State Bar of Texas Administrative and Public Law Section

ADMINISTRATIVE & PUBLIC LAW NEWSLETTER

A Publication of the State Bar of Texas
Administrative & Public Law Section

Vol. 3, No. 1 Spring, 1998

Administrative and
Public Law Section Council

CHAIRMAN:
Gaines F. West, II

West, Webb, Allbritton & Gentry, P.C.
Bryan, Texas
CHAIRPERSON-ELECT:
Robert D. Simpson
Attorney At Law
Austin, Texas
VICE-CHAIRPERSON:
Celina Romero
Clark, Thomas & Winters
Austin, Texas
SECRETARY:
Shelia Bailey Taylor
State Office of Administrative Hearings
Austin, Texas
TREASURER:
Claire P. Arenson
Law Office of Claire P. Arenson
Austin, Texas
PAST-CHAIRPERSON:
John J. Vay
Law Offices of John J. Vay
Austin, Texas
COUNCIL MEMBERS:
Steve Baron
Office of the Attorney General
Austin, Texas
Thomas M. Pollan
Bickerstaff, Heath, Smiley,
Pollan, Kever & McDaniel, L.L.P.
Austin, Texas
Hon. John E. Powers
Third Court of Appeals
Austin, Texas
Hon. Margaret A. Cooper
353rd District Court,
Travis County
Austin, Texas
Alex Gonzales
Hughes & Luce, L.L.P.
Austin, Texas
Dewey E. Helmcamp, III
Office of the Attorney General
Austin, Texas
Timothy L. Brown
Brown & Potts, L.L.P.
Austin, Texas
Susan Cory
Texas Workers' Compensation Comm.
Austin, Texas
Kimberly L. Kiplin
Texas Lottery Commission
Austin, Texas

Message from the Chair

by Gaines West

After establishing the Section's Home Page on the World Wide Web last year, the Council has not been willing to sit back and enjoy its accomplishments! Last year's Chair, John Vay, has worked steadily to make sure our web page is useful, informative, and a valuable resource. It continues to accomplish our goal of making essential information available to our membership on a more timely basis.

Recognizing, however, that not all of us are "web surfers", the Council has authorized the printing of two newsletters each Bar year. You are receiving this newsletter for the first time in mid-Bar year, and you will again receive another newsletter at the end of our Bar year. It is the Council's hope that this hard copy publication will be a valuable resource to you.
Our ongoing Section projects will include publication once again of the Texas Administrative Law Journal and the Directory of State Attorneys. We will also sponsor one of the most popular CLE professional development programs in our annual Advanced Administrative Law Seminar in Austin, Texas, on September 24 and 25, 1998. Our Seminar set new attendance records in the Fall of 1996, and we expect this year's Seminar to be even more interesting and informative as the Council responds to the suggestions of seminar attendees in shaping our program for 1998.
An exciting and new project is being "birthed" this Bar year. Our Section is sponsoring a mock trial/moot court competition involving all law schools in Texas. The first moot court competition will be held in the Fall of 1998, and the mock trial competition will be held next Spring. Hearing Officers from the State Office of Administrative Hearings, District Judges from the Travis County District Courts, and a three Judge panel of the Third Court of appeals will participate in judging the competition. It is our hope that this competition will highlight the complex issues we now litigate in the administrative law arena and encourage law students to enter this practice field.
We trust that all of these projects will facilitate and promote the practice of administrative law in the State of Texas. We want to hear from you if you have suggestions for improving our membership services. Your voice counts in this Section, so we want to hear from you!
Editorial Staff:

Editor
(Cases)
Jessie A. Amos
  Austin, Texas

Editor-In-Chief
Dewey Helmcamp
Office of the Attorney General
  Austin, Texas

Mary Jane Canning
(Publication Assistant)

IN THIS ISSUE:

Message from the Chair
Case Law Update Index (128K)
Case Law Update (128K)
Editor-In-Chief Notes
State Bar of Texas
Agency Reports-

