Texas 2019 - 86th Regular

Texas House Bill HB1800 Compare Versions

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1	1	86R5960 SLB-F
2	2	By: Bonnen of Galveston H.B. No. 1800
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the Texas resilience infrastructure fund; authorizing
8	8	the issuance of revenue bonds; making an appropriation.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 15, Water Code, is amended by adding
11	11	Subchapter J-1 to read as follows:
12	12	SUBCHAPTER J-1. TEXAS RESILIENCE INFRASTRUCTURE FUND
13	13	Sec. 15.651. DEFINITIONS. In this subchapter:
14	14	(1) "Advisory committee" means the Texas Resilience
15	15	Infrastructure Fund Advisory Committee.
16	16	(2) "Coastal public land" means state-owned:
17	17	(A) submerged land; and
18	18	(B) islands or portions of islands in the coastal
19	19	area.
20	20	(3) "Historically underutilized business" has the
21	21	meaning assigned by Section 2161.001, Government Code.
22	22	(4) "Infrastructure fund" means the Texas resilience
23	23	infrastructure fund.
24	24	(5) "Project sponsor" means a political subdivision
25	25	that has the authority and financial capability to implement,
26	26	operate, and maintain a resilience project.
27	27	(6) "Resilience project" means a project or program in
28	28	this state and the coastal public land that prevents flooding or
29	29	mitigates the damage from flooding related to a rainstorm, tropical
30	30	storm or depression, hurricane, or storm surge affecting:
31	31	(A) public health, safety, or welfare;
32	32	(B) public property, including infrastructure;
33	33	(C) privately owned commercial, agricultural, or
34	34	residential property; or
35	35	(D) fish or wildlife habitat.
36	36	(7) "Trust company" means the Texas Treasury
37	37	Safekeeping Trust Company.
38	38	Sec. 15.652. INFRASTRUCTURE FUND. (a) The Texas
39	39	resilience infrastructure fund is a special fund in the state
40	40	treasury outside the general revenue fund.
41	41	(b) The infrastructure fund may be used by the board,
42	42	without further legislative appropriation, only as provided by this
43	43	subchapter.
44	44	(c) Money deposited to the credit of the infrastructure fund
45	45	may be used only as provided by this subchapter.
46	46	(d) The board may establish separate accounts in the
47	47	infrastructure fund.
48	48	(e) The infrastructure fund and the infrastructure fund's
49	49	accounts are kept and held by the trust company for and in the name
50	50	of the board. The board has legal title to money and investments in
51	51	the infrastructure fund until money is disbursed from the fund as
52	52	provided by this subchapter and board rules.
53	53	(f) The infrastructure fund consists of:
54	54	(1) money transferred or deposited to the credit of
55	55	the infrastructure fund by law;
56	56	(2) proceeds from the sale of revenue bonds:
57	57	(A) issued by the board under this subchapter;
58	58	and
59	59	(B) designated by the board for the purpose of
60	60	providing a loan award from the infrastructure fund in accordance
61	61	with Section 15.654;
62	62	(3) loan repayments related to the issuance of an
63	63	award from the infrastructure fund;
64	64	(4) any tax, fee, or other revenue that the
65	65	legislature by statute dedicates for deposit to the credit of the
66	66	infrastructure fund;
67	67	(5) investment earnings and interest earned on amounts
68	68	credited to the infrastructure fund; and
69	69	(6) any gift or grant to the infrastructure fund.
70	70	(g) The Legislative Budget Board must give prior approval of
71	71	each expenditure or emergency transfer made from the infrastructure
72	72	fund by the board.
73	73	Sec. 15.653. MANAGEMENT AND INVESTMENT OF INFRASTRUCTURE
74	74	FUND. (a) The trust company shall hold and invest the
75	75	infrastructure fund, and any accounts established in the fund, for
76	76	and in the name of the board, taking into account the purposes for
77	77	which money in the fund may be used.
78	78	(b) At all times the trust company shall hold in the
79	79	infrastructure fund a reserve of not less than 10 percent of the
80	80	aggregate principal amount of revenue bonds issued by the board
81	81	under this subchapter.
82	82	(c) The trust company may invest not more than 15 percent of
83	83	the total balance of the infrastructure fund not held in reserve.
84	84	The infrastructure fund may be invested with the state treasury
85	85	pool. The overall objective for the investment of the
86	86	infrastructure fund is to maintain sufficient liquidity to meet the
87	87	needs of the fund while striving to preserve the awarding power of
88	88	the fund.
