86R5960 SLB-F
By: Bonnen of Galveston H.B. No. 1800
A BILL TO BE ENTITLED
AN ACT
relating to the Texas resilience infrastructure fund; authorizing
the issuance of revenue bonds; making an appropriation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 15, Water Code, is amended by adding
Subchapter J-1 to read as follows:
SUBCHAPTER J-1. TEXAS RESILIENCE INFRASTRUCTURE FUND
Sec. 15.651. DEFINITIONS. In this subchapter:
(1) "Advisory committee" means the Texas Resilience
Infrastructure Fund Advisory Committee.
(2) "Coastal public land" means state-owned:
(A) submerged land; and
(B) islands or portions of islands in the coastal
area.
(3) "Historically underutilized business" has the
meaning assigned by Section 2161.001, Government Code.
(4) "Infrastructure fund" means the Texas resilience
infrastructure fund.
(5) "Project sponsor" means a political subdivision
that has the authority and financial capability to implement,
operate, and maintain a resilience project.
(6) "Resilience project" means a project or program in
this state and the coastal public land that prevents flooding or
mitigates the damage from flooding related to a rainstorm, tropical
storm or depression, hurricane, or storm surge affecting:
(A) public health, safety, or welfare;
(B) public property, including infrastructure;
(C) privately owned commercial, agricultural, or
residential property; or
(D) fish or wildlife habitat.
(7) "Trust company" means the Texas Treasury
Safekeeping Trust Company.
Sec. 15.652. INFRASTRUCTURE FUND. (a) The Texas
resilience infrastructure fund is a special fund in the state
treasury outside the general revenue fund.
(b) The infrastructure fund may be used by the board,
without further legislative appropriation, only as provided by this
subchapter.
(c) Money deposited to the credit of the infrastructure fund
may be used only as provided by this subchapter.
(d) The board may establish separate accounts in the
infrastructure fund.
(e) The infrastructure fund and the infrastructure fund's
accounts are kept and held by the trust company for and in the name
of the board. The board has legal title to money and investments in
the infrastructure fund until money is disbursed from the fund as
provided by this subchapter and board rules.
(f) The infrastructure fund consists of:
(1) money transferred or deposited to the credit of
the infrastructure fund by law;
(2) proceeds from the sale of revenue bonds:
(A) issued by the board under this subchapter;
and
(B) designated by the board for the purpose of
providing a loan award from the infrastructure fund in accordance
with Section 15.654;
(3) loan repayments related to the issuance of an
award from the infrastructure fund;
(4) any tax, fee, or other revenue that the
legislature by statute dedicates for deposit to the credit of the
infrastructure fund;
(5) investment earnings and interest earned on amounts
credited to the infrastructure fund; and
(6) any gift or grant to the infrastructure fund.
(g) The Legislative Budget Board must give prior approval of
each expenditure or emergency transfer made from the infrastructure
fund by the board.
Sec. 15.653. MANAGEMENT AND INVESTMENT OF INFRASTRUCTURE
FUND. (a) The trust company shall hold and invest the
infrastructure fund, and any accounts established in the fund, for
and in the name of the board, taking into account the purposes for
which money in the fund may be used.
(b) At all times the trust company shall hold in the
infrastructure fund a reserve of not less than 10 percent of the
aggregate principal amount of revenue bonds issued by the board
under this subchapter.
(c) The trust company may invest not more than 15 percent of
the total balance of the infrastructure fund not held in reserve.
The infrastructure fund may be invested with the state treasury
pool. The overall objective for the investment of the
infrastructure fund is to maintain sufficient liquidity to meet the
needs of the fund while striving to preserve the awarding power of
the fund.
(d) The trust company has any power necessary to accomplish
the purposes of managing and investing the assets of the
infrastructure fund. In managing the assets of the infrastructure
fund, through procedures and subject to restrictions the trust
company considers appropriate, the trust company may acquire,
exchange, sell, supervise, manage, or retain any kind of investment
that a prudent investor, exercising reasonable care, skill, and
caution, would acquire or retain in light of the purposes, terms,
distribution requirements, and other circumstances of the
infrastructure fund then prevailing, taking into consideration the
investment of all the assets of the fund rather than a single
investment.
