By Hill, Howard, Tillery, Olivo,                       H.B. No. 829
         77R11643 KEL-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the eligibility of certain areas for certain colonia
 1-3     funding programs.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 15.001, Water Code, is amended by adding
 1-6     Subdivision (12) to read as follows:
 1-7                 (12)  "Nonborder colonia" means a residential
 1-8     community:
 1-9                       (A)  located in an unincorporated area of a
1-10     county all parts of which are at least 150 miles from the
1-11     international border of this state;
1-12                       (B)  in which water or wastewater services are
1-13     inadequate to meet minimal needs of residential users as defined by
1-14     board rules; and
1-15                       (C)  in which the average household income is
1-16     less than the average household income for the county in which the
1-17     community is located.
1-18           SECTION 2. Section 15.008, Water Code, is amended to read as
1-19     follows:
1-20           Sec. 15.008.  GRANT STANDARDS. Chapter 783, Government Code,
1-21     [The Uniform Grant and Contract Management Act of 1981 (Article
1-22     4413(32g), Vernon's Texas Civil Statutes)] does not apply to a
1-23     contract under Subchapter F, H, or K or to a contract relating to
1-24     an economically distressed area or nonborder colonia under
1-25     Subchapter C [of this chapter].
 2-1           SECTION 3. Section 15.102(b), Water Code, is amended to read
 2-2     as follows:
 2-3           (b)  The loan fund may also be used by the board to provide
 2-4     grants or loans for projects that include supplying water and
 2-5     wastewater services in economically distressed areas or nonborder
 2-6     colonias as provided by legislative appropriations, this chapter,
 2-7     and board rules, including projects involving retail distribution
 2-8     of those services.
 2-9           SECTION 4. Section 15.105, Water Code, is amended to read as
2-10     follows:
2-11           Sec. 15.105.  CONSIDERATIONS IN PASSING ON APPLICATION. In
2-12     passing on an application for financial assistance from the loan
2-13     fund, the board shall consider but is not limited to:
2-14                 (1)  the needs of the area to be served by the project
2-15     and the benefit of the project to the area in relation to the needs
2-16     of other areas requiring state assistance in any manner and the
2-17     benefits of those projects to the other areas;
2-18                 (2)  the availability of revenue to the applicant from
2-19     all sources for the ultimate repayment of the cost of the project,
2-20     including all interest;
2-21                 (3)  the relationship of the project to overall
2-22     statewide needs;
2-23                 (4)  the ability of the applicant to finance the
2-24     project without state assistance; and
2-25                 (5)  for applications for grants or loans for
2-26     economically distressed areas or nonborder colonias, the regulatory
2-27     efforts by the county in which the project is located to control
 3-1     the construction of subdivisions that lack basic utility services.
 3-2           SECTION 5. Section 775.001, Government Code, is amended by
 3-3     adding Subdivision (3) to read as follows:
 3-4                 (3)  "Nonborder colonia" has the meaning assigned by
 3-5     Section 15.001, Water Code.
 3-6           SECTION 6. Section 775.002(c), Government Code, is amended to
 3-7     read as follows:
 3-8           (c)  The colonia initiatives coordinator may work with the
 3-9     other agencies and local officials involved in colonia projects in
3-10     the state to:
3-11                 (1)  coordinate efforts to address colonia issues;
3-12                 (2)  identify nonprofit self-help groups to help with
3-13     colonia initiatives;
3-14                 (3)  set goals for each state fiscal year for colonia
3-15     initiatives in the state, including goals to:
3-16                       (A)  address easement problems; and
3-17                       (B)  ensure that water and wastewater connections
3-18     are extended from distribution lines to houses located in colonias;
3-19     [and]
3-20                 (4)  ensure that the goals set under this subsection
3-21     are met each state fiscal year; and
3-22                 (5)  coordinate state outreach efforts to nonborder
3-23     colonias and to political subdivisions capable of providing water
3-24     and wastewater services to nonborder colonias.
3-25           SECTION 7.  This Act takes effect immediately if it receives
3-26     a vote of two-thirds of all the members elected to each house, as
3-27     provided by Section 39, Article III, Texas Constitution.  If this
 4-1     Act does not receive the vote necessary for immediate effect, this
 4-2     Act takes effect September 1, 2001.