Texas Worker's
Compensation Commission
Texas Health Care
Information Council
Texas Commission
on Jail Standards
Texas Board of
Professional Engineers
Texas Water
Development Board
The Administrative & Public Law Newsletter is published semiannually by the Administrative and Public Law Section of the State Bar of Texas. The purpose of the Newsletter is to provide Section members with information concerning recent developments in administrative law, as well as news of Section activities and other events pertaining to this area of law.
Anyone interested in submitting relevant information for publication should contract Dewey Helmcamp (512 475-4300). Articles for publication should be submitted on PC-compatible floppy disks (Word Perfect or similar word processing software).
©1998, State Bar of Texas. All rights reserved. Any opinions expressed in the are those of the contributors and not the opinions of the State Bar, the Section, or the Administrative & Public Law Newsletter.


Case Law Update

An enhanced version of the Case Law Update that appears in the paper version of this Newsletter is available via the following links. Be aware that it is large and thus may take some time to load.

Case Law Update Index (128K)
Case Law Update (128K)




Editor-In-Chief Notes

Since our last newsletter, your council members have undertaken new initiatives to improve the section and its worth to you, the section members. As noted by our current Chair, Gaines West, the section's web site continues to be a much needed and valuable source of timely information about administrative law. We hope you find it useful and helpful in your practice, and we always welcome your comments or suggestions for improvement.

For those of you that read mastheads, you noted that the Council has two new members, Timothy L. Brown, Brown, and Potts, Austin, Texas and Kimberly L. Kiplin, General Counsel, Texas lottery Commission. Susan Cory, Texas Workers' Compensation Commission General Council was re-elected Counsel Member. All terms for these members expire in 2000.

Finally, we will conduct the annual section meeting in conjunction with the State Bar Convention in June being held in Corpus Christi. On behalf of the Administrative and Public Law Council members, I hope to see you there.

Dewey Helmcamp
Editor-In-Chief



STATE BAR OF TEXAS

In our continuing effort to keep all section members informed of current bar news you might not otherwise see, the following letters are provided. The first letter, from Mr. Richard R. Orisinger to Chair of Sections of the State Bar, discusses a proposal for section representation on the State Board of Bar Directors. The second letter, from Section Chair Gaines West, is this section's response.
On February 27, 1998, the Council of Chairs met in Austin to discuss the proposal and determine a position. At this meeting, 22 sections voted in favor of the proposal to have non-voting section representation on the Board and 6 sections (including the Administrative and Public Law Section) voted against the proposal. The final decision will be made by the Board of Directors. For further information, contact Gaines West (409) 776-2282.


RICHARD R. ORSINGER
Attorney At Law
Tower Life Building, Suite 1616
San Antonio, Texas 78205
(210) 225-5567
Fax (210) 267-7777

January 23, 1998

CHAIRS OF THE SECTIONS
  OF THE STATE BAR OF TEXAS

Re: Proposal for Section Representation on the State Bar Board of Directors
Dear Section Chair:
I am writing to you in your capacity as Chair of a Section of the State Bar of Texas about Section representation on the State Bar Board of Directors, and the process for implementing that representation.
This is to inform you of recent actions by the State Bar's Ad Hoc Committee on Bar Section Relations, and recent actions by the State Bar Board of Directors, to give you information necessary to determine your Section's view on the issues before the next Council of Chairs meeting tentatively scheduled for February 27, 1998.
During this State Bar fiscal year, I have been a member of the State Bar's Ad Hoc Committee on Bar-Section Relations. That Committee presented recommendations to the State Bar Board of Directors at its most recent meeting in Lubbock, on Friday, January 16, 1998. After the presentation, the Ad Hoc Committee was disbanded. Therefore, this letter is not written in any official capacity, but rather to inform you of the situation.