(e) The trust company may charge the infrastructure fund to
cover its costs incurred in managing and investing the fund. The
charge must be consistent with the fees the trust company charges
other state and local governmental entities for which it provides
investment management services. The trust company may recover
charges under this subsection only from the earnings of the
infrastructure fund.
(f) The trust company annually shall provide a written
report to the board and to the advisory committee with respect to
the investment of the infrastructure fund. The trust company shall
contract with a certified public accountant to conduct an
independent audit of the infrastructure fund annually and shall
present the results of each annual audit to the board and to the
advisory committee. This subsection does not affect the state
auditor's authority to conduct an audit of the infrastructure fund
under Chapter 321, Government Code.
(g) The trust company shall adopt a written investment
policy that is appropriate for the infrastructure fund. The trust
company shall present the investment policy to the investment
advisory board established under Section 404.028, Government Code.
The investment advisory board shall submit to the trust company
recommendations regarding the policy.
(h) The board shall provide to the trust company:
(1) an annual forecast of the cash flows into and out
of the infrastructure fund; and
(2) updates to the forecasts as appropriate to ensure
that the trust company is able to achieve the objective specified by
Subsection (c).
(i) Subject to Subsection (b), the trust company shall
disburse money from the infrastructure fund as directed by the
board.
(j) An investment-related contract entered into under this
section is not subject to Chapter 2260, Government Code.
Sec. 15.654. USE OF INFRASTRUCTURE FUND. (a) The board may
use money from the infrastructure fund to provide financing for
resilience projects.
(b) The board may award money from the infrastructure fund
for a resilience project only in the form of:
(1) a grant to a receiving project sponsor; or
(2) a loan as provided by Subsection (e).
(c) Money from the infrastructure fund may be awarded to
several project sponsors of a single resilience project.
(d) An award issued as a grant may finance:
(1) not more than 75 percent of the total cost of a
resilience project; or
(2) up to 100 percent of the local matching funds for a
federally qualifying resilience project.
(e) A project sponsor receiving a grant for a resilience
project also may receive a loan from the infrastructure fund to
finance the remaining cost of the project if the project sponsor can
certify a source of loan repayment through governmental funding
agreements approved by the attorney general. The project sponsor
must repay to the infrastructure fund any subsequent reimbursements
received by the project sponsor related to the approved funding
agreement until the loan principal and related interest is repaid
in full. In addition, the board may award money from the
infrastructure fund in the form of a loan instead of a grant at any
time the balance of the fund is less than $200 million. The terms of
a loan made under this subsection must be in accordance with board
rules governing the terms of loans for resilience projects.
(f) The board may award money from the infrastructure fund
to finance portions of a resilience project necessary for
construction and implementation of the project, including mapping,
studies, design, right-of-way acquisition, permitting, the
purchase or contracting of goods and services, and administrative
costs.
(g) The board may award money from the infrastructure fund
to finance regular updates and enhancements to the State of Texas
Hazard Mitigation Plan, as well as to finance the development of
hazard mitigation plans of political subdivisions, under
guidelines issued by the Federal Emergency Management Agency and
the Texas Division of Emergency Management.
(h) On recommendation by the advisory committee, the board
shall transfer money from the infrastructure fund to another state
agency to support resilience projects. Not more than a total of 10
percent of the available and unencumbered infrastructure fund, as
certified by the comptroller at the beginning of a state fiscal
biennium, may be transferred in that biennium under this
subsection.
(i) The board shall ensure that every effort is made to use
money from the infrastructure fund to obtain federal, local, and
private financing for a resilience project.
(j) Money from the infrastructure fund may not be used for
ongoing operation and maintenance costs of a resilience project.
Sec. 15.655. EMERGENCY USE OF INFRASTRUCTURE FUND. (a)
Notwithstanding Section 15.654, on the issuance of an executive
order or proclamation declaring a state of disaster related to
flooding in accordance with Chapter 418, Government Code, the board
may expend an amount not to exceed five percent of the available and
unencumbered infrastructure fund balance at the time of a disaster
declaration for disaster recovery purposes.
