EMERGENCY RULES An agency may adopt a new or amended section or repeal an existing section on an emergency basis if it determines that such action is necessary for the public health, safety, or welfare of this state. The section may become effective immediately upon filing with the Texas Register, or on a stated date less than 20 days after filing and remaining in effect no more than 120 days. The emergency action is renewable once for no more than 60 additional days. Symbology in amended emergency sections. New language added to an existing section is indicated by the code. [Brackets] indicate deletion of existing material within a section. TITLE 31. NATURAL RESOURCES AND CONSERVATION PART X. Texas Water Development Board CHAPTER 363.Financial Assistance Programs The Texas Water Development Board (the board) adopts on an emergency basis amendments to 31 TAC sec.sec.363.2, 363.17, 363.704, 363.713, and 363.721 and new sec.sec.363.81-363.88 and sec.363.715 concerning Grants for Emergency and the Small Community Emergency Loan Program. These sections are adopted on an emergency basis to provide grants and short- term loans to community water and wastewater systems in need of emergency assistance due to the extreme drought conditions throughout the State. Based upon discussions at the August 7, 1998 joint hearing of the Senate Finance Committee and the House Committee on Appropriations, the Board has been asked to take the steps necessary to be able to provide emergency grants and loans through existing programs for drought-threatened water systems. The Board finds that as a result of drought conditions, there is an imminent threat to public health and safety and that without financial assistance made possible through amendments to the Board rules, an interruption of water services could result. SUBCHAPTER A.General Provisions 1.Introductory Provisions 31 TAC sec.363.2 The amendment is adopted on an emergency basis under the Texas Water Code, Chapter 6, Section 6.101, which authorizes the Board to adopt rules necessary to carry out the powers and duties of the Board. The emergency rule will be effective for 120 days from date of filing. sec.363.2.Definitions of Terms. The following words and terms, when used in this chapter, shall have the following meanings, unless the context clearly indicates otherwise. Words defined in the Texas Water Code Chapters 15, 16 or 17, and not defined here shall have the meanings provided by the appropriate Texas Water Code chapter. (1)
    Applicant - a political subdivision or subdivisions which file an application with the board for financial assistance or associated actions. (2)
      Board - Texas Water Development Board. (3)
        Building - Erecting, building, acquiring, altering, remodeling, improving, or extending a water supply project, treatment works, or flood control measures. (4)
          Closing - The time at which the requirements for loan closing have been completed under sec.363.42 of this title (relating to Loan Closing) and an exchange of debt for funds to either the applicant, an escrow agent bank, or a trust agent has occurred. (5)
            Commission - Texas Natural Resource Conservation Commission. (6)
              Commitment - An action of the board evidenced by a resolution approving a request for financial assistance from any loan program account. (7)
                Corporation - A nonprofit water supply corporation created and operating under Chapter 76, Acts of the 43rd Legislature, 1st Called Session, 1933 as amended (Article 1434a, Vernon's Texas Civil Statutes). (8)
                  Debt - All bonds, notes, certificates, book-entry obligations, and other obligations authorized to be issued by any political subdivision. (9)
                    Department - Texas Department of Health. (10)
                      Economically distressed areas - For the purposes of sec.sec.363.81-363.88 of this title (relating to General Provisions), an area in which water supply or sewer services are or are expected to be inadequate to meet minimal needs of residential users and in which financial resources are inadequate to provide water supply or sewer services that will satisfy those needs.
                        (11)
                          Emergency - For the purposes of sec.sec.363.81-363.88, a condition in which a public water or wastewater system has already failed or which poses an imminent threat of failure, causing the health or safety of residential users to be in danger. The emergency shall be the result of natural or man-made catastrophes, riots, or hostile military or paramilitary action, including such conditions recognized by a declaration of disaster by the governor of the State.
                            (12)
                              Escrow - The transfer of funds to a custodian of the funds which will act as the escrow agent or trust agent. (13)
                                Escrow agent - The third party appointed to hold the funds which are not eligible for release to the loan recipient. (14)
                                  Escrow agent bank - The financial institution which has been appointed to hold the funds which are not eligible for release to the loan recipient. (15)
                                    Executive administrator - the executive administrator of the board or a designated representative. (16)
                                      Financial assistance - Loans, grants, or state acquisition of facilities by the board pursuant to the Texas Water Code, Chapters 15; Subchapters B, C, E, and J, Chapter 16; Subchapters E and F, and Chapter 17; Subchapters D, F, G, I, and K. (17)
                                        Grants for Emergency - For the purposes of sec.sec.363.81- 363.88, financial assistance by the board pursuant to Texas Water Code, Chapter 15, Subchapter C as provided by state appropriations and/or federal funds.