At the January 16, 1998, Board meeting, the Board unanimously approved some of the recommendations made by the Ad Hoc Committee. Other recommendations will be reviewed by the State Bar of Texas' Executive Committee, then presented for action at the Board meeting to be held in Austin, on April 17, 1998.
The recommendations that were adopted by the Board on January 16, 1998, are reflected in the enclosed amendments to the State Bar of Texas Board Policy Manual. While there were some minor amendments from the floor that are not reflected on the enclosed pages, the important changes are reflected.
New Section 6.01.01(c) establishes two new standing committees: the Council of Chairs and the Section Coordination Committee. The purposes of these two Committees are set out in Section 6.02.09 and 6.02.10.
The Council of Chairs is to select the four (4) section members who will sit on the Section Coordination Committee, by appointment of the President.
It will therefore be necessary for the Council of Chairs to make its determination of nominees for the Section Coordination Committee at an upcoming meeting--probably at the meeting tentatively scheduled for February 27, 1998.
The principal Ad Hoc Committee recommendation to be submitted for Board vote on April 17, 1998 involves the creation of a new State Bar standing committee called the "Section Representatives to the Board Committee." This Committee would be composed of six Section representatives, selected by the Council of Chairs, who would be non-voting "representatives" to the Board of Directors.
These six non-voting Section representatives, who make up the Section Representatives to the Board Committee, would receive agendas for each Board meeting, and could participate in discussions, but could not vote.
The parameters of the Section Representatives to the Board Committee, as proposed by the Ad Hoc Committee, are set out in the "Subcommittee B Proposal" which is enclosed.
Under the proposal, the Council of Chairs would pick the six members of the Section Representatives to the Board Committee, who would serve staggered 3-year terms. Sections are divided into three categories: (i) 2,001 + members, (ii) 501-2000 members, and (iii) 500 or fewer members. The seven large sections would have 3 representatives. The 19 medium-sized sections would have 2 representatives. The smaller sections would have 1 representative. It is contemplated that membership would rotate, so that over time all sections in a given category would have a representative on this Committee.
There is no prospect at this time that the Board of directors will approve this Committee is the cost is to be paid by the State Bar. There is a significant chance that the Board will create this Committee if the Sections agree to underwrite the expense (primarily the cost of attending the Board meetings).
In light of the political reality (and putting aside for now any debate over whether the Bar should fund this cost), the Ad Hoc Committee has proposed paying the cost of section representation in the following manner. The seven largest sections would pay 60%, and the nineteen medium-sized sections would pay 40%, and the smaller sections would pay nothing. Committee expenses would be capped at $12,000 per year. That allows $500.00 per committee member per board meeting. Other committee operating expenses (mail, long distance, etc.) would be paid out of whatever money is not used going to Board meetings. It is expected that costs will be less than $500.00 per representative per Board meeting. For example, when a Committee member lives in a town where the Board meeting is held, there would be no airplane or hotel expense. When a Committee member flies in and out the same day, there would be no hotel expense.
Under this payment scheme, and assuming every Section participates, the seven larger Sections would pay a maximum of $1,028/yr, the nineteen medium-sized Sections would pay $252/yr, and the smaller Sections would pay nothing.
For your information, of the approximately 65,000 members of the Bar, the seven largest sections (2,001 + members) represent 28,730 members, the nineteen medium-sized sections represent 22,246 members, and the smaller sections represent approximately 1,960 members. These numbers cannot be compared in an absolute sense, because sometimes one lawyer belongs to several sections of different sizes.

