By Wise, Swinford, Counts, Hinojosa, Carter, H.B. No. 2776
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the establishment of a colonia self-help program.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. LEGISLATIVE FINDINGS. The legislature finds that:
1-5 (1) economically distressed subdivisions commonly
1-6 called colonias are found throughout those counties located within
1-7 50 miles of the international border of this state;
1-8 (2) a substantial number of homes in the economically
1-9 distressed subdivisions lack an adequate potable water supply and
1-10 sewer services, creating a serious and unacceptable health hazard
1-11 from contagious and other serious illnesses and posing a clear and
1-12 substantial threat not only to the environment of the border region
1-13 but also to the environment of the entire state;
1-14 (3) although significant improvement has been made by
1-15 this state and the political subdivisions of the border area in
1-16 addressing the public health hazard created in those economically
1-17 distressed subdivisions, many of those economically distressed
1-18 subdivisions are located in isolated rural areas far from water or
1-19 wastewater providers or are otherwise situated so as to make the
1-20 provision of water or wastewater services by political subdivisions
1-21 to those areas difficult or impossible using conventional capital
1-22 improvement strategies;
1-23 (4) the lack of an adequate potable water supply and
1-24 wastewater services, coupled with the location of those
1-25 subdivisions, erodes the economic stability of the counties that
2-1 contain those subdivisions and that depend on a healthy and safe
2-2 environment for the residents of the subdivisions and counties;
2-3 (5) the economic stability of those counties is
2-4 necessary for the mutual development of trade, transportation, and
2-5 commerce in the border region and affects not only the border
2-6 region, but all regions of the state involved in those reciprocal
2-7 economic activities;
2-8 (6) alternative capital improvement mechanisms are
2-9 necessary to ensure that the maximum number of economically
2-10 distressed subdivisions obtain adequate water or wastewater
2-11 services to eliminate public health problems and encourage the
2-12 development and diversification of the economy in those counties
2-13 and the entire state;
2-14 (7) nonprofit organizations have succeeded in
2-15 planning, platting, engineering, designing, and constructing water
2-16 and wastewater projects to serve those inaccessible, economically
2-17 distressed subdivisions using assistance from the residents
2-18 immediately benefiting from the water or wastewater services, thus
2-19 creating an alternative capital improvement mechanism with a proven
2-20 record of success that deserves state support;
2-21 (8) many residents of colonias are motivated to
2-22 improve their situation and have worked with nonprofit
2-23 organizations on self-help projects to build their own
2-24 infrastructure, ultimately saving on the total cost of water and
2-25 wastewater projects; and
2-26 (9) creating a program to provide public funds to
2-27 those nonprofit organizations for self-help projects will assist in
3-1 the reduction of the public health problems created by the lack of
3-2 adequate water and wastewater services and will encourage the
3-3 development and diversification of the economy of the counties in
3-4 which those subdivisions are located as well as throughout the
3-5 entire state.
3-6 SECTION 2. Section 15.008, Water Code, is amended to read as
3-7 follows:
3-8 Sec. 15.008. GRANT STANDARDS. The law regarding uniform
3-9 grants and contract management, Chapter 783, Government Code,
3-10 [Uniform Grant and Contract Management Act of 1981 (Article
3-11 4413(32g), Vernon's Texas Civil Statutes)] does not apply to a
3-12 contract under Subchapter F, H, [or] K, or O [of this chapter].
3-13 SECTION 3. Section 15.011(b), Water Code, is amended to read
3-14 as follows:
3-15 (b) After notice and hearing and subject to any limitations
3-16 established by the General Appropriations Act, the board may
3-17 transfer money from the fund to the loan fund created under
3-18 Subchapter C [of this chapter], the storage acquisition fund
3-19 created under Subchapter E [of this chapter], the research and
3-20 planning fund created under Subchapter F [of this chapter], the
3-21 hydrographic survey account created under Subchapter M [of this
3-22 chapter], provided the hydrographic survey account transfer does
3-23 not exceed $425,000, [and] the aquatic vegetation management fund
3-24 created under Subchapter N, and the colonia self-help account
3-25 created under Subchapter O [of this chapter].
3-26 SECTION 4. Chapter 15, Water Code, is amended by adding
3-27 Subchapter O to read as follows:
4-1 SUBCHAPTER O. COLONIA SELF-HELP PROGRAM
4-2 Sec. 15.901. DEFINITIONS. In this subchapter:
4-3 (1) "Account" means the colonia self-help account.
4-4 (2) "Colonia" means a geographic area that:
4-5 (A) is an economically distressed area as
4-6 defined by Section 17.921; and
4-7 (B) is located in a county any part of which is
4-8 within 50 miles of an international border.
4-9 (3) "Program" means the colonia self-help program
4-10 established under this subchapter.
4-11 (4) "Retail public utility" has the meaning assigned
4-12 by Section 13.002.
4-13 (5) "Self-help project" means a project in which the
4-14 people who will benefit from the project actively participate.
4-15 Sec. 15.902. CREATION OF ACCOUNT. (a) The colonia self-help
4-16 account is an account in the general revenue fund that may be
4-17 appropriated only for the purposes of this subchapter.
4-18 (b) The account consists of:
4-19 (1) money transferred by the legislature directly to
4-20 the account;
4-21 (2) money transferred at the board's discretion from
4-22 the fund;
4-23 (3) gifts, grants, or donations to the account; and
4-24 (4) interest earned on money credited to the account.
4-25 (c) Sections 403.095 and 404.071, Government Code, do not
4-26 apply to the account.