                                          (18)
                                            Innovative technology - nonconventional methods of treatment such as rock reed, root zone, ponding, irrigation or other technologies which represent a significant advance in the state of the art. (19)
                                              Release - The time at which funds are made available to the loan recipient. (20)
                                                Trust agent - The party appointed by the applicant and approved by the executive administrator of the board to hold the funds which are not eligible for release to the loan recipient. Filed with the Office of the Secretary of State, on August 20, 1998. TRD-9813280 Suzanne Schwartz General Counsel Texas Water Development Board Effective date: August 20, 1998 Expiration date: December 18, 1998 For further information, please call: (512) 463-7981 2.General Application Procedures 31 TAC sec.363.17 The amendment is adopted on an emergency basis under the Texas Water Code, Chapter 6, Section 6.101, which authorizes the Board to adopt rules necessary to carry out the powers and duties of the Board. The emergency rule will be effective for 120 days from date of filing. sec.363.17.Water Loan Assistance Fund. The board may provide grants from the Water Loan Assistance Fund for projects that include supplying water or wastewater service to areas in which: (1) water supply services: (A)-(B) (No change.) (C) do not exist or are not provided,including a temporary interruption of service due to emergency conditions
                                                  ; and (D) (No change.) (2) sewer services: (A)-(B) (No change.) (C) do not exist or are not provided, including a temporary interruption of service due to emergency conditions
                                                    ; and (D) (No change.) (3) (No change.) Filed with the Office of the Secretary of State, on August 20, 1998. TRD-9813281 Suzanne Schwartz General Counsel Texas Water Development Board Effective date: August 20, 1998 Expiration date: December 18, 1998 For further information, please call: (512) 463-7981 7.Grants for Emergency 31 TAC sec.sec.363.81-363.88 The new sections are adopted on an emergency basis under the Texas Water Code, Chapter 6, Section 6.101, which authorizes the Board to adopt rules necessary to carry out the powers and duties of the Board. The emergency rules will be effective for 120 days from date of filing. sec.363.81.Grants for Emergency. Grants for emergencies may be provided by the board from the Water Loan Assistance Fund to political subdivisions for projects that address the interruption of water or wastewater service due to an emergency and which serve an economically distressed area. sec.363.82.Terms of Financial Assistance. The board shall determine the amount and form of grants for emergencies. The amount of grants shall be limited to the amount necessary to restore service or ensure the uninterrupted delivery of service. sec.363.83.Application. An applicant shall submit an application in the form and numbers prescribed by the executive administrator. The executive administrator may request additional information needed to evaluate the application and may return any incomplete applications. sec.363.84.Applicability. The provisions of sec.363.12 of this title (relating to General, Legal and Fiscal Information), the engineering information of sec.363.711(b)(2) of this title (relating to Applications), and the preliminary environmental information of sec.363.711(b)(3) shall apply to applications for grant assistance under this subchapter. sec.363.85.Findings of the Board. The board, by resolution, may approve an application for an emergency grant if the board finds: (1) that an emergency exists; and (2) that the public interest requires state participation in the project. sec.363.86.Grant Agreement. The applicant will execute a grant agreement that sets out the terms and requirements pursuant to which a grant for the emergency will be awarded. These conditions and requirements will include the term of the grant commitment, closing conditions, conditions for environmental approvals, and standards for engineering design approvals. sec.363.87.Environmental Review before Board Approval. Board staff will use preliminary environmental data provided by the applicant, as specified in sec.363.711(b)(3) of this title (relating to Applications), and make a written report to the executive administrator on known or potentially significant social or environmental concerns. The executive administrator may recommend approval of the project to the board if, based on preliminary information, there appear to be no significant environmental, permitting, or social issues associated with the project. The grant agreement will provide the terms and conditions for completion of the environmental review process. sec.363.88.Release of Funds. Funds will be released in accordance with the terms of the executed grant agreement. The timing on release of funds will take into consideration the applicant's need for funds to initiate and complete the project in an expeditious manner. Filed with the Office of the Secretary of State, on August 20, 1998. TRD-9813282 Suzanne Schwartz General Counsel Texas Water Development Board Effective date: August 20, 1998 Expiration date: December 18, 1998 For further information, please call: (512) 463-7981 SUBCHAPTER G.Small Community Emergency Loan Programs 1.Introductory Provisions 31 TAC sec.363.704 The amendment is adopted on an emergency basis under the Texas Water Code, Chapter 6, Section 6.101, which authorizes the Board to adopt rules necessary to carry out the powers and duties of the Board. The emergency rule will be effective for 120 days from date of filing. sec.363.704.Eligibility Requirements. An applicant must meet all of the following requirements to be eligible for financial assistance under this subchapter: (1)-(2) (No change.) (3) Emergency. An emergency must exist that meets the criteria of subparagraphs (A)-(D) or (E)
                                                      of this paragraph. (A)-(D) (No change.) (E)
                                                        A condition of drought must exist that poses a threat to public health and safety if not addressed immediately.
