By: Lucio S.B. No. 825

(In the Senate - Filed February 21, 2011; March 1, 2011, read first time and referred to Committee on Intergovernmental Relations; March 17, 2011, rereferred to Committee on International Relations and Trade; April 7, 2011, reported adversely, with favorable Committee Substitute by the following vote: Yeas 4, Nays 0; April 7, 2011, sent to printer.)

COMMITTEE SUBSTITUTE FOR S.B. No. 825 By: Lucio

A BILL TO BE ENTITLED

AN ACT

relating to the provision of affordable housing in colonias, rural communities, and small municipalities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

ARTICLE 1. HOUSING IN COLONIAS, RURAL COMMUNITIES, AND SMALL

MUNICIPALITIES

SECTION 1.01. Subsections (a), (b), and (d), Section 775.002, Government Code, are amended to read as follows:

(a) Contingent on the legislature's appropriation of sufficient funds, the Texas Department of Housing and Community Affairs shall [The governor may] designate the office established under Section 2306.302 or another office within the department with a focus on matters relating to colonias [an agency] to act as the state's colonia initiatives coordinator.

(b) The [If appointed under Subsection (a), the] colonia initiatives coordinator shall coordinate colonia initiatives within the Texas Department of Housing and Community Affairs [agency] and with the other agencies and local officials involved in colonia projects in the state.

(d) The following agencies shall designate an officer or employee of the agency to serve as the agency's liaison for colonia initiatives:

(1) the office of the attorney general;

(2) the Department of State Health Services;

(3) [the Texas Department of Housing and Community Affairs;

[(4)] the Texas Commission on Environmental Quality;

(4) [(5)] the Texas Water Development Board;

(5) [(6)] the Texas Department of Rural Affairs;

(6) [(7)] the Office of State-Federal Relations;

(7) [(8)] the Texas Department of Insurance; and

(8) [(9)] the Texas Department of Transportation.

SECTION 1.02. Chapter 2306, Government Code, is amended by adding Subchapter N to read as follows:

SUBCHAPTER N. OFFICE OF RURAL COMMUNITY AND SMALL MUNICIPALITY

HOUSING INITIATIVES

Sec. 2306.301. DEFINITION. In this subchapter, "office" means the office established by Section 2306.302 to support rural community and small municipality housing initiatives.

Sec. 2306.302. ESTABLISHMENT OF OFFICE. (a) The department shall establish an office to support rural community and small municipality housing initiatives.

(b) The department by rule shall define for purposes of this subchapter:

(1) a rural community; and

(2) a small municipality.

(c) The office shall work with each regional council of government to:

(1) match housing sponsors to the housing needs of rural communities and small municipalities; and

(2) identify available sources of funds for those housing needs.

(d) The office shall use funds available from the housing trust fund established under Section 2306.201 to administer capacity building programs for rural communities and small municipalities.

(e) The office shall coordinate a meeting at least two times each year between department program directors and representatives of rural communities and small municipalities to discuss best practices for rural community and small municipality housing initiatives.

(f) The office shall establish an online clearinghouse of information relating to best practices for rural community and small municipality housing initiatives.

(g) Subject to available funding, the department by rule may establish as part of the office not more than seven field offices to assist political subdivisions and nonprofit entities in developing or administering affordable housing programs.

(h) The department by rule shall specify the duties for any field office established under Subsection (g). The rules under this subsection must include the following duties for each field office:

(1) identifying affordable housing needs for the area of the state in which the field office is located;

(2) identifying state and federal programs that may address the needs identified under Subdivision (1);

(3) facilitating the development of relationships that will assist in building local capacity to address the needs identified under Subdivision (1); and

(4) providing information regarding state programs to assist in the development of affordable housing for the area of the state in which the field office is located.

(i) The director may assign additional duties to the office.

Sec. 2306.303. REGIONAL HOUSING DEVELOPMENT ORGANIZATIONS. (a) The office may establish regional nonprofit housing development organizations that serve rural communities and small municipalities in accordance with the purposes of this subchapter.

(b) To implement this section, the department may use any money available to the department for the purposes of this subchapter, including gifts, grants, and donations and state and federal funds.

Sec. 2306.304. TRAINING. (a) The office annually shall provide to elected officials, community organizations, nonprofit organizations, and private developers a training course that addresses housing programs and techniques that increase housing opportunities in rural communities and small municipalities. The office shall provide the course at an appropriate location selected by the office and shall make the course available online in real time.

