TITLE 31.NATURAL RESOURCES AND CONSERVATION

Part 10. TEXAS WATER DEVELOPMENT BOARD

Chapter 370. COLONIA PLUMBING LOAN PROGRAM

The Texas Water Development Board (Board) proposes amendments to 31 TAC §§370.2, 370.27, 370.31, and 370.41, and the repeal of 31 TAC §370.43 and §370.61 concerning the Colonia Plumbing Loan Program (CPLP).

The changes are proposed to make nonsubstantive technical corrections, clarify Board requirements, and repeal unnecessary provisions.

Section 370.2 (Definition of Terms) is proposed to be amended to delete an unnecessary definition of "HUD §8 income limits" and to correct an error in a citation reference to a Board rule for water conservation plans. Section 370.27 (Loans) is proposed to be amended to conform to the proposed repeal of Section 370.61 (Audit) and to clarify that the final accounting review of the borrower's loan is the duty of the executive administrator or his designated representative. Section 370.31 (Local Program Operating Procedure) and §370.41 (Required Information) are proposed to be amended to better reflect the current administrative structure of the Board by deleting references to the director of the Economically Distressed Areas Program. Section 370.41 (Required Information) is also proposed to be amended to clarify that the required CPLP application information includes two separate plans: the applicant's water conservation plan and its drought contingency plan. Section 370.41 is also proposed to be amended to make a conforming change to the proposed repeal of §370.43 (Priority System).

Section 370.43 (Priority System) is proposed to be repealed due to the fact that the CPLP program has not yet, nor does it anticipate, receiving applications in the numbers that would require priority ranking for funding. Since the inception of the program in 1991, only a handful of applicants have sought CPLP funds. Section 370.61 (Audit) is proposed to be repealed because it imposes a requirement on recipient political subdivisions to have an independent audit performed by a certified public accountant at the closeout of a CPLP loan. Staff has determined that other provisions of Board rules and state law protect the CPLP funds from the risks intended to be guarded against by the audit currently required by §370.61. It is therefore an unnecessary duplicitous burden on CPLP borrower entities to have an independent audit performed upon loan closeout.

Ms. Paris Peden, Interim Director of Accounting and Finance, has determined that for the first five-year period these sections are in effect there will not be fiscal implications on state and local government as a result of enforcement and administration of the sections.

Ms. Peden has also determined that for the first five years the sections as proposed are in effect the public benefit anticipated will be to facilitate compliance for CPLP applicants by repealing unnecessary rules and clarifying existing CPLP requirements. Ms. Peden has determined there will be no economic costs to small businesses or individuals required to comply with the sections as proposed.

Comments on the proposed amendments will be accepted for 30 days following publication and may be submitted to Clark Cornwell, Staff Attorney, Border Project Management Division, (512) 475-3073, Texas Water Development Board, P.O. Box 13231, Austin, Texas, 78711-3231, or by fax at (512) 463-5580.

Subchapter A. INTRODUCTORY PROVISIONS

31 TAC §370.2

The amendments are proposed under the authority of the Texas Water Code, §6.101 and §15.737.

The statutory provisions affected by the proposed amendments are Texas Water Code, Chapter 15, Subchapter L.

§370.2. Definition of Terms.

The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise.

(1) - (4)

(No change.)

[ (5)

HUD §8 income limits -- Department of Housing and Urban Development guidelines which determine low-to-moderate income families. Low-to-moderate income families are those earning less than 80% of the area median family income or of the statewide nonmetropolitan median family income, as defined by HUD.]

(5)

[ (6) ] Low-flow plumbing fixtures -- Fixtures meeting the following flow requirements:

(A)

shower heads limited to a flow rate not to exceed 2.75 gallons per minute;

(B)

toilets utilizing no more than 1.6 gallons per flush; and

(C)

kitchen and lavatory faucets in nonpublic buildings limited to a flow rate not to exceed 2.2 gallons per minute.

(6)

[ (7) ] Owner -- Record title holder of real property or purchaser of real property under a contract of sale, contract of deed, or other similar instrument.

(7)

[ (8) ] Plumber -- Either a master plumber or a journeyman plumber licensed by the State Board of Plumbing Examiners.

(8)

[ (9) ] Political subdivision -- A county, municipality, a nonprofit member-owned, member- controlled water supply corporation organized and operating under Chapter 76, Acts of the 43rd Legislature, 1933, First Called Session, Texas Civil Statutes, Article 1434a, or district or authority created under the Texas Constitution, Article III, §52, or Article XVI, §59.

