Texas 2019 - 86th Regular

Texas Senate Bill SB397 Compare Versions

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

Old	New	Differences
1	1	86R5453 SLB-D
2	2	By: Perry S.B. No. 397
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to funding of certain flood-related projects by the Texas
8	8	Water Development Board and the reporting and administration of
9	9	certain flood-related projects by the State Soil and Water
10	10	Conservation Board.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subchapter B, Chapter 201, Agriculture Code, is
13	13	amended by adding Section 201.0227 to read as follows:
14	14	Sec. 201.0227. TEN-YEAR DAM REPAIR AND MAINTENANCE PLAN;
15	15	REPORT. (a) In this section:
16	16	(1) "Plan" means the 10-year dam repair and
17	17	maintenance plan adopted under this section.
18	18	(2) "Water development board" means the Texas Water
19	19	Development Board.
20	20	(b) The state board shall prepare and adopt a plan
21	21	describing the repair and maintenance needs of flood control dams
22	22	in this state and prepare and adopt a new plan before the expiration
23	23	of the 10th year following the adoption of a plan.
24	24	(c) The state board shall deliver the plan adopted under
25	25	this section to the water development board.
26	26	(d) Each year, the state board shall deliver to the water
27	27	development board a report regarding progress made on items listed
28	28	in the plan. If an update to the report or plan is necessary before
29	29	the yearly report or before the end of the 10-year cycle, the state
30	30	board must deliver to the water development board an amended report
31	31	or plan.
32	32	SECTION 2. Chapter 15, Water Code, is amended by adding
33	33	Subchapter J-1 to read as follows:
34	34	SUBCHAPTER J-1. STATE FLOOD PLAN IMPLEMENTATION FUND
35	35	Sec. 15.651. DEFINITIONS. In this subchapter:
36	36	(1) "Advisory committee" means the State Flood Plan
37	37	Implementation Advisory Committee.
38	38	(2) "Fund" means the state flood plan implementation
39	39	fund.
40	40	(3) "Trust company" means the Texas Treasury
41	41	Safekeeping Trust Company.
42	42	Sec. 15.652. FUND. (a) The state flood plan implementation
43	43	fund is a special fund in the state treasury outside the general
44	44	revenue fund to be used by the board, without further legislative
45	45	appropriation, for the purpose of implementing the state flood plan
46	46	and flood control projects administered by the State Soil and Water
47	47	Conservation Board as provided by this subchapter.
48	48	(b) The fund contains the following two accounts:
49	49	(1) the dam repair and maintenance account, from which
50	50	the board may allocate money to be transferred to the State Soil and
51	51	Water Conservation Board to be used as provided by Section 15.655;
52	52	and
53	53	(2) the flood plan implementation account, from which
54	54	the board may provide financing for the implementation of the state
55	55	flood plan, as provided by this subchapter.
56	56	(c) The fund and the fund's accounts are kept and held by the
57	57	trust company for and in the name of the board. The board has legal
58	58	title to money and investments in the fund until money is disbursed
59	59	from the fund as provided by this subchapter and board rules.
60	60	(d) Money in the fund may be used only as provided by this
61	61	subchapter.
62	62	(e) The fund consists of:
63	63	(1) money transferred or deposited to the credit of
64	64	the fund by law, including money from any source transferred or
65	65	deposited to the credit of the fund at the board's discretion as
66	66	authorized by law;
67	67	(2) any other revenue that the legislature by statute
68	68	dedicates for deposit to the credit of the fund; and
69	69	(3) investment earnings and interest earned on amounts
70	70	credited to the fund.
71	71	Sec. 15.653. MANAGEMENT AND INVESTMENT OF FUND. (a) The
72	72	trust company shall hold and invest the fund, and the accounts
73	73	established in the fund, for and in the name of the board, taking
74	74	into account the purposes for which money in the fund may be used.
75	75	The fund may be invested with the state treasury pool.
76	76	(b) The overall objective for the investment of the fund is
77	77	to maintain sufficient liquidity to meet the needs of the fund while
78	78	striving to preserve the purchasing power of the fund.
