SRC-CTC H.B. 2776 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 2776
By: Wise (Sponsor Unknown)
Business & Commerce
5/11/2001
Engrossed


DIGEST AND PURPOSE 

In Texas, nonprofit organizations (organizations)  have helped colonia
residents build their own water and wastewater projects.  The legislature
had endorsed the concept of self-help work in colonias by funding the
bootstrap loan program at the Texas Department of Housing and Community
Affairs and by adopting legislation to allow self-help plumbing projects in
colonias administered through the Texas Natural Resource Conservation
Commission. By building their own  water or wastewater projects, colonia
residents may save up to 40 percent of the cost of a traditional project.
Moreover, organizations may leverage state funds to bring funding sources
into the colonia.  H.B. 2776 creates a colonia self-help program and
creates the colonia self-help account to fund various projects to improve
the condition in colonias.  

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Texas Water Development
Board in SECTION 4 (Section 15.908, Water Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  LEGISLATIVE FINDINGS.  Sets forth the legislative findings of
this bill. 

SECTION 2.  Amends Section 15.008, Water Code, to provide that the law
regarding uniform grants and contract management, Chapter 783, Government
Code, rather than the Uniform Grant and Contract and Management Act of 1981
(Article 4413(32g), V.T.C.S., does not apply to a contract under Subchapter
F, H, K, or O. 

SECTION 3.  Amends Section 15.011(b), Water Code, to authorize the Texas
Water Development Board (board), after notice and hearing and subject to
any limitations established by the General Appropriations Act, to transfer
from money from water assistance fund to the colonia self-help account
created under Subchapter O.  Makes nonsubstantive changes. 

SECTION 4.  Amends Chapter 15, Water Code, by adding Subchapter O, as
follows: 

SUBCHAPTER O.  COLONIA SELF-HELP PROGRAM

Sec. 15.901.  DEFINITIONS.  Defines "account," "colonia," "program,"
"retail public utility," and "self-help project." 

Sec. 15.902.  CREATION OF ACCOUNT.  Provides that the colonia self-help
account is an account in the general revenue fund that may be appropriated
only for the purposes of this subchapter.  Sets forth the composition of
the account.  Provides that Sections 403.095 and 404.071, Government Code,
do not apply to this account. 

Sec. 15.903.  USE OF ACCOUNT.  Authorizes the board to use funds in the
account only to reimburse nonprofit organizations eligible under Section
15.904 for expenses incurred in a selfhelp project that results in the
provision of adequate water or wastewater services to a colonia. Sets forth
the expenses authorized for reimbursement.  Authorizes the board to award a
grant under the program directly to a nonprofit organization to reimburse
the organization for expenses incurred in a self-help project described by
this section. 

Sec. 15.904.  ELIGIBLE NONPROFIT ORGANIZATIONS.  Sets forth the eligibility
requirements for a grant under the program. 

Sec, 15.905.  GRANT APPLICATION.  Requires an eligible nonprofit
organization to apply to the board for a grant under the program before
incurring any expense associated with a selfhelp project described by
Section 15.903(a).  Sets forth certain requirements of the application. 

Sec. 15.906.  BOARD CONSIDERATIONS IN EVALUATING GRANT APPLICATION. Sets
forth certain items the board is required to consider in evaluating an
application for a grant under the program. 

Sec. 15.907.  ACTION ON GRANT APPLICATION.  Requires the board by written
resolution to either approve or disapprove the application not later than
the 60th day after the date the board receives a complete application for a
grant under the program.  Requires the board, on approval of an
application, to authorize the executive administrator of the board to
execute a contract with the applicant for a grant to reimburse eligible
expenses.  Authorizes the contract to provide a budget, schedule, terms for
payment of funds, and any other terms the board or its executive
administrator considers appropriate. 

Sec. 15.908.  RULES.  Requires the board to adopt rules necessary to
administer the program established under this subchapter. 

Sec. 15.909.  CO-ADMINISTRATION.  Requires the program be co-administered
by the office of the secretary of state until the second anniversary of the
date on which the program begins operations under this subchapter. 

SECTION 5.  Amends Section 16.343(g), Water Code, to require a political
subdivision, before an application for funds under Section 15.407 or
Chapter 15O, or Chapter 17K, may be considered by the board, to adopt the
model rules pursuant to this section.  Requires the applicant, if the
applicant is a district, nonprofit water supply corporation, or colonia, to
be located in a city or county that has adopted such rules.  Prohibits
applicants for funds under Section 15.407 or Chapter 15O, or Chapter 17K,
from receiving funds under those provisions unless the applicable political
subdivision adopts and enforces the model rules.  Deletes existing text
relating to certain counties receiving funds. 

SECTION 6.  Effective date: upon passage or September 1, 2001.