S.B. No. 580

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.

______________________________ ______________________________

President of the Senate Speaker of the House

I hereby certify that S.B. No. 580 passed the Senate on March 16, 2011, by the following vote: Yeas 30, Nays 0.

______________________________ Secretary of the Senate

I hereby certify that S.B. No. 580 passed the House on May 19, 2011, by the following vote: Yeas 148, Nays 0, one present not voting.

______________________________ Chief Clerk of the House

Approved:

______________________________

Date

______________________________

Governor