Texas 2019 - 86th Regular

Texas House Bill HB478 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R5302 SLB-D
2	2	By: Phelan H.B. No. 478
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the funding of flood planning, mitigation, and
8	8	infrastructure projects.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. The heading to Section 15.405, Water Code, is
11	11	amended to read as follows:
12	12	Sec. 15.405. FLOOD CONTROL PLANNING CONTRACTS.
13	13	SECTION 2. Section 15.405, Water Code, is amended by
14	14	amending Subsections (a), (f), and (g) and adding Subsection (a-1)
15	15	to read as follows:
16	16	(a) In this section, "flood control planning" means any work
17	17	related to:
18	18	(1) planning for flood protection;
19	19	(2) preparing applications for and obtaining
20	20	regulatory approvals at the local, state, or federal level;
21	21	(3) activities associated with administrative or
22	22	legal proceedings by regulatory agencies; and
23	23	(4) preparing engineering plans and specifications to
24	24	provide structural or nonstructural flood mitigation and drainage.
25	25	(a-1) The board may enter into contracts with political
26	26	subdivisions to pay from the research and planning fund all or part
27	27	of the cost of [developing] flood control planning [plans] for the
28	28	political subdivision.
29	29	(f) The board shall adopt rules establishing criteria of
30	30	eligibility for flood control planning money that considers:
31	31	(1) the relative need of the political subdivision for
32	32	the money, giving greater importance to a county that has a median
33	33	household income that is not greater than 85 percent of the median
34	34	state household income;
35	35	(2) the legal authority of the political subdivision
36	36	to plan for and control flooding; and
37	37	(3) the effect of flood control planning by the
38	38	political subdivision on overall flood control in the state and
39	39	within the area in which the political subdivision is located.
40	40	(g) The board shall require that flood control planning
41	41	documents [plans] developed under contracts entered into under this
42	42	section be made available to the commission.
43	43	SECTION 3. Chapter 15, Water Code, is amended by adding
44	44	Subchapter I to read as follows:
45	45	SUBCHAPTER I. FLOOD INFRASTRUCTURE FUND
46	46	Sec. 15.531. DEFINITIONS. In this subchapter:
47	47	(1) "Economically distressed area" means an area that
48	48	has a median household income that is not greater than 85 percent of
49	49	the median state household income for the most recent year for which
50	50	the applicable statistics are available.
51	51	(2) "Eligible political subdivision" means a district
52	52	or authority created under Section 52, Article III, or Section 59,
53	53	Article XVI, Texas Constitution, a municipality, or a county.
54	54	(3) "Flood project" means a drainage, flood
55	55	mitigation, or flood control project, including:
56	56	(A) planning and design activities;
57	57	(B) work to obtain regulatory approval to provide
58	58	nonstructural and structural flood mitigation and drainage; and
59	59	(C) construction of structural flood mitigation
60	60	and drainage infrastructure.
61	61	(4) "Fund" means the flood infrastructure fund.
62	62	(5) "Metropolitan statistical area" means an area so
63	63	designated by the United States Office of Management and Budget.
64	64	(6) "Political subdivision bonds" means bonds or other
65	65	obligations issued by a political subdivision to fund a project and
66	66	purchased by the board from money in the fund.
67	67	Sec. 15.532. FINDINGS. The legislature finds that:
68	68	(1) the creation of the fund and the administration of
69	69	the fund by the board will encourage the development of
70	70	nonstructural and structural flood mitigation in the state;
71	71	(2) the use of the fund is in furtherance of the public
72	72	purpose of mitigating the effects of flooding in the state; and
73	73	(3) the use of the fund for the purposes provided by
74	74	this subchapter is for the benefit of both the state and the
75	75	political subdivisions to which the board makes financial
76	76	assistance available in accordance with this subchapter and
77	77	constitutes a program under Sections 49-d-3 and 52-a, Article III,
78	78	Texas Constitution.
79	79	Sec. 15.533. FLOOD INFRASTRUCTURE FUND. (a) The flood
80	80	infrastructure fund is a special fund in the state treasury outside
81	81	the general revenue fund to be administered by the board under this
82	82	subchapter and rules adopted by the board under this subchapter.