(b) The board may expend an additional amount not to exceed
2.5 percent of the available and unencumbered infrastructure fund
balance at the time of a renewal by the governor of a state of
disaster related to flooding for disaster recovery purposes.
(c) Notwithstanding Subsections (a) and (b), the board may
not expend from the infrastructure fund for disaster recovery
purposes during a state fiscal year an amount that exceeds 10
percent of the available and unencumbered infrastructure fund
balance at the time of the first flooding-related disaster
declaration made during that fiscal year.
Sec. 15.656. PARTNERSHIPS. (a) A project sponsor may enter
into a partnership with a nongovernmental entity to finance the
construction, implementation, operation, and maintenance of a
resilience project. Only a project sponsor may enter into an
agreement with the board for an award from the infrastructure fund.
(b) A project sponsor must include full disclosure of any
partnership between the project sponsor and a nongovernmental
entity in an application for an award from the infrastructure fund.
Sec. 15.657. APPLICATION REVIEW PROCEDURES. (a) The board
shall review an application for an award for a resilience project
immediately on receipt of the application. If the board determines
that an application is incomplete, the board shall notify the
applicant with an explanation of what is missing from the
application. The board shall evaluate the completed application
according to the appropriate project criteria. The board shall
make a final determination on an application as soon as possible.
(b) The board shall make every effort to expedite the
application review process and to award grants or loans to project
sponsors in a timely manner.
(c) At any time the balance of the infrastructure fund is
less than $200 million, the board shall notify all applicants with
applications pending and provide them with the option to apply for a
loan from the fund.
(d) If the board determines that an applicant should receive
an award of money from the infrastructure fund, the board must
submit the application to the advisory committee for review and
comments.
(e) The advisory committee shall review each application
submitted by the board and deliver comments on the application to
the board not later than the 30th day after the date on which the
board received the application.
(f) If revenue bonds are to be issued for the purpose of
awarding to an applicant money from the infrastructure fund, the
board must submit the application and comments from the advisory
committee to the bond review board and the attorney general for
approval.
(g) After an application has been reviewed and received
comments from the advisory committee and, if applicable, has been
approved by the bond review board and the attorney general, the
board shall submit the application and all related comments and
approvals to the lieutenant governor and speaker of the house of
representatives for approval.
Sec. 15.658. AWARD APPROVAL. (a) The board may award money
from the infrastructure fund for a resilience project only after:
(1) the advisory committee has reviewed and commented
on the project; and
(2) the expenditure is approved by the Legislative
Budget Board.
(b) For purposes of Subsection (a), an award of money from
the infrastructure fund is considered disapproved by the
Legislative Budget Board if that agency does not approve the
proposal to issue the award before the 31st day after the date of
receipt of the proposal from the board. The Legislative Budget
Board may extend the review deadline applicable to that agency for
an additional 14 days by submitting a written notice to that effect
to the board before the expiration of the initial review period.
Sec. 15.659. REPAYMENT OF AWARDS. (a) If an award
recipient has not used or obligated money awarded from the
infrastructure fund for the purposes for which the award was
intended before a date provided in the award agreement, the
recipient must repay to the credit of the fund that amount and pay
to the credit of the fund any related interest at a rate and on terms
as provided by the award agreement.
(b) All payments of principal and interest on a loan awarded
from the infrastructure fund shall be deposited to the credit of the
fund.
Sec. 15.660. REVENUE BONDS. (a) The board may issue
revenue bonds to provide the principal for loan financing of a
resilience project when the balance of the infrastructure fund is
less than $200 million.
(b) Revenue bonds issued under this subchapter are special
obligations of the board payable only from and secured by
designated income and receipts of the infrastructure fund, or of
one or more accounts in the fund, including principal of and
interest paid and to be paid on fund assets or income from accounts
created within the fund by the board, as determined by the board.
(c) Revenue bonds issued under this subchapter do not
constitute indebtedness of the state as prohibited by the
constitution.