79	79	(c) The trust company has any power necessary to accomplish
80	80	the purposes of managing and investing the assets of the fund. In
81	81	managing the assets of the fund, through procedures and subject to
82	82	restrictions the trust company considers appropriate, the trust
83	83	company may acquire, exchange, sell, supervise, manage, or retain
84	84	any kind of investment that a prudent investor, exercising
85	85	reasonable care, skill, and caution, would acquire or retain in
86	86	light of the purposes, terms, distribution requirements, and other
87	87	circumstances of the fund then prevailing, taking into
88	88	consideration the investment of all the assets of the fund rather
89	89	than a single investment.
90	90	(d) The trust company may charge fees to cover its costs
91	91	incurred in managing and investing the fund. The fees must be
92	92	consistent with the fees the trust company charges other state and
93	93	local governmental entities for which it provides investment
94	94	management services. The trust company may recover fees it charges
95	95	under this subsection only from the earnings of the fund.
96	96	(e) The trust company annually shall provide a written
97	97	report to the board and to the advisory committee with respect to
98	98	the investment of the fund. The trust company shall contract with a
99	99	certified public accountant to conduct an independent audit of the
100	100	fund annually and shall present the results of each annual audit to
101	101	the board and to the advisory committee. This subsection does not
102	102	affect the state auditor's authority to conduct an audit of the fund
103	103	under Chapter 321, Government Code.
104	104	(f) The trust company shall adopt a written investment
105	105	policy that is appropriate for the fund. The trust company shall
106	106	present the investment policy to the investment advisory board
107	107	established under Section 404.028, Government Code. The investment
108	108	advisory board shall submit to the trust company recommendations
109	109	regarding the policy.
110	110	Sec. 15.654. DISBURSEMENTS FROM FUND. The trust company
111	111	shall disburse money from the fund as directed by the board.
112	112	Sec. 15.655. USE OF DAM REPAIR AND MAINTENANCE ACCOUNT. (a)
113	113	The board shall allocate money in the dam repair and maintenance
114	114	account to the State Soil and Water Conservation Board solely for
115	115	use by the conservation board to fund projects described in the
116	116	10-year dam repair and maintenance plan described by Section
117	117	201.0227, Agriculture Code, including projects authorized under:
118	118	(1) the Flood Control Act of 1944 (Pub. L. No. 78-534,
119	119	Section 13);
120	120	(2) the pilot watershed program authorized under the
121	121	Department of Agriculture Appropriation Act, 1954 (Pub. L. No.
122	122	156-67);
123	123	(3) the Watershed Protection and Flood Prevention Act
124	124	(Pub. L. No. 83-566); and
125	125	(4) Subtitle H, Title XV, of the Agriculture and Food
126	126	Act of 1981 (Pub. L. No. 97-98).
127	127	(b) The board shall adopt rules for the use of the money
128	128	allocated under this section.
129	129	Sec. 15.656. USE OF FLOOD PLAN IMPLEMENTATION ACCOUNT. (a)
130	130	The board shall allocate money in the flood plan implementation
131	131	account solely for the purpose of providing financial assistance
132	132	for projects included in the state flood plan.
133	133	(b) The board shall allocate not less than 25 percent of the
134	134	money in the flood plan implementation account solely for projects
135	135	in rural areas.
136	136	Sec. 15.657. PRIORITIZATION OF PROJECTS BY BOARD. (a) The
137	137	board shall prioritize projects included in the state flood plan
138	138	for the purpose of providing financial assistance under this
139	139	subchapter.
140	140	(b) The board shall establish a point system for
141	141	prioritizing projects for which financial assistance is sought from
142	142	the board. The system must include a standard for the board to
143	143	apply in determining whether a project qualifies for financial
144	144	assistance at the time the application for financial assistance is
145	145	filed with the board.
146	146	(c) The board shall give the highest consideration in
147	147	awarding points to projects that will have a substantial effect,
148	148	including projects that will:
149	149	(1) meet an emergency need;
150	150	(2) be funded partially through federal matching
151	151	funds; and
152	152	(3) include a component that will increase water
153	153	supply.
