By:  Garza, Guillen (Senate Sponsor - Madla)                      H.B. No. 3420
	(In the Senate - Received from the House May 5, 2003; 
May 7, 2003, read first time and referred to Committee on 
International Relations and Trade; May 20, 2003, reported 
adversely, with favorable Committee Substitute by the following 
vote:  Yeas 4, Nays 0; May 20, 2003, sent to printer.)


COMMITTEE SUBSTITUTE FOR H.B. No. 3420                                   By:  Lucio


A BILL TO BE ENTITLED

AN ACT


relating to a set-aside for certain colonia access roadway projects 
proposed by rural border counties.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 1403, Government Code, is amended by 
adding Sections 1403.003 and 1403.004 to read as follows:
	Sec. 1403.003.  SET-ASIDE FOR COLONIAS LOCATED IN RURAL 
BORDER COUNTIES.  (a)  In this section:
		(1)  "Border colonia" means a border colonia as defined 
by commission rule under Section 1403.002.
		(2)  "Rural border county" means a county that:                        
			(A)  has a population of less than 55,000; and                        
			(B)  is adjacent to an international border.                          
		(3)  "Set-aside" means a reservation of a portion of 
the proceeds from the sale of general obligation bonds and notes 
under this chapter to provide financial assistance for specific 
colonia access roadway projects proposed by rural border counties.
	(b)  The authority shall set aside an amount equal to five 
percent of the proceeds from each sale of general obligation bonds 
and notes under this chapter to provide financial assistance for 
colonia access roadway projects designed to pave roads serving 
border colonias located in rural border counties.
	(c)  The authority, as directed by the Texas Department of 
Transportation, shall provide a grant from the set-aside on a 
priority basis to a rural border county that proposes to pave for 
the first time a road serving a border colonia located in that 
county.
	Sec. 1403.004.  USE OF GRANTS FOR PROJECT MATERIALS OR 
EQUIPMENT.  A grant under this chapter may be used to purchase any 
materials or to lease any equipment as reasonably necessary to 
accomplish the goal of the project.  Materials purchased as 
permitted by this section must be used solely in connection with the 
project.  Equipment leased as permitted by this section must be used 
substantially in connection with the project throughout the period 
of the applicable lease.
	SECTION 2.  The change in law made by this Act applies to 
proceeds from the sale of general obligation bonds and notes that 
are distributed under Chapter 1403, Government Code, as amended by 
this Act, on or after the effective date of this Act.
	SECTION 3.  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.



* * * * *