By: Lucio S.B. No. 1408

(In the Senate - Filed March 12, 2015; March 18, 2015, read first time and referred to Committee on Agriculture, Water, and Rural Affairs; May 7, 2015, reported favorably by the following vote: Yeas 6, Nays 0; May 7, 2015, sent to printer.) Click here to see the committee vote

A BILL TO BE ENTITLED

AN ACT

relating to the establishment of a matching grant program for community development in certain municipalities and counties.

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

SECTION 1. Title 2, Agriculture Code, is amended by adding Chapter 23 to read as follows:

CHAPTER 23. COMMUNITY DEVELOPMENT MATCHING GRANT PROGRAM FOR RURAL

AND SMALL COMMUNITIES

Sec. 23.001. DEFINITION. In this chapter, "program" means the community development matching grant program established under this chapter.

Sec. 23.002. COMMUNITY DEVELOPMENT MATCHING GRANT PROGRAM. (a) Subject to the availability of federal and state funds, the department shall create a community development matching grant program to foster community and economic development in certain municipalities and counties.

(b) The department shall award matching grants under the program to assist in the financing of:

(1) trade-related initiatives and programs, as determined by the commissioner, that will assist farmers, ranchers, and the equine industry in eligible municipalities or counties to develop and export their produce, products, and services to international markets;

(2) community development projects, including basic infrastructure projects such as water or wastewater facilities and planning, street improvements, and drainage;

(3) capacity-building projects relating to local public facility and housing planning activities;

(4) renewable energy projects to help participating rural communities reduce energy costs for water and wastewater treatment facilities;

(5) restoration projects for water or wastewater infrastructure based on urgent need, if the infrastructure poses an imminent threat to life or health;

(6) economic development projects to create or retain permanent employment opportunities;

(7) economic development projects to support economic and management development activities at the county level;

(8) environmental projects that provide assistance to small communities for solving water or wastewater problems using self-help methods; and

(9) other community development projects as determined by the department with the assistance of the Texas Rural Health and Economic Development Advisory Council.

Sec. 23.003. ELIGIBLE ENTITIES. A municipality or county is eligible for a matching grant under this chapter if the municipality or county is:

(1) a nonentitlement area, as defined by 42 U.S.C. Section 5302(a)(7), under the federal community development block grant nonentitlement program; and

(2) in good standing with the department and with the United States Department of Housing and Urban Development.

Sec. 23.004. APPLICATIONS. Eligible municipalities or counties may submit a single-jurisdiction application or a multi-jurisdiction application for a matching grant under the program for a community development project. An application must include a description of the project proposal.

Sec. 23.005. PREFERENCE FOR MULTI-JURISDICTION APPLICATIONS. (a) In awarding a matching grant under the program, the department shall give preference to an application submitted under the program by two or more eligible municipalities or counties if the application shows that the proposed community development project will mutually benefit the residents of the communities applying for the funds.

(b) A multi-jurisdiction application solely for administrative convenience may not be accepted by the department.

(c) A municipality or county that has submitted a multi-jurisdiction application may not submit a single-jurisdiction application for a matching grant for the same project for which the multi-jurisdiction application was submitted.

(d) If a matching grant is awarded under this program, one of the municipalities or counties participating under a multi-jurisdiction application shall be primarily accountable to the department for financial compliance and performance requirements under the program. All municipalities and counties applying under a multi-jurisdiction application must meet application threshold requirements.

Sec. 23.006. RULES. (a) The department by rule shall set criteria for matching grant requirements and participation under the program.

(b) The department shall adopt rules necessary to implement this chapter.

SECTION 2. 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, 2015.

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