S.B. No. 1509
                                        AN ACT
    1-1  relating to the establishment of colonia self-help centers in
    1-2  certain counties.
    1-3        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-4        SECTION 1.  Chapter 2306, Government Code, is amended by
    1-5  adding Subchapter Z to read as follows:
    1-6               SUBCHAPTER Z.  COLONIA SELF-HELP CENTERS
    1-7        Sec. 2306.581.  DEFINITION.  In this subchapter:
    1-8              (1)  "Colonia" means a geographic area located in a
    1-9  county some part of which is within 150 miles of the international
   1-10  border of this state and that:
   1-11                    (A)  has a majority population composed of
   1-12  individuals and families of low income and very low income, based
   1-13  on the federal Office of Management and Budget poverty index, and
   1-14  meets the qualifications of an economically distressed area under
   1-15  Section 17.921, Water Code; or
   1-16                    (B)  has the physical and economic
   1-17  characteristics of a colonia, as determined by the department.
   1-18              (2)  "Community action agency" means a political
   1-19  subdivision, combination of political subdivisions, or nonprofit
   1-20  organization that qualifies as an eligible entity under 42 U.S.C.
   1-21  Section 9902.
   1-22        Sec. 2306.582.  COLONIA SELF-HELP CENTERS:  ESTABLISHMENT.
   1-23  (a)  The department shall establish colonia self-help centers in El
   1-24  Paso, Hidalgo, Starr, and Webb counties, and in Cameron County to
    2-1  serve Cameron and Willacy counties.  If the department determines
    2-2  it necessary and appropriate, the department may establish a
    2-3  self-help center in any other county if the county is designated as
    2-4  an economically distressed area under Chapter 17, Water Code, for
    2-5  purposes of eligibility to receive funds from the Texas Water
    2-6  Development Board.
    2-7        (b)  The department shall attempt to secure contributions,
    2-8  services, facilities, or operating support from the commissioners
    2-9  court of the county in which the self-help center is located to
   2-10  support the operation of the self-help center.
   2-11        Sec. 2306.583.  SELF-HELP CENTERS:  DESIGNATION.  (a)  The
   2-12  department shall designate:
   2-13              (1)  a geographic area for the services provided by
   2-14  each self-help center; and
   2-15              (2)  five colonias in each service area to receive
   2-16  concentrated attention from that center.
   2-17        (b)  The department may change the designation of colonias
   2-18  made under Subsection (a)(2).
   2-19        Sec. 2306.584.  COLONIA ADVISORY COMMITTEE.  (a)  The
   2-20  department shall appoint not fewer than five persons who are
   2-21  residents of colonias to serve on an advisory committee.  The
   2-22  members of the advisory committee shall be selected from lists of
   2-23  candidates submitted to the department by local nonprofit
   2-24  organizations and the commissioners court of a county in which a
   2-25  self-help center is located.
   2-26        (b)  The department shall appoint one committee member to
   2-27  represent each of the counties in which self-help centers are
    3-1  located.  Each committee member:
    3-2              (1)  must be a resident of a colonia in the county the
    3-3  member represents; and
    3-4              (2)  may not be a board member, contractor, or employee
    3-5  of or have any ownership interest in an entity that is awarded a
    3-6  contract under this subchapter.
    3-7        Sec. 2306.585.  DUTIES OF COMMITTEE.  (a)  The committee
    3-8  shall advise the department regarding:
    3-9              (1)  the needs of colonia residents;
   3-10              (2)  appropriate and effective programs that are
   3-11  proposed or are operated through the self-help centers; and
   3-12              (3)  activities that may be undertaken through the
   3-13  self-help centers to better serve the needs of colonia residents.
   3-14        (b)  The committee shall meet before the 30th day preceding
   3-15  the date on which a contract is scheduled to be awarded for the
   3-16  operation of a self-help center and may meet at other times.
   3-17        Sec. 2306.586.  SELF-HELP CENTER: PURPOSE AND SERVICES.
   3-18  (a)  The purpose of a self-help center is to assist individuals and
   3-19  families of low income and very low income to finance, refinance,
   3-20  construct, improve, or maintain a safe, suitable home in the
   3-21  colonias' designated service area or in another area the department
   3-22  has determined is suitable.
