81R13522 JJT-F
 
  By: Hunter H.B. No. 3980
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the eligibility requirements for, selection criteria
  for, and awarding of grants under programs of the Texas Commission
  on Environmental Quality.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 5.124, Water Code, is amended by
  amending Subsections (d) and (f) and adding Subsection (e-1) to
  read as follows:
         (d)  A grant may be awarded to any person that meets the
  eligibility requirements of the grant. The executive director
  shall establish eligibility requirements for each grant
  appropriate to the purposes of and activities under the grant and
  the method of selecting the recipient. In establishing eligibility
  requirements for a grant, the executive director shall ensure that
  the requirements do not discriminate against a potential grant
  recipient that is an entity exempt from federal income taxation
  under Section 501(a), Internal Revenue Code of 1986, as an
  organization described by Section 501(c)(3) of that code if the
  potential recipient meets other eligibility requirements. The
  executive director's eligibility requirements for a grant may
  exclude an entity that is an exempt organization only if such an
  entity is ineligible according to:
               (1)  a state or federal law that prohibits awarding a
  grant under the grant program to an entity that is an exempt
  organization; or
               (2)  a rule adopted by the commission during the 12
  months preceding the entity's consideration for a grant under the
  grant program that prohibits awarding a grant to an entity that is
  an exempt organization.
         (e-1)  In determining and implementing the selection
  criteria under Subsection (e), the executive director shall ensure
  that a bias is not created against awarding a grant to an entity
  exempt from federal income taxation under Section 501(a), Internal
  Revenue Code of 1986, as an organization described by Section
  501(c)(3) of that code.
         (f)  A grant may be made by direct award only if:
               (1)  the executive director determines that:
                     (A)  selection of recipients by the solicitation
  of proposals or applications is not feasible; and
                     (B)  awarding the grant directly is in the best
  interest of the state;
               (2)  eligibility for the grant is limited to:
                     (A)  an agency or political subdivision of this
  state or of another state;
                     (B)  a state institution of higher learning of
  this state or of another state, including any part or service of the
  institution; [or]
                     (C)  an agency of the United States; or
                     (D)  an entity exempt from federal income taxation
  under Section 501(a), Internal Revenue Code of 1986, as an
  organization described by Section 501(c)(3) of that code that is
  already receiving funds from another state or federal agency for
  the same purposes or project as those of the grant; or
               (3)  the grant is awarded to a person established or
  authorized to develop or implement a comprehensive conservation and
  management plan under Section 320, Federal Water Pollution Control
  Act (33 U.S.C. Section 1330), for a national estuary in this state.
         SECTION 2.  To the extent permissible under state statutes
  and federal law, the Texas Commission on Environmental Quality
  shall delay awarding grants subject to Section 5.124, Water Code,
  as amended by this Act, until grant program rules, eligibility
  requirements, and selection criteria conform to that section.
         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, 2009.