HBA-CBW S.B. 649 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 649 By: Truan Natural Resources 4/23/2001 Engrossed BACKGROUND AND PURPOSE The Economically Distressed Areas Program (program) provides financial assistance to furnish water supply and wastewater services to economically distressed areas which have facilities that are failing to meet minimal residential needs. The program is currently funding systems in some East Texas counties and in the colonias in the Texas-Mexico border area where faulty septic systems and pit privies have been causing sanitation problems. The Texas Natural Resource Conservation Commission evaluates water systems for financial, managerial, and technical capacity. Concerns have arisen regarding the quality of training offered to operators of water systems who participate in the program. Senate Bill 649 requires the Texas Water Development Board to require an operating entity of a political subdivision that applies for financial assistance to complete a training program. 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 1 (Section 17.992, Water Code) and the Texas Natural Resource Conservation Commission in SECTION 1 (Section 17.993, Water Code) of this bill. ANALYSIS Senate Bill 649 amends the Water Code to require Texas Water Development Board (board) by rule to require the operating entity of a political subdivision that applies for financial assistance to complete a training program approved by the board (Sec. 17.992). The bill authorizes the Texas Natural Resource Conservation Commission (TNRCC) or the board to evaluate whether an operating entity needs training if the operating entity meets certain criteria. The bill authorizes the board or TNRCC to determine that training is necessary if the operating entity's managerial, financial, or technical capabilities are inadequate to ensure the project will meet program requirements or remain financially viable. The bill requires TNRCC by rule to establish a preenforcement threshold of noncompliance at which TNRCC is authorized to notify the board that an operating entity needs training. The bill provides that the enforcement order must contain a provision requiring that the operating entity receive training as ordered by the board if TNRCC assesses a penalty against an operating entity in an enforcement action and requires TNRCC to notify the board when TNRCC assesses a penalty against an operating entity (Sec. 17.993). The bill requires the board by order to require an operating entity to undergo appropriate training under certain conditions. The bill requires the board to refer the operating entity to an appropriate individual, association, business organization, or governmental entity for training required by the order. The bill sets forth requirements for a person providing training. The bill requires a political subdivision to reimburse a participant in training for reasonable expenses incurred in completing the training. Not later than January 15 each year, the bill requires each person who provides training to report to the board a list of political subdivisions for which the person provided training during the previous calendar year (Sec. 17.994). EFFECTIVE DATE September 1, 2001.