1. (a) For eligible public applicants and eligible NPNC applicants that are also eligible public applicants, an application shall be in the form and numbers prescribed by the executive administrator and, in addition to any other information that may be required by the executive administrator or the board, the applicant shall provide:

   1. (1) a resolution from its governing body which shall:

      1. (A) request financial assistance and identify the amount of requested assistance;
      2. (B) designate the authorized representative to act on behalf of the governing body; and
      3. (C) authorize the representative to execute the application, appear before the board on behalf of the applicant, and submit such other documentation as may be required by the executive

   2. (2) a notarized affidavit from the authorized representative stating that:

      1. (A) or a political subdivision, the decision to request financial assistance from the board was made in a public meeting held in accordance with the Open Meetings Act (Government Code, §551.001, et seq.) and after providing all such notice as required by such Act as is applicable to the applicant or, for a corporation, that the decision to request financial assistance from the board was made in a meeting open to all customers and after providing all customers written notice at least 72 hours prior to such meeting that a decision to request public assistance would be made during such meeting;
      2. (B) the information submitted in the application is true and correct according to best knowledge and belief of the representative;
      3. (C) the applicant has no outstanding judgments, orders, fines, penalties, taxes, assessment or other enforcement or compliance issue of any kind or nature by EPA, the commission, Texas Comptroller, Texas Secretary of State, or any other federal, state or local government or identifying such judgments, orders, fines, penalties, taxes, assessment or other enforcement or compliance issue as may be outstanding for the applicant;
      4. (D) the applicant warrants compliance with the representations made in the application in the event that the board provides the financial assistance; and
      5. (E) the applicant will comply with all applicable federal laws, rules, and regulations as well as the laws of this state and the rules and regulations of the board;
   3. (3) copies of any proposed or existing contracts for consultant financial advisory, engineering, and bond counsel services to be used by the applicant in applying for financial assistance or constructing the proposed project. Contracts for engineering services should include the scope of services, level of effort, costs, schedules, and other information necessary for adequate review by the executive administrator;
   4. (4) a citation to the specific legal authority in the Texas Constitution and statutes pursuant to which the applicant is authorized to provide the service for which the applicant is receiving financial assistance as well as the legal documentation identifying and establishing the legal existence of the applicant as may be deemed necessary by the executive administrator;
   5. (5) if the applicant provides or will provide water supply or treatment service to another service provider, or receives such service from another service provider, the proposed agreement, contract, or other documentation which legally establishes such service relationship, with the final and binding agreements provided prior to closing;
   6. (6) documentation of the ownership interest, with supporting legal documentation, of property on which proposed project shall be located, or if the property is to be acquired, certification that the applicant has the necessary legal power and authority to acquire the property;
   7. (7) if financing of the project will require contractual loan agreement or the sale of bonds to the board payable either wholly or in part from revenues of contracts with others, a copy of any actual or proposed contracts under which applicant's gross income is expected to accrue. Before a loan is closed, an applicant shall submit executed copies of such contracts to the executive administrator;
   8. (8) if bonds to be sold to the board are revenue bonds secured by a subordinate lien, a copy of the authorizing instrument of the governing body in the issuance of the prior lien bonds shall be furnished; and
   9. (9) if a bond election is required by law to authorize the issuance of bonds to finance the project, the executive administrator may require applicant to provide the election date and election results as to each proposition necessary for the issuance of the bonds to the board as part of the application.

2. (b) For eligible private applicants and eligible NPNC applicants that are not also eligible public applicants, an application shall be in the form and numbers prescribed by the executive administrator, and, in addition to any other information that may be required by the executive administrator or the board, such applicant shall provide:

   1. (1) the legal documentation identifying and establishing the legal existence of the applicant, including articles of incorporation with certificate of good standing or partnership agreements;
   2. (2) the documentation identifying and establishing full legal and equitable ownership interests of the real and personal property that constitute the water system held by the applicant;

   3. (3) if the documentation of ownership indicates that the applicant is a legal entity other than a sole proprietorship, the applicant shall provide:

      1. (A) identification of any affiliated interests or affiliates; and

      2. (B) a notarized statement from each entity holding an ownership interest:

         1. (i) identifying an individual whom may act as the representative on behalf of each legal entity which has been identified as maintaining an ownership interest in the applicant;
         2. (ii) authorizing such representative to submit an application for financial assistance and such other documentation as may be required by the executive administrator;

   4. (4) identification of the authority to provide the service for which the assistance is requested which shall include:

      1. (A) a map of area served acceptable to the executive administrator;
      2. (B) if the applicant provides or will provide water supply or treatment service to another service provider, or receives such service from another service provider, the proposed agreement, contract, or other documentation which legally establish such service relationship, with the final and binding agreements provided prior to closing; and
      3. (C) for utilities, as defined pursuant to commission rules, the Certificate of Public Convenience and Necessity number and a service area map;

   5. (5) a notarized affidavit by the designated representative of the applicant:

      1. (A) for eligible private applicants, stating that the decision to request financial assistance from the board was made in a meeting open to all customers and after providing all customers written notice at least 72 hours prior to the meeting that a decision to request public assistance would be made during such meeting;
      2. (B) requesting financial assistance and identifying the amount of requested assistance;
      3. (C) stating that the information submitted in the application is true and correct according to belief and knowledge of the representative;
      4. (D) stating that the applicant or any of its affiliates or affiliated interests has no outstanding judgments, orders, fines, penalties, taxes, assessment or other enforcement or compliance issue of any kind or nature by EPA, the commission, Texas Comptroller, Texas Secretary of State, or any other federal, state or local government or identifying such judgments, orders, fines, penalties, taxes, assessment or other enforcement or compliance issue as may be outstanding against the applicant or any of its affiliates or affiliated interests;
      5. (E) stating that each entity with a ownership interest warrants compliance with representations made in the application in the event that the board provides the financial assistance; and
      6. (F) assuring compliance with all applicable federal laws, rules, and regulations as well as the laws of this state and the rules and regulations of the board;
   6. (6) copies of proposed or existing contracts for consultant financial advisory, engineering, and bond counsel services to be used by the applicant in applying for financial assistance or constructing the proposed project and included as part of the total cost of the project. Contracts with consulting engineers shall include the scope of services, level of effort, costs, schedules, and other information necessary for adequate review by the executive administrator;

   7. (7) a business plan that:

      1. (A) identifies by month for the next 18 months, or for the time period of project construction, whichever is longer, anticipated revenues, including any anticipated rate increases, and anticipated expenditures; and
      2. (B) provides five year historical data on system revenue and expenditures;
   8. (8) copies of the federal income tax returns for applicant for the two previous tax years;
   9. (9) documentation of any bankruptcy proceedings for the applicant or any affiliated interests or affiliates for the preceding five years or a sworn statement that the applicant or any affiliated interests or affiliates has not been a party to a bankruptcy proceeding for the preceding five years;
   10. (10) if any part of the community water system has been pledged or otherwise used as security for any other indebtedness of the applicant or an affiliate or affiliated interest, a copy of the outstanding indebtedness;
   11. (11) if financing of the project will require contractual loan agreement or the sale of bonds to the board payable either wholly or in part from revenues of contracts with others, a copy of any actual or proposed contracts under which applicant's gross income is expected to accrue. Before a loan is closed, an applicant shall submit executed copies of such contracts to the executive administrator;
   12. (12) if the applicant is required to utilize a surcharge pursuant to §371.33 of this title (relating to Surcharge) or otherwise intends to rely on an increase in the rate that it is charging in order to repay the requested financial assistance, a copy of the acknowledgment from the commission that the proposed rate change filing has been received; and
   13. (13) an audit of the applicant for the preceding year prepared in accordance with generally accepted auditing standards by a certified public accountant or licensed public accountant.

Source Note:The provisions of this §371.32 adopted to be effective June 10, 1998, 23 TexReg 5980; amended to be effective October 8, 1998, 23 TexReg 10042; amended to be effective December 4, 2001, 26 TexReg 9911.