(b) The department periodically shall also provide to elected officials a training course regarding housing programs and sources of funding for those programs.

Sec. 2306.305. HOUSING DEVELOPMENT PLANNING ASSISTANCE. (a) On the request of the commissioners court of a county, the office shall cooperate with and assist the county in:

(1) developing comprehensive housing plans for rural communities and small municipalities in that county;

(2) supporting housing development initiatives in those communities and municipalities; and

(3) identifying financial resources available for those plans or initiatives.

(b) On the request of the governing body of a small municipality, the office shall cooperate with and assist the municipality in:

(1) developing a comprehensive housing plan for the municipality;

(2) supporting housing development initiatives in the municipality; and

(3) identifying financial resources available for the plan or initiatives.

Sec. 2306.306. RURAL COMMUNITY AND SMALL MUNICIPALITY HOUSING DEVELOPMENT PILOT PROJECTS. Notwithstanding other program rules and procedures of the department, the department may establish pilot projects to test and develop new approaches to providing housing in rural communities and small municipalities for:

(1) individuals and families of low income; and

(2) individuals and families of very low income.

Sec. 2306.307. AGRICULTURAL WORKER HOUSING INITIATIVE. (a) The office shall fund housing initiatives that serve agricultural workers and their families, including:

(1) new housing initiatives;

(2) housing rehabilitation initiatives; or

(3) tenant-based rental assistance.

(b) The office may designate as a pilot project a housing initiative implemented under this section for agricultural workers and their families.

(c) The office shall coordinate with appropriate divisions of the department to:

(1) document agricultural worker housing needs;

(2) determine whether a housing need documented by the department is critical; and

(3) develop initiatives to address those housing needs.

(d) The department may use any available money to implement this section, including:

(1) gifts, grants, and donations;

(2) money in the housing trust fund; and

(3) money allocated to the department under the federal HOME Investment Partnerships program established under Title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. Section 12701 et seq.).

(e) In this section, "agricultural worker":

(1) means a person who receives a substantial portion of income from employment that involves:

(A) the primary production of agricultural or aquacultural commodities; or

(B) the handling of agricultural or aquacultural commodities in an unprocessed state, including handling those commodities in a feedlot or a meat processing plant; and

(2) includes a person who is retired or disabled but was employed as described by Subdivision (1) at the time of that person's retirement or disablement.

SECTION 1.03. Section 405.021, Government Code, is transferred to Subchapter Z, Chapter 2306, Government Code, redesignated as Section 2306.592, Government Code, and amended to read as follows:

Sec. 2306.592 [405.021]. REPORT ON STATE-FUNDED PROJECTS SERVING COLONIAS. (a) Notwithstanding Section 2306.581, in [In] this section, "colonia" means a geographic area that:

(1) is an economically distressed area as defined by Section 17.921, Water Code;

(2) is located in a county any part of which is within 62 miles of an international border; and

(3) consists of 11 or more dwellings that are located in close proximity to each other in an area that may be described as a community or neighborhood.

(b) Based on information provided under Subsections (c) and (d), the department [secretary of state] shall establish and maintain a classification system that allows the department [secretary of state] to track the progress of state-funded projects in providing water or wastewater services, paved roads, and other assistance to colonias.

(c) The department [secretary of state] shall compile information received from offices within the department, the Texas Department of Rural Affairs, the Texas Water Development Board, the Texas Transportation Commission, [the Texas Department of Housing and Community Affairs,] the Department of State Health Services, the Texas Commission on Environmental Quality, the Health and Human Services Commission, the Texas Cooperative Extension, councils of governments, an institution of higher education that receives funding from the state for projects that provide assistance to colonias, and any other agency considered appropriate by the department [secretary of state] for purposes of the classification system.

(d) The department [secretary of state] shall compile information on colonias that is received from the colonia ombudspersons under Section 775.004.

(e) The department [secretary of state] shall:

(1) with the assistance of the office of the attorney general, prepare a report on the progress of state-funded projects in providing water or wastewater services, paved roads, and other assistance to colonias; and

(2) submit the report to the presiding officer of each house of the legislature not later than:

(A) December 1 of each even-numbered year, if funds are appropriated specifically for the purpose of preparing and submitting the report; or

(B) if funds are not appropriated as described by Paragraph (A), December 1, 2010, and December 1 of every fourth year following that date.

(f) The report to the legislature must include a list of colonias with the highest health risk to colonia residents, based on factors identified by the department [secretary of state].

