Bill Text: TX SB2452 | 2019-2020 | 86th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the provision by the Texas Water Development Board of financial assistance for the development of certain projects in economically distressed areas.
Spectrum: Moderate Partisan Bill (Democrat 6-1)
Status: (Passed) 2019-06-14 - Effective on adoption of const. amendment [SB2452 Detail]
Download: Texas-2019-SB2452-Introduced.html
Bill Title: Relating to the provision by the Texas Water Development Board of financial assistance for the development of certain projects in economically distressed areas.
Spectrum: Moderate Partisan Bill (Democrat 6-1)
Status: (Passed) 2019-06-14 - Effective on adoption of const. amendment [SB2452 Detail]
Download: Texas-2019-SB2452-Introduced.html
86R3576 JAM-F | ||
By: Lucio, Hinojosa, Perry | S.B. No. 2452 |
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relating to the provision by the Texas Water Development Board of | ||
financial assistance for the development of certain 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, [ |
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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, [ |
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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, [ |
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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, [ |
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and residential drainage services under this subchapter. | ||
SECTION 3. Section 17.922, Water Code, is amended to read as | ||
follows: | ||
Sec. 17.922. FINANCIAL ASSISTANCE. (a) The board shall use | ||
the economically distressed areas account [ |
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for the construction, acquisition, or improvement of water supply, | ||
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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 [ |
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(b) To the extent practicable, the board shall use money | ||
[ |
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conjunction with the other financial assistance available through | ||
the board to encourage the use of cost-effective water supply, | ||
[ |
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regional systems, to maximize the long-term economic development of | ||
political subdivisions [ |
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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, [ |
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area that is not an economically distressed area. | ||
SECTION 4. Subchapter K, Chapter 17, Water Code, is amended | ||
by adding Section 17.9226 to read as follows: | ||
Sec. 17.9226. USE OF CERTAIN GENERAL OBLIGATION BONDS. The | ||
board shall: | ||
(1) work to maximize the effectiveness of the | ||
additional general obligation bonds authorized by Section | ||
49-d-10(a-1), 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, sewer, and residential | ||
drainage services; and | ||
(2) use the additional general obligation bonds | ||
authorized by Section 49-d-10(a-1), 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, sewer, and residential drainage | ||
services; and | ||
(C) will reduce reliance on the issuance of bonds | ||
supported with general revenue. | ||
SECTION 5. Sections 17.927(a), (b), and (c), 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, [ |
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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, [ |
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sewer, or residential drainage services that meet minimum state | ||
standards provided by board rules; and | ||
(B) identify the households to which the water | ||
supply, [ |
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provided; | ||
(4) a budget that estimates the total cost of | ||
providing water supply, [ |
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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, [ |
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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; and | ||
(8) the total amount of assistance requested from the | ||
economically distressed areas account. | ||
(c) Before the board approves the application or provides | ||
any funds under an application, it shall require an applicant to | ||
adopt a program of water conservation for the more effective use of | ||
water that meets the criteria established under Section 17.125 for | ||
water supply projects or under Section 17.277 for water quality | ||
enhancement projects. | ||
SECTION 6. Subchapter K, Chapter 17, Water Code, is amended | ||
by adding Section 17.9275 to read as follows: | ||
Sec. 17.9275. PRIORITIZATION OF PROJECTS BY BOARD. (a) The | ||
board shall prioritize projects for the purpose of providing | ||
financial assistance under this subchapter. | ||
(b) The board shall establish a system for prioritizing | ||
projects for which financial assistance is sought from the board. | ||
The system must include a standard for the board to apply in | ||
determining whether a project qualifies for financial assistance at | ||
the time the application for financial assistance is filed with the | ||
board. | ||
(c) The board shall give the highest consideration to | ||
projects that will have a substantial effect, including projects | ||
that will serve an area for which the board or the Department of | ||
State Health Services has determined that a nuisance dangerous to | ||
the public health and safety exists resulting from water supply and | ||
sanitation problems. | ||
(d) In addition to the criteria provided by Subsection (c), | ||
the board must also consider at least the following criteria in | ||
prioritizing projects: | ||
(1) the local contribution to be made to finance the | ||
project, including the up-front capital to be provided by the | ||
applicant; | ||
(2) the financial capacity of the applicant to repay | ||
the financial assistance provided; | ||
