By Lucio                                              S.B. No. 1501
         77R5751 QS-D                           
                                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. Chapter 15, Water Code, is amended by adding
 1-5     Subchapter O to read as follows:
 1-6                  SUBCHAPTER O.  COLONIA SELF-HELP PROGRAM
 1-7           Sec. 15.901.  DEFINITIONS. In this subchapter:
 1-8                 (1)  "Account" means the colonia self-help account.
 1-9                 (2)  "Colonia" means a geographic area that:
1-10                       (A)  is an economically distressed area as
1-11     defined by Section 17.921, Water Code; and
1-12                       (B)  is located in a county any part of which is
1-13     within 50 miles of an international border.
1-14                 (3)  "Program" means the colonia self-help program
1-15     established under this subchapter.
1-16                 (4)  "Self-help project" means a project in which the
1-17     people who will benefit from the project actively participate.
1-18           Sec. 15.902.  CREATION OF ACCOUNT. (a)  The colonia self-help
1-19     account is an account in the general revenue fund that may be
1-20     appropriated only for the purposes of this subchapter.
1-21           (b)  The account consists of:
1-22                 (1)  money directly appropriated to the board;
1-23                 (2)  money transferred by the board from any and all
1-24     sources available; and
 2-1                 (3)  interest earned on the investment of money in the
 2-2     account.
 2-3           Sec. 15.903.  USE OF ACCOUNT. (a)  The account may be used to
 2-4     reimburse eligible nonprofit organizations engaged in self-help
 2-5     water, wastewater, and platting projects in the colonias for
 2-6     expenses incurred through:
 2-7                 (1)  construction;
 2-8                 (2)  facility planning;
 2-9                 (3)  platting;
2-10                 (4)  surveying;
2-11                 (5)  engineering;
2-12                 (6)  purchasing necessary engineering and construction
2-13     equipment; and
2-14                 (7)  other appropriate activities, as determined by the
2-15     board.
2-16           (b)  The board shall award grants under this subchapter
2-17     directly to the nonprofit organization that applies for the grant
2-18     to reimburse the organization for expenses incurred during a
2-19     self-help water or wastewater project.
2-20           Sec. 15.904.  ELIGIBLE NONPROFIT ORGANIZATIONS. To be
2-21     eligible to receive a grant under this subchapter, an organization
2-22     must:
2-23                 (1)  qualify for an exemption from federal income taxes
2-24     under Section 501(c)(3), Internal Revenue Code of 1986, as amended;
2-25                 (2)  be working on the date of the grant application on
2-26     a self-help water or wastewater project in a colonia in
2-27     coordination with a local private or public water or wastewater
 3-1     provider; and
 3-2                 (3)  have a demonstrated record of managing
 3-3     construction of self-help projects in the colonias.
 3-4           Sec. 15.905.  INITIAL APPLICATION FOR ASSISTANCE. (a)  In an
 3-5     initial application to the board for financial assistance, the
 3-6     applicant shall include:
 3-7                 (1)  the name of the nonprofit organization, the names
 3-8     of the organization's principal officers, and verification of the
 3-9     organization's 501(c)(3) status;
3-10                 (2)  a description of the water or wastewater project
3-11     and the aspect of the project for which the financial assistance
3-12     will be used;
3-13                 (3)  the anticipated participation in the project by
3-14     members of the community;
3-15                 (4)  the estimated total cost of both the project and
3-16     the aspect of the project for which financial assistance will be
3-17     used;
3-18                 (5)  the amount of state financial assistance
3-19     requested; and
3-20                 (6)  any other information the board requires.
3-21           (b)  The board shall make a preliminary decision about a
3-22     grant award and notify the applicant not later than the 45th day
3-23     after the date an initial application for assistance is received.
3-24           Sec. 15.906.  REPORT; AWARD OF GRANT. (a)  To receive a
3-25     grant, a nonprofit organization that receives a favorable
3-26     preliminary decision on a grant request under this subchapter must
3-27     provide a written report to the board not later than the 30th day
 4-1     after the date the project, or the aspect of the project for which
 4-2     funding was requested, is completed.
 4-3           (b)  The report must include:
 4-4                 (1)  the project budget;
 4-5                 (2)  proof of the expenditures made to complete the
 4-6     project or the aspect of the project for which funding was
 4-7     requested; and
 4-8                 (3)  adequate proof of compliance with applicable laws,
 4-9     as determined by the board.
4-10           (c)  On receipt of the report, and inspection of the project
4-11     determined necessary by the board, the board shall award a grant to
4-12     the nonprofit organization to reimburse the organization for its
4-13     expenditures.
4-14           Sec. 15.907.  RULES. The board shall adopt rules necessary to
4-15     administer the program established under this subchapter.
4-16           Sec. 15.908.  CO-ADMINISTRATION. The program shall be
4-17     co-administered by the office of the secretary of state until the
4-18     second anniversary of the date on which the program begins
4-19     operations under this subchapter.
4-20           SECTION 2.  This Act takes effect immediately if it receives
4-21     a vote of two-thirds of all the members elected to each house, as
4-22     provided by Section 39, Article III, Texas Constitution.  If this
4-23     Act does not receive the vote necessary for immediate effect, this
4-24     Act takes effect September 1, 2001.