| 1 | 1 | | 81R13522 JJT-F |
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| 2 | 2 | | By: Hunter H.B. No. 3980 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the eligibility requirements for, selection criteria |
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| 8 | 8 | | for, and awarding of grants under programs of the Texas Commission |
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| 9 | 9 | | on Environmental Quality. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Section 5.124, Water Code, is amended by |
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| 12 | 12 | | amending Subsections (d) and (f) and adding Subsection (e-1) to |
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| 13 | 13 | | read as follows: |
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| 14 | 14 | | (d) A grant may be awarded to any person that meets the |
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| 15 | 15 | | eligibility requirements of the grant. The executive director |
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| 16 | 16 | | shall establish eligibility requirements for each grant |
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| 17 | 17 | | appropriate to the purposes of and activities under the grant and |
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| 18 | 18 | | the method of selecting the recipient. In establishing eligibility |
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| 19 | 19 | | requirements for a grant, the executive director shall ensure that |
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| 20 | 20 | | the requirements do not discriminate against a potential grant |
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| 21 | 21 | | recipient that is an entity exempt from federal income taxation |
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| 22 | 22 | | under Section 501(a), Internal Revenue Code of 1986, as an |
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| 23 | 23 | | organization described by Section 501(c)(3) of that code if the |
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| 24 | 24 | | potential recipient meets other eligibility requirements. The |
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| 25 | 25 | | executive director's eligibility requirements for a grant may |
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| 26 | 26 | | exclude an entity that is an exempt organization only if such an |
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| 27 | 27 | | entity is ineligible according to: |
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| 28 | 28 | | (1) a state or federal law that prohibits awarding a |
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| 29 | 29 | | grant under the grant program to an entity that is an exempt |
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| 30 | 30 | | organization; or |
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| 31 | 31 | | (2) a rule adopted by the commission during the 12 |
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| 32 | 32 | | months preceding the entity's consideration for a grant under the |
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| 33 | 33 | | grant program that prohibits awarding a grant to an entity that is |
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| 34 | 34 | | an exempt organization. |
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| 35 | 35 | | (e-1) In determining and implementing the selection |
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| 36 | 36 | | criteria under Subsection (e), the executive director shall ensure |
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| 37 | 37 | | that a bias is not created against awarding a grant to an entity |
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| 38 | 38 | | exempt from federal income taxation under Section 501(a), Internal |
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| 39 | 39 | | Revenue Code of 1986, as an organization described by Section |
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| 40 | 40 | | 501(c)(3) of that code. |
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| 41 | 41 | | (f) A grant may be made by direct award only if: |
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| 42 | 42 | | (1) the executive director determines that: |
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| 43 | 43 | | (A) selection of recipients by the solicitation |
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| 44 | 44 | | of proposals or applications is not feasible; and |
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| 45 | 45 | | (B) awarding the grant directly is in the best |
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| 46 | 46 | | interest of the state; |
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| 47 | 47 | | (2) eligibility for the grant is limited to: |
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| 48 | 48 | | (A) an agency or political subdivision of this |
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| 49 | 49 | | state or of another state; |
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| 50 | 50 | | (B) a state institution of higher learning of |
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| 51 | 51 | | this state or of another state, including any part or service of the |
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| 52 | 52 | | institution; [or] |
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| 53 | 53 | | (C) an agency of the United States; or |
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| 54 | 54 | | (D) an entity exempt from federal income taxation |
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| 55 | 55 | | under Section 501(a), Internal Revenue Code of 1986, as an |
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| 56 | 56 | | organization described by Section 501(c)(3) of that code that is |
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| 57 | 57 | | already receiving funds from another state or federal agency for |
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| 58 | 58 | | the same purposes or project as those of the grant; or |
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| 59 | 59 | | (3) the grant is awarded to a person established or |
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| 60 | 60 | | authorized to develop or implement a comprehensive conservation and |
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| 61 | 61 | | management plan under Section 320, Federal Water Pollution Control |
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| 62 | 62 | | Act (33 U.S.C. Section 1330), for a national estuary in this state. |
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| 63 | 63 | | SECTION 2. To the extent permissible under state statutes |
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| 64 | 64 | | and federal law, the Texas Commission on Environmental Quality |
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| 65 | 65 | | shall delay awarding grants subject to Section 5.124, Water Code, |
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| 66 | 66 | | as amended by this Act, until grant program rules, eligibility |
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| 67 | 67 | | requirements, and selection criteria conform to that section. |
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| 68 | 68 | | SECTION 3. This Act takes effect immediately if it receives |
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| 69 | 69 | | a vote of two-thirds of all the members elected to each house, as |
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| 70 | 70 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 71 | 71 | | Act does not receive the vote necessary for immediate effect, this |
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| 72 | 72 | | Act takes effect September 1, 2009. |
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