(3) the ability of the board and the applicant to | ||
timely leverage state financing with local and federal funding; | ||
(4) whether there is an emergency need for the project | ||
as determined by the board; | ||
(5) whether the applicant is ready to proceed with the | ||
project at the time of the application, including whether: | ||
(A) all preliminary planning and design work | ||
associated with the project has been completed; and | ||
(B) the applicant is able to begin implementing | ||
or constructing the project; and | ||
(6) the cost per connection of the project. | ||
(e) The board by rule may provide for the consideration of | ||
additional criteria. | ||
SECTION 7. 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 [ |
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SECTION 8. 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, [ |
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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, [ |
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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; and | ||
(5) the feasibility of achieving cost savings by | ||
providing a regional facility for water supply, [ |
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residential drainage service and the feasibility of financing the | ||
facility by using funds from the economically distressed areas | ||
account or any other financial assistance. | ||
SECTION 9. Section 17.931, Water Code, is amended to read as | ||
follows: | ||
Sec. 17.931. APPLICATION AMENDMENT. (a) A political | ||
subdivision may request the executive administrator [ |
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writing to approve a change to or a modification of the budget or | ||
project plan included in its application if the change or | ||
modification does not increase the budget or change the project | ||
scope. | ||
(b) A change or modification requested under Subsection (a) | ||
may not be implemented unless the executive administrator [ |
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provides [ |
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SECTION 10. Sections 17.933(a), (b), and (d), Water Code, | ||
are amended to read as follows: | ||
(a) The board may use money in the economically distressed | ||
areas account to provide financial assistance to a political | ||
subdivision in the form of a loan, [ |
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interest, a grant, or other type of financial assistance to be | ||
determined by the board taking into consideration the information | ||
provided by Section 17.927(b)(7). | ||
(b) In providing financial assistance to an applicant under | ||
this subchapter, the board may not provide to the applicant | ||
financial assistance for which repayment is not required in an | ||
amount that exceeds 50 percent of the total amount of the financial | ||
assistance [ |
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unless the board or the [ |
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determines [ |
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public health and safety exists resulting from water supply and | ||
sanitation problems in the area to be served by the proposed | ||
project. The board may provide the repayable portion of financial | ||
assistance from any financial assistance program for which the | ||
applicant is eligible. The [ |
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to the board or the [ |
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information necessary to make a determination, and the board and | ||
the [ |
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necessary memoranda of understanding to carry out this subsection. | ||
(d) In determining the amount and form of financial | ||
assistance and the amount and form of repayment, if any, the board | ||
shall consider: | ||
(1) rates, fees, and charges that the average customer | ||
to be served by the project will be able to pay [ |
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(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; and | ||
(4) the just, fair, and reasonable charges for water, | ||
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this code. | ||
SECTION 11. 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 12. Subchapter K, Chapter 17, Water Code, is | ||
amended by adding Section 17.937 to read as follows: | ||
Sec. 17.937. REPORTING AND TRANSPARENCY REQUIREMENTS. (a) | ||
Annually, the board shall post on the board's Internet website a | ||
report detailing each project for which the board has provided | ||
financial assistance under this subchapter. | ||
(b) The report must include: | ||
(1) a description of each project; | ||
(2) the location of each project; | ||
(3) the number of residents served by each project; | ||
(4) the amount of financial assistance provided or | ||
anticipated to be provided for each project; | ||
(5) a statement of whether each project has been | ||
completed and, if not, the expected completion date; | ||
(6) the date on which each appropriate political | ||
subdivision adopted the model rules developed under Section 16.343; | ||
and | ||
(7) the date on which each appropriate political | ||
subdivision certified that it enforces the applicable model rules | ||
developed under Section 16.343 or a description of measures taken | ||
to mitigate any deficiencies in compliance. | ||
SECTION 13. Section 17.933(b-1), Water Code, is repealed. | ||
SECTION 14. This Act takes effect on the date on which the | ||
constitutional amendment proposed by the 86th Legislature, Regular | ||
Session, 2019, providing for the issuance of additional general | ||
obligation bonds by the Texas Water Development Board in an amount | ||
not to exceed $400 million to provide financial assistance for the | ||
development of certain projects in economically distressed areas | ||
takes effect. If that amendment is not approved by the voters, this | ||
Act has no effect. |