89	89	(d) The trust company has any power necessary to accomplish
90	90	the purposes of managing and investing the assets of the
91	91	infrastructure fund. In managing the assets of the infrastructure
92	92	fund, through procedures and subject to restrictions the trust
93	93	company considers appropriate, the trust company may acquire,
94	94	exchange, sell, supervise, manage, or retain any kind of investment
95	95	that a prudent investor, exercising reasonable care, skill, and
96	96	caution, would acquire or retain in light of the purposes, terms,
97	97	distribution requirements, and other circumstances of the
98	98	infrastructure fund then prevailing, taking into consideration the
99	99	investment of all the assets of the fund rather than a single
100	100	investment.
101	101	(e) The trust company may charge the infrastructure fund to
102	102	cover its costs incurred in managing and investing the fund. The
103	103	charge must be consistent with the fees the trust company charges
104	104	other state and local governmental entities for which it provides
105	105	investment management services. The trust company may recover
106	106	charges under this subsection only from the earnings of the
107	107	infrastructure fund.
108	108	(f) The trust company annually shall provide a written
109	109	report to the board and to the advisory committee with respect to
110	110	the investment of the infrastructure fund. The trust company shall
111	111	contract with a certified public accountant to conduct an
112	112	independent audit of the infrastructure fund annually and shall
113	113	present the results of each annual audit to the board and to the
114	114	advisory committee. This subsection does not affect the state
115	115	auditor's authority to conduct an audit of the infrastructure fund
116	116	under Chapter 321, Government Code.
117	117	(g) The trust company shall adopt a written investment
118	118	policy that is appropriate for the infrastructure fund. The trust
119	119	company shall present the investment policy to the investment
120	120	advisory board established under Section 404.028, Government Code.
121	121	The investment advisory board shall submit to the trust company
122	122	recommendations regarding the policy.
123	123	(h) The board shall provide to the trust company:
124	124	(1) an annual forecast of the cash flows into and out
125	125	of the infrastructure fund; and
126	126	(2) updates to the forecasts as appropriate to ensure
127	127	that the trust company is able to achieve the objective specified by
128	128	Subsection (c).
129	129	(i) Subject to Subsection (b), the trust company shall
130	130	disburse money from the infrastructure fund as directed by the
131	131	board.
132	132	(j) An investment-related contract entered into under this
133	133	section is not subject to Chapter 2260, Government Code.
134	134	Sec. 15.654. USE OF INFRASTRUCTURE FUND. (a) The board may
135	135	use money from the infrastructure fund to provide financing for
136	136	resilience projects.
137	137	(b) The board may award money from the infrastructure fund
138	138	for a resilience project only in the form of:
139	139	(1) a grant to a receiving project sponsor; or
140	140	(2) a loan as provided by Subsection (e).
141	141	(c) Money from the infrastructure fund may be awarded to
142	142	several project sponsors of a single resilience project.
143	143	(d) An award issued as a grant may finance:
144	144	(1) not more than 75 percent of the total cost of a
145	145	resilience project; or
146	146	(2) up to 100 percent of the local matching funds for a
147	147	federally qualifying resilience project.
148	148	(e) A project sponsor receiving a grant for a resilience
149	149	project also may receive a loan from the infrastructure fund to
150	150	finance the remaining cost of the project if the project sponsor can
151	151	certify a source of loan repayment through governmental funding
152	152	agreements approved by the attorney general. The project sponsor
153	153	must repay to the infrastructure fund any subsequent reimbursements
154	154	received by the project sponsor related to the approved funding
155	155	agreement until the loan principal and related interest is repaid
156	156	in full. In addition, the board may award money from the
157	157	infrastructure fund in the form of a loan instead of a grant at any
158	158	time the balance of the fund is less than $200 million. The terms of
159	159	a loan made under this subsection must be in accordance with board
160	160	rules governing the terms of loans for resilience projects.
161	161	(f) The board may award money from the infrastructure fund
162	162	to finance portions of a resilience project necessary for
163	163	construction and implementation of the project, including mapping,
164	164	studies, design, right-of-way acquisition, permitting, the
165	165	purchase or contracting of goods and services, and administrative
166	166	costs.
167	167	(g) The board may award money from the infrastructure fund
168	168	to finance regular updates and enhancements to the State of Texas
169	169	Hazard Mitigation Plan, as well as to finance the development of
170	170	hazard mitigation plans of political subdivisions, under
171	171	guidelines issued by the Federal Emergency Management Agency and
172	172	the Texas Division of Emergency Management.