To recap:

# Sections Members per Section # Representatives Annual Cost/Section
7 More than 2,000 members 3 representatives $1,038.00
19 From 501 - 2,000 members 2 representatives $ 252.00
11 500 or fewer members 1 representative - 0 -

So you will know, it is not possible to actually change the makeup of the Bar Board of Directors to provide for voting members without (i) having the Legislature amend the State Bar Act, and (ii) having the State Bar of Texas change the State Bar Rules, which would require a referendum among Texas lawyers. This can be done over time, but the new standing committee of Section Representatives to the Board can be created by majority vote of the Board of Directors on April 17, 1998.
In order for this proposal to work, most if not all of the Sections will have to agree to participate in funding the expenses of the Section Representatives to the Board Committee. If some Sections decline the invitation, it is still possible to make the numbers work with the remaining Sections participating and just picking up an incrementally greater share of the expenses. The Council of Chairs could then decide not to nominate a representative of a Section that does not contribute to the cost of the Committee.
The Council of chairs will be discussing the Subcommittee B proposal at the upcoming Council of Chairs meeting tentatively scheduled for February 27, 1998. It is the view of those of us involved in the process that the Council of Chairs must take affirmative steps to show that Section representation on the Board is an important issue, and is in fact important enough to warrant spending a little Section money in return. A vote by the Council of Chairs, including wide-spread support of this proposal, and a willingness to shoulder the cost, is deemed crucial to the proposal's success.
There is an alternative proposal suggested by another subcommittee of the Ad Hoc Section Committee. That is the "Subcommittee A" proposal, a copy of which is enclosed. Under this proposal, the State Bar would go to the Legislature in the next session, and have the State Bar Act amended to establish 15 voting section representatives to the Board of Directors. The cost of these members would be paid by a "head tax" of 25 cents per section member. Please study the proposal closely.
It has been suggested that the Council of Chairs needs to line up behind one or the other proposal, so that the Board learns that the Sections are unified in their view of the best approach. It is my hope that the Council of Chairs, at the February 27 meeting, will align itself with one of these two proposals, and will agree to participate in funding the expenses.
My personal and unofficial view is that the Subcommittee B approach is more practical as a first step. The number of persons added to the Board is not unwieldy, the costs are not great, and the impact of having Section representatives alerted to matters brought before the Board of Directors, and participating in the discussion, is almost as good as having all that plus the right to vote. In my view, going to the Legislature, and/or having a referendum on voting representation on the Board of Directors, is a long-term process. The Subcommittee B proposal can be implemented immediately, by Board vote, and can serve as a testing period that can be examined whenever the issue comes before the Legislature about amending the Act to provide for voting section representatives.
We have a lot of ground to cover and not much time to cover it. Some of us involved in the process feel that the Sections must act now, and be aligned before the representation on the Board will die with it.
Thank you for giving your attention to these important issues.
          Sincerely yours,
          /s/ Richard R. Orsinger
          Vice-Chair, Family Law Section
          Immediate Past chair, Appellate Section
RRO/je
Enclosures
cc: Frank Newton, president
    Guy Harrison, Board Chair
    Antonio Alvarado, Executive Director


State Bar of Texas
Administrative and Public Law Section

February 19, 1998

Mr. John P. Palmer, Chair
Alternative Dispute Resolution Section
P.O. Box 1470
Waco, Texas 76703-1470

RE: Proposal for Section Representation on the State Bar of Texas Board of Directors

Dear Mr. Palmer:

The Council of the Administrative and Public Law Section met last Friday, February 13, 1998 and voted to not support either the "Subcommittee A" proposal or the "Subcommittee B" proposal presently being considered by the Council of Chairs, and presumably thereafter by the State Bar Board.
It is not clear that the Bar Board is committed to adopt either of these proposals. The "Subcommittee A" proposal seems to our Council to be an extreme remedy to attempt to resolve a problem that is perceived by some to exist, but which our Section views differently. Under the "Subcommittee B" proposal our Council is concerned about the proposed representation of the medium-size Sections. It is difficult for us to comprehend how a representative could really know, understand, and represent the unique needs and concerns of our Section unless the representative is from our Section. In short, we are concerned about "taxation" without appropriate representation.
As a result, our Council voted unanimously to have me write each of you to express our position on these proposals. I will attend the Council of Chairs meeting on February 27, 1998 to vote this expressed position. Our Council feels the status quo is better than the two proposals offered.

