1-1  By:  Zaffirini, et al.                                S.B. No. 1509
    1-2        (In the Senate - Filed March 13, 1995; March 22, 1995, read
    1-3  first time and referred to Committee on International Relations,
    1-4  Trade, and Technology; April 19, 1995, reported adversely, with
    1-5  favorable Committee Substitute by the following vote:  Yeas 7, Nays
    1-6  1; April 19, 1995, sent to printer.)
    1-7  COMMITTEE SUBSTITUTE FOR S.B. No. 1509                   By:  Truan
    1-8                         A BILL TO BE ENTITLED
    1-9                                AN ACT
   1-10  relating to the establishment of colonia self-help centers in
   1-11  certain counties.
   1-12        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
   1-13        SECTION 1.  Chapter 2306, Government Code, is amended by
   1-14  adding Subchapter Z to read as follows:
   1-15               SUBCHAPTER Z.  COLONIA SELF-HELP CENTERS
   1-16        Sec. 2306.581.  DEFINITION.  In this subchapter:
   1-17              (1)  "Colonia" means a geographic area located in a
   1-18  county some part of which is within 150 miles of the international
   1-19  border of this state and that:
   1-20                    (A)  has a majority population composed of
   1-21  individuals and families of low income and very low income, based
   1-22  on the federal Office of Management and Budget poverty index, and
   1-23  meets the qualifications of an economically distressed area under
   1-24  Section 17.921, Water Code; or
   1-25                    (B)  has the physical and economic
   1-26  characteristics of a colonia, as determined by the department.
   1-27              (2)  "Community action agency" means a political
   1-28  subdivision, combination of political subdivisions, or nonprofit
   1-29  organization that qualifies as an eligible entity under 42 U.S.C.
   1-30  Section 9902.
   1-31        Sec. 2306.582.  COLONIA SELF-HELP CENTERS:  ESTABLISHMENT.
   1-32  (a)  The department shall establish colonia self-help centers in El
   1-33  Paso, Hidalgo, Starr, and Webb counties, and in Cameron County to
   1-34  serve Cameron and Willacy counties.  If the department determines
   1-35  it necessary and appropriate, the department may establish a
   1-36  self-help center in any other county if the county is designated as
   1-37  an economically distressed area under Chapter 17, Water Code, for
   1-38  purposes of eligibility to receive funds from the Texas Water
   1-39  Development Board.
   1-40        (b)  The department shall attempt to secure contributions,
   1-41  services, facilities, or operating support from the commissioners
   1-42  court of the county in which the self-help center is located to
   1-43  support the operation of the self-help center.
   1-44        Sec. 2306.583.  SELF-HELP CENTERS:  DESIGNATION.  (a)  The
   1-45  department shall designate:
   1-46              (1)  a geographic area for the services provided by
   1-47  each self-help center; and
   1-48              (2)  five colonias in each service area to receive
   1-49  concentrated attention from that center.
   1-50        (b)  The department may change the designation of colonias
   1-51  made under Subsection (a)(2).
   1-52        Sec. 2306.584.  COLONIA ADVISORY COMMITTEE.  (a)  The
   1-53  department shall appoint not fewer than five persons who are
   1-54  residents of colonias to serve as an advisory committee for each
   1-55  self-help center.  The members of the advisory committee shall be
   1-56  selected from lists of candidates submitted to the department by
   1-57  local nonprofit organizations and the commissioners court of a
   1-58  county that the self-help center serves.
   1-59        (b)  The department shall appoint one committee member to
   1-60  represent each colonia in each of the counties in which self-help
   1-61  centers are located.  A committee member:
   1-62              (1)  must be a resident of a colonia in the county the
   1-63  member represents; and
   1-64              (2)  may not be affiliated with an entity that is
   1-65  awarded a contract under this subchapter.
   1-66        Sec. 2306.585.  DUTIES OF COMMITTEE.  (a)  The committee
   1-67  shall advise the department regarding:
   1-68              (1)  the needs of colonia residents;
    2-1              (2)  appropriate and effective programs that are
    2-2  proposed or are operated through the self-help centers; and
    2-3              (3)  activities that may be undertaken through the
    2-4  self-help centers to better serve the needs of colonia residents.
    2-5        (b)  The committee shall meet before the 30th day preceding
    2-6  the date on which a contract is scheduled to be awarded for the
    2-7  operation of a self-help center and may meet at other times.
    2-8        Sec. 2306.586.  SELF-HELP CENTER: PURPOSE AND SERVICES.
    2-9  (a)  The purpose of a self-help center is to assist individuals and
   2-10  families of low income and very low income to finance, refinance,
   2-11  construct, improve, or maintain a safe, suitable home in the
   2-12  colonias' designated service area or in another area the department
   2-13  has determined is suitable.
   2-14        (b)  A self-help center shall set a goal to improve the
   2-15  living conditions of residents in the colonias designated under
   2-16  Section 2306.583(a)(2) within a two-year period after a contract is
   2-17  awarded under this subchapter.
