BILL ANALYSIS C.S.S.B. 1509 By: Zaffirini Int'l Relations, Trade & Tech. 4-20-95 Committee Report (Substituted) BACKGROUND Currently, more than 1,200 colonias exist along the Texas-Mexico border. Colonias are substandard, rural subdivisions lacking adequate water, wastewater, and utility services. People live in colonias because affordable housing in the cities is not available. As urban areas expand, local governments are confronted with entire subdivisions of substandard housing, making it difficult for cities to annex colonias and provide services. PURPOSE As proposed, C.S.S.B. 1509 creates colonia self-help centers to provide home finance assistance, counseling, a tool library, instruction, and technical assistance on installation and financing for septic systems. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not grant any additional rulemaking authority to a state officer, institution, or agency. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 2306, Government Code, by adding Subchapter Z, as follows: SUBCHAPTER Z. COLONIA SELF-HELP CENTERS Sec. 2306.581. DEFINITION. Defines "colonia," and "community action agency." Sec. 2306.582. COLONIA SELF-HELP CENTERS: ESTABLISHMENT. (a) Requires the Department of Housing and Community Affairs (department) to establish colonia self-help centers for the colonias in El Paso, Hidalgo, Starr, and Webb counties and in Cameron County to serve Cameron and Willacy counties. Authorizes the department, if the department determines it necessary, to establish a self-help center in any other county if the county is designated economically distressed under Chapter 17, Water Code. (b) Requires the department to attempt to secure contributions, services, facilities, or operating support from the commissioners court of the county in which the self-help center is located to support the operation of the center. Sec. 2306.583. SELF-HELP CENTERS: DESIGNATION. (a) Requires the department to designate a geographic area for the services provided by each center and five colonias in each service area to receive the concentrated attention from that center. (b) Authorizes the department to change the designation of colonias. Sec. 2306.584. COLONIA ADVISORY COMMITTEE. (a) Requires the department to appoint not fewer than five residents of colonias to serve as an advisory committee for each center. Requires the members of the advisory committee to be selected from lists of candidates submitted to the department by local nonprofit organizations and the commissioners court of a county that the center serves. (b) Requires the department to appoint one member to represent each colonia in each of the counties in which centers are located. Sets forth criteria the member must meet. Sec. 2306.585. DUTIES OF COMMITTEE. (a) Requires the committee to advise the department regarding the needs of the community and the operation of the center. (b) Requires the committee to meet at least 30 days prior to the date a contract is scheduled to be awarded for the operation of a center and authorizes the committee to meet at other times. Sec. 2306.586. SELF-HELP CENTER: PURPOSE AND SERVICES. (a) Sets forth the purpose of a self-help center. (b) Requires a center to set a goal to improve the living conditions of the residents of the colonias within a two-year period after a contract is awarded. (c) Authorizes a center to serve individuals and families of low income and very low income by providing various services. (d) Prohibits a center from providing grants, financing, or mortgage loan services to purchase, build, rehabilitate, or finance construction or improvements to a home in a colonia if water service and suitable wastewater disposal are not available. Sec. 2306.587. OPERATION OF SELF-HELP CENTER. (a) Requires the department to contract for the operation of a center with a local nonprofit organization, local community action agency, or local housing authority that has demonstrated the ability to carry out the functions of a center. (b) Authorizes the department and centers to apply for and receive public or private gifts or grants. Sec. 2306.588. DEPARTMENT LIAISON TO SELF-HELP CENTERS. (a) Requires the department to designate appropriate staff in the department to act as liaison to the centers to assist the centers in obtaining funding. (b) Requires the department to make a reasonable effort to secure an adequate level of funding for various necessary center activities. Sec. 2306.589. COLONIA SET-ASIDE FUND. (a) Requires the department to establish a fund in the department designated as the colonia set-aside fund. (b) Authorizes the department to use money in the colonia set-aside fund for specific activities that assist colonias. (c) Authorizes the department to review and approve an application for funding from the colonia set-aside fund that advances the policy and goals of the state in addressing the problems in the colonias. SECTION 2. Requires the department to allocate not less than 12.5 percent of the yearly allocation of Community Development Block Grants funds to the colonia set-aside fund. Requires the department to allocate an amount from the colonia set-aside fund that is not less than 2.5 percent of the yearly allocation of Community Development Block Grants funds for funding and operation of the colonia self-help centers. SECTION 3. Effective date: September 1, 1995. SECTION 4. Emergency clause.