83	83	(b) The fund consists of:
84	84	(1) appropriations from the legislature for a purpose
85	85	of the fund;
86	86	(2) proceeds of general obligation bonds issued for a
87	87	purpose of the fund;
88	88	(3) any fees or other sources of revenue that the
89	89	legislature dedicates for deposit to the fund;
90	90	(4) repayments of loans made from the fund;
91	91	(5) interest earned on money credited to the fund;
92	92	(6) depository interest allocable to the fund;
93	93	(7) money from gifts, grants, or donations to the
94	94	fund;
95	95	(8) money from revenue bonds or other sources
96	96	designated by the board for deposit to the fund; and
97	97	(9) proceeds from the sale of political subdivision
98	98	bonds or obligations held in the fund and not otherwise pledged to
99	99	the discharge, repayment, or redemption of revenue bonds or other
100	100	bonds, the proceeds of which were placed in the fund.
101	101	Sec. 15.534. USE OF FLOOD INFRASTRUCTURE FUND. (a) The
102	102	board may use the fund only:
103	103	(1) to make a loan to an eligible political
104	104	subdivision at or below market interest rates for a flood project;
105	105	(2) to make a grant, low interest loan, or zero
106	106	interest loan to an eligible political subdivision for:
107	107	(A) a flood project to serve an area outside of a
108	108	metropolitan statistical area in order to ensure that the flood
109	109	project is implemented; or
110	110	(B) a flood project to serve an economically
111	111	distressed area;
112	112	(3) to make a loan at or below market interest rates
113	113	for planning and design costs, permitting costs, and other costs
114	114	associated with state or federal regulatory activities with respect
115	115	to a flood project;
116	116	(4) to make a grant to an eligible political
117	117	subdivision to provide matching funds to enable the eligible
118	118	political subdivision to participate in a federal program for a
119	119	flood project;
120	120	(5) as a source of revenue or security for the payment
121	121	of principal and interest on bonds issued by the board if the
122	122	proceeds of the sale of the bonds will be deposited in the fund; and
123	123	(6) to pay the necessary and reasonable expenses of
124	124	the board in administering the fund.
125	125	(b) Principal and interest payments on loans made under
126	126	Subsection (a)(3) may be deferred for not more than 10 years or
127	127	until construction of the flood project is completed, whichever is
128	128	earlier.
129	129	Sec. 15.535. APPLICATION REQUIREMENTS. (a) Except as
130	130	provided by Subsection (c), an eligible political subdivision
131	131	applying for financial assistance under this subchapter for a
132	132	proposed flood project must demonstrate in the application that:
133	133	(1) the eligible political subdivision has acted
134	134	cooperatively with other political subdivisions to address flood
135	135	control needs in the area in which the eligible political
136	136	subdivisions are located;
137	137	(2) all eligible political subdivisions substantially
138	138	affected by the proposed flood project have participated in the
139	139	process of developing the proposed flood project;
140	140	(3) the eligible political subdivisions, separately
141	141	or in cooperation, have held public meetings to accept comment on
142	142	proposed flood projects from interested parties; and
143	143	(4) the technical requirements for the proposed flood
144	144	project have been completed and compared against any other
145	145	potential flood projects in the same area.
146	146	(b) The application must include an analysis of whether the
147	147	proposed flood project could use floodwater capture techniques for
148	148	water supply purposes, including floodwater harvesting, detention
149	149	or retention basins, or other methods of capturing storm flow or
150	150	unappropriated flood flow.
151	151	(c) An eligible political subdivision applying for
152	152	assistance under Section 15.534(a)(3) is not required to make the
153	153	demonstration described by Subsection (a)(4) of this section.
154	154	Sec. 15.536. APPROVAL OF APPLICATIONS. On review and
155	155	recommendation by the executive administrator, the board may
156	156	approve an application only if the board finds that:
157	157	(1) the application and the assistance applied for
158	158	meet the requirements of this subchapter and board rules;
159	159	(2) the application demonstrates a sufficient level of
160	160	cooperation among eligible political subdivisions and includes all
161	161	of the eligible political subdivisions substantially affected by
162	162	the flood project; and
163	163	(3) the taxes or other revenue, or both the taxes and
164	164	other revenue, pledged by the applicant will be sufficient to meet
165	165	all the obligations assumed by the eligible political subdivision.