(g) In conjunction with the establishment of the classification system required by this section, the department [secretary of state] shall establish and maintain a statewide system for identifying colonias.

(h) The department [secretary of state] may contract with a third party to develop the classification system or the identification system or to compile or maintain the relevant information required by this section.

ARTICLE 2. CONFORMING AMENDMENTS

SECTION 2.01. The heading to Section 51.0052, Education Code, is amended to read as follows:

Sec. 51.0052. REPORT TO TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS [SECRETARY OF STATE].

SECTION 2.02. Subsections (b), (c), and (d), Section 51.0052, Education Code, are amended to read as follows:

(b) To assist the Texas Department of Housing and Community Affairs [secretary of state] in preparing the report required under Section 2306.592 [405.021], Government Code, an institution of higher education on a quarterly basis shall provide a report to the Texas Department of Housing and Community Affairs [secretary of state] detailing any projects funded by the institution of higher education that provide assistance to colonias.

(c) The report must include:

(1) a description of any relevant projects;

(2) the location of each project;

(3) the number of colonia residents served by each project;

(4) the exact amount spent or the anticipated amount to be spent on each colonia served by each project;

(5) a statement of whether each project is completed and, if not, the expected completion date of the project; and

(6) any other information, as determined appropriate by the Texas Department of Housing and Community Affairs [secretary of state].

(d) The institution of higher education shall require an applicant for funds administered by the institution to submit to the institution a colonia classification number, if one exists, for each colonia that may be served by the project proposed in the application. If a colonia does not have a classification number, the institution of higher education may contact the Texas Department of Housing and Community Affairs [secretary of state or the secretary of state's representative] to obtain the classification number. On request of the institution, the Texas Department of Housing and Community Affairs [secretary of state or the secretary of state's representative] shall assign a classification number to the colonia.

SECTION 2.03. The heading to Section 487.060, Government Code, is amended to read as follows:

Sec. 487.060. REPORT TO TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS [SECRETARY OF STATE].

SECTION 2.04. Subsections (b), (c), and (d), Section 487.060, Government Code, are amended to read as follows:

(b) To assist the Texas Department of Housing and Community Affairs [secretary of state] in preparing the report required under Section 2306.592 [405.021], the department on a quarterly basis shall provide a report to the Texas Department of Housing and Community Affairs [secretary of state] detailing any projects funded by the department that serve colonias by providing water or wastewater services, paved roads, or other assistance.

(c) The report must include:

(1) a description of any relevant projects;

(2) the location of each project;

(3) the number of colonia residents served by each project;

(4) the exact amount spent or the anticipated amount to be spent on each colonia served by each project;

(5) a statement of whether each project is completed and, if not, the expected completion date of the project; and

(6) any other information, as determined appropriate by the Texas Department of Housing and Community Affairs [secretary of state].

(d) The department shall require an applicant for funds administered by the department to submit to the department a colonia classification number, if one exists, for each colonia that may be served by the project proposed in the application. If a colonia does not have a classification number, the department may contact the Texas Department of Housing and Community Affairs [secretary of state or the secretary of state's representative] to obtain a number. On request of the department, the Texas Department of Housing and Community Affairs [secretary of state or the secretary of state's representative] shall assign a classification number.

SECTION 2.05. The heading to Section 531.0141, Government Code, is amended to read as follows:

Sec. 531.0141. REPORT TO TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS [SECRETARY OF STATE].

SECTION 2.06. Subsections (b), (c), and (d), Section 531.0141, Government Code, are amended to read as follows:

(b) To assist the Texas Department of Housing and Community Affairs [secretary of state] in preparing the report required under Section 2306.592 [405.021], the commission on a quarterly basis shall provide a report to the Texas Department of Housing and Community Affairs [secretary of state] detailing any projects funded by the commission that provide assistance to colonias.

(c) The report must include:

(1) a description of any relevant projects;

(2) the location of each project;

(3) the number of colonia residents served by each project;

(4) the exact amount spent or the anticipated amount to be spent on each colonia served by each project;

(5) a statement of whether each project is completed and, if not, the expected completion date of the project; and

(6) any other information, as determined appropriate by the Texas Department of Housing and Community Affairs [secretary of state].

(d) The commission shall require an applicant for funds administered by the commission to submit to the commission a colonia classification number, if one exists, for each colonia that may be served by the project proposed in the application. If a colonia does not have a classification number, the commission may contact the Texas Department of Housing and Community Affairs [secretary of state or the secretary of state's representative] to obtain the classification number. On request of the commission, the Texas Department of Housing and Community Affairs [secretary of state or the secretary of state's representative] shall assign a classification number to the colonia.

