HBA-CBW H.B. 2776 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2776 By: Wise Natural Resources 3/27/2001 Introduced BACKGROUND AND PURPOSE In Texas, nonprofit organizations (organizations) have helped colonia residents build their own water and wastewater projects. The legislature had endorsed the concept of self-help work in colonias by funding the bootstrap loan program at the Texas Department of Housing and Community Affairs and by adopting legislation to allow self-help plumbing projects in colonias administered through the Texas Natural Resource Conservation Commission. By building their own water or wastewater projects, colonia residents may save up to 40 percent of the cost of a traditional project. Moreover, organizations may leverage state funds to bring funding sources into the colonia. House Bill 2776 creates a colonia self-help program and creates the colonia self-help account to fund various projects to improve the condition in colonias. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Texas Water Development Board in SECTION 1 (Section 15.907, Water Code) of this bill. ANALYSIS House Bill 2776 amends the Water Code to create the colonia self-help program (program) and colonia self-help account (account). The bill provides that the account consists of money directly appropriated to the Texas Water Development Board (board), money transferred by the board from any and all sources available, and interest earned on the investment of money in the account. The bill authorizes the account to be used to reimburse eligible nonprofit organization (organization) engaged in self-help water, wastewater, and platting projects in the colonias for specified expenses. The bill requires the board to award grants directly to the organization that applies for the grant, sets forth the eligibility requirements for an organization and establishes the initial application process for financial assistance. The bill requires the board to make a preliminary decision about a grant award and notify the applicant not later than the 45th day after the date the initial application for assistance is received. The bill sets forth procedures for reporting by an organization that receives a favorable preliminary decision on a grant request. On receipt of the report, and inspection of the project determined necessary by the board, the board is required to award a grant to the organization for its expenditures. The bill requires the board to adopt rules necessary to administer the program. The bill requires the program to be co-administered by the office of the secretary of state until the second anniversary of the date on which the program begins operations. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.