31 TAC §363.1106
The Texas Water Development Board (board) proposes an amendment
to 31 TAC §363.1106, concerning Financial Assistance Programs, Subchapter
K, relating to the Small Community Hardship Program, to create a waiver from
an existing program requirement.
The board proposes to amend §363.1106(b). Currently, this subsection
requires that all applicants receiving grant funds under this program incur
debt from another program administered by the board. The board proposes to
amend §363.1106(b) to allow the board to waive this requirement any time
before the loan is closed if the applicant is connecting to an existing service
provider which assists the applicant in complying with state regulation, the
existing service provider has made financial contributions to connect the
applicant's utility system to the service provider; and the existing service
provider agrees to assume full ownership of the applicant's utility system
upon completion of the project. Even if these conditions are met, the proposed
rule amendment will allow, but does not require, the board to waive the loan
requirement. The decision to exercise the waiver is left to the sole discretion
of the board in order to implement to an important statewide objective. The
waiver as proposed may be able to encourage regionalization of water and wastewater
utility providers, a statewide policy objective, in order to maximize efficiency
in this industry. Additionally, the board has determined that to require a
loan in this circumstance may serve as a disincentive to regionalization by
creating a liability that an existing system will not want to assume. If the
request for the waiver meets the conditions set forth in the rule and the
board in its sole discretion determines that the waiver meets the objectives
and best serves the interest of the state, the board may grant the waiver.
Melanie Callahan, Acting Chief Financial Officer, has determined that,
for the first five-year period the amendment is in effect, there will not
be fiscal implications on state and local government as a result of enforcing
and administering the amended section.
Ms. Callahan has also determined that for the first five years the amendment,
as proposed, is in effect, the public benefit anticipated as a result of enforcing
the proposed amendment will be to encourage utility providers that have the
operational capability to provide water or wastewater service on a regional
basis to assist projects that improve service to underserved areas. Ms. Callahan
has determined there will not be economic costs to small businesses or individuals
required to comply with the amendment as proposed.
Comments on the proposal will be accepted for 30 days following publication
and may be submitted to Jonathan Steinberg, Deputy Counsel, General Counsel's
Office, Texas Water Development Board, P.O. Box 13231, Austin, Texas, 78711-3231,
by e-mail to jonathan.steinberg@twdb.state.tx.us or by fax at (512) 463-5580.
Statutory authority: Water Code, §§6.101, 15.001(11),
15.011, and 15.103.
Cross reference to statute: Water Code, Chapter 15, Subchapter C.
§363.1106.Grant Assistance.
(a)
(No change.)
(b)
The remaining portion of the amount of the financial assistance
requested in the application not provided as a grant shall be provided by
a loan from another board program.
The board may, in its sole discretion,
waive the requirement of this subsection if, prior to closing, the following
conditions are met:
(1)
The applicant is connecting to an existing
service provider which, by connecting to the existing system, will assist
the applicant in achieving compliance with state utility system regulations;
(2)
The existing service provider has contributed
resources, in kind or direct financial assistance, to connect the applicant's
utility system to the service provider; and
(3)
The existing service provider executes
a written agreement pursuant to which the service provider agrees to assume
full ownership, operation, and management of the applicant's entire utility
system upon completion of the project.
(c) - (d)
(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 April 20, 2006.
TRD-200602253
Wendall Corrigan Braniff
General Counsel
Texas Water Development Board
Proposed date of adoption: June 13, 2006
For further information, please call: (512) 475-2052