SECTION 2.07. Subsections (a), (b), and (c), Section 775.004, Government Code, are amended to read as follows:

(a) The colonia ombudspersons shall gather information about the colonias in the counties for which the ombudspersons were appointed and provide the information to the Texas Department of Housing and Community Affairs [secretary of state], to assist the Texas Department of Housing and Community Affairs [secretary of state] in preparing the report required under Section 2306.592 [405.021].

(b) To the extent possible, the ombudspersons shall gather information regarding:

(1) the platting of each colonia;

(2) the infrastructure of each colonia;

(3) the availability of health care services;

(4) the availability of financial assistance; and

(5) any other appropriate topic as requested by the Texas Department of Housing and Community Affairs [secretary of state].

(c) The ombudspersons shall provide the information to the Texas Department of Housing and Community Affairs [secretary of state] not later than September 1 of each even-numbered year.

SECTION 2.08. The heading to Section 1001.033, Health and Safety Code, is amended to read as follows:

Sec. 1001.033. REPORT TO TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS [SECRETARY OF STATE].

SECTION 2.09. Subsections (b), (c), and (d), Section 1001.033, Health and Safety Code, are amended to read as follows:

(b) To assist the Texas Department of Housing and Community Affairs [secretary of state] in preparing the report required under Section 2306.592 [405.021], Government Code, the commissioner on a quarterly basis shall provide a report to the Texas Department of Housing and Community Affairs [secretary of state] detailing any projects funded by the department that provide assistance to colonias.

(c) The report must include:

(1) a description of any relevant projects;

(2) the location of each project;

(3) the number of colonia residents served by each project;

(4) the exact amount spent or the anticipated amount to be spent on each colonia served by each project;

(5) a statement of whether each project is completed and, if not, the expected completion date of the project; and

(6) any other information, as determined appropriate by the Texas Department of Housing and Community Affairs [secretary of state].

(d) The commission shall require an applicant for funds administered by the commission to submit to the commission a colonia classification number, if one exists, for each colonia that may be served by the project proposed in the application. If a colonia does not have a classification number, the commission may contact the Texas Department of Housing and Community Affairs [secretary of state or the secretary of state's representative] to obtain the classification number. On request of the commission, the Texas Department of Housing and Community Affairs [secretary of state or the secretary of state's representative] shall assign a classification number to the colonia.

SECTION 2.10. The heading to Section 391.00951, Local Government Code, is amended to read as follows:

Sec. 391.00951. REPORT TO TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS [SECRETARY OF STATE].

SECTION 2.11. Subsections (b), (c), and (d), Section 391.00951, Local Government Code, are amended to read as follows:

(b) To assist the Texas Department of Housing and Community Affairs [secretary of state] in preparing the report required under Section 2306.592 [405.021], Government Code, the commission on a quarterly basis shall provide a report to the Texas Department of Housing and Community Affairs [secretary of state] detailing any projects funded by the commission that provide assistance to colonias.

(c) The report must include:

(1) a description of any relevant projects;

(2) the location of each project;

(3) the number of colonia residents served by each project;

(4) the exact amount spent or the anticipated amount to be spent on each colonia served by each project;

(5) a statement of whether each project is completed and, if not, the expected completion date of the project; and

(6) any other information, as determined appropriate by the Texas Department of Housing and Community Affairs [secretary of state].

(d) The commission shall require an applicant for funds administered by the commission to submit to the commission a colonia classification number, if one exists, for each colonia that may be served by the project proposed in the application. If a colonia does not have a classification number, the commission may contact the Texas Department of Housing and Community Affairs [secretary of state or the secretary of state's representative] to obtain the classification number. On request of the commission, the Texas Department of Housing and Community Affairs [secretary of state or the secretary of state's representative] shall assign a classification number to the colonia.

SECTION 2.12. The heading to Section 201.116, Transportation Code, is amended to read as follows:

Sec. 201.116. REPORT TO TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS [SECRETARY OF STATE].

SECTION 2.13. Subsections (b), (c), and (d), Section 201.116, Transportation Code, are amended to read as follows:

(b) To assist the Texas Department of Housing and Community Affairs [secretary of state] in preparing the report required under Section 2306.592 [405.021], Government Code, the commission on a quarterly basis shall provide a report to the Texas Department of Housing and Community Affairs [secretary of state] detailing any projects funded by the department that serve colonias by providing paved roads or other assistance.