(d) The board may require a project sponsor to make charges,
impose taxes that the project sponsor is otherwise authorized to
impose, or otherwise provide for sufficient money to pay acquired
obligations related to an award financed through a revenue bond
issued under this subchapter.
(e) Revenue bonds issued under this subchapter must be
authorized by resolution of the board and must have the form and
characteristics and bear the designations as the resolution
provides.
(f) Revenue bonds issued under this subchapter may:
(1) bear interest at the rate or rates payable
annually or otherwise;
(2) be dated;
(3) mature at the time or times, serially, as term
revenue bonds, or otherwise in not more than the 50th year from the
date the revenue bonds were issued;
(4) be callable before stated maturity on the terms
and at the prices, be in the denominations, be in the form, either
coupon or registered, carry registration privileges as to principal
only or as to both principal and interest and as to successive
exchange of coupon for registered bonds or one denomination for
bonds of other denominations, and successive exchange of registered
revenue bonds for coupon revenue bonds, be executed in the manner,
and be payable at the place or places inside or outside the state,
as provided by the resolution; and
(5) be issued in temporary or permanent form.
(g) Section 17.955 applies to revenue bonds issued under
this subchapter in the same manner as that section applies to water
financial assistance bonds.
(h) The board shall deposit the proceeds from the sale of
revenue bonds issued under this subchapter to the credit of the
infrastructure fund. Money deposited under this subsection may be
used only to finance a resilience project under this subchapter.
(i) Each revenue bond authorization and issuance under this
subchapter must be authorized and issued for a single resilience
project.
(j) On approval by the bond review board and the attorney
general, the board may authorize and issue revenue bonds to finance
multiple resilience project awards if the awards will all be
received by the same project sponsor or sponsors for a single
resilience project.
(k) The aggregate principal amount of revenue bonds issued
by the board for resilience projects may not exceed the lesser of $2
billion or 1,000 percent of the amount of the infrastructure fund
that the trust company holds in reserve.
(l) A revenue bond may not be issued by the board for a
resilience project unless:
(1) the revenue bond is approved by the bond review
board in accordance with Chapter 1231, Government Code; and
(2) the attorney general approves the issuance of the
bond after finding that the bonds have been authorized in
accordance with the law and that the project sponsor receiving an
award from the infrastructure fund has the legal authority to
implement a resilience project.
(m) The comptroller shall register all revenue bonds issued
by the board for resilience projects.
(n) Following registration of the bonds, revenue bonds
issued by the board for resilience projects are incontestable in
any court or other forum for any reason and are valid and binding
obligations in accordance with their terms for all purposes.
Sec. 15.661. DEFAULT, REMEDIES, AND ENFORCEMENT. (a) In
this section, "Default" means:
(1) default in payment of the principal of or interest
on an award issued as a loan from the infrastructure fund;
(2) a failure to perform any of the terms of a loan,
grant, or other financing agreement; or
(3) any other failure to perform an obligation, breach
of a term of an agreement, or default as provided by any proceeding
or agreement evidencing an obligation or agreement of a recipient,
beneficiary, or guarantor of financial assistance provided by the
board.
(b) In the event of a default by a project sponsor and on
request by the board, the attorney general shall seek:
(1) a writ of mandamus to compel a project sponsor or
the project sponsor's officers, agents, and employees to cure the
default; and
(2) any other legal or equitable remedy the board and
the attorney general consider necessary and appropriate.
(c) A proceeding authorized by this section shall be brought
and venue is in a district court in Travis County.
(d) In a proceeding under this section, the attorney general
may recover reasonable attorney's fees, investigative costs, and
court costs incurred on behalf of the state in the proceeding in the
same manner as provided by general law for a private litigant.
Sec. 15.662. PRIORITIZATION OF PROJECTS. (a) The board may
not prioritize a resilience project under this section unless the
political subdivision benefiting from the proposed resiliency
project is implementing current floodplain regulations.
(b) The board shall establish a point system for
prioritizing resilience projects for which money from the
infrastructure fund is sought. The system must include a standard
for the board to apply in determining whether a resilience project
qualifies for funding at the time the application for funding is
filed with the board.
