81R8484 TRH-F
 
  By: Lucio S.B. No. 1371
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the colonia self-help program.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 15.951, Water Code, is amended by
  amending Subdivision (2) and adding Subdivisions (2-a) and (2-b) to
  read as follows:
               (2)  "Colonia" means a geographic area that:
                     (A)  is an economically distressed area as defined
  by Section 17.921;
                     (B)  is located in a county any part of which is
  within 50 miles of an international border; and
                     (C)  consists of at least 11 [or more] dwellings,
  or of at least a lower number of dwellings as specified by the board
  for which the board determines that a self-help project will be
  cost-effective, that are located in close proximity to each other
  in an area that may be described as a community or neighborhood.
               (2-a)  "Nonprofit organization" means an organization
  qualifying for an exemption from federal income taxes under Section
  501(c)(3), Internal Revenue Code of 1986.
               (2-b)  "Political subdivision" has the meaning
  assigned by Section 17.921.
         SECTION 2.  Section 15.953, Water Code, is amended to read as
  follows:
         Sec. 15.953.  USE OF ACCOUNT.  (a)  The board may use funds
  in the account to reimburse a political subdivision or a nonprofit
  organization for eligible [only to reimburse nonprofit
  organizations eligible under Section 15.954 for] expenses incurred
  in a self-help project that results in the provision of adequate
  water or wastewater services to a colonia. Eligible expenses under
  this subsection [Expenses that may be reimbursed] include:
               (1)  construction expenses;
               (2)  facility planning expenses;
               (3)  platting expenses;
               (4)  surveying expenses;
               (5)  engineering expenses;
               (6)  equipment expenses; and
               (7)  other expenses necessary to provide water or
  wastewater services to the colonia, as determined appropriate by
  the board.
         (b)  The board may award a grant under the program directly
  to a political subdivision or nonprofit organization to reimburse
  the subdivision or organization for expenses incurred in a
  self-help project described by Subsection (a). If the board
  determines that a retail public utility described by Section
  15.955(8) has made a commitment to the self-help project sufficient
  to ensure that retail water or wastewater service will be extended
  to the colonia, the board may make an advance of grant funds. An
  advance under this subsection is subject to the terms determined by
  the board and may not exceed 10 percent of the total amount of the
  grant.
         SECTION 3.  Section 15.954, Water Code, is amended to read as
  follows:
         Sec. 15.954.  ELIGIBLE POLITICAL SUBDIVISIONS AND NONPROFIT
  ORGANIZATIONS.  To be eligible to receive a grant under the
  program, a political subdivision or a nonprofit [an] organization
  must:
               (1)  demonstrate work experience relevant to extending
  retail water or wastewater utility service to colonias in
  coordination with retail public utilities [apply for the grant];
  and
               (2)  develop a plan that requires self-help project
  beneficiaries to actively participate in the implementation of the
  project, in coordination with a retail public utility described by
  Section 15.955(8) [qualify for an exemption from federal income
  taxes under Section 501(c)(3), Internal Revenue Code of 1986, as
  amended; and
               [(3)     as of January 1, 2001, have a demonstrated record
  of completing in coordination with a retail public utility
  construction of self-help projects described by Section
  15.953(a)].
         SECTION 4.  Section 15.955, Water Code, is amended to read as
  follows:
         Sec. 15.955.  GRANT APPLICATION.  An eligible political
  subdivision or nonprofit organization must apply to the board for a
  grant under the program before incurring any expense associated
  with a self-help project described by Section 15.953(a). The
  application must include:
               (1)  the name of the political subdivision or nonprofit
  organization, the names of the political subdivision's authorized
  representative or the nonprofit [the] organization's principal
  officers, and verification of the nonprofit [the] organization's
  501(c)(3) status;
               (2)  a description of the project area, the anticipated
  number of water and wastewater connections to be made, and the
  anticipated number of colonia residents to be served;
               (3)  a description of the existing water and wastewater
  facilities in the colonia;
               (4)  a description of the project and the aspect of the
  project for which the grant will be used;
               (5)  a description of the anticipated participation in
  the project by residents of the colonia;
               (6)  the estimated total cost of both the project and
  the aspect of the project for which the grant will be used;
               (7)  the amount of the grant that is requested from the
  account and the sources of funding for the entire project;
               (8)  from a retail public utility authorized to provide
  water or wastewater services to the colonia, a resolution in which
  the retail public utility:
                     (A)  agrees to inspect the project during and
  after construction to ensure the adequacy of the project; and
                     (B)  commits to provide the water or wastewater
  services that the project intends to use; and
               (9)  any other information required by the board.
         SECTION 5.  Section 15.956, Water Code, is amended to read as
  follows:
         Sec. 15.956.  BOARD CONSIDERATIONS IN EVALUATING GRANT
  APPLICATION.  In evaluating an application for a grant under the
  program, the board shall consider:
               (1)  the number of colonia residents to be served by the
  self-help project;
               (2)  the capability of the political subdivision or
  nonprofit organization to complete the self-help project in a
  timely manner;
               (3)  the[,] quality[, and character] of any projects
  previously completed by the applicant; and
               (4) [(2)]  the commitment demonstrated by [capability
  of] the retail public utility to provide water or wastewater
  services to the colonia on completion of the project.
         SECTION 6.  Section 15.959, Water Code, is repealed.
         SECTION 7.  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.