Texas 2019 - 86th Regular

Texas House Bill HB274 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	86R19292 CJC-D
1	2		By: Davis of Harris, Howard, Wu H.B. No. 274
	3	+	Substitute the following for H.B. No. 274:
	4	+	By: Wu C.S.H.B. No. 274
2	5
3	6
4	7		A BILL TO BE ENTITLED
5	8		AN ACT
6	9		relating to the establishment of the disaster reinvestment and
7	10		infrastructure planning board and the creation of the disaster
8	11		reinvestment and infrastructure planning revolving fund; making an
9	12		appropriation.
10	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	14		SECTION 1. Chapter 17, Water Code, is amended by adding
12	15		Subchapter H to read as follows:
13	16		SUBCHAPTER H. DISASTER REINVESTMENT AND INFRASTRUCTURE PLANNING
14	17		BOARD; REVOLVING FUND
15	18		Sec. 17.801. DEFINITIONS. In this subchapter:
16	19		(1) "Board" means, notwithstanding Section 17.001,
17	20		the disaster reinvestment and infrastructure planning board.
18	21		(2) "Fund" means the disaster reinvestment and
19	22		infrastructure planning revolving fund.
20	23		(3) "Trust company" means the Texas Treasury
21	24		Safekeeping Trust Company.
22	25		Sec. 17.802. ESTABLISHMENT; PURPOSE. The disaster
23	26		reinvestment and infrastructure planning board is established to:
24	27		(1) administer the disaster reinvestment and
25	28		infrastructure planning revolving fund; and
26	29		(2) determine the eligibility of applicants for
27	30		financial assistance from the fund and award grants and loans from
28	31		the fund.
29	32		Sec. 17.803. COMPOSITION. (a) The board is composed of:
30	33		(1) the following ex officio members:
31	34		(A) a member of the Texas Water Development Board
32	35		designated by the presiding officer of that board;
33	36		(B) a member of the governing board of the Texas
34	37		Department of Housing and Community Affairs designated by the
35	38		presiding officer of that board;
36	39		(C) the commissioner of insurance or the
37	40		commissioner's designee;
38	41		(D) a member of the Texas Transportation
39	42		Commission designated by the presiding officer of the commission;
40	43		(E) a member of the Public Safety Commission
41	44		designated by the presiding officer of the commission;
42	45		(F) the executive commissioner of the Health and
43	46		Human Services Commission or the executive commissioner's
44	47		designee;
45	48		(G) the commissioner of agriculture or the
46	49		commissioner's designee;
47	50		(H) the land commissioner or the land
48	51		commissioner's designee;
49	52		(I) a member of the Texas Commission on
50	53		Environmental Quality designated by the presiding officer of the
51	54		commission; and
52	55		(J) the comptroller or the comptroller's
53	56		designee; and
54	57		(2) three public members, one appointed by the
55	58		governor, one appointed by the lieutenant governor, and one
56	59		appointed by the speaker of the house of representatives.
57	60		(b) Appointed board members serve staggered six-year terms
58	61		with one member's term expiring February 1 of each odd-numbered
59	62		year.
60	63		(c) The governor shall designate one member of the board to
61	64		serve as presiding officer of the board.
62	65		Sec. 17.804. ADMINISTRATIVE ATTACHMENT. (a) The board is
63	66		administratively attached to the Texas Water Development Board.
64	67		(b) The Texas Water Development Board shall provide office
65	68		space and administrative support services, including human
66	69		resources, budgetary, accounting, purchasing, payroll, information
67	70		technology, and legal support services, to the board as necessary
68	71		to carry out the purposes of this subchapter.
69	72		Sec. 17.805. FUND. (a) The disaster reinvestment and
70	73		infrastructure planning revolving fund is a special fund outside
71	74		the state treasury to be used by the board, without further
72	75		legislative appropriation, for the purpose of providing financial
73	76		assistance to political subdivisions in response to a disaster as
74	77		provided by this subchapter. The board may establish separate
75	78		accounts in the fund. The fund and the fund's accounts are kept and
76	79		held by the trust company in escrow and in trust for and in the name
77	80		of the board. The board has legal title to money and investments in
78	81		the fund until money is disbursed from the fund as provided by this
79	82		subchapter and board rules.
80	83		(b) Money deposited to the credit of the fund may be used
81	84		only as provided by this subchapter.
82	85		(c) The fund consists of:
83	86		(1) money transferred or deposited to the credit of
84	87		the fund by law, including money from any source transferred or
85	88		deposited to the credit of the fund at the board's discretion as
86	89		authorized by law;
87	90		(2) the proceeds of any fee or tax imposed by this
88	91		state that by statute is dedicated for deposit to the credit of the
89	92		fund;
90	93		(3) any other revenue that the legislature by statute
91	94		dedicates for deposit to the credit of the fund;
92	95		(4) the proceeds of bonds issued as authorized by
93	96		Section 49-q, Article III, Texas Constitution; and
94	97		(5) investment earnings and interest earned on amounts
95	98		credited to the fund.
96	99		Sec. 17.806. MANAGEMENT AND INVESTMENT OF FUND. (a) The
97	100		trust company shall hold and invest the fund, and any accounts
98	101		established in the fund, for and in the name of the board, taking
99	102		into account the purposes for which money in the fund may be used.
100	103		The fund may be co-invested with the state treasury pool.
101	104		(b) The overall objective for the investment of the fund is
102	105		to maintain sufficient liquidity to meet the needs of the fund while
103	106		striving to preserve the purchasing power of the fund. It is the
104	107		intent of the legislature that the fund remain available in
105	108		perpetuity for the purposes of this subchapter.
106	109		(c) The trust company has any power necessary to accomplish
107	110		the purposes of managing and investing the assets of the fund. In
108	111		managing the assets of the fund, through procedures and subject to
109	112		restrictions the trust company considers appropriate, the trust
110	113		company may acquire, exchange, sell, supervise, manage, or retain
111	114		any kind of investment that a prudent investor, exercising
112	115		reasonable care, skill, and caution, would acquire or retain in
113	116		light of the purposes, terms, distribution requirements, and other
114	117		circumstances of the fund then prevailing, taking into
115	118		consideration the investment of all the assets of the fund rather
116	119		than a single investment.
117	120		(d) The trust company may recover the costs incurred in
118	121		managing and investing the fund only from the earnings of the fund.
119	122		(e) The trust company annually shall report to the board
120	123		with respect to the investment of the fund. The trust company shall
121	124		contract with a certified public accountant to conduct an
122	125		independent audit of the fund annually and shall present the
123	126		results of each annual audit to the board. This subsection does not
124	127		affect the state auditor's authority to conduct an audit of the fund
125	128		under Chapter 321, Government Code.
126	129		(f) The trust company shall adopt an investment policy that
127	130		is appropriate for the fund. The trust company shall present the
128	131		investment policy to the investment advisory board established
129	132		under Section 404.028, Government Code. The investment advisory
130	133		board shall submit to the trust company recommendations regarding
131	134		the policy.
132	135		(g) The board annually shall provide to the trust company a
133	136		forecast of the cash flows into and out of the fund. The board shall
134	137		provide updates to the forecasts as appropriate to ensure that the
135	138		trust company is able to achieve the objective specified by
136	139		Subsection (b).
137	140		(h) The trust company shall disburse money from the fund as
138	141		directed by the board.
139	142		Sec. 17.807. USE OF MONEY IN FUND. (a) The board by rule
140	143		shall establish a revolving loan and grant program to use money from
141	144		the fund to provide financial assistance for a public
142	145		infrastructure project to:
143	146		(1) rebuild infrastructure damaged or destroyed in a
144		-	disaster ~~in a manner that protects against future loss~~; or
145		-	(2) construct ~~new~~ infrastructure to mitigate ~~against~~
146		-	~~damage from a future~~ disaster.
	147	+	disaster; or
	148	+	(2) construct infrastructure to mitigate damage from a
	149	+	disaster.