173	173	(h) On recommendation by the advisory committee, the board
174	174	shall transfer money from the infrastructure fund to another state
175	175	agency to support resilience projects. Not more than a total of 10
176	176	percent of the available and unencumbered infrastructure fund, as
177	177	certified by the comptroller at the beginning of a state fiscal
178	178	biennium, may be transferred in that biennium under this
179	179	subsection.
180	180	(i) The board shall ensure that every effort is made to use
181	181	money from the infrastructure fund to obtain federal, local, and
182	182	private financing for a resilience project.
183	183	(j) Money from the infrastructure fund may not be used for
184	184	ongoing operation and maintenance costs of a resilience project.
185	185	Sec. 15.655. EMERGENCY USE OF INFRASTRUCTURE FUND. (a)
186	186	Notwithstanding Section 15.654, on the issuance of an executive
187	187	order or proclamation declaring a state of disaster related to
188	188	flooding in accordance with Chapter 418, Government Code, the board
189	189	may expend an amount not to exceed five percent of the available and
190	190	unencumbered infrastructure fund balance at the time of a disaster
191	191	declaration for disaster recovery purposes.
192	192	(b) The board may expend an additional amount not to exceed
193	193	2.5 percent of the available and unencumbered infrastructure fund
194	194	balance at the time of a renewal by the governor of a state of
195	195	disaster related to flooding for disaster recovery purposes.
196	196	(c) Notwithstanding Subsections (a) and (b), the board may
197	197	not expend from the infrastructure fund for disaster recovery
198	198	purposes during a state fiscal year an amount that exceeds 10
199	199	percent of the available and unencumbered infrastructure fund
200	200	balance at the time of the first flooding-related disaster
201	201	declaration made during that fiscal year.
202	202	Sec. 15.656. PARTNERSHIPS. (a) A project sponsor may enter
203	203	into a partnership with a nongovernmental entity to finance the
204	204	construction, implementation, operation, and maintenance of a
205	205	resilience project. Only a project sponsor may enter into an
206	206	agreement with the board for an award from the infrastructure fund.
207	207	(b) A project sponsor must include full disclosure of any
208	208	partnership between the project sponsor and a nongovernmental
209	209	entity in an application for an award from the infrastructure fund.
210	210	Sec. 15.657. APPLICATION REVIEW PROCEDURES. (a) The board
211	211	shall review an application for an award for a resilience project
212	212	immediately on receipt of the application. If the board determines
213	213	that an application is incomplete, the board shall notify the
214	214	applicant with an explanation of what is missing from the
215	215	application. The board shall evaluate the completed application
216	216	according to the appropriate project criteria. The board shall
217	217	make a final determination on an application as soon as possible.
218	218	(b) The board shall make every effort to expedite the
219	219	application review process and to award grants or loans to project
220	220	sponsors in a timely manner.
221	221	(c) At any time the balance of the infrastructure fund is
222	222	less than $200 million, the board shall notify all applicants with
223	223	applications pending and provide them with the option to apply for a
224	224	loan from the fund.
225	225	(d) If the board determines that an applicant should receive
226	226	an award of money from the infrastructure fund, the board must
227	227	submit the application to the advisory committee for review and
228	228	comments.
229	229	(e) The advisory committee shall review each application
230	230	submitted by the board and deliver comments on the application to
231	231	the board not later than the 30th day after the date on which the
232	232	board received the application.
233	233	(f) If revenue bonds are to be issued for the purpose of
234	234	awarding to an applicant money from the infrastructure fund, the
235	235	board must submit the application and comments from the advisory
236	236	committee to the bond review board and the attorney general for
237	237	approval.
238	238	(g) After an application has been reviewed and received
239	239	comments from the advisory committee and, if applicable, has been
240	240	approved by the bond review board and the attorney general, the
241	241	board shall submit the application and all related comments and
242	242	approvals to the lieutenant governor and speaker of the house of
243	243	representatives for approval.
244	244	Sec. 15.658. AWARD APPROVAL. (a) The board may award money
245	245	from the infrastructure fund for a resilience project only after:
246	246	(1) the advisory committee has reviewed and commented
247	247	on the project; and
248	248	(2) the expenditure is approved by the Legislative
249	249	Budget Board.