          Sincerely,
          /s/ Gaines West
GW/sw
cc: Dean W. Frank Newton
    President, State Bar of Texas
    By Fax (806) 747-1892




Workers' Compensation Commission

Gov. George W. Bush has appointed Jack Abla as chairman of the Texas Workers' Compensation Commission. Abla, one of three Commissioners representing wage earners, replaces Richard F. Reynolds. Reynolds had served as chairman since September 1995.
Abla praised Reynolds for setting a high standard for excellence during his service as chairman.
"Chairman Reynolds worked closely with Gov. Bush and the Legislature to maintain workers' compensation as a priority issue and to ensure that the Commission remains a national leader in workers' compensation. We were very fortunate to share in his extensive knowledge of the insurance industry," Abla said.
While serving as chairman, Reynolds, who represents employers led initiatives to improve training and education requirements for ombudsmen and to adopt a new medical fee guideline, a dental fee guideline and an acute care inpatient hospital fee guideline. He also served as chairman during the transfer of administrative hearings from the Commission to the State Office of Administrative Hearings.
"Because of Commissioner Reynolds' leadership, the Commission is in a strong position to improve service to all participants in the workers' compensation system," Abla said.
Reynolds is president of Richard F. Reynolds & Associates, a management consulting firm in Austin. He served in the Texas House of Representatives and was mayor pro-tem and councilman in Richardson. Reynolds also served on the Texas State Board of Insurance.
He also was chairman and chief executive officer of Ben Griffin Tractor Co. and president of MacAtee Capital Corp. He is a former chairman of the board of Parkland Hospital in Dallas. Reynolds' term on the Commission expires February 1, 1001.
Abla, a resident of Kilgore, is employed by Martin Gas Transport, Inc. He develops safety programs, assists in writing training manuals and instructs company drivers and other employees in the principles and practices of safety. Abla also served in law enforcement for four years and has earned certifications in law enforcement, crime prevention and safety training. He was appointed in 1995 to a six-year term that expires February 1, 2001. He will serve as chairman until February 1, 1999.

At the public meeting held on Thursday, November 6, 1997, the Texas Workers' Compensation Commission adopted amendments to rules and new rules.

The following amendments to new and existing rules and new rules will be effective January 1, 1998.

Chapter 126 General Provisions Applicable to All Benefits
Rule 126.5 Procedure for Requesting Required Medical Examinations
Rule 126.6 Order for Required Medical Examinations
Chapter 134 Guidelines for Medical Services, Charges, and Payments
Rule
134.1003
Lower Extremities Treatment Guidelines (new)

The following amendments to rules will be effective December 2, 1997:

Chapter 102 Practice and Procedures-General Provisions
Rules 102.2 Gifts, Grants and Donations
Chapter 108 Fees
Rule 108.1 Charges for Copies of Public Information
Chapter 114 Self-Insurance
Rules 114.4 Security Requirements
Chapter 125 Education and Training of Ombudsman
Rule 125.1 Definitions
Rule 125.2 Ombudsman Training Program/ Continuing Education
Chapter 129 Income Benefits-temporary Income Benefits
Rules 129.3 Information Included with First
Payment of Temporary Income Benefits
Chapter 133 General Medical Provisions
Rule 133.103 Specific Medical Reports
Chapter 147 Dispute Resolution-Agreements, Settlements, Commutation
Rule 147.11 Notification of Commission of Proposed Judgements and Settlements
Chapter 166 Accident Prevention Services
Rule 166.1 Definition of Terms





Texas Health Care Information Council

During June, 1997, the Council adopted rules (25 TAC §§ 1301.31-1301.350) relating to requirements that health maintenance organizations report HEDIS performance measures to the Council for each calendar year by no later than the following July 1. Except for those HMOs which request and receive specific annual exemptions, all HMOs licensed to conduct business in Texas are covered. The specific performance measures required to be reported for calendar year 1997 were determined prior to November 15, 1997.