4-27 Sec. 15.903. USE OF ACCOUNT. (a) The board may use funds in
5-1 the account only to reimburse nonprofit organizations eligible
5-2 under Section 15.904 for expenses incurred in a self-help project
5-3 that results in the provision of adequate water or wastewater
5-4 services to a colonia. Expenses that may be reimbursed include:
5-5 (1) construction expenses;
5-6 (2) facility planning expenses;
5-7 (3) platting expenses;
5-8 (4) surveying expenses;
5-9 (5) engineering expenses;
5-10 (6) equipment expenses; and
5-11 (7) other expenses necessary to provide water or
5-12 wastewater services to the colonia, as determined appropriate by
5-13 the board.
5-14 (b) The board may award a grant under the program directly
5-15 to a nonprofit organization to reimburse the organization for
5-16 expenses incurred in a self-help project described by Subsection
5-17 (a).
5-18 Sec. 15.904. ELIGIBLE NONPROFIT ORGANIZATIONS. To be
5-19 eligible to receive a grant under the program, an organization
5-20 must:
5-21 (1) apply for the grant;
5-22 (2) qualify for an exemption from federal income taxes
5-23 under Section 501(c)(3), Internal Revenue Code of 1986, as amended;
5-24 and
5-25 (3) as of January 1, 2001, have a demonstrated record
5-26 of completing in coordination with a retail public utility
5-27 construction of self-help projects described by Section 15.903(a).
6-1 Sec. 15.905. GRANT APPLICATION. An eligible nonprofit
6-2 organization must apply to the board for a grant under the program
6-3 before incurring any expense associated with a self-help project
6-4 described by Section 15.903(a). The application must include:
6-5 (1) the name of the nonprofit organization, the names
6-6 of the organization's principal officers, and verification of the
6-7 organization's 501(c)(3) status;
6-8 (2) a description of the project area, the anticipated
6-9 number of water and wastewater connections to be made, and the
6-10 anticipated number of colonia residents to be served;
6-11 (3) a description of the existing water and wastewater
6-12 facilities in the colonia;
6-13 (4) a description of the project and the aspect of the
6-14 project for which the grant will be used;
6-15 (5) a description of the anticipated participation in
6-16 the project by residents of the colonia;
6-17 (6) the estimated total cost of both the project and
6-18 the aspect of the project for which the grant will be used;
6-19 (7) the amount of the grant that is requested from the
6-20 colonia self-help account and the sources of funding for the entire
6-21 project;
6-22 (8) from a retail public utility authorized to provide
6-23 water or wastewater services to the colonia, a resolution in which
6-24 the retail public utility:
6-25 (A) agrees to inspect the project during and
6-26 after construction to ensure the adequacy of the project; and
6-27 (B) commits to provide the water or wastewater
7-1 services that the project intends to use; and
7-2 (9) any other information required by the board.
7-3 Sec. 15.906. BOARD CONSIDERATIONS IN EVALUATING GRANT
7-4 APPLICATION. In evaluating an application for a grant under the
7-5 program, the board shall consider:
7-6 (1) the number, quality, and character of projects
7-7 previously completed by the applicant; and
7-8 (2) the capability of the retail public utility to
7-9 provide water or wastewater services to the colonia on completion
7-10 of the project.
7-11 Sec. 15.907. ACTION ON GRANT APPLICATION. (a) Not later
7-12 than the 60th day after the date the board receives a complete
7-13 application for a grant under the program, the board by written
7-14 resolution shall:
7-15 (1) approve the application; or
7-16 (2) disapprove the application.
7-17 (b) On approval of an application, the board shall authorize
7-18 the executive administrator of the board to execute a contract with
7-19 the applicant for a grant to reimburse eligible expenses. The
7-20 contract may provide a budget, schedule, terms for payment of
7-21 funds, and any other terms the board or its executive administrator
7-22 considers appropriate.
7-23 Sec. 15.908. RULES. The board shall adopt rules necessary
7-24 to administer the program established under this subchapter.
7-25 Sec. 15.909. CO-ADMINISTRATION. The program shall be
7-26 co-administered by the office of the secretary of state until the
7-27 second anniversary of the date on which the program begins
8-1 operations under this subchapter.
8-2 SECTION 5. Section 16.343(g), Water Code, is amended to read
8-3 as follows:
8-4 (g) Before [filing] an application for funds [for facility
8-5 engineering] under Section 15.407 or Subchapter O, Chapter 15, [of
8-6 this code] or [financial assistance under] Subchapter K, Chapter
8-7 17, may be considered by the board [of this code], a political
8-8 subdivision must adopt the model rules pursuant to this section.
8-9 If the applicant is [or, in the case of] a district, [or] nonprofit
8-10 water supply corporation, or colonia, the applicant must be located
8-11 in a city or county that has adopted such rules. Applicants for
8-12 funds under Section 15.407 or Subchapter O, Chapter 15, or
8-13 Subchapter K, Chapter 17, may not receive funds under those
8-14 provisions unless the applicable political subdivision [An affected
8-15 county may not receive funds under either Section 15.407 of this
8-16 code or Subchapter K, Chapter 17, of this code unless the county]
8-17 adopts and enforces the model rules.
8-18 SECTION 6. This Act takes effect immediately if it receives
8-19 a vote of two-thirds of all the members elected to each house, as
8-20 provided by Section 39, Article III, Texas Constitution. If this
8-21 Act does not receive the vote necessary for immediate effect, this
8-22 Act takes effect September 1, 2001.