates;
               (3)  a project plan, prepared and certified by an
  engineer registered to practice in this state, that must:
                     (A)  describe the proposed planning, design, and
  construction activities necessary to provide water supply, [and]
  sewer, or residential drainage services that meet minimum state
  standards provided by board rules; and
                     (B)  identify the households to which the water
  supply, [and] sewer, or residential drainage services will be
  provided;
               (4)  a budget that estimates the total cost of
  providing water supply, [and] sewer, or residential drainage
  services to the economically distressed area and a proposed
  schedule and method for repayment of financial assistance
  consistent with board rules and guidelines;
               (5)  a description of the existing water supply, [and]
  sewer, or residential drainage facilities located in the area to be
  served by the proposed project, including a statement prepared and
  certified by an engineer registered to practice in this state that
  the facilities do not meet minimum state standards;
               (6)  documentation that the appropriate political
  subdivision has adopted and enforces the model rules developed
  under Section 16.343;
               (7)  information identifying the median household
  income for the area to be served by the proposed project;
               (8)  the total amount of assistance requested from the
  economically distressed areas account; and
               (9)  the water conservation plan required by Section
  16.4021.
         SECTION 5.  Section 17.928(c), Water Code, is amended to
  read as follows:
         (c)  If an applicant includes a proposal for treatment or
  residential drainage works the board may not deliver funds for the
  treatment or residential drainage works until the applicant has
  received:
               (1)  a permit for construction and operation of the
  treatment or residential drainage works from the commission or
  other applicable permitting authority unless such a permit is not
  required; and
               (2)  approval of the plans and specifications from the
  commission, the executive administrator, or other applicable
  authority.
         SECTION 6.  Section 17.929(a), Water Code, is amended to
  read as follows:
         (a)  In passing on an application for financial assistance,
  the board shall consider:
               (1)  the need of the economically distressed area to be
  served by the water supply, [and] sewer, or residential drainage
  services in relation to the need of other political subdivisions
  requiring financial assistance under this subchapter and the
  relative costs and benefits of all applications;
               (2)  the availability to the area to be served by the
  project of revenue or financial assistance from alternative sources
  for the payment of the cost of the proposed project;
               (3)  the financing of the proposed water supply, [and]
  sewer, or residential drainage project, including consideration
  of:
                     (A)  the budget and repayment schedule submitted
  under Section 17.927(b)(4);
                     (B)  other items included in the application
  relating to financing; and
                     (C)  other financial information and data
  available to the board;
               (4)  whether the county and other appropriate political
  subdivisions have adopted model rules pursuant to Section 16.343
  and the manner of enforcement of model rules;
               (5)  the feasibility of achieving cost savings by
  providing a regional facility for water supply, [or] wastewater, or
  residential drainage service and the feasibility of financing the
  facility by using funds from the economically distressed areas
  account or any other financial assistance; and
               (6)  the ability of the applicant to repay the
  financial assistance.
         SECTION 7.  Section 17.933(d), Water Code, is amended to
  read as follows:
         (d)  In determining the amount and form of financial
  assistance and the amount and form of repayment, if any, the board
  shall establish repayment based on the political subdivision's
  ability to repay the financial assistance and shall consider:
               (1)  rates, fees, and charges that the average customer
  to be served by the project will be able to pay;
               (2)  sources of funding available to the political
  subdivision from federal and private funds and from other state
  funds;
               (3)  any local funds of the political subdivision to be
  served by the project if the economically distressed area to be
  served by the board's financial assistance is within the boundary
  of the political subdivision;
               (4)  the just, fair, and reasonable charges for water,
  [and] wastewater, and residential drainage service as provided in
  this code; and
               (5)  the ability of the board to maximize the portion of
  financial assistance for which repayment is required based on the
  political subdivision's ability to repay the assistance, as
  provided by board rule.
         SECTION 8.  Section 17.936(d), Water Code, is amended to
  read as follows:
         (d)  The provider of water or wastewater utility or
  residential drainage service to an economically distressed area may
  recover from a developer or owner of an undeveloped lot
  economically distressed areas program impact fees as provided by
  rules adopted by the board.
         SECTION 9.  This Act takes effect September 1, 2023.