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A BILL TO BE ENTITLED
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AN ACT
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relating to the provision by the Texas Water Development Board of |
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financial assistance for the development of certain projects in |
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economically distressed areas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Subchapter K, Chapter 17, Water |
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Code, is amended to read as follows: |
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SUBCHAPTER K. ASSISTANCE TO ECONOMICALLY DISTRESSED AREAS FOR WATER |
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SUPPLY, [AND] SEWER SERVICE, AND DRAINAGE PROJECTS |
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SECTION 2. Sections 17.921(1) and (2), Water Code, are |
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amended to read as follows: |
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(1) "Economically distressed area" means an area in |
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which: |
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(A) water supply, [or] sewer, or drainage |
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services are inadequate to meet minimal needs of residential users |
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as defined by board rules; |
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(B) financial resources are inadequate to |
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provide water supply, [or] sewer, or drainage services that will |
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satisfy those needs; and |
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(C) an established residential subdivision was |
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located on June 1, 2005, as determined by the board. |
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(2) "Financial assistance" means the funds provided by |
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the board to political subdivisions for water supply, [and] sewer, |
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and drainage services under this subchapter. |
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SECTION 3. Section 17.922, Water Code, is amended to read as |
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follows: |
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Sec. 17.922. FINANCIAL ASSISTANCE. (a) The economically |
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distressed areas account may be used by the board to provide |
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financial assistance to political subdivisions for the |
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construction, acquisition, or improvement of water supply, [and] |
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sewer, and drainage services, including providing funds from the |
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account for the state's participation in federal programs that |
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provide assistance to political subdivisions. |
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(b) To the extent practicable, the board shall use the funds |
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in the economically distressed areas account in conjunction with |
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the other financial assistance available through the board to |
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encourage the use of cost-effective water supply, [and] wastewater, |
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and drainage systems, including regional systems, to maximize the |
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long-term economic development of counties eligible for financial |
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assistance under the economically distressed areas program. Any |
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savings derived from the construction of a regional system that |
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includes or serves an economically distressed area project shall be |
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factored into the board's determination of financial assistance for |
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the economically distressed area in a manner that assures the |
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economically distressed area receives appropriate benefits from |
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the savings. In no event shall financial assistance provided from |
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the economically distressed areas account be used to provide water |
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supply, [or] wastewater, or drainage service to any area that is not |
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an economically distressed area. |
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SECTION 4. Subchapter K, Chapter 17, Water Code, is amended |
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by adding Section 17.9226 to read as follows: |
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Sec. 17.9226. USE OF CERTAIN GENERAL OBLIGATION BONDS. The |
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board shall: |
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(1) work to maximize the effectiveness of the |
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additional general obligation bonds authorized by Section |
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49-d-10(a-1), Article III, Texas Constitution, by using the |
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additional bonds in conjunction with other sources of financial |
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assistance, including nonpublic funds, to provide financial |
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assistance to political subdivisions for the construction, |
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acquisition, or improvement of water supply, sewer, and drainage |
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services; and |
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(2) use the additional general obligation bonds |
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authorized by Section 49-d-10(a-1), Article III, Texas |
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Constitution, to promote and support public-private partnerships |
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that the board determines: |
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(A) are financially viable; |
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(B) will diversify the methods of financing |
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available for water supply, sewer, and drainage services; and |
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(C) will reduce reliance on the issuance of bonds |
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supported with general revenue. |
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SECTION 5. Sections 17.927(a) and (b), Water Code, are |
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amended to read as follows: |
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(a) A political subdivision may apply to the board for |
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financial assistance under this subchapter by submitting an |
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application together with a plan for providing water supply, [and] |
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sewer, or drainage services to an economically distressed area for |
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which the financial assistance is to be used. |
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(b) The application and plan must include: |
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(1) the name of the political subdivision and its |
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principal officers; |
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(2) a citation of the law under which the political |
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subdivision was created and operates; |
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(3) a project plan, prepared and certified by an |
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engineer registered to practice in this state, that must: |
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(A) describe the proposed planning, design, and |
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construction activities necessary to provide water supply, [and] |
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sewer, or drainage services that meet minimum state standards; and |
