82R4269 ACP-D
	By: Lucio	S.B. No. 1690

	A BILL TO BE ENTITLED
	AN ACT
	relating to the consideration of and action on applications for
	financial assistance for water supply and sewer service projects in
	economically distressed areas.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 17.927(d), Water Code, is amended to
	read as follows:
	(d)  Before considering an application, the board may
	require the applicant to:
	(1)  provide documentation to the executive
	administrator sufficient to allow review of the applicant's
	managerial, financial, and technical capabilities to plan, build,
	and operate the system for which assistance is being requested;
	(2)  provide a written determination by the commission
	on the applicant's managerial, financial, and technical
	capabilities to plan, build, and operate the system for which
	assistance is being requested;
	(3)  request that the comptroller perform a financial
	management review of the applicant and, if the review is performed,
	provide the board with the results of the review; or
	(4)  provide any other information required by the
	board or the executive administrator.
	SECTION 2.  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 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 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 or wastewater
	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 applicant's managerial, financial, and
	technical capabilities to plan, build, and operate the proposed
	water supply and sewer project.
	SECTION 3.  Section 17.930(b), Water Code, is amended to
	read as follows:
	(b)  After making the considerations provided by Section
	17.929, the board by resolution shall:
	(1)  approve the plan and application as submitted;
	(2)  approve the plan and application subject to the
	requirements identified by the board or commission for the
	applicant to obtain the managerial, financial, and technical
	capabilities to plan, build, and operate the system and any other
	requirements, including training under Subchapter M, the board
	considers appropriate;
	(3)  deny the application and identify the requirements
	or remedial steps the applicant must complete before the applicant
	may be reconsidered for financial assistance;
	(4)  if the board finds that the applicant will be
	unable to obtain the managerial, financial, or technical
	capabilities to plan, build, and operate a system, deny the
	application and issue a determination that a service provider other
	than the applicant is necessary or appropriate to undertake the
	proposed project; or
	(5)  deny the application.
	SECTION 4.  The change in law made by this Act applies only
	to an application for financial assistance under Subchapter K,
	Chapter 17, Water Code, that is filed with the Texas Water
	Development Board on or after the effective date of this Act. An
	application for financial assistance under that subchapter that is
	filed with the board before the effective date of this Act is
	subject to the law in effect on the date the application is filed,
	and that law is continued in effect for that purpose.
	SECTION 5.  This Act takes effect September 1, 2011.