166	166	Sec. 15.537. APPLICABLE LAW. Subchapter E, Chapter 17,
167	167	applies to financial assistance made available from the fund,
168	168	except that the board may execute contracts as necessary to
169	169	evidence grant agreements.
170	170	Sec. 15.538. RULES. The board shall adopt rules necessary
171	171	to carry out this subchapter, including rules:
172	172	(1) that establish procedures for an application for
173	173	and for the award of financial assistance;
174	174	(2) for the investment of money; and
175	175	(3) for the administration of the fund.
176	176	Sec. 15.539. SALE OF POLITICAL SUBDIVISION BONDS. (a) The
177	177	board may sell or dispose of political subdivision bonds at the
178	178	price and under the terms that the board determines to be
179	179	reasonable.
180	180	(b) The board may sell political subdivision bonds without
181	181	making a previous offer to the eligible political subdivision that
182	182	issued the bonds and without advertising, soliciting, or receiving
183	183	bids for sale.
184	184	(c) Notwithstanding other provisions of this chapter, the
185	185	board may sell to the Texas Water Resources Finance Authority any
186	186	political subdivision bonds purchased with money in the fund and
187	187	may apply the proceeds of a sale in the manner provided by this
188	188	section.
189	189	(d) Proceeds from the sale of political subdivision bonds
190	190	under this section shall be deposited in the fund for use as
191	191	provided by Section 15.534.
192	192	(e) As part of a sales agreement with the Texas Water
193	193	Resources Finance Authority, the board by contract may agree to
194	194	perform the functions required to ensure that the eligible
195	195	political subdivision pays the debt service on political
196	196	subdivision bonds sold and observes the conditions and requirements
197	197	stated in those bonds.
198	198	(f) The board may exercise any powers necessary to carry out
199	199	the authority granted by this section, including the authority to
200	200	contract with any person to accomplish the purposes of this
201	201	section.
202	202	Sec. 15.540. INFORMATION CLEARINGHOUSE. The board shall
203	203	act as a clearinghouse for information about state and federal
204	204	flood planning, mitigation, and control programs that may serve as
205	205	a source of funding for flood projects.
206	206	Sec. 15.541. LIABILITY. Participation in cooperative flood
207	207	planning to obtain money under this subchapter does not subject an
208	208	eligible political subdivision to civil liability in regards to a
209	209	flood project.
210	210	SECTION 4. Title 5, Water Code, is amended by designating
211	211	Chapter 152 as Subtitle A and adding a subtitle heading to read as
212	212	follows:
213	213	SUBTITLE A. RIVER AUTHORITIES
214	214	SECTION 5. Subtitle A, Title 5, Water Code, as added by this
215	215	Act, is amended by adding Chapter 150 to read as follows:
216	216	CHAPTER 150. PROVISIONS GENERALLY APPLICABLE TO RIVER AUTHORITIES
217	217	Sec. 150.0101. DEFINITIONS. In this chapter:
218	218	(1) "Director" means a member of the board of
219	219	directors of a river authority.
220	220	(2) "River authority" means a district created under
221	221	the authority of Section 59, Article XVI, Texas Constitution, as a
222	222	regional water management entity to provide water development and
223	223	planning services and other services to a river basin or portion of
224	224	a river basin.
225	225	Sec. 150.0102. PARTICIPATION IN COOPERATIVE FLOOD
226	226	PLANNING. A river authority may participate in cooperative flood
227	227	planning to obtain money from the flood infrastructure fund under
228	228	Subchapter I, Chapter 15, Water Code, including:
229	229	(1) providing administrative or technical support;
230	230	and
231	231	(2) participation by a director, general manager, or
232	232	other river authority staff in the cooperative flood planning
233	233	process.
234	234	SECTION 6. This Act takes effect September 1, 2019.