(9)

[ (10) ] Project areas -- Colonias in which the applicant intends to loan money to residents for the purpose of making plumbing improvements.

(10)

[ (11) ] Water conservation plan -- A plan adopted by the applicant that complies with the requirements of §363.15 [ §363.59 ] of this title (relating to Required Water Conservation Plan).

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 9, 2000.

TRD-200001817

Suzanne Schwartz

General Counsel

Texas Water Development Board

Proposed date of adoption: May 17, 2000

For further information, please call: (512) 463-7981


Subchapter B. POLICY DECLARATIONS

31 TAC §370.27, §370.31

The amendments are proposed under the authority of the Texas Water Code, §6.101 and §15.737.

The statutory provisions affected by the proposed amendments are Texas Water Code, Chapter 15, Subchapter L.

§370.27. Loans.

Borrowers shall set their interest rates to individuals at the same interest rates provided to the borrower by the board. The maximum term of the loan to individuals must not exceed ten years. Borrowers are prohibited from generating any profit from program interest, connection fees or other charges. Upon a final accounting review of the borrower's loan by the executive administrator or his designated representative [ final audit of the loan provided in §370.61 of this title (relating to Audit) ], the borrower shall return to the board any money collected from individual loan repayment which has not been spent on program administration or to provide loan repayments to the board.

§370.31. Local Program Operating Procedures.

Applicants which receive funding under this program will be required to adopt local program operating procedures approved by the executive administrator or his designated representative [ director of the Economically Distressed Areas Program ] prior to closing a loan with the board which contain the following:

(1) - (6)

(No change.)

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 9, 2000.

TRD-200001818

Suzanne Schwartz

General Counsel

Texas Water Development Board

Proposed date of adoption: May 17, 2000

For further information, please call: (512) 463-7981


Subchapter C. APPLICATIONS TO THE BOARD

22 TAC §370.41

The amendments are proposed under the authority of the Texas Water Code, §6.101 and §15.737.

The statutory provisions affected by the proposed amendments are Texas Water Code, Chapter 15, Subchapter L.

§370.41. Required Information.

The following information is required on all applications to the board for plumbing improvement loans:

(1) - (8)

(No change.)

(9)

a copy of the applicant's water conservation plan and drought contingency plan;

(10) - (11)

(No change.)

(12)

description of plan to provide plumbing improvements and draft operating procedures acceptable to the executive administrator or his designated representative [ Director of the Economically Distressed Areas Program ], which include a detailed explanation of the proposed billing and collection arrangements and inspection service agreements, and including any associated costs;

(13) - (15)

(No change.)

[ (16)

documentation of pertinent priority system rating information to be considered under §370.43 of this title (relating to Priority System)];

(16)

[ (17) ] explanation of local requirements that will be incorporated into the local program operating procedures; and

(17)

[ (18) ] other information requested by the board or the executive administrator.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 9, 2000.

TRD-200001819

Suzanne Schwartz

General Counsel

Texas Water Development Board

Proposed date of adoption: May 17, 2000

For further information, please call: (512) 463-7981


31 TAC §370.43

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Water Development Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under the authority of the Texas Water Code, §6.101 and §15.737.

The statutory provisions affected by the proposed repeal is Texas Water Code, Chapter 15, Subchapter.

§370.43. Priority System.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 9, 2000.

TRD-200001820

Suzanne Schwartz

General Counsel

Texas Water Development Board

Proposed date of adoption: May 17, 2000

For further information, please call: (512) 463-7981


Subchapter E. CLOSE-OUT PROCEDURES

31 TAC §370.61

(Editor's note: The text of the following section proposed for repeal will not be published. The section may be examined in the offices of the Texas Water Development Board or in the Texas Register office, Room 245, James Earl Rudder Building, 1019 Brazos Street, Austin.)

The repeal is proposed under the authority of the Texas Water Code, §6.101 and §15.737.

The statutory provisions affected by the proposed repeal is Texas Water Code, Chapter 15, Subchapter L.

§370.61. Audit.

This agency hereby certifies that the proposal has been reviewed by legal counsel and found to be within the agency's legal authority to adopt.

Filed with the Office of the Secretary of State, on March 9, 2000.

TRD-200001821

Suzanne Schwartz

General Counsel

Texas Water Development Board

Proposed date of adoption: May 17, 2000

For further information, please call: (512) 463-7981