78R7428 KEL-D

By:  Flores                                                       H.B. No. 2254



A BILL TO BE ENTITLED

AN ACT

relating to the eligibility of nonborder areas for certain state 
assistance and coordinated outreach.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 15.008, Water Code, is amended to read as 
follows:       
	Sec. 15.008.  GRANT STANDARDS.  The law regarding uniform 
grants and contract management, Chapter 783, Government Code, does 
not apply to a contract under Subchapter F, H, K, or P, or to a 
contract relating to an economically distressed area [or nonborder 
colonia] under Subchapter C.
	SECTION 2.  Section 15.102(b), Water Code, as amended by 
Chapters 966, 1234, and 1367, Acts of the 77th Legislature, Regular 
Session, 2001, is reenacted and amended to read as follows:
	(b)  The loan fund may also be used by the board to provide:            
		(1)  grants or loans for[: (1)] projects that include 
supplying water and wastewater services in economically distressed 
areas [or nonborder colonias] as provided by legislative 
appropriations, this chapter, and board rules, including projects 
involving retail distribution of those services; and
		(2)  grants for:                                                       
			(A) [(2)]  projects for which federal grant funds 
are placed in the loan fund;
			(B) [(3)]  projects, on specific legislative 
appropriation for those projects; or
			(C) [(4)]  desalination, brush control, weather 
modification, regionalization, and projects providing regional 
water quality enhancement services as defined by board rule, 
including regional conveyance systems.
	SECTION 3.  Section 15.105(a), Water Code, is amended to 
read as follows:    
	(a)  In passing on an application for financial assistance 
from the loan fund, the board shall consider but is not limited to:
		(1)  the needs of the area to be served by the project 
and the benefit of the project to the area in relation to the needs 
of other areas requiring state assistance in any manner and the 
benefits of those projects to the other areas;
		(2)  the availability of revenue to the applicant from 
all sources for the ultimate repayment of the cost of the project, 
including all interest;
		(3)  the relationship of the project to overall 
statewide needs;            
		(4)  the ability of the applicant to finance the 
project without state assistance;
		(5)  for applications for grants or loans for 
economically distressed areas [or nonborder colonias], the 
regulatory efforts by the county in which the project is located to 
control the construction of subdivisions that lack basic utility 
services; and
		(6)  for applications for grants under Section 
15.102(b)(2), the ability of the applicant to construct the project 
without the grant and the benefits of the project to water and 
wastewater needs of the state.
	SECTION 4.  Section 775.002(c), Government Code, is amended 
to read as follows:
	(c)  The colonia initiatives coordinator may work with the 
other agencies and local officials involved in colonia projects in 
the state to:
		(1)  coordinate efforts to address colonia issues;                            
		(2)  identify nonprofit self-help groups to help with 
colonia initiatives;  
		(3)  set goals for each state fiscal year for colonia 
initiatives in the state, including goals to:
			(A)  address easement problems; and                                          
			(B)  ensure that water and wastewater connections 
are extended from distribution lines to houses located in colonias; 
and
		(4)  ensure that the goals set under this subsection 
are met each state fiscal year[; and
		[(5)  coordinate state outreach efforts to nonborder 
colonias and to political subdivisions capable of providing water 
and wastewater services to nonborder colonias].
	SECTION 5.  Section 2306.581(1), Government Code, is amended 
to read as follows:
		(1)  "Colonia" means a geographic area located in a 
county some part of which is within 50 [150] miles of the 
international border of this state and that:
			(A)  has a majority population composed of 
individuals and families of low income and very low income, based on 
the federal Office of Management and Budget poverty index, and 
meets the qualifications of an economically distressed area under 
Section 17.921, Water Code; or
			(B)  has the physical and economic 
characteristics of a colonia, as determined by the department.
	SECTION 6.  Section 15.001(12), Water Code, as added by 
Chapter 1367, Acts of the 77th Legislature, Regular Session, 2001, 
is repealed.
	SECTION 7.  Section 775.001(3), Government Code, is 
repealed.                
	SECTION 8.  The changes in law made by Sections 1, 2, 3, 5, 
and 6 of this Act apply only to an application for assistance that 
is filed on or after the effective date of this Act.
	SECTION 9.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.