By Luna                                               H.B. No. 3561
         76R933 JJT-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to grant-making authority of the Texas Natural Resource
 1-3     Conservation Commission.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter D, Chapter 5, Water Code, is amended
 1-6     by adding Section 5.124 to read as follows:
 1-7           Sec. 5.124.  AUTHORITY TO AWARD GRANTS.  (a)  With the
 1-8     consent of the commission, the executive director may award grants
 1-9     for any purpose regarding resource conservation or environmental
1-10     protection in accordance with this section.
1-11           (b)  The commission by rule shall establish procedures for
1-12     awarding a grant, for making any determination related to awarding
1-13     a grant, and for making grant payments.
1-14           (c)  Each activity funded by a grant must directly relate to
1-15     a purpose specified in the grant.  A grant may be awarded only for
1-16     a purpose consistent with the commission's jurisdiction and
1-17     purposes under law, including:
1-18                 (1)  the development or implementation of a
1-19     comprehensive conservation and management plan under Section 320,
1-20     Federal Water Pollution Control Act (42 U.S.C. Section 1330), for a
1-21     designated national estuary in this state;
1-22                 (2)  a demonstration project that involves new
1-23     techniques for pollution prevention, energy or resource
1-24     conservation, or waste management;
 2-1                 (3)  an environmental purpose identified in a federal
 2-2     grant that is intended as a pass-through grant;
 2-3                 (4)  development or improvement of monitoring or
 2-4     modeling techniques for water or air quality;
 2-5                 (5)  support of a local air pollution program; or
 2-6                 (6)  a study or program related to efforts to  prevent
 2-7     an area that is near nonattainment with federal air quality
 2-8     standards from reaching nonattainment status.
 2-9           (d)  A grant may be awarded to any person that meets the
2-10     eligibility requirements of the grant.  The executive director
2-11     shall establish eligibility requirements for each grant appropriate
2-12     to the purposes of and activities under the grant and the  method
2-13     of selecting the recipient.
2-14           (e)  Selection of grant recipients must be by solicitation of
2-15     a proposal or application except as provided by Subsections (f) and
2-16     (g).  The executive director may specify any selection criterion
2-17     the executive director considers relevant to the grant.  Selection
2-18     criteria must address:
2-19                 (1)  evaluation and scoring of:
2-20                       (A)  fiscal controls;
2-21                       (B)  project effectiveness;
2-22                       (C)  project cost; and
2-23                       (D)  previous experience with grants and
2-24     contracts; and
2-25                 (2)  the possibility and method of making multiple
2-26     awards.
2-27           (f)  A grant may be made by direct award only if:
 3-1                 (1)  the executive director determines that:
 3-2                       (A)  selection of recipients by the solicitation
 3-3     of proposals or applications is not feasible; and
 3-4                       (B)  awarding the grant directly is in the best
 3-5     interest of the state;
 3-6                 (2)  eligibility for the grant is limited to:
 3-7                       (A)  an agency or political subdivision of this
 3-8     state or of another state;
 3-9                       (B)  a state institution of higher learning of
3-10     this state or of another state, including any part or service of
3-11     the institution; or
3-12                       (C)  an agency of the United States; or
3-13                 (3)  the grant is awarded to a person established or
3-14     authorized to develop or implement a comprehensive conservation and
3-15     management plan under Section 320, Federal Water Pollution Control
3-16     Act (42 U.S.C. Section 1330), for a national estuary in this state.
3-17           (g)  If a solicitation of a proposal is made for the purpose
3-18     of identifying a partner for a joint application for a federal
3-19     grant that is subsequently awarded to the commission, the executive
3-20     director is not required to make an additional solicitation for
3-21     entering into a pass-through grant with an identified partner.
3-22           (h)  The executive director shall publish information
3-23     regarding a solicitation related to a grant to be awarded under
3-24     this section on the commission's electronic business daily in the
3-25     manner provided by Section 2155.074, Government Code, as added by
3-26     Section 1, Chapter 508, Acts of the 75th Legislature, Regular
3-27     Session, 1997.
 4-1           (i)  For a grant awarded under this section, the commission
 4-2     may use:
 4-3                 (1)  money appropriated for grant-making purposes;
 4-4                 (2)  federal money granted for making pass-through
 4-5     grants; and
 4-6                 (3)  state or federal grant money appropriated for a
 4-7     purpose that the executive director determines is consistent with a
 4-8     purpose of the grant from the commission.
 4-9           SECTION 2.  (a)  The changes in law made by Section 5.124,
4-10     Water Code, as added by this Act, apply only to a grant made by the
4-11     Texas Natural Resource Conservation Commission on or after the
4-12     effective date of this Act and to a grant being considered by the
4-13     Texas Natural Resource Conservation Commission on the effective
4-14     date of this Act.
4-15           (b)  The changes in law made by Section 5.124, Water Code, as
4-16     added by this Act, do not affect the validity of or apply to a
4-17     grant the Texas Natural Resource Conservation Commission made
4-18     before the effective date of this Act.
4-19           (c)  The commission may award a grant that, on the effective
4-20     date of this Act, is being considered under, or for which a
4-21     solicitation for proposals has been issued or an application has
4-22     been received under, authority other than Section 5.124, Water
4-23     Code, as added by this Act:
4-24                 (1)  under the other authority without regard to the
4-25     requirements of Section 5.124, Water Code; or
4-26                 (2)  under the authority of Section 5.124, Water Code,
4-27     notwithstanding that grant was considered, the solicitation was
 5-1     issued, or the application was received under the other authority.
 5-2           SECTION 3.  This Act takes effect September 1, 1999.
 5-3           SECTION 4.  The importance of this legislation and the
 5-4     crowded condition of the calendars in both houses create an
 5-5     emergency and an imperative public necessity that the
 5-6     constitutional rule requiring bills to be read on three several
 5-7     days in each house be suspended, and this rule is hereby suspended.