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        |  | A BILL TO BE ENTITLED | 
      
        |  | AN ACT | 
      
        |  | relating to community assistance and economic development program | 
      
        |  | activities of the Lavaca-Navidad River Authority. | 
      
        |  | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
        |  | SECTION 1.  Chapter 186, Acts of the 50th Legislature, | 
      
        |  | Regular Session, 1947, is amended by adding Section 11 to read as | 
      
        |  | follows: | 
      
        |  | Sec. 11.  (a)  In this section, "economic development | 
      
        |  | program" includes a program designed to: | 
      
        |  | (1)  encourage economic diversification; | 
      
        |  | (2)  contribute to the health and development of a | 
      
        |  | community to improve the attractiveness of the community to public | 
      
        |  | and private enterprises; or | 
      
        |  | (3)  improve the quality or quantity of services | 
      
        |  | essential for the development of viable communities and economic | 
      
        |  | growth, including services related to education, transportation, | 
      
        |  | public safety, recreation, health care, training, community | 
      
        |  | planning, or employment. | 
      
        |  | (b)  The District may sponsor and participate in an economic | 
      
        |  | development program intended to strengthen the economic base and | 
      
        |  | further the economic development of this state.  A determination by | 
      
        |  | the Board of Directors that an economic development program is | 
      
        |  | intended and expected to accomplish the program's stated purposes | 
      
        |  | is conclusive with respect to whether the program serves the | 
      
        |  | purposes of this section. | 
      
        |  | (c)  An economic development program must be within: | 
      
        |  | (1)  the territorial boundaries of the District; or | 
      
        |  | (2)  the District's water service area. | 
      
        |  | (d)  An economic development program may be established only | 
      
        |  | by formal action of the Board of Directors.  The Board of Directors | 
      
        |  | shall: | 
      
        |  | (1)  establish the goals of the program; | 
      
        |  | (2)  impose requirements on persons participating in or | 
      
        |  | receiving a benefit from the program; and | 
      
        |  | (3)  provide restrictions, procedures, and budget | 
      
        |  | limits the Board of Directors determines are necessary to ensure | 
      
        |  | that the governmental purposes of this section and the program are | 
      
        |  | achieved. | 
      
        |  | (e)  An economic development program may involve the | 
      
        |  | granting or lending of money, services, or property to a person | 
      
        |  | engaged in an economic development activity. | 
      
        |  | (f)  The District may: | 
      
        |  | (1)  employ staff and spend its resources, other than | 
      
        |  | money received from an ad valorem tax or a general appropriation, to | 
      
        |  | further an economic development program; and | 
      
        |  | (2)  apply for and receive money, grants, or other | 
      
        |  | assistance from any source to implement an economic development | 
      
        |  | program. | 
      
        |  | (g)  The District and any public or private person may enter | 
      
        |  | into an agreement with respect to an economic development program. | 
      
        |  | (h)  If the District proposes to provide scholarships, | 
      
        |  | grants, loans, or financial assistance to a public fire-fighting | 
      
        |  | organization, the District shall adopt guidelines for determining: | 
      
        |  | (1)  eligibility for the assistance; | 
      
        |  | (2)  the amount of any loan, grant, or other assistance | 
      
        |  | the District may provide; and | 
      
        |  | (3)  the types of equipment, facilities, education, or | 
      
        |  | training for which the assistance may be used. | 
      
        |  | SECTION 2.   The legislature finds that the economic | 
      
        |  | development programs authorized by Section 11, Chapter 186, Acts of | 
      
        |  | the 50th Legislature, Regular Session, 1947, as added by this Act, | 
      
        |  | are a specific public purpose and governmental function of the | 
      
        |  | Lavaca-Navidad River Authority in accordance with: | 
      
        |  | (1)  Section 52-a, Article III, Texas Constitution; and | 
      
        |  | (2)  Section 59, Article XVI, Texas Constitution. | 
      
        |  | SECTION 3.  This Act takes effect September 1, 2011. |