250	250	(b) For purposes of Subsection (a), an award of money from
251	251	the infrastructure fund is considered disapproved by the
252	252	Legislative Budget Board if that agency does not approve the
253	253	proposal to issue the award before the 31st day after the date of
254	254	receipt of the proposal from the board. The Legislative Budget
255	255	Board may extend the review deadline applicable to that agency for
256	256	an additional 14 days by submitting a written notice to that effect
257	257	to the board before the expiration of the initial review period.
258	258	Sec. 15.659. REPAYMENT OF AWARDS. (a) If an award
259	259	recipient has not used or obligated money awarded from the
260	260	infrastructure fund for the purposes for which the award was
261	261	intended before a date provided in the award agreement, the
262	262	recipient must repay to the credit of the fund that amount and pay
263	263	to the credit of the fund any related interest at a rate and on terms
264	264	as provided by the award agreement.
265	265	(b) All payments of principal and interest on a loan awarded
266	266	from the infrastructure fund shall be deposited to the credit of the
267	267	fund.
268	268	Sec. 15.660. REVENUE BONDS. (a) The board may issue
269	269	revenue bonds to provide the principal for loan financing of a
270	270	resilience project when the balance of the infrastructure fund is
271	271	less than $200 million.
272	272	(b) Revenue bonds issued under this subchapter are special
273	273	obligations of the board payable only from and secured by
274	274	designated income and receipts of the infrastructure fund, or of
275	275	one or more accounts in the fund, including principal of and
276	276	interest paid and to be paid on fund assets or income from accounts
277	277	created within the fund by the board, as determined by the board.
278	278	(c) Revenue bonds issued under this subchapter do not
279	279	constitute indebtedness of the state as prohibited by the
280	280	constitution.
281	281	(d) The board may require a project sponsor to make charges,
282	282	impose taxes that the project sponsor is otherwise authorized to
283	283	impose, or otherwise provide for sufficient money to pay acquired
284	284	obligations related to an award financed through a revenue bond
285	285	issued under this subchapter.
286	286	(e) Revenue bonds issued under this subchapter must be
287	287	authorized by resolution of the board and must have the form and
288	288	characteristics and bear the designations as the resolution
289	289	provides.
290	290	(f) Revenue bonds issued under this subchapter may:
291	291	(1) bear interest at the rate or rates payable
292	292	annually or otherwise;
293	293	(2) be dated;
294	294	(3) mature at the time or times, serially, as term
295	295	revenue bonds, or otherwise in not more than the 50th year from the
296	296	date the revenue bonds were issued;
297	297	(4) be callable before stated maturity on the terms
298	298	and at the prices, be in the denominations, be in the form, either
299	299	coupon or registered, carry registration privileges as to principal
300	300	only or as to both principal and interest and as to successive
301	301	exchange of coupon for registered bonds or one denomination for
302	302	bonds of other denominations, and successive exchange of registered
303	303	revenue bonds for coupon revenue bonds, be executed in the manner,
304	304	and be payable at the place or places inside or outside the state,
305	305	as provided by the resolution; and
306	306	(5) be issued in temporary or permanent form.
307	307	(g) Section 17.955 applies to revenue bonds issued under
308	308	this subchapter in the same manner as that section applies to water
309	309	financial assistance bonds.
310	310	(h) The board shall deposit the proceeds from the sale of
311	311	revenue bonds issued under this subchapter to the credit of the
312	312	infrastructure fund. Money deposited under this subsection may be
313	313	used only to finance a resilience project under this subchapter.
314	314	(i) Each revenue bond authorization and issuance under this
315	315	subchapter must be authorized and issued for a single resilience
316	316	project.
317	317	(j) On approval by the bond review board and the attorney
318	318	general, the board may authorize and issue revenue bonds to finance
319	319	multiple resilience project awards if the awards will all be
320	320	received by the same project sponsor or sponsors for a single
321	321	resilience project.
322	322	(k) The aggregate principal amount of revenue bonds issued
323	323	by the board for resilience projects may not exceed the lesser of $2
324	324	billion or 1,000 percent of the amount of the infrastructure fund
325	325	that the trust company holds in reserve.
326	326	(l) A revenue bond may not be issued by the board for a
327	327	resilience project unless:
328	328	(1) the revenue bond is approved by the bond review
329	329	board in accordance with Chapter 1231, Government Code; and
330	330	(2) the attorney general approves the issuance of the
331	331	bond after finding that the bonds have been authorized in
332	332	accordance with the law and that the project sponsor receiving an
333	333	award from the infrastructure fund has the legal authority to
334	334	implement a resilience project.