During July, 1997, the Council adopted rules (25 TAC §§ 1301.11-1301.19) relating to requirements that hospitals report certain data elements for each person who is discharged. All hospitals except federal institutions and facilities qualifying as "rural providers" under statutory authorization and administrative rule are covered. Proposed amendments to these rules are pending as of December 1, 1997.




Texas Commission on Jail Standards

The Texas Commission on Jail Standards considers that 223 jails regularly comply with required standards. Jails have a capacity of 66,084 with an inmate population of 56,604. Forty-three hundred and seventy-nine (4,379) prisoners from other states are included in the overall inmate total.




The Texas Board of Professional Engineers

Mission:

The Texas Legislature created the Texas Board of Professional Engineers in 1937 to license engineers, enforce the Texas Engineering Practice Act and regulate the practice of engineering throughout the state. The Governor appoints board members to administer the law and rules guiding the engineering profession. Currently, there are 47,000 licensed engineers practicing in 23 disciplines throughout Texas. The primary services the Board provides to professional engineers are licensing, enforcement, Continuing Professional Competency and public information.

Licensing:

A professional license allows engineers to legally represent themselves to the public as an engineer, offer consulting engineering services to private an public entities and perform engineering design or construction on public works. Licensed engineers must also adhere to the code of ethics and professionalism established by the Professional Engineers Board. Engineers may become licensed if the possess the educational and engineering requirements that are outlined in the Texas Engineering Practice Act. For more information, contact the licensing department at the board.

Enforcement:

The board and staff enforce the Texas Engineering Practice Act and rules of conduct on both licensed engineers and unlicensed impostors of engineers.

How to File a Complaint:

  1. Call the enforcement department to verify that the case is within the board's jurisdiction.
  2. Send a letter describing the details of the situation to enforcement; please provide sufficient evidence such as names of witnesses, plans, specifications, or other sources of proof with the letter.
  3. Return a completed complaint form to the board.

Law Update:

The 75th session of the Texas Legislature enacted Senate Bill 623 which provided sweeping changes to the licensing and professional practice regulations of the Texas Board of Professional Engineers. The new law and the rules enacting the legislation became effective September 1 of 1997. A few of the provisions of Senate Bill 623 have:
  1. Granted the board authority to issue administrative penalties or monetary fines for violations of the Act or Board rules.
  2. Granted the board authority to waive engineering examinations by board rule under certain circumstances.
  3. Required engineering business to employ a full-time, licensed engineer on staff to perform engineering services.
  4. Altered the name of the licensing agency from the "State Board of Registration for Professional Engineers" to the "Texas Board of Professional Engineers".
  5. Granted the board authority to issue temporary and provisional licenses.





Texas Water Development Board

Plans Underway for
2001 Water Plan

At its February meeting, the Texas Water Development Board will be considering adoption of rules to govern state and regional planning. The rules, to be published in late December in the Texas Register, implement Senate Bill 1, the comprehensive water bill passed by the 75th Texas Legislature.
As a result of the passage of SB1, cities, counties, water districts and other local entities are required to map out how they will conserve water supplies and respond to future droughts in their planning areas. Regional water planning groups, comprised of representatives of the various interests in an area, just plan how the area will meet future water supply needs. Planning areas to be designated by the TWDB are required to submit regional water plans to the TWDB for approval every five years beginning September 2000. The TWDB will incorporate approved regional water plans into the next comprehensive state water plan, which is due September 1, 2001. After 2001, TWDB financial assistance may be provided only to projects in areas with approved regional water plans and for projects that meet needs in a manner that is consistent with the approved regional water plan. In addition, the Texas Natural Resource Conservation Commission (TNRCC) may not issue a water right for municipal purposes unless it is consistent with an approved regional water plan after 2001.
A public hearing on the regional planning areas and the proposed rules will be held at 10:00 a.m. on Wednesday, January 21 in Austin at the Stephen F. Austin Building, Room 188, 1700 North Congress. The deadline for public comments on the proposed rules, including procedures or selecting the initial members of the regional planning groups, is January 26.
SB1 requires the TWDB to designate initial regional water planning group (RPG) representatives to serve as the initial coordinating body for each of the regional water planning areas. SB1 also requires that each RPG include at least one representative from each of the following 11 interests: public, counties, municipalities, industries, agricultural interests, environmental interests, small businesses, electric generating utilities, river authorities, water districts and water interests in their area.
The TWDB will accept nominations for 11 members on the initial RPG (one member per interest group) for each planning area through January 16. The TWDB encourages consensus nominees for ach of the 11 interests. The TWDB plans to present the initial RPG representative nominees to the Board for consideration and final approval at its February 19 meeting.
Each RPG is responsible for developing a regional water plan for its area that will provide for the orderly development, management and conservation of water resources.
To provide comments on the regional water planning areas or rules, please write Carolyn Brittin at the TWDB, P.O. Box 13231, Austin, TX 78711-3231, e-mail: SB1@twdb.state.tx.us or fax: 512/463-9893. The regional water planning areas and rules may be obtained by writing the TWDB; by contacting Diane Burr, phone 512/475-2057 or e-mail:

http://www.twdb.state.tx.us/www/twdb/sb1_hp.html.


TWDB Adopts 1997
State Water Plan

At its August meeting, the TWDB Board adopted the 1997 Update to the State Water Plan (Plan). The Texas Natural Resource Conservation Commission, the Texas Parks and Wildlife Department and other interested parties participated in developing the 1997 Plan, the first-ever, consensus-based state water plan. The Plan describes current and prospective water uses; identifies water supplies; matches these supplies to water uses and identifies needed water-related management measures, facility needs and costs; addresses environmental concerns; and offers program and policy recommendations to better manage thestate's water resources. This plan serves as Texas' water plan until the new state plan is adopted under the provisions of SB 1 in 2001.
The Plan estimates that water infrastructure needs and recommended projects will cost $65 billion during the next 50 years, mostly for local drinking water and wastewater treatment systems. The projects recommended in the Plan include eight major water supply reservoirs and 37 conveyance facilities, chloride control projects or reallocations/modifications of existing projects.

TWDB Receives $70 Million
for Drinking Water Projects

In October 1997, the TWDB received a $70 million grant from the U.S. Environmental Protection Agency (EPA) to establish a revolving loan fund to help assure safe and affordable drinking water for Texans. The Drinking Water State revolving Fund (DWSRF) is dedicated to public health protection and compliance with the federal Safe Drinking Water Act.
The TWDB is responsible for the financial administration of the DWSRF grant funds. The TWDB will match EPA's grant with $14 million in state General Obligation bond proceeds. the DWSRF is a low-interest state revolving fund that will be used to finance the planning, design and construction of public drinking water treatment and distribution systems, including upgrading and replacing existing infrastructure.
It is expected that additional federal grants and state matching funds will be made available through the year 2003 to assist Texas water systems in addressing approximately $12.36 billion in capital expenditures estimated by EPA to be needs during the next twenty years to comply with current and future requirements of the SDWA.
Texas' first-year DWSRF funds are allocated for financing drinking water projects as follows: $30.7 million for communities with populations less than 10,000 (small communities), $27.2 million for communities with populations of 10,000 or more (large communities) and $21 million for disadvantaged communities. Loans will be made within these allocations until funds are exhausted.
Using a priority rating system developed by the Texas Natural Resource Conservation Commission (TNRCC), the TWDB invited eligible applicants to submit applications for a DWSRF loan. Loan applications will be considered for approval during the next few months.
In addition, the TWDB is finalizing rules for disadvantaged communities so that DWSRF loan applications for these funds may be accepted, and the TWDB is developing rules needed to accept DWSRF loan applications from Privately-Owned Water systems.



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