Bill Text: TX SB1823 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the provision by the Texas Water Development Board of financial assistance for the development of residential drainage projects in economically distressed areas.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2023-03-20 - Referred to Water, Agriculture, & Rural Affairs [SB1823 Detail]
Download: Texas-2023-SB1823-Introduced.html
88R4350 JAM-D | ||
By: Johnson | S.B. No. 1823 |
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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, [ |
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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, [ |
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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. 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, [ |
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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, [ |
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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, [ |
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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, [ |
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(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, [ |
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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, [ |
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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; | ||
(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, [ |
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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; | ||
(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; 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, | ||
[ |
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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. |