86R373 CJC-D
By: Davis of Harris H.B. No. 274
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the disaster reinvestment and
infrastructure planning revolving fund and the permissible uses of
that fund; making an appropriation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 6, Water Code, is amended by adding
Subchapter H to read as follows:
SUBCHAPTER H. DISASTER REINVESTMENT AND INFRASTRUCTURE PLANNING
REVOLVING FUND
Sec. 6.271. DEFINITIONS. In this subchapter:
(1) "Category I qualifying political subdivision"
means a political subdivision located wholly or partly in an area
declared by the governor to be a disaster area that the Federal
Emergency Management Agency has determined is eligible to receive
financial assistance from the agency in response to the disaster.
(2) "Category II qualifying political subdivision"
means a political subdivision located wholly or partly in an area
declared by the governor to be a disaster area that the Federal
Emergency Management Agency has determined is ineligible to receive
financial assistance from the agency in response to the disaster.
(3) "Fund" means the disaster reinvestment and
infrastructure planning revolving fund.
(4) "Qualifying infrastructure project" means a
project located in a Category I or II qualifying political
subdivision to:
(A) rebuild infrastructure damaged or destroyed
in a disaster; or
(B) construct infrastructure to mitigate damage
from a future disaster.
Sec. 6.272. CREATION OF FUND. (a) The disaster
reinvestment and infrastructure planning revolving fund is created
as a fund outside the state treasury with the comptroller, to be
administered by the board.
(b) Money in the fund may be used only to provide financial
assistance to Category I and II qualifying political subdivisions
in the manner provided by this subchapter, and it is the intent of
the legislature that the fund remain available in perpetuity for
that purpose.
(c) The fund consists of:
(1) money appropriated, credited, or transferred to
the fund by the legislature;
(2) federal money appropriated, credited, or
transferred to the fund;
(3) money received by the board for the repayment of a
loan made from the fund;
(4) gifts or grants contributed to the fund; and
(5) interest earned on deposits and investments of the
fund.
Sec. 6.273. USE OF MONEY IN FUND. (a) The board by rule
shall establish a revolving loan and grant program to use money from
the fund to provide financial assistance to Category I and II
qualifying political subdivisions to finance qualifying
infrastructure projects in the political subdivision, subject to
the provisions of this section.
(b) Money in the fund shall be allocated by the board as
follows:
(1) 50 percent of the money in the fund must be
available to provide loans to Category I qualifying political
subdivisions; and
(2) the remainder of the money in the fund must be
available to provide loans or grants to Category II qualifying
political subdivisions.
(c) A loan from the fund must be made subject to the
following conditions:
(1) the loan must be:
(A) made at or below market interest rates for a
term not to exceed 20 years; and
(B) able to be repaid early with no penalty;
(2) principal and interest payments on the loan must
begin not later than 18 months after the loan is originated; and
(3) the fund must be credited with all principal and
interest payments on all loans from the fund.
(d) Subject to Subsection (e), the board may use up to 25
percent of the money described by Subsection (b)(2) to award grants
to Category II qualifying political subdivisions to:
(1) assist in the payment of the political
subdivision's costs associated with a qualifying infrastructure
project described by Subsection (a); or
(2) pay the principal of and interest on a loan
received from the fund by the political subdivision.
(e) The board shall suspend the award of grants from the
fund under Subsection (d) for the duration of a period during which
the balance of the fund is less than a minimum fund balance
established by rule by the board.
Sec. 6.274. APPLICATION FOR LOAN OR GRANT. (a) The board
shall develop and implement an application process for a loan or
grant under this subchapter. At a minimum, the application must
include:
(1) a description of the qualifying infrastructure
project for which the applicant is requesting the loan or grant;
(2) an estimate of the total cost of the project;
(3) an estimate of the amount of federal money the
applicant expects to receive for the project, if any; and
(4) evidence that the applicant has staff, policies,
and procedures in place adequate to complete the project.
(b) The board shall adopt rules to prioritize certain
applicants based on:
(1) the type of qualifying infrastructure project for
which the applicant is requesting the loan or grant;
(2) information provided by the applicants, or other
information that is available to the board; and
(3) criteria developed by the board.
(c) The board shall adopt rules providing an expedited
procedure for acting on an application for financial assistance
from the fund for a qualifying infrastructure project, provided
that the expedited procedure may not affect an applicant's receipt
of federal money to which the applicant may be eligible as a result
of the disaster.
SECTION 2. (a) The amount of $15 million is appropriated
from the economic stabilization fund to the comptroller for the
purpose of transferring that amount immediately to the credit of
the disaster reinvestment and infrastructure planning revolving
fund.
(b) 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 3. Except as otherwise provided by this Act, this
Act takes effect September 1, 2019.