S.B. No. 1371
AN ACT
relating to the colonia self-help program.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 15.951, Water Code, is amended by
amending Subdivision (2) and adding Subdivisions (2-a) and (2-b) to
read as follows:
(2) "Colonia" means a geographic area that:
(A) is an economically distressed area as defined
by Section 17.921;
(B) is located in a county any part of which is
within 50 miles of an international border; and
(C) consists of at least 11 [or more] dwellings,
or of at least a lower number of dwellings as specified by the board
for which the board determines that a self-help project will be
cost-effective, that are located in close proximity to each other
in an area that may be described as a community or neighborhood.
(2-a) "Nonprofit organization" means an organization
qualifying for an exemption from federal income taxes under Section
501(c)(3), Internal Revenue Code of 1986.
(2-b) "Political subdivision" has the meaning
assigned by Section 17.921.
SECTION 2. Section 15.953, Water Code, is amended to read as
follows:
Sec. 15.953. USE OF ACCOUNT. (a) The board may use funds
in the account to reimburse a political subdivision or a nonprofit
organization for eligible [only to reimburse nonprofit
organizations eligible under Section 15.954 for] expenses incurred
in a self-help project that results in the provision of adequate
water or wastewater services to a colonia. Eligible expenses under
this subsection [Expenses that may be reimbursed] include:
(1) construction expenses;
(2) facility planning expenses;
(3) platting expenses;
(4) surveying expenses;
(5) engineering expenses;
(6) equipment expenses; and
(7) other expenses necessary to provide water or
wastewater services to the colonia, as determined appropriate by
the board.
(b) The board may award a grant under the program directly
to a political subdivision or nonprofit organization to reimburse
the subdivision or organization for expenses incurred in a
self-help project described by Subsection (a). If the board
determines that a retail public utility described by Section
15.955(8) has made a commitment to the self-help project sufficient
to ensure that retail water or wastewater service will be extended
to the colonia, the board may make an advance of grant funds. An
advance under this subsection is subject to the terms determined by
the board and may not exceed 10 percent of the total amount of the
grant.
SECTION 3. Section 15.954, Water Code, is amended to read as
follows:
Sec. 15.954. ELIGIBLE POLITICAL SUBDIVISIONS AND NONPROFIT
ORGANIZATIONS. To be eligible to receive a grant under the
program, a political subdivision or a nonprofit [an] organization
must:
(1) demonstrate work experience relevant to extending
retail water or wastewater utility service to colonias in
coordination with retail public utilities [apply for the grant];
and
(2) develop a plan that requires self-help project
beneficiaries to actively participate in the implementation of the
project, in coordination with a retail public utility described by
Section 15.955(8) [qualify for an exemption from federal income
taxes under Section 501(c)(3), Internal Revenue Code of 1986, as
amended; and
[(3) as of January 1, 2001, have a demonstrated record
of completing in coordination with a retail public utility
construction of self-help projects described by Section
15.953(a)].
SECTION 4. Section 15.955, Water Code, is amended to read as
follows:
Sec. 15.955. GRANT APPLICATION. An eligible political
subdivision or nonprofit organization must apply to the board for a
grant under the program before incurring any expense associated
with a self-help project described by Section 15.953(a). The
application must include:
(1) the name of the political subdivision or nonprofit
organization, the names of the political subdivision's authorized
representative or the nonprofit [the] organization's principal
officers, and verification of the nonprofit [the] organization's
501(c)(3) status;
(2) a description of the project area, the anticipated
number of water and wastewater connections to be made, and the
anticipated number of colonia residents to be served;
(3) a description of the existing water and wastewater
facilities in the colonia;
(4) a description of the project and the aspect of the
project for which the grant will be used;
(5) a description of the anticipated participation in
the project by residents of the colonia;
(6) the estimated total cost of both the project and
the aspect of the project for which the grant will be used;
(7) the amount of the grant that is requested from the
account and the sources of funding for the entire project;
(8) from a retail public utility authorized to provide
water or wastewater services to the colonia, a resolution in which
the retail public utility:
(A) agrees to inspect the project during and
after construction to ensure the adequacy of the project; and
(B) commits to provide the water or wastewater
services that the project intends to use; and
(9) any other information required by the board.
SECTION 5. Section 15.956, Water Code, is amended to read as
follows:
Sec. 15.956. BOARD CONSIDERATIONS IN EVALUATING GRANT
APPLICATION. In evaluating an application for a grant under the
program, the board shall consider:
(1) the number of colonia residents to be served by the
self-help project;
(2) the capability of the political subdivision or
nonprofit organization to complete the self-help project in a
timely manner;
(3) the[,] quality[, and character] of any projects
previously completed by the applicant; and
(4) [(2)] the commitment demonstrated by [capability
of] the retail public utility to provide water or wastewater
services to the colonia on completion of the project.
SECTION 6. Section 15.959, Water Code, is repealed.
SECTION 7. 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, 2009.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1371 passed the Senate on
April 21, 2009, by the following vote: Yeas 30, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1371 passed the House on
May 6, 2009, by the following vote: Yeas 96, Nays 48, two present
not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor