86R5453 SLB-D
By: Perry S.B. No. 397
A BILL TO BE ENTITLED
AN ACT
relating to funding of certain flood-related projects by the Texas
Water Development Board and the reporting and administration of
certain flood-related projects by the State Soil and Water
Conservation Board.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 201, Agriculture Code, is
amended by adding Section 201.0227 to read as follows:
Sec. 201.0227. TEN-YEAR DAM REPAIR AND MAINTENANCE PLAN;
REPORT. (a) In this section:
(1) "Plan" means the 10-year dam repair and
maintenance plan adopted under this section.
(2) "Water development board" means the Texas Water
Development Board.
(b) The state board shall prepare and adopt a plan
describing the repair and maintenance needs of flood control dams
in this state and prepare and adopt a new plan before the expiration
of the 10th year following the adoption of a plan.
(c) The state board shall deliver the plan adopted under
this section to the water development board.
(d) Each year, the state board shall deliver to the water
development board a report regarding progress made on items listed
in the plan. If an update to the report or plan is necessary before
the yearly report or before the end of the 10-year cycle, the state
board must deliver to the water development board an amended report
or plan.
SECTION 2. Chapter 15, Water Code, is amended by adding
Subchapter J-1 to read as follows:
SUBCHAPTER J-1. STATE FLOOD PLAN IMPLEMENTATION FUND
Sec. 15.651. DEFINITIONS. In this subchapter:
(1) "Advisory committee" means the State Flood Plan
Implementation Advisory Committee.
(2) "Fund" means the state flood plan implementation
fund.
(3) "Trust company" means the Texas Treasury
Safekeeping Trust Company.
Sec. 15.652. FUND. (a) The state flood plan implementation
fund is a special fund in the state treasury outside the general
revenue fund to be used by the board, without further legislative
appropriation, for the purpose of implementing the state flood plan
and flood control projects administered by the State Soil and Water
Conservation Board as provided by this subchapter.
(b) The fund contains the following two accounts:
(1) the dam repair and maintenance account, from which
the board may allocate money to be transferred to the State Soil and
Water Conservation Board to be used as provided by Section 15.655;
and
(2) the flood plan implementation account, from which
the board may provide financing for the implementation of the state
flood plan, as provided by this subchapter.
(c) The fund and the 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 fund until money is disbursed
from the fund as provided by this subchapter and board rules.
(d) Money in the fund may be used only as provided by this
subchapter.
(e) The fund consists of:
(1) money transferred or deposited to the credit of
the fund by law, including money from any source transferred or
deposited to the credit of the fund at the board's discretion as
authorized by law;
(2) any other revenue that the legislature by statute
dedicates for deposit to the credit of the fund; and
(3) investment earnings and interest earned on amounts
credited to the fund.
Sec. 15.653. MANAGEMENT AND INVESTMENT OF FUND. (a) The
trust company shall hold and invest the fund, and the 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.
The fund may be invested with the state treasury pool.
(b) The overall objective for the investment of the fund is
to maintain sufficient liquidity to meet the needs of the fund while
striving to preserve the purchasing power of the fund.
(c) The trust company has any power necessary to accomplish
the purposes of managing and investing the assets of the fund. In
managing the assets of the 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 fund then prevailing, taking into
consideration the investment of all the assets of the fund rather
than a single investment.
(d) The trust company may charge fees to cover its costs
incurred in managing and investing the fund. The fees 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 fees it charges
under this subsection only from the earnings of the fund.
(e) The trust company annually shall provide a written
report to the board and to the advisory committee with respect to
the investment of the fund. The trust company shall contract with a
certified public accountant to conduct an independent audit of the
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 fund
under Chapter 321, Government Code.
(f) The trust company shall adopt a written investment
policy that is appropriate for the 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.
Sec. 15.654. DISBURSEMENTS FROM FUND. The trust company
shall disburse money from the fund as directed by the board.
Sec. 15.655. USE OF DAM REPAIR AND MAINTENANCE ACCOUNT. (a)
The board shall allocate money in the dam repair and maintenance
account to the State Soil and Water Conservation Board solely for
use by the conservation board to fund projects described in the
10-year dam repair and maintenance plan described by Section
201.0227, Agriculture Code, including projects authorized under:
(1) the Flood Control Act of 1944 (Pub. L. No. 78-534,
Section 13);
(2) the pilot watershed program authorized under the
Department of Agriculture Appropriation Act, 1954 (Pub. L. No.
156-67);
(3) the Watershed Protection and Flood Prevention Act
(Pub. L. No. 83-566); and
(4) Subtitle H, Title XV, of the Agriculture and Food
Act of 1981 (Pub. L. No. 97-98).
(b) The board shall adopt rules for the use of the money
allocated under this section.
Sec. 15.656. USE OF FLOOD PLAN IMPLEMENTATION ACCOUNT. (a)
The board shall allocate money in the flood plan implementation
account solely for the purpose of providing financial assistance
for projects included in the state flood plan.
(b) The board shall allocate not less than 25 percent of the
money in the flood plan implementation account solely for projects
in rural areas.
Sec. 15.657. PRIORITIZATION OF PROJECTS BY BOARD. (a) The
board shall prioritize projects included in the state flood plan
for the purpose of providing financial assistance under this
subchapter.
(b) The board shall establish a point system for
prioritizing projects for which financial assistance is sought from
the board. The system must include a standard for the board to
apply in determining whether a project qualifies for financial
assistance at the time the application for financial assistance is
filed with the board.
(c) The board shall give the highest consideration in
awarding points to projects that will have a substantial effect,
including projects that will:
(1) meet an emergency need;
(2) be funded partially through federal matching
funds; and
(3) include a component that will increase water
supply.
Sec. 15.658. ADVISORY COMMITTEE. (a) The State Flood Plan
Implementation Fund Advisory Committee is composed of the following
seven members:
(1) the comptroller, or a person designated by the
comptroller;
(2) three 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 water; and
(3) three 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 water.
(b) The following persons shall serve as staff support for
the advisory committee:
(1) the deputy executive administrator of the board
who is responsible for water science and flood mitigation or a
person who holds an equivalent position at the board, or a person
designated by that person;
(2) the deputy executive administrator of the board
who is responsible for state flood planning and information or a
person who holds an equivalent position at the board, or a person
designated by that person;
(3) the chief financial officer of the board, or a
person who holds an equivalent position at the board;
(4) the fiscal officer of the State Soil and Water
Conservation Board; and
(5) the deputy executive administrator of the State
Soil and Water Conservation Board who is responsible for water
science and flood mitigation or a person who holds an equivalent
position at the conservation board, or a person designated by that
person.
(c) The advisory committee may hold public hearings, formal
meetings, or work sessions. 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 flood
plan implementation account of the fund for use by the board in
adopting rules, policies, and procedures under this subchapter.
The submission must include:
(1) comments and recommendations on rulemaking
related to the prioritization of projects in the state flood plan;
(2) comments and recommendations on rulemaking
related to establishing standards for determining whether projects
meet the criteria provided by the board;
(3) an evaluation of the available programs for
providing financing for projects included in the state flood plan
and guidelines for implementing those programs, including
guidelines for providing financing for projects included in the
state flood plan;
(4) an evaluation of the funding practices of the
board and guidelines for funding standards;
(5) an evaluation of the use of money by the board to
provide support for financial assistance for flood projects;
(6) an evaluation of methods for encouraging
participation in the procurement process by companies domiciled in
this state; and
(7) an evaluation of the overall operation, function,
and structure of the flood plan implementation account of the fund.
(f) The advisory committee shall review the overall
operation, function, and structure of the flood plan implementation
account of the 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) The advisory committee shall make recommendations to
the board regarding information to be posted on the board's
Internet website under Section 15.440(b).
Sec. 15.659. RULES. The board shall adopt rules providing
for the use of money in the fund that are consistent with this
subchapter, including rules:
(1) establishing standards for determining whether
projects meet the criteria provided by Section 15.657; and
(2) specifying the manner for prioritizing projects
for purposes of Section 15.657.
SECTION 3. (a) Not later than September 1, 2021, the
speaker of the house of representatives, the lieutenant governor,
and the governor shall appoint the initial members of the State
Flood Plan Implementation Fund Advisory Committee created under
Section 15.658, Water Code, as added by this Act.
(b) Notwithstanding Section 15.658, Water Code, as added by
this Act, the State Flood Plan Implementation Fund Advisory
Committee may not perform any duty or function described by
Subchapter J-1, Chapter 15, Water Code, as added by this Act, before
September 1, 2021.
SECTION 4. Not later than December 1, 2019, the Texas Water
Development Board shall adopt rules under Subchapter J-1, Chapter
15, Water Code, as added by this Act.
SECTION 5. (a) Of the $1.2 billion deposited to the credit
of the state flood plan implementation fund, the comptroller shall
transfer $591,971,801 to the credit of the dam repair and
maintenance account described by Section 15.652, Water Code, as
added by this Act.
(b) Of the $1.2 billion deposited to the credit of the state
flood plan implementation fund, the comptroller shall transfer
$608,028,190 to the credit of the flood plan implementation account
described by Section 15.652, Water Code, as added by this Act.
(c) As soon as practicable after the effective date of this
Act, the Texas Water Development Board shall allocate money from
the dam repair and maintenance account described by Section 15.652,
Water Code, to the State Soil and Water Conservation Board for use
as described by Section 15.655, Water Code, as added by this Act.
SECTION 6. This Act takes effect on the date on which the
constitutional amendment proposed by the 86th Legislature, Regular
Session, 2019, adding Section 49-d-14, Article III, Texas
Constitution, creating the state flood plan implementation fund
takes effect. If that amendment is not approved by the voters, this
Act has no effect.