   2-18        (c)  A self-help center may serve individuals and families of
   2-19  low income and very low income by:
   2-20              (1)  providing assistance in obtaining loans or grants
   2-21  to build a home;
   2-22              (2)  teaching construction skills necessary to repair
   2-23  or build a home;
   2-24              (3)  providing model home plans;
   2-25              (4)  operating a program to rent or provide tools for
   2-26  home construction and improvement for the benefit of property
   2-27  owners in colonias who are building or repairing a residence or
   2-28  installing necessary residential infrastructure;
   2-29              (5)  helping to obtain, construct, access, or improve
   2-30  the service and utility infrastructure designed to service
   2-31  residences in a colonia, including potable water, wastewater
   2-32  disposal, drainage, streets, and utilities;
   2-33              (6)  surveying or platting residential property that an
   2-34  individual purchased without the benefit of a legal survey, plat,
   2-35  or record;
   2-36              (7)  providing credit and debt counseling related to
   2-37  home purchase and finance;
   2-38              (8)  applying for grants and loans to provide housing
   2-39  and other needed community improvements;
   2-40              (9)  providing other services that the self-help
   2-41  center, with the approval of the department, determines are
   2-42  necessary to assist colonia residents in improving their physical
   2-43  living conditions, including help in obtaining suitable alternative
   2-44  housing outside of a colonia's area; and
   2-45              (10)  providing assistance in obtaining loans or grants
   2-46  to enable an individual or a family to acquire fee simple title to
   2-47  property that originally was purchased under a contract for a deed,
   2-48  contract for sale, or other executory contract.
   2-49        (d)  A self-help center may not provide grants, financing, or
   2-50  mortgage loan services to purchase, build, rehabilitate, or finance
   2-51  construction or improvements to a home in a colonia if water
   2-52  service and suitable wastewater disposal are not available.
   2-53        Sec. 2306.587.  OPERATION OF SELF-HELP CENTER.  The
   2-54  department shall contract for the operation of a self-help center
   2-55  with a local nonprofit organization, local community action agency,
   2-56  or local housing authority that has demonstrated the ability to
   2-57  carry out the functions  of a self-help center under this
   2-58  subchapter.
   2-59        (b)  The department and the self-help centers may apply for
   2-60  and receive public or private gifts or grants to enable the centers
   2-61  to achieve their purpose.
   2-62        Sec. 2306.588.  DEPARTMENT LIAISON TO SELF-HELP CENTERS.
   2-63  (a)  The department shall designate appropriate staff in the
   2-64  department to act as liaison to the self-help centers to assist the
   2-65  centers in obtaining funding to enable the centers to carry out the
   2-66  centers' programs.
   2-67        (b)  The department shall make a reasonable effort to secure
   2-68  an adequate level of funding to provide the self-help centers with
   2-69  funds for low-interest mortgage financing, grants for self-help
   2-70  programs, a revolving loan fund for septic tanks, a tool-lending
    3-1  program, and other activities the department determines are
    3-2  necessary.
    3-3        Sec. 2306.589.  COLONIA SET-ASIDE FUND.  (a)  The department
    3-4  shall establish a fund in the department designated as the colonia
    3-5  set-aside fund.
    3-6        (b)  The department may use money in the colonia set-aside
    3-7  fund for specific activities that assist colonias, including:
    3-8              (1)  the operation and activities of the self-help
    3-9  centers established under this subchapter; or
   3-10              (2)  reimbursement of colonia advisory committee
   3-11  members for their reasonable expenses in the manner provided by
   3-12  Article 6252-33, Revised Statutes, or the General Appropriations
   3-13  Act.
   3-14        (c)  The department may review and approve an application for
   3-15  funding from the colonia set-aside fund that advances the policy
   3-16  and goals of the state in addressing problems in the colonias.
   3-17        SECTION 2.  The Texas Department of Housing and Community
   3-18  Affairs shall allocate not less than 12.5 percent of the yearly
   3-19  allocation of community development block grant funds received from
   3-20  the United States Department of Housing and Urban Development to
   3-21  the colonia set-aside fund to achieve the purposes of Subchapter Z,
   3-22  Chapter 2306, Government Code, as added by this Act.  The
   3-23  department shall allocate an amount from the colonia set-aside fund
   3-24  that is not less than two and one-half percent of the yearly
   3-25  allocation of community development block grant funds received from
   3-26  the United States Department of Housing and Urban Development for
   3-27  funding the operation of the colonia self-help centers.
   3-28        SECTION 3.  This Act takes effect September 1, 1995.
   3-29        SECTION 4.  The importance of this legislation and the
   3-30  crowded condition of the calendars in both houses create an
   3-31  emergency and an imperative public necessity that the
   3-32  constitutional rule requiring bills to be read on three several
   3-33  days in each house be suspended, and this rule is hereby suspended.
   3-34                               * * * * *