335	335	(m) The comptroller shall register all revenue bonds issued
336	336	by the board for resilience projects.
337	337	(n) Following registration of the bonds, revenue bonds
338	338	issued by the board for resilience projects are incontestable in
339	339	any court or other forum for any reason and are valid and binding
340	340	obligations in accordance with their terms for all purposes.
341	341	Sec. 15.661. DEFAULT, REMEDIES, AND ENFORCEMENT. (a) In
342	342	this section, "Default" means:
343	343	(1) default in payment of the principal of or interest
344	344	on an award issued as a loan from the infrastructure fund;
345	345	(2) a failure to perform any of the terms of a loan,
346	346	grant, or other financing agreement; or
347	347	(3) any other failure to perform an obligation, breach
348	348	of a term of an agreement, or default as provided by any proceeding
349	349	or agreement evidencing an obligation or agreement of a recipient,
350	350	beneficiary, or guarantor of financial assistance provided by the
351	351	board.
352	352	(b) In the event of a default by a project sponsor and on
353	353	request by the board, the attorney general shall seek:
354	354	(1) a writ of mandamus to compel a project sponsor or
355	355	the project sponsor's officers, agents, and employees to cure the
356	356	default; and
357	357	(2) any other legal or equitable remedy the board and
358	358	the attorney general consider necessary and appropriate.
359	359	(c) A proceeding authorized by this section shall be brought
360	360	and venue is in a district court in Travis County.
361	361	(d) In a proceeding under this section, the attorney general
362	362	may recover reasonable attorney's fees, investigative costs, and
363	363	court costs incurred on behalf of the state in the proceeding in the
364	364	same manner as provided by general law for a private litigant.
365	365	Sec. 15.662. PRIORITIZATION OF PROJECTS. (a) The board may
366	366	not prioritize a resilience project under this section unless the
367	367	political subdivision benefiting from the proposed resiliency
368	368	project is implementing current floodplain regulations.
369	369	(b) The board shall establish a point system for
370	370	prioritizing resilience projects for which money from the
371	371	infrastructure fund is sought. The system must include a standard
372	372	for the board to apply in determining whether a resilience project
373	373	qualifies for funding at the time the application for funding is
374	374	filed with the board.
375	375	(c) The board shall give the highest consideration in
376	376	awarding points to a resilience project that will have a
377	377	substantial effect, including a resilience project that:
378	378	(1) has been awarded federal money;
379	379	(2) is being studied by the United States Army Corps of
380	380	Engineers at the time of the project application;
381	381	(3) is included in a signed United States Army Corps of
382	382	Engineers Chief's Report at the time of the project application;
383	383	(4) aligns with the priorities and goals of the State
384	384	of Texas Hazard Mitigation Plan;
385	385	(5) will serve a political subdivision that has a
386	386	completed hazard mitigation plan approved by the Texas Division of
387	387	Emergency Management and the Federal Emergency Management Agency;
388	388	(6) will serve diverse urban and rural populations;
389	389	(7) will serve a metropolitan statistical area with a
390	390	population greater than 250,000;
391	391	(8) will contribute to regionalization in resiliency;
392	392	(9) is included in the Texas Coastal Resiliency Master
393	393	Plan;
394	394	(10) is included in the State Flood Assessment or a
395	395	statewide flood plan;
396	396	(11) will serve a political subdivision that has
397	397	received multiple state disaster declarations made under Chapter
398	398	418, Government Code, or multiple federal major disaster
399	399	declarations under the Robert T. Stafford Disaster Relief and
400	400	Emergency Assistance Act (42 U.S.C. 5121 et seq.), during the five
401	401	years before the date the board receives an application for the
402	402	resilience project under consideration; or
403	403	(12) includes a substantial water supply or water
404	404	management benefit.
