HBA-LJP S.B. 312 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 312
By: Zaffirini
Natural Resources
5/3/2001
Engrossed



BACKGROUND AND PURPOSE 

The Texas Water Development Board (board) was created in 1957 by the 55th
Legislature to be the state's water planning and financing agency that
provides leadership, technical services, and financial assistance to
support planning, conservation, and responsible development of water for
the State of Texas. Under current law, the board is subject to review of
the Sunset Advisory Commission, but not abolishment under the Texas Sunset
Act.  Senate Bill 312 implements the Sunset Advisory Commission's
recommendations for the board. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Texas Water Development Board in
SECTION 17 (Section 15.603, Water Code), SECTION 19 (Sections 15.909 and
15.910, Water Code), SECTION 20 (Section 15.958), SECTION 21 (Section
16.021, Water Code), and SECTION 27 of this bill. 

ANALYSIS

Senate Bill 312 amends the Water Code to provide for the review of the
Texas Water Development Board (board) in 2013, and to set forth standard
Sunset Advisory Commission recommendations for the board regarding equal
employment, member removal, conflicts of interest, standards of conduct,
policy implementation by the board, written complaints, development of an
equal employment policy, member training, and a state employee incentive
program (Secs. 6.013, 6.052, 6.054, 6.057, 6.058, 6.062, 6.106, 6.111,
6.154, 6.155, 6.188, and 6.196). 

The bill requires the executive administrator, each biennium, to develop
and submit to the board for approval a capital spending plan for
state-funded programs, including the Texas water development fund II, the
agricultural water conservation fund, and the water assistance fund.  The
bill sets forth the considerations of the executive administrator in
developing the plan and the contents of the plan.  The bill requires the
board to consider the plan at a regularly scheduled meeting and, on
approval, submit the plan to the legislature and the Legislative Budget
Board before January 1 of each odd numbered year.  The bill authorizes the
board to include the plan as part of its legislative appropriations request
(Sec. 6.110). 

The bill authorizes the use of the water loan assistance fund (loan fund)
by the board to provide grants for projects for which federal grant funds
are placed in the loan fund or on specific legislative appropriation for
those projects.  The bill provides that the board is prohibited from
releasing funds for the construction of a portion of a project that
proposes surface water or groundwater development until the executive
administrator of the board completes certain findings on that portion of
the project.  The bill authorizes the board to release funds for
preconstruction costs before completing these findings if the executive
administrator determines that a reasonable expectation exists that the
findings will be made before the release of funds for construction (Secs.
15.102,15.104, and 17.123). 

The bill authorizes the board to establish a separate account in the state
water pollution revolving fund, to be used solely for providing financial
assistance to persons for nonpoint source pollution control and  abatement
projects and sets forth the financing of the account.  The bill requires
the board to adopt rules to establish the criteria for eligibility and the
terms of assistance for persons that receive financial assistance from the
account (Sec. 15.603). 

On the request of an agency of this state or a neighboring state or a
federal agency, the bill authorizes the board to perform a hydrographic
survey in this state or outside of this state if the information collected
will benefit this state and provides that the purpose of the survey may be
to collect information relating to waterbearing formations (Sec. 15.804). 

The bill establishes the pilot program for water and wastewater loans for
rural communities and creates the rural community water and wastewater loan
fund (rural fund) within the water assistance fund.  The bill authorizes
the board to provide loans of financial assistance, beginning no later than
September 1, 2002, to rural communities for the construction, acquisition,
or improvement of water and wastewater projects. The bill sets forth
provisions relating to a loan agreement and promissory note, including the
use of a sales tax as loan security, review and approval of a loan
agreement by the attorney general, registration of the record of
proceedings of a loan agreement execution by the comptroller, the validity
and incontestability in court of the loan agreement or promissory note, and
the enforcement of payment by mandamus.  The bill requires the board to
adopt necessary rules no later than March 1, 2002 to administer the fund
(Secs. 15.902-15.909 and SECTION 27).  The bill sets forth the information
that an application for financial assistance from the rural fund must
include and requires the board to adopt rules to prescribe the affidavit
form the application must conform with for the board to accept the
application (Sec. 15.910). 

The bill prohibits the board from delivering funds under an application for
financial assistance from the rural fund until the executive administrator
makes a written statement finding that certain criteria have been met (Sec.
15.911).  The bill sets forth factors the board is required to consider in
acting on or passing on an application from a rural community for financial
assistance for a water project and authorizes the board to approve by
resolution an application for a loan under certain conditions (Secs. 15.912
and 15.913). 

The bill sets forth content requirements regarding all contracts for the
construction of a project of a governing body of each rural community
receiving financial assistance from the rural fund and requires the rural
community to file with the board a certified copy of each contract with the
specifications, plans, and details of all work included in the contract.
The bill sets forth provisions for the filing of construction project
contracts, certification of approval of the contracts, inspection of the
projects, and the alteration of project plans (Secs.15.914-15.918). The
bill requires the board to report to the legislature on the rural fund no
later than January 1, 2005 and sets forth the required contents of the
report (Sec. 15.919). 

The bill creates the colonia self-help program (program) and colonia
self-help account (colonia account) if the legislature appropriates money
specifically for that purpose and sets forth the funding sources for the
colonia account (Sec. 15.952 and SECTION 28).  The bill authorizes the
board to use funds in the account only to reimburse eligible nonprofit
organizations (organization) for expenses incurred in a self-help project
that results in the provision of adequate water or wastewater services to a
colonia.  The bill authorizes the board to award grants under the program
directly to a nonprofit organization to reimburse the organization for
expenses incurred in a self-help project, sets forth the eligibility
requirements for such an organization, and establishes the grant
application process (Secs. 15.953-15.955).  The bill requires the board to
make certain considerations in evaluating an application for a grant and
sets forth provisions regarding the board's action on a grant application
(Secs. 15.956 and 15.957).  The bill requires the board to adopt rules
necessary to administer the program and requires the program to be
co-administered by the office of the secretary of state until the second
anniversary of the date on which the program begins operations (Secs.
15.958 and 15.959).  The bill prohibits an applicant from receiving funds
unless the applicable political subdivision adopts and enforces the model
rules (Sec. 16.343). 

The bill requires the board to meet annually with Texas Department of
Housing and Community Affairs or the successor agency that administers the
portion of the federal community development block grant nonentitlement
program that addresses the infrastructure needs of colonias to address
progress in meeting the needs of colonia residents (Sec. 6.060, Water
Code). 
 
The bill authorizes the executive administrator, on behalf of the Texas
Natural Resources Information System (TNRIS), to enter into partnerships
with private entities to provide additional funding for the improvement of
accessing TNRIS information.  The bill requires the board to adopt rules
for the process of establishing and defining the partnerships, fee
collection, and determination of which private entities may enter into
partnerships.  The bill requires the Texas Geographic Information Council
to prepare and provide, no later than September 1 of each even-numbered
year, to the board, the Department of Information Resources, the governor,
and the legislature a plan that inventories state agency geographic
information systems projects and recommends initiatives to improve Texas'
geographic information systems programs (Sec. 16.021). 

The bill requires the board and the State Soil and Water Conservation Board
to jointly conduct a study of the ways to improve and expand water
conservation efforts and sets forth the contents of a report of the
findings to the legislature.  The bill also requires that the report be
issued as part of, or as a supplement to, the state water plan (Sec.
16.022). 

The bill raises, from up to 50 percent to all or part, of any authorized
facility that the board is authorized to acquire for water development
purposes (Sec. 16.136). 

EFFECTIVE DATE

September 1, 2001.