(c) The board shall give the highest consideration in
awarding points to a resilience project that will have a
substantial effect, including a resilience project that:
(1) has been awarded federal money;
(2) is being studied by the United States Army Corps of
Engineers at the time of the project application;
(3) is included in a signed United States Army Corps of
Engineers Chief's Report at the time of the project application;
(4) aligns with the priorities and goals of the State
of Texas Hazard Mitigation Plan;
(5) will serve a political subdivision that has a
completed hazard mitigation plan approved by the Texas Division of
Emergency Management and the Federal Emergency Management Agency;
(6) will serve diverse urban and rural populations;
(7) will serve a metropolitan statistical area with a
population greater than 250,000;
(8) will contribute to regionalization in resiliency;
(9) is included in the Texas Coastal Resiliency Master
Plan;
(10) is included in the State Flood Assessment or a
statewide flood plan;
(11) will serve a political subdivision that has
received multiple state disaster declarations made under Chapter
418, Government Code, or multiple federal major disaster
declarations under the Robert T. Stafford Disaster Relief and
Emergency Assistance Act (42 U.S.C. 5121 et seq.), during the five
years before the date the board receives an application for the
resilience project under consideration; or
(12) includes a substantial water supply or water
management benefit.
(d) In addition to the criteria provided by Subsection (c),
the board must also consider at least the following criteria in
prioritizing projects:
(1) the contribution to be made by the applicant to
finance the resilience project, including the up-front capital to
be provided by the applicant;
(2) the ability of the board and the applicant to use
state financing to obtain local and federal funding;
(3) whether there is an emergency need for the
resilience project;
(4) whether federal funding for which the resilience
project is eligible has been used or sought;
(5) whether the applicant is ready to proceed with the
resilience project at the time of the application, including
whether:
(A) all preliminary planning and design work
associated with the resilience project has been completed;
(B) the applicant has acquired right-of-way
associated with the resilience project;
(C) the applicant has secured funding for the
resilience project from other sources; and
(D) the applicant is able to begin implementing
or constructing the resilience project;
(6) the resilience project's cost-to-benefit ratio as
calculated according to board rules; and
(7) if applicable, the ability of the applicant to
repay a loan awarded from the infrastructure fund.
Sec. 15.663. REPORTING AND TRANSPARENCY REQUIREMENTS. (a)
Not later than December 1 of each even-numbered year, the board
shall provide to the governor, lieutenant governor, speaker of the
house of representatives, and members of the legislature a report
regarding the use of the infrastructure fund.
(b) The board shall post the following information on the
board's Internet website regarding the use of the infrastructure
fund and regularly update the information posted:
(1) the progress made in developing resilience
projects statewide;
(2) a description of each resilience project that
receives money from the infrastructure fund, including:
(A) the expected date of completion of the
resilience project;
(B) the current status of the resilience project;
(C) the proposed benefit of the resilience
project;
(D) the initial total cost estimate of the
resilience project and variances to the initial cost estimate
exceeding five percent;
(E) a listing of the project sponsor receiving
money from the infrastructure fund;
(F) a listing of each political subdivision
served by each resilience project;
(G) an estimate of matching funds that will be
available for the resilience project resulting from the use of the
infrastructure fund;
(H) if applicable, the amount of bonds issued and
the terms of the bonds; and
(I) the status of repayment of each loan provided
in connection with a resilience project, including an assessment of
the risk of default based on a standard risk rating system;
(3) a description of the investment portfolio of the
infrastructure fund;
(4) the expenses incurred in investing money in the
infrastructure fund;
(5) the rate of return on the investment of money in
the infrastructure fund;
(6) a description of the point system for prioritizing
resilience projects established by the board under Section 15.662
and the number of points awarded by the board for each resilience
project;
(7) any nonconfidential information submitted to the
board as part of an application for funding under this subchapter
that is approved by the board;
(8) the administrative and operating expenses
incurred by the board in administering the infrastructure fund; and
(9) any other information required by board rule.