                                                          (4) Timing. The emergency must have been first discovered by the political subdivision no more than six months prior to the date the application is received by the board, unless the emergency is a condition of drought
                                                            . Filed with the Office of the Secretary of State, on August 20, 1998. TRD-9813283 Suzanne Schwartz General Counsel Texas Water Development Board Effective date: August 20, 1998 Expiration date: December 18, 1998 For further information, please call: (512) 463-7981 2.Application Procedures 31 TAC sec.363.713, sec.363.715 The new section and the amendment are adopted on an emergency basis under the Texas Water Code, Chapter 6, Section 6.101, which authorizes the Board to adopt rules necessary to carry out the powers and duties of the Board. The emergency rules will be effective for 120 days from date of filing. sec.363.713.Board Consideration of Application. [Unless special circumstances warrant an extension, a recommendation to approve or reject the loan request will be prepared for board consideration within three (3) working days of submittal of a completed application.] The application will be scheduled on the agenda for board consideration at the earliest practical date and, if warranted, the board may hold an emergency board meeting. sec.363.715.Notes and Loan Agreements (a) The board may provide financial assistance to political subdivisions by either purchasing bonds issued by the political subdivision or by purchasing a note and entering into a loan agreement with the political subdivision. If a political subdivision utilizes the note and loan agreement, the term of the loan shall not be more than one year. (b) If a political subdivision executes a note and loan agreement with the board, the political subdivision is not required to engage the services of a bond counsel or a financial advisor. Filed with the Office of the Secretary of State, on August 20, 1998. TRD-9813285 Suzanne Schwartz General Counsel Texas Water Development Board Effective date: August 20, 1998 Expiration date: December 18, 1998 For further information, please call: (512) 463-7981 3.Closing and Release of Funds 31 TAC sec.363.721 The amendment is adopted on an emergency basis under the Texas Water Code, Chapter 6, Section 6.101, which authorizes the Board to adopt rules necessary to carry out the powers and duties of the Board. The emergency rule will be effective for 120 days from date of filing. sec.363.721.Loan Closing. (a) Loan documents shall be executed at the time of closing and shall include the following: (1)-(10) (No change.) (11) that the political subdivision issuing bonds
                                                              , or an obligated person for whom financial or operating data is presented, will undertake, either individually or in combination with other issuers of the political subdivision's obligations or obligated persons, in a written agreement or contract to comply with requirements for continuing disclosure on an ongoing basis substantially in the manner required by Securities and Exchange Commission (SEC) rule 15c2-12 and determined as if the board were a Participating Underwriter within the meaning of such rule, such continuing disclosure undertaking being for the benefit of the board and the beneficial owner of the political subdivision's obligations, if the board sells or otherwise transfers such obligations, and the beneficial owners of the board's bonds if the political subdivision is an obligated person with respect to such bonds under rule 15c2-12; and (12) (No change.) (b) Closing Requirements. A political subdivision entering into a note and loan agreement shall be required to execute the note and loan agreement as a condition of closing.