(c) The report must include:

(1) a description of any relevant projects;

(2) the location of each project;

(3) the number of colonia residents served by each project;

(4) the exact amount spent or the anticipated amount to be spent on each colonia served by each project;

(5) a statement of whether each project is completed and, if not, the expected completion date of the project; and

(6) any other information, as determined appropriate by the Texas Department of Housing and Community Affairs [secretary of state].

(d) The commission shall require an applicant for funds administered by the commission to submit to the commission a colonia classification number, if one exists, for each colonia that may be served by the project proposed in the application. If a colonia does not have a classification number, the commission may contact the Texas Department of Housing and Community Affairs [secretary of state or the secretary of state's representative] to obtain the classification number. On request of the commission, the Texas Department of Housing and Community Affairs [secretary of state or the secretary of state's representative] shall assign a classification number to the colonia.

SECTION 2.14. The heading to Section 5.1781, Water Code, is amended to read as follows:

Sec. 5.1781. REPORT TO TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS [SECRETARY OF STATE].

SECTION 2.15. Subsections (b), (c), and (d), Section 5.1781, Water Code, are amended to read as follows:

(b) To assist the Texas Department of Housing and Community Affairs [secretary of state] in preparing the report required under Section 2306.592 [405.021], Government Code, the commission on a quarterly basis shall provide a report to the Texas Department of Housing and Community Affairs [secretary of state] detailing any projects funded by the commission that provide assistance to colonias.

(c) The report must include:

(1) a description of any relevant projects;

(2) the location of each project;

(3) the number of colonia residents served by each project;

(4) the exact amount spent or the anticipated amount to be spent on each colonia served by each project;

(5) a statement of whether each project is completed and, if not, the expected completion date of the project; and

(6) any other information, as determined appropriate by the Texas Department of Housing and Community Affairs [secretary of state].

(d) The commission shall require an applicant for funds administered by the commission to submit to the commission a colonia classification number, if one exists, for each colonia that may be served by the project proposed in the application. If a colonia does not have a classification number, the commission may contact the Texas Department of Housing and Community Affairs [secretary of state or the secretary of state's representative] to obtain the classification number. On request of the commission, the Texas Department of Housing and Community Affairs [secretary of state or the secretary of state's representative] shall assign a classification number to the colonia.

SECTION 2.16. The heading to Section 6.1565, Water Code, is amended to read as follows:

Sec. 6.1565. REPORT TO TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS [SECRETARY OF STATE].

SECTION 2.17. Subsections (b), (c), and (d), Section 6.1565, Water Code, are amended to read as follows:

(b) To assist the Texas Department of Housing and Community Affairs [secretary of state] in preparing the report required under Section 2306.592 [405.021], Government Code, the board on a quarterly basis shall provide a report to the Texas Department of Housing and Community Affairs [secretary of state] detailing any projects funded by the board that serve colonias by providing water or wastewater services or other assistance.

(c) The report must include:

(1) a description of any relevant projects;

(2) the location of each project;

(3) the number of colonia residents served by each project;

(4) the exact amount spent or the anticipated amount to be spent on each colonia served by each project;

(5) a statement of whether each project is completed and, if not, the expected completion date of the project; and

(6) any other information, as determined appropriate by the Texas Department of Housing and Community Affairs [secretary of state].

(d) The board shall require an applicant for funds administered by the board to submit to the board a colonia classification number, if one exists, for each colonia that may be served by the project proposed in the application. If a colonia does not have a classification number, the board may contact the Texas Department of Housing and Community Affairs [secretary of state or the secretary of state's representative] to obtain the classification number. On request of the board, the Texas Department of Housing and Community Affairs [secretary of state or the secretary of state's representative] shall assign a classification number to the colonia.

ARTICLE 3. REPEALER, TRANSITION, AND EFFECTIVE DATE

SECTION 3.01. Section 2306.083, Government Code, is repealed.

SECTION 3.02. (a) Not later than October 1, 2011, the Texas Department of Housing and Community Affairs shall adopt the rules required by Subchapter N, Chapter 2306, Government Code, as added by this Act.

(b) As soon as practicable after the effective date of this Act, the Texas Department of Housing and Community Affairs shall establish the classification system required by Subsection (b), Section 2306.592, Government Code, as designated and amended by this Act. For purposes of this subsection, the department may use an applicable classification system already in effect.

SECTION 3.03. This Act takes effect September 1, 2011.

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