405	405	(d) In addition to the criteria provided by Subsection (c),
406	406	the board must also consider at least the following criteria in
407	407	prioritizing projects:
408	408	(1) the contribution to be made by the applicant to
409	409	finance the resilience project, including the up-front capital to
410	410	be provided by the applicant;
411	411	(2) the ability of the board and the applicant to use
412	412	state financing to obtain local and federal funding;
413	413	(3) whether there is an emergency need for the
414	414	resilience project;
415	415	(4) whether federal funding for which the resilience
416	416	project is eligible has been used or sought;
417	417	(5) whether the applicant is ready to proceed with the
418	418	resilience project at the time of the application, including
419	419	whether:
420	420	(A) all preliminary planning and design work
421	421	associated with the resilience project has been completed;
422	422	(B) the applicant has acquired right-of-way
423	423	associated with the resilience project;
424	424	(C) the applicant has secured funding for the
425	425	resilience project from other sources; and
426	426	(D) the applicant is able to begin implementing
427	427	or constructing the resilience project;
428	428	(6) the resilience project's cost-to-benefit ratio as
429	429	calculated according to board rules; and
430	430	(7) if applicable, the ability of the applicant to
431	431	repay a loan awarded from the infrastructure fund.
432	432	Sec. 15.663. REPORTING AND TRANSPARENCY REQUIREMENTS. (a)
433	433	Not later than December 1 of each even-numbered year, the board
434	434	shall provide to the governor, lieutenant governor, speaker of the
435	435	house of representatives, and members of the legislature a report
436	436	regarding the use of the infrastructure fund.
437	437	(b) The board shall post the following information on the
438	438	board's Internet website regarding the use of the infrastructure
439	439	fund and regularly update the information posted:
440	440	(1) the progress made in developing resilience
441	441	projects statewide;
442	442	(2) a description of each resilience project that
443	443	receives money from the infrastructure fund, including:
444	444	(A) the expected date of completion of the
445	445	resilience project;
446	446	(B) the current status of the resilience project;
447	447	(C) the proposed benefit of the resilience
448	448	project;
449	449	(D) the initial total cost estimate of the
450	450	resilience project and variances to the initial cost estimate
451	451	exceeding five percent;
452	452	(E) a listing of the project sponsor receiving
453	453	money from the infrastructure fund;
454	454	(F) a listing of each political subdivision
455	455	served by each resilience project;
456	456	(G) an estimate of matching funds that will be
457	457	available for the resilience project resulting from the use of the
458	458	infrastructure fund;
459	459	(H) if applicable, the amount of bonds issued and
460	460	the terms of the bonds; and
461	461	(I) the status of repayment of each loan provided
462	462	in connection with a resilience project, including an assessment of
463	463	the risk of default based on a standard risk rating system;
464	464	(3) a description of the investment portfolio of the
465	465	infrastructure fund;
466	466	(4) the expenses incurred in investing money in the
467	467	infrastructure fund;
468	468	(5) the rate of return on the investment of money in
469	469	the infrastructure fund;
470	470	(6) a description of the point system for prioritizing
471	471	resilience projects established by the board under Section 15.662
472	472	and the number of points awarded by the board for each resilience
473	473	project;
474	474	(7) any nonconfidential information submitted to the
475	475	board as part of an application for funding under this subchapter
476	476	that is approved by the board;
477	477	(8) the administrative and operating expenses
478	478	incurred by the board in administering the infrastructure fund; and
479	479	(9) any other information required by board rule.
480	480	(c) In addition to the information described by Subsection
481	481	(b), the report described by Subsection (a) must also include:
482	482	(1) the policies and procedures used for any
483	483	procurement of property or services related to a resilience
484	484	project, including any policies and procedures meant to increase
485	485	participation by historically underutilized businesses;
486	486	(2) the written standards of conduct covering
487	487	conflicts of interest and governing the performance of the board's
488	488	staff who engage in the review, recommendation, and administration
489	489	of awards from the infrastructure fund;
490	490	(3) all direct and indirect administrative costs
491	491	related to the administration of the infrastructure fund;
492	492	(4) the cost-to-benefit ratio related to each
493	493	resilience project;
494	494	(5) the end of fiscal year balance of the
495	495	infrastructure fund as estimated by the comptroller; and
496	496	(6) a record of all transfers made from the
497	497	infrastructure fund to other state agencies, including:
498	498	(A) an account of each receiving state agency;
499	499	(B) the amount of each transfer;
500	500	(C) a description of each receiving state
501	501	agency's program that supports resilience projects; and
502	502	(D) an account of all disbursements made by
503	503	receiving state agencies in support of resilience projects during
504	504	the fiscal year.