(c) In addition to the information described by Subsection
(b), the report described by Subsection (a) must also include:
(1) the policies and procedures used for any
procurement of property or services related to a resilience
project, including any policies and procedures meant to increase
participation by historically underutilized businesses;
(2) the written standards of conduct covering
conflicts of interest and governing the performance of the board's
staff who engage in the review, recommendation, and administration
of awards from the infrastructure fund;
(3) all direct and indirect administrative costs
related to the administration of the infrastructure fund;
(4) the cost-to-benefit ratio related to each
resilience project;
(5) the end of fiscal year balance of the
infrastructure fund as estimated by the comptroller; and
(6) a record of all transfers made from the
infrastructure fund to other state agencies, including:
(A) an account of each receiving state agency;
(B) the amount of each transfer;
(C) a description of each receiving state
agency's program that supports resilience projects; and
(D) an account of all disbursements made by
receiving state agencies in support of resilience projects during
the fiscal year.
Sec. 15.664. TEXAS RESILIENCE INFRASTRUCTURE FUND ADVISORY
COMMITTEE. (a) The Texas Resilience Infrastructure Fund Advisory
Committee is composed of the following five members:
(1) the comptroller, or a person designated by the
comptroller;
(2) two members of the senate appointed by the
lieutenant governor, including:
(A) a member of the committee of the senate
having primary jurisdiction over matters relating to finance; and
(B) a member of the committee of the senate
having primary jurisdiction over agriculture, water, and rural
affairs; and
(3) two members of the house of representatives
appointed by the speaker of the house of representatives,
including:
(A) a member of the committee of the house of
representatives having primary jurisdiction over appropriations;
and
(B) a member of the committee of the house of
representatives having primary jurisdiction over natural
resources.
(b) The lieutenant governor shall appoint a co-presiding
officer of the advisory committee from among the members appointed
by the lieutenant governor, and the speaker of the house of
representatives shall appoint a co-presiding officer of the
committee from among the members appointed by the speaker.
(c) The advisory committee may hold public hearings, formal
meetings, or work sessions. Either co-presiding officer of the
advisory committee may call a public hearing, formal meeting, or
work session of the advisory committee at any time. The advisory
committee may not take formal action at a public hearing, formal
meeting, or work session unless a quorum of the committee is
present.
(d) Except as otherwise provided by this subsection, a
member of the advisory committee is not entitled to receive
compensation for service on the committee or reimbursement for
expenses incurred in the performance of official duties as a member
of the committee. Service on the advisory committee by a member of
the senate or house of representatives is considered legislative
service for which the member is entitled to reimbursement and other
benefits in the same manner and to the same extent as for other
legislative service.
(e) The advisory committee shall submit comments and
recommendations to the board regarding the use of money in the
infrastructure fund for use by the board in adopting rules,
policies, and procedures. The submission must include:
(1) comments and recommendations on rulemaking
related to the prioritization of resilience projects;
(2) comments and recommendations on rulemaking
related to establishing standards for determining whether
resilience projects meet the criteria provided by Section 15.658;
(3) an evaluation of the use of money by the board to
provide funding for resilience projects, including meeting federal
and local matching requirements;
(4) an evaluation of methods for encouraging
participation in the procurement process by companies domiciled in
this state or that employ a significant number of residents of this
state; and
(5) an evaluation of the overall operation, function,
and structure of the infrastructure fund.
(f) The advisory committee shall review the overall
operation, function, and structure of the infrastructure fund at
least semiannually and may provide comments and recommendations to
the board on any matter.
(g) The advisory committee may adopt rules, procedures, and
policies as needed to administer this section and implement its
responsibilities.
(h) Chapter 2110, Government Code, does not apply to the
size, composition, or duration of the advisory committee.
(i) The advisory committee shall make recommendations to
the board regarding information to be posted on the board's
Internet website.
(j) The advisory committee shall evaluate and may provide
comments or recommendations on the feasibility of the state owning,
constructing, operating, and maintaining resilience projects,
including reservoirs and coastal barriers.
(k) The advisory committee independently may propose and
make recommendations for the funding and implementation of a
resilience project and identify and recommend an appropriate
project sponsor.