   3-23        (b)  A self-help center shall set a goal to improve the
   3-24  living conditions of residents in the colonias designated under
   3-25  Section 2306.583(a)(2) within a two-year period after a contract is
   3-26  awarded under this subchapter.
   3-27        (c)  A self-help center may serve individuals and families of
    4-1  low income and very low income by:
    4-2              (1)  providing assistance in obtaining loans or grants
    4-3  to build a home;
    4-4              (2)  teaching construction skills necessary to repair
    4-5  or build a home;
    4-6              (3)  providing model home plans;
    4-7              (4)  operating a program to rent or provide tools for
    4-8  home construction and improvement for the benefit of property
    4-9  owners in colonias who are building or repairing a residence or
   4-10  installing necessary residential infrastructure;
   4-11              (5)  helping to obtain, construct, access, or improve
   4-12  the service and utility infrastructure designed to service
   4-13  residences in a colonia, including potable water, wastewater
   4-14  disposal, drainage, streets, and utilities;
   4-15              (6)  surveying or platting residential property that an
   4-16  individual purchased without the benefit of a legal survey, plat,
   4-17  or record;
   4-18              (7)  providing credit and debt counseling related to
   4-19  home purchase and finance;
   4-20              (8)  applying for grants and loans to provide housing
   4-21  and other needed community improvements;
   4-22              (9)  providing other services that the self-help
   4-23  center, with the approval of the department, determines are
   4-24  necessary to assist colonia residents in improving their physical
   4-25  living conditions, including help in obtaining suitable alternative
   4-26  housing outside of a colonia's area; and
   4-27              (10)  providing assistance in obtaining loans or grants
    5-1  to enable an individual or a family to acquire fee simple title to
    5-2  property that originally was purchased under a contract for a deed,
    5-3  contract for sale, or other executory contract.
    5-4        (d)  A self-help center may not provide grants, financing, or
    5-5  mortgage loan services to purchase, build, rehabilitate, or finance
    5-6  construction or improvements to a home in a colonia if water
    5-7  service and suitable wastewater disposal are not available.
    5-8        Sec. 2306.587.  OPERATION OF SELF-HELP CENTER.  (a)  The
    5-9  department shall contract for the operation of a self-help center
   5-10  with a local nonprofit organization, local community action agency,
   5-11  or local housing authority that has demonstrated the ability to
   5-12  carry out the functions  of a self-help center under this
   5-13  subchapter.
   5-14        (b)  The department and the self-help centers may apply for
   5-15  and receive public or private gifts or grants to enable the centers
   5-16  to achieve their purpose.
   5-17        Sec. 2306.588.  DEPARTMENT LIAISON TO SELF-HELP CENTERS.
   5-18  (a)  The department shall designate appropriate staff in the
   5-19  department to act as liaison to the self-help centers to assist the
   5-20  centers in obtaining funding to enable the centers to carry out the
   5-21  centers' programs.
   5-22        (b)  The department shall make a reasonable effort to secure
   5-23  an adequate level of funding to provide the self-help centers with
   5-24  funds for low-interest mortgage financing, grants for self-help
   5-25  programs, a revolving loan fund for septic tanks, a tool-lending
   5-26  program, and other activities the department determines are
   5-27  necessary.
    6-1        Sec. 2306.589.  COLONIA SET-ASIDE FUND.  (a)  The department
    6-2  shall establish a fund in the department designated as the colonia
    6-3  set-aside fund.
    6-4        (b)  The department may use money in the colonia set-aside
    6-5  fund for specific activities that assist colonias, including:
    6-6              (1)  the operation and activities of the self-help
    6-7  centers established under this subchapter; or
    6-8              (2)  reimbursement of colonia advisory committee
    6-9  members for their reasonable expenses in the manner provided by
   6-10  Article 6252-33, Revised Statutes, or the General Appropriations
   6-11  Act.
   6-12        (c)  The department may review and approve an application for
   6-13  funding from the colonia set-aside fund that advances the policy
   6-14  and goals of the state in addressing problems in the colonias.
   6-15        SECTION 2.  This Act takes effect September 1, 1995.
   6-16        SECTION 3.  The importance of this legislation and the
   6-17  crowded condition of the calendars in both houses create an
   6-18  emergency and an imperative public necessity that the
   6-19  constitutional rule requiring bills to be read on three several
   6-20  days in each house be suspended, and this rule is hereby suspended.