505	505	Sec. 15.664. TEXAS RESILIENCE INFRASTRUCTURE FUND ADVISORY
506	506	COMMITTEE. (a) The Texas Resilience Infrastructure Fund Advisory
507	507	Committee is composed of the following five members:
508	508	(1) the comptroller, or a person designated by the
509	509	comptroller;
510	510	(2) two members of the senate appointed by the
511	511	lieutenant governor, including:
512	512	(A) a member of the committee of the senate
513	513	having primary jurisdiction over matters relating to finance; and
514	514	(B) a member of the committee of the senate
515	515	having primary jurisdiction over agriculture, water, and rural
516	516	affairs; and
517	517	(3) two members of the house of representatives
518	518	appointed by the speaker of the house of representatives,
519	519	including:
520	520	(A) a member of the committee of the house of
521	521	representatives having primary jurisdiction over appropriations;
522	522	and
523	523	(B) a member of the committee of the house of
524	524	representatives having primary jurisdiction over natural
525	525	resources.
526	526	(b) The lieutenant governor shall appoint a co-presiding
527	527	officer of the advisory committee from among the members appointed
528	528	by the lieutenant governor, and the speaker of the house of
529	529	representatives shall appoint a co-presiding officer of the
530	530	committee from among the members appointed by the speaker.
531	531	(c) The advisory committee may hold public hearings, formal
532	532	meetings, or work sessions. Either co-presiding officer of the
533	533	advisory committee may call a public hearing, formal meeting, or
534	534	work session of the advisory committee at any time. The advisory
535	535	committee may not take formal action at a public hearing, formal
536	536	meeting, or work session unless a quorum of the committee is
537	537	present.
538	538	(d) Except as otherwise provided by this subsection, a
539	539	member of the advisory committee is not entitled to receive
540	540	compensation for service on the committee or reimbursement for
541	541	expenses incurred in the performance of official duties as a member
542	542	of the committee. Service on the advisory committee by a member of
543	543	the senate or house of representatives is considered legislative
544	544	service for which the member is entitled to reimbursement and other
545	545	benefits in the same manner and to the same extent as for other
546	546	legislative service.
547	547	(e) The advisory committee shall submit comments and
548	548	recommendations to the board regarding the use of money in the
549	549	infrastructure fund for use by the board in adopting rules,
550	550	policies, and procedures. The submission must include:
551	551	(1) comments and recommendations on rulemaking
552	552	related to the prioritization of resilience projects;
553	553	(2) comments and recommendations on rulemaking
554	554	related to establishing standards for determining whether
555	555	resilience projects meet the criteria provided by Section 15.658;
556	556	(3) an evaluation of the use of money by the board to
557	557	provide funding for resilience projects, including meeting federal
558	558	and local matching requirements;
559	559	(4) an evaluation of methods for encouraging
560	560	participation in the procurement process by companies domiciled in
561	561	this state or that employ a significant number of residents of this
562	562	state; and
563	563	(5) an evaluation of the overall operation, function,
564	564	and structure of the infrastructure fund.
565	565	(f) The advisory committee shall review the overall
566	566	operation, function, and structure of the infrastructure fund at
567	567	least semiannually and may provide comments and recommendations to
568	568	the board on any matter.
569	569	(g) The advisory committee may adopt rules, procedures, and
570	570	policies as needed to administer this section and implement its
571	571	responsibilities.
572	572	(h) Chapter 2110, Government Code, does not apply to the
573	573	size, composition, or duration of the advisory committee.
574	574	(i) The advisory committee shall make recommendations to
575	575	the board regarding information to be posted on the board's
576	576	Internet website.
577	577	(j) The advisory committee shall evaluate and may provide
578	578	comments or recommendations on the feasibility of the state owning,
579	579	constructing, operating, and maintaining resilience projects,
580	580	including reservoirs and coastal barriers.
581	581	(k) The advisory committee independently may propose and
582	582	make recommendations for the funding and implementation of a
583	583	resilience project and identify and recommend an appropriate
584	584	project sponsor.
585	585	(l) The advisory committee may identify programs
586	586	administered by state agencies that support resilience projects and
587	587	recommend that money from the infrastructure fund be transferred to
588	588	those agencies for the support of resilience projects.
589	589	(m) The executive administrator shall provide an annual
590	590	report to the advisory committee on:
591	591	(1) the board's compliance with statewide annual goals
592	592	relating to historically underutilized businesses; and
593	593	(2) the participation level of historically
594	594	underutilized businesses in resilience projects that receive money
595	595	from the infrastructure fund.
596	596	(n) If the aggregate level of participation by historically
597	597	underutilized businesses in resilience projects that receive money
598	598	from the infrastructure fund does not meet statewide annual goals
599	599	adopted under Chapter 2161, Government Code, the advisory committee
600	600	shall make recommendations to the board to improve the
601	601	participation level.
