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