                                                                A political subdivision issuing bonds
                                                                  shall be required to comply with the following closing requirements: (1)-(4) (No change.) Filed with the Office of the Secretary of State, on August 20, 1998. TRD-9813286 Suzanne Schwartz General Counsel Texas Water Development Board Effective date: August 20, 1998 Expiration date: December 18, 1998 For further information, please call: (512) 463-7981 TITLE 40. SOCIAL SERVICES AND ASSISTANCE PART XX. Texas Workforce Commission CHAPTER 800.General Administration SUBCHAPTER B.Allocations and Funding 40 TAC sec.800.56 The Texas Workforce Commission (Commission) adopts on an emergency basis amendments to sec.800.56, concerning Child Care Services. The purpose of the amendments is to utilize the federal poverty level indicators instead of the state median income levels as the mechanism for targeting At-Risk children for child care services in areas of desperate need. The language in sec.800.56(c) and (f) is changed from "75% of the state median income" to "150% of the federal poverty guidelines." The "federal poverty guidelines" are formally referenced as "the poverty guidelines updated annually in the Federal Register by the U.S. Department of Health and Human Services under authority of sec.673(2) of the Omnibus Budget Reconciliation Act of 1981." The "state median income" is published in the 1990 US Census Data, which contains the 1989 median family income data. The use of the 75% of the state median income level instead of 150% of the federal poverty guidelines to determine allocations to local workforce development areas results in a shifting of funds away from areas of the state that have substantial numbers of children living below or near the poverty level. Use of the state median income level instead of the federal poverty guidelines could result in parents leaving employment to care for children or having to leave their children in unsafe situations, such as unsupervised care, in order to maintain employment. For this reason, the use of the state median income level presents an imminent peril to the public health, safety or welfare of the children of the state. Randy Townsend, Chief Financial Officer, has determined that for each year of the first five years the amendments will be in effect the following statements will apply: There are no additional estimated costs to the state and to local governments expected as a result of enforcing or administering the rule as amended; There are no estimated reductions in costs to the state and to local governments as a result of enforcing or administering the rule as amended; There are no estimated losses or increases in revenue to the state or to local governments as a result of enforcing or administering the rule as amended; There are no foreseeable implications relating to costs or revenue of the state or local government as a result of enforcing or administering the rule as amended; and There are no probable economic costs to persons required to comply with the rule as amended. Charlotte Brantley, Director of Child Care/Work and Family Clearinghouse, has determined that: There is no anticipated adverse impact on small businesses as a result of enforcing or administering the amendments because the local workforce development boards are recipients of funds and small businesses are not required to do anything to comply with the rule as amended; and For each year of the first five years that the amendments will be in effect, the public benefit expected as a result of the adoption of the amendments is that the amendments will ensure that children living below or near the poverty level have increased access to child care funding. The emergency amendments are adopted under Texas Labor Code, sec.301.061 and sec.302.021, which provides the Texas Workforce Commission with the authority to adopt, amend, or repeal such rules as it deems necessary for the effective administration of the Commission programs. The emergency amendments affect Texas Labor Code Title 4, particularly Chapters 301 and 302. sec.800.56. Child Care Services. (a)-(b) (No change.) (c) For At-Risk child care, funds will be allocated among workforce areas on the basis of: (1) the relative proportion of the total number of children aged 0-12 years in families at or below 150% of the federal poverty guidelines
                                                                    [75% of the state median income] residing within the workforce area to the statewide total number of children aged 0-12 years in families at or below 150% of the federal poverty guidelines
                                                                      [75% of the state median income], and (2) an adjustment for average net unit rates for At-Risk child care. (d)-(e) (No change.) (f) For locally matched initiatives for child care and quality improvements, funds will be allocated among workforce areas on the basis of the relative proportion of children aged 0-12 years in families at or below 150% of the federal poverty guidelines
                                                                        [75% of the state median income] residing within the workforce area to the statewide total of children aged 0-12 years in families at or below 150% of the federal poverty guidelines
                                                                          [75% of the state median income]. (g)-(j) (No change.) Filed with the Office of the Secretary of State,on August 18, 1998. TRD-9813120 J. Randel (Jerry) Hill General Counsel Texas Workforce Commission Effective date: August 18, 1998 Expiration date: December 16, 1998 For further information, please call: (512) 463-8812