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(B) identify the households to which the water |
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supply, [and] sewer, or drainage services will be provided; |
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(4) a budget that estimates the total cost of |
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providing water supply, [and] sewer, or drainage services to the |
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economically distressed area and a proposed schedule and method for |
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repayment of financial assistance consistent with board rules and |
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guidelines; |
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(5) a description of the existing water supply, [and] |
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sewer, or drainage facilities located in the area to be served by |
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the proposed project, including a statement prepared and certified |
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by an engineer registered to practice in this state that the |
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facilities do not meet minimum state standards; |
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(6) documentation that the appropriate political |
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subdivision has adopted the model rules developed under Section |
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16.343; |
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(7) information identifying the median household |
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income for the area to be served by the proposed project; and |
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(8) the total amount of assistance requested from the |
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economically distressed areas account. |
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SECTION 6. Section 17.928(c), Water Code, is amended to |
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read as follows: |
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(c) If an applicant includes a proposal for treatment or |
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drainage works, the board may not deliver funds for the treatment or |
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drainage works until the applicant has received a permit for |
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construction and operation of the treatment or drainage works and |
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approval of the plans and specifications from the commission or |
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unless such a permit is not required by the commission. |
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SECTION 7. Section 17.929(a), Water Code, is amended to |
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read as follows: |
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(a) In passing on an application for financial assistance, |
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the board shall consider: |
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(1) the need of the economically distressed area to be |
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served by the water supply, [and] sewer, or drainage services in |
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relation to the need of other political subdivisions requiring |
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financial assistance under this subchapter and the relative costs |
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and benefits of all applications; |
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(2) the availability to the area to be served by the |
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project of revenue or financial assistance from alternative sources |
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for the payment of the cost of the proposed project; |
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(3) the financing of the proposed water supply, [and] |
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sewer, or drainage project, including consideration of: |
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(A) the budget and repayment schedule submitted |
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under Section 17.927(b)(4); |
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(B) other items included in the application |
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relating to financing; and |
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(C) other financial information and data |
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available to the board; |
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(4) whether the county and other appropriate political |
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subdivisions have adopted model rules pursuant to Section 16.343 |
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and the manner of enforcement of model rules; and |
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(5) the feasibility of achieving cost savings by |
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providing a regional facility for water supply or wastewater |
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service and the feasibility of financing the facility by using |
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funds from the economically distressed areas account or any other |
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financial assistance. |
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SECTION 8. Section 17.933(d), Water Code, is amended to |
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read as follows: |
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(d) In determining the amount and form of financial |
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assistance and the amount and form of repayment, if any, the board |
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shall consider: |
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(1) rates, fees, and charges that the average customer |
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to be served by the project will be able to pay based on a comparison |
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of what other families of similar income who are similarly situated |
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pay for comparable services; |
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(2) sources of funding available to the political |
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subdivision from federal and private funds and from other state |
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funds; |
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(3) any local funds of the political subdivision to be |
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served by the project if the economically distressed area to be |
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served by the board's financial assistance is within the boundary |
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of the political subdivision; and |
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(4) the just, fair, and reasonable charges for water, |
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[and] wastewater, and drainage service as provided in this code. |
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SECTION 9. Section 17.936(d), Water Code, is amended to |
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read as follows: |
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(d) The provider of water or wastewater utility or drainage |
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service to an economically distressed area may recover from a |
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developer or owner of an undeveloped lot economically distressed |
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areas program impact fees as provided by rules adopted by the board. |
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SECTION 10. This Act takes effect on the date on which the |
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constitutional amendment proposed by the 85th Legislature, Regular |
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Session, 2017, providing for the issuance of additional general |
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obligation bonds by the Texas Water Development Board to provide |
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financial assistance for the development of certain projects in |
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economically distressed areas takes effect. If that amendment is |
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not approved by the voters, this Act has no effect. |