147	150		(b) The board may provide financial assistance from the
148	151		fund:
149	152		(1) only in the form of:
150	153		(A) a loan to a political subdivision that is
151	154		located wholly or partly in an area declared by the governor to be a
152	155		disaster area and that the Federal Emergency Management Agency has
153	156		determined is eligible to receive financial assistance from the
154	157		agency in response to the disaster; or
155	158		(B) a loan or grant to:
156	159		(i) a political subdivision that is located
157	160		wholly or partly in an area declared by the governor to be a
158	161		disaster area and that the Federal Emergency Management Agency has
159	162		determined is not eligible to receive financial assistance from the
160	163		agency in response to the disaster, including a political
161	164		subdivision determined to be ineligible based solely on a failure
162	165		to meet minimum population requirements; or
163	166		(ii) a public or private hospital, other
164	167		than an ambulatory surgical center:
165	168		(a) located wholly or partly in an
166	169		area declared by the governor to be a disaster area;
167	170		(b) determined by federal agencies
168	171		not to be eligible for assistance;
169	172		(c) not eligible for private
170	173		insurance assistance that is sufficient to restore the hospital to
171	174		pre-disaster operating function; and
172	175		(d) the closure of which would cause
173	176		an imminent threat to public health in the surrounding area, as
174	177		determined by the Department of State Health Services; and
175	178		(2) only during the period for which the governor's
176		-	disaster declaration is in effect or for a longer period determined
177		-	by the board if the application for financial assistance is for a
178		-	public infrastructure project described by Subsection (a)(1).
	179	+	disaster declaration is in effect.
179	180		(c) The board shall allocate money in the fund so that:
180	181		(1) 50 percent of the money in the fund is available to
181	182		provide loans under Subsection (b)(1)(A); and
182	183		(2) the remainder of the money in the fund is available
183	184		to provide loans or grants under Subsection (b)(1)(B).
184	185		(d) The board may not use more than 25 percent of the money
185	186		in the fund allocated for the purposes of Subsection (c)(2) to award
186	187		grants to political subdivisions to:
187	188		(1) assist in the payment of the political
188	189		subdivision's costs associated with an infrastructure project; or
189	190		(2) pay or defer the payment of the principal of and
190	191		interest on a loan received from the fund by the political
191	192		subdivision or extend the amount of time the political subdivision
192	193		has to repay the loan.
193	194		(e) The board may not provide financial assistance to
194	195		rebuild or construct a privately owned structure, except as
195	196		provided by Subsection (b)(1)(B)(ii).
196	197		Sec. 17.808. LOANS FROM FUND. (a) A loan made from the fund
197	198		must be subject to the following conditions:
198	199		(1) the loan must be made at or below market interest
199	200		rates for a term not to exceed 20 years;
200	201		(2) principal and interest payments on the loan must
201	202		begin not later than 18 months after the loan is originated; and
202	203		(3) the loan proceeds must be expended solely on an
203	204		infrastructure project described by Section 17.807(a).
204	205		(b) The board shall credit to the fund all principal and
205	206		interest payments on a loan from the fund.
206	207		(c) The board by rule shall provide for interest rates on
207	208		loans offered to political subdivisions to vary according to a risk
208	209		analysis so that a political subdivision must pay a significantly
209	210		higher interest rate than other political subdivisions if the
210	211		political subdivision is, as determined by the board, likely to
211	212		suffer significant additional damage in subsequent disasters.
212	213		Sec. 17.809. GRANTS FROM FUND. (a) The board may not make a
213		-	grant to a political subdivision that, based on information
214		-	available to the board, has experienced repeated damage from
215		-	disasters.
	214	+	grant to a political subdivision that has inside its jurisdiction
	215	+	one or more properties that have had more than one insurance claim
	216	+	for flood damage paid for separate incidents over a specified
	217	+	period of time.
216	218		(b) The board shall suspend the award of grants from the
217	219		fund for the duration of a period during which the balance of the
218	220		fund is less than a minimum fund balance established by board rule.