(l) The advisory committee may identify programs
administered by state agencies that support resilience projects and
recommend that money from the infrastructure fund be transferred to
those agencies for the support of resilience projects.
(m) The executive administrator shall provide an annual
report to the advisory committee on:
(1) the board's compliance with statewide annual goals
relating to historically underutilized businesses; and
(2) the participation level of historically
underutilized businesses in resilience projects that receive money
from the infrastructure fund.
(n) If the aggregate level of participation by historically
underutilized businesses in resilience projects that receive money
from the infrastructure fund does not meet statewide annual goals
adopted under Chapter 2161, Government Code, the advisory committee
shall make recommendations to the board to improve the
participation level.
(o) The board shall supply staff support to the advisory
committee.
Sec. 15.665. RULES. (a) The board shall adopt rules
providing for the use of money in the infrastructure fund that are
consistent with this subchapter, including rules:
(1) establishing standards for the eligibility for
funding of resilience projects;
(2) establishing the prioritization of resilience
projects;
(3) establishing terms for the repayment of a loan
award from the infrastructure fund; and
(4) establishing terms for the completion of a
resilience project.
(b) The rules establishing terms for the repayment of a loan
award from the infrastructure fund must provide for:
(1) an amortization schedule not to exceed 30 years;
(2) an interest rate at or below the market rate at the
time an application is approved for an award;
(3) no penalties for early repayment; and
(4) principal and interest payments on the loan to
begin not later than 18 months after the date the loan is
originated.
(c) The board shall give full consideration to the
recommendations of the advisory committee before adopting rules
under this subchapter.
Sec. 15.666. POLICIES AND PROCEDURES TO MITIGATE OR
MINIMIZE ADVERSE EFFECTS OF CERTAIN FEDERAL LAWS. The board shall
adopt, and may amend from time to time at the board's discretion,
policies and procedures for the purpose of mitigating or minimizing
the adverse effects, if any, of federal laws and regulations
relating to income taxes, arbitrage, rebates, and related matters
that may restrict the board's ability to freely invest all or part
of the fund or to receive and retain all the earnings from the
infrastructure fund.
SECTION 2. Not later than the 30th day after the effective
date of this Act, the lieutenant governor and the speaker of the
house of representatives shall appoint the initial members of the
Texas Resilience Infrastructure Fund Advisory Committee as
provided by Section 15.664, Water Code, as added by this Act.
SECTION 3. (a) Not later than the 120th day after the
effective date of this Act, the Texas Resilience Infrastructure
Fund Advisory Committee shall submit recommendations to the Texas
Water Development Board on the rules to be adopted by the board
under Section 15.665, Water Code, as added by this Act, and the
policies and procedures to be adopted by the board under Section
15.666, Water Code, as added by this Act.
(b) Not later than the 90th day after the date the Texas
Water Development Board receives the recommendations described by
Subsection (a) of this section, the board shall adopt rules under
Section 15.665, Water Code, as added by this Act, and policies and
procedures under Section 15.666, Water Code, as added by this Act.
SECTION 4. (a) The amount of $1.5 billion is appropriated
out of the economic stabilization fund to the Texas resilience
infrastructure fund for purposes of implementing Subchapter J-1,
Chapter 15, Water Code, as added by this Act.
(b) The amount of $1.5 billion is appropriated out of the
economic stabilization fund to general revenue dedicated account
number 453, Disaster Contingency Fund, and, in addition to other
amounts appropriated to the Department of Public Safety for the
state fiscal biennium ending August 31, 2021, $1.5 billion is
appropriated out of general revenue dedicated account number 453,
Disaster Contingency Fund, to the Department of Public Safety for
that state fiscal biennium for purposes of providing local
government entities local matching funds related to the Public
Assistance Grant Program and Hazard Mitigation Grant Program
administered by the Federal Emergency Management Agency.
(c) This section takes effect only if this Act is approved
by a vote of two-thirds of the members present in each house of the
legislature, as provided by Section 49-g(m), Article III, Texas
Constitution.
SECTION 5. Except as otherwise provided by this Act, 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, 2019.