602	602	(o) The board shall supply staff support to the advisory
603	603	committee.
604	604	Sec. 15.665. RULES. (a) The board shall adopt rules
605	605	providing for the use of money in the infrastructure fund that are
606	606	consistent with this subchapter, including rules:
607	607	(1) establishing standards for the eligibility for
608	608	funding of resilience projects;
609	609	(2) establishing the prioritization of resilience
610	610	projects;
611	611	(3) establishing terms for the repayment of a loan
612	612	award from the infrastructure fund; and
613	613	(4) establishing terms for the completion of a
614	614	resilience project.
615	615	(b) The rules establishing terms for the repayment of a loan
616	616	award from the infrastructure fund must provide for:
617	617	(1) an amortization schedule not to exceed 30 years;
618	618	(2) an interest rate at or below the market rate at the
619	619	time an application is approved for an award;
620	620	(3) no penalties for early repayment; and
621	621	(4) principal and interest payments on the loan to
622	622	begin not later than 18 months after the date the loan is
623	623	originated.
624	624	(c) The board shall give full consideration to the
625	625	recommendations of the advisory committee before adopting rules
626	626	under this subchapter.
627	627	Sec. 15.666. POLICIES AND PROCEDURES TO MITIGATE OR
628	628	MINIMIZE ADVERSE EFFECTS OF CERTAIN FEDERAL LAWS. The board shall
629	629	adopt, and may amend from time to time at the board's discretion,
630	630	policies and procedures for the purpose of mitigating or minimizing
631	631	the adverse effects, if any, of federal laws and regulations
632	632	relating to income taxes, arbitrage, rebates, and related matters
633	633	that may restrict the board's ability to freely invest all or part
634	634	of the fund or to receive and retain all the earnings from the
635	635	infrastructure fund.
636	636	SECTION 2. Not later than the 30th day after the effective
637	637	date of this Act, the lieutenant governor and the speaker of the
638	638	house of representatives shall appoint the initial members of the
639	639	Texas Resilience Infrastructure Fund Advisory Committee as
640	640	provided by Section 15.664, Water Code, as added by this Act.
641	641	SECTION 3. (a) Not later than the 120th day after the
642	642	effective date of this Act, the Texas Resilience Infrastructure
643	643	Fund Advisory Committee shall submit recommendations to the Texas
644	644	Water Development Board on the rules to be adopted by the board
645	645	under Section 15.665, Water Code, as added by this Act, and the
646	646	policies and procedures to be adopted by the board under Section
647	647	15.666, Water Code, as added by this Act.
648	648	(b) Not later than the 90th day after the date the Texas
649	649	Water Development Board receives the recommendations described by
650	650	Subsection (a) of this section, the board shall adopt rules under
651	651	Section 15.665, Water Code, as added by this Act, and policies and
652	652	procedures under Section 15.666, Water Code, as added by this Act.
653	653	SECTION 4. (a) The amount of $1.5 billion is appropriated
654	654	out of the economic stabilization fund to the Texas resilience
655	655	infrastructure fund for purposes of implementing Subchapter J-1,
656	656	Chapter 15, Water Code, as added by this Act.
657	657	(b) The amount of $1.5 billion is appropriated out of the
658	658	economic stabilization fund to general revenue dedicated account
659	659	number 453, Disaster Contingency Fund, and, in addition to other
660	660	amounts appropriated to the Department of Public Safety for the
661	661	state fiscal biennium ending August 31, 2021, $1.5 billion is
662	662	appropriated out of general revenue dedicated account number 453,
663	663	Disaster Contingency Fund, to the Department of Public Safety for
664	664	that state fiscal biennium for purposes of providing local
665	665	government entities local matching funds related to the Public
666	666	Assistance Grant Program and Hazard Mitigation Grant Program
667	667	administered by the Federal Emergency Management Agency.
668	668	(c) This section takes effect only if this Act is approved
669	669	by a vote of two-thirds of the members present in each house of the
670	670	legislature, as provided by Section 49-g(m), Article III, Texas
671	671	Constitution.
672	672	SECTION 5. Except as otherwise provided by this Act, this
673	673	Act takes effect immediately if it receives a vote of two-thirds of
674	674	all the members elected to each house, as provided by Section 39,
675	675	Article III, Texas Constitution. If this Act does not receive the
676	676	vote necessary for immediate effect, this Act takes effect
677	677	September 1, 2019.