219	221		Sec. 17.810. APPLICATION FOR LOAN OR GRANT. (a) The board
220	222		shall develop and implement an application process for a loan or
221	223		grant under this subchapter. At a minimum, the application must
222	224		include:
223	225		(1) a description of the infrastructure project for
224		-	which the applicant is requesting the loan or grant, including
225		-	information on the design life of the project;
	226	+	which the applicant is requesting the loan or grant;
226	227		(2) an estimate of the total cost of the project;
227	228		(3) an estimate of the amount of federal money the
228	229		applicant expects to receive for the project, if any;
229	230		(4) an estimate of the amount of money the applicant
230		-	has available to finance the project, if any;
	231	+	has available to finance the project, if any; and
231	232		(5) evidence that the applicant has staff, policies,
232		-	and procedures in place adequate to complete the project;
233		-	(6) information on the percentage of properties
234		-	located within the political subdivision's jurisdiction that are
235		-	covered by flood insurance, if the application is from a political
236		-	subdivision; and
237		-	(7) information regarding the protections from future
238		-	disasters that have been incorporated into the siting or design of
239		-	the project.
	233	+	and procedures in place adequate to complete the project.
240	234		(b) The board by rule shall adopt a point system to allow the
241	235		board to prioritize certain applicants based on:
242	236		(1) the type of infrastructure project for which the
243	237		applicant is requesting the loan or grant and the stage of
244	238		development of the project;
245	239		(2) information provided by the applicants, or other
246	240		information that is available to the board, including information
247	241		regarding the applicants' ability to repay a loan from the fund;
248	242		(3) the availability of other money, including state
249	243		or federal matching funds, for the infrastructure project for which
250	244		the applicant is requesting the loan or grant;
251	245		(4) the existence of an emergency or an imminent
252		-	threat to public health;
253		-	(5) criteria that indicates the project incorporates
254		-	natural features, nature-based engineering approaches, or
255		-	characteristics that:
256		-	(A) make positive impacts on the environment;
257		-	(B) preserve or make efficient use of energy and
258		-	associated resources; or
259		-	(C) reduce negative impacts on the natural
260		-	environment;
261		-	(6) the percentage of properties located within the
262		-	political subdivision's jurisdiction that are covered by flood
263		-	insurance, if the applicant is a political subdivision;
264		-	(7) the applicant's past history of and future risk for
265		-	repeated damage from disasters, if the applicant is a political
266		-	subdivision; and
267		-	(8) other criteria developed by the board.
268		-	(c) The board by rule shall provide an expedited proce
269		-	dure
	246	+	threat to public health; and
	247	+	(5) other criteria developed by the board.
	248	+	(c) The board by rule shall provide an expedited procedure
270	249		for acting on an application for financial assistance from the fund
271	250		for an infrastructure project. The expedited procedure must not
272	251		affect an applicant's receipt of federal money to which the
273	252		applicant may be eligible as a result of the disaster.
274	253		Sec. 17.811. REPORT. Not later than December 1 of each
275	254		even-numbered year, the board shall prepare and submit to the
276	255		governor, the lieutenant governor, and each member of the
277	256		legislature a report that includes:
278	257		(1) the balance of the fund as of that date;
279	258		(2) the total dollar amount of disbursements from the
280	259		fund during the two-year period preceding that date; and
281	260		(3) a general description of each public
282	261		infrastructure project for which an applicant was awarded a grant
283	262		or loan from the fund during the two-year period preceding that date
284	263		and the approximate cost of each of those projects.
285	264		SECTION 2. As soon as practicable after the effective date
286	265		of this Act, the governor, lieutenant governor, and speaker of the
287	266		house of representatives shall appoint members to the disaster
288	267		reinvestment and infrastructure planning board, as required by
289	268		Section 17.803, Water Code, as added by this Act. The governor
290	269		shall appoint one member to a term expiring February 1, 2025. The
291	270		lieutenant governor shall appoint one member to a term expiring
292	271		February 1, 2023. The speaker of the house of representatives shall
293	272		appoint one member to a term expiring February 1, 2021.
294	273		SECTION 3. (a) The amount of $1 billion is appropriated
295	274		from the economic stabilization fund to the comptroller for the
296	275		purpose of transferring that amount immediately to the credit of
297	276		the disaster reinvestment and infrastructure planning revolving
298	277		fund as created by this Act.
299	278		(b) This section takes effect only if this Act is approved
300	279		by a vote of two-thirds of the members present in each house of the
301	280		legislature, as provided by Section 49-g(m), Article III, Texas
302	281		Constitution.
303	282		SECTION 4. Except as otherwise provided by this Act, this
304	283		Act takes effect September 1, 2019.