154	154	Sec. 15.658. ADVISORY COMMITTEE. (a) The State Flood Plan
155	155	Implementation Fund Advisory Committee is composed of the following
156	156	seven members:
157	157	(1) the comptroller, or a person designated by the
158	158	comptroller;
159	159	(2) three members of the senate appointed by the
160	160	lieutenant governor, including:
161	161	(A) a member of the committee of the senate
162	162	having primary jurisdiction over matters relating to finance; and
163	163	(B) a member of the committee of the senate
164	164	having primary jurisdiction over water; and
165	165	(3) three members of the house of representatives
166	166	appointed by the speaker of the house of representatives,
167	167	including:
168	168	(A) a member of the committee of the house of
169	169	representatives having primary jurisdiction over appropriations;
170	170	and
171	171	(B) a member of the committee of the house of
172	172	representatives having primary jurisdiction over water.
173	173	(b) The following persons shall serve as staff support for
174	174	the advisory committee:
175	175	(1) the deputy executive administrator of the board
176	176	who is responsible for water science and flood mitigation or a
177	177	person who holds an equivalent position at the board, or a person
178	178	designated by that person;
179	179	(2) the deputy executive administrator of the board
180	180	who is responsible for state flood planning and information or a
181	181	person who holds an equivalent position at the board, or a person
182	182	designated by that person;
183	183	(3) the chief financial officer of the board, or a
184	184	person who holds an equivalent position at the board;
185	185	(4) the fiscal officer of the State Soil and Water
186	186	Conservation Board; and
187	187	(5) the deputy executive administrator of the State
188	188	Soil and Water Conservation Board who is responsible for water
189	189	science and flood mitigation or a person who holds an equivalent
190	190	position at the conservation board, or a person designated by that
191	191	person.
192	192	(c) The advisory committee may hold public hearings, formal
193	193	meetings, or work sessions. The advisory committee may not take
194	194	formal action at a public hearing, formal meeting, or work session
195	195	unless a quorum of the committee is present.
196	196	(d) Except as otherwise provided by this subsection, a
197	197	member of the advisory committee is not entitled to receive
198	198	compensation for service on the committee or reimbursement for
199	199	expenses incurred in the performance of official duties as a member
200	200	of the committee. Service on the advisory committee by a member of
201	201	the senate or house of representatives is considered legislative
202	202	service for which the member is entitled to reimbursement and other
203	203	benefits in the same manner and to the same extent as for other
204	204	legislative service.
205	205	(e) The advisory committee shall submit comments and
206	206	recommendations to the board regarding the use of money in the flood
207	207	plan implementation account of the fund for use by the board in
208	208	adopting rules, policies, and procedures under this subchapter.
209	209	The submission must include:
210	210	(1) comments and recommendations on rulemaking
211	211	related to the prioritization of projects in the state flood plan;
212	212	(2) comments and recommendations on rulemaking
213	213	related to establishing standards for determining whether projects
214	214	meet the criteria provided by the board;
215	215	(3) an evaluation of the available programs for
216	216	providing financing for projects included in the state flood plan
217	217	and guidelines for implementing those programs, including
218	218	guidelines for providing financing for projects included in the
219	219	state flood plan;
220	220	(4) an evaluation of the funding practices of the
221	221	board and guidelines for funding standards;
222	222	(5) an evaluation of the use of money by the board to
223	223	provide support for financial assistance for flood projects;
224	224	(6) an evaluation of methods for encouraging
225	225	participation in the procurement process by companies domiciled in
226	226	this state; and
227	227	(7) an evaluation of the overall operation, function,
228	228	and structure of the flood plan implementation account of the fund.
229	229	(f) The advisory committee shall review the overall
230	230	operation, function, and structure of the flood plan implementation
231	231	account of the fund at least semiannually and may provide comments
232	232	and recommendations to the board on any matter.
233	233	(g) The advisory committee may adopt rules, procedures, and
234	234	policies as needed to administer this section and implement its
235	235	responsibilities.
236	236	(h) The advisory committee shall make recommendations to
237	237	the board regarding information to be posted on the board's
238	238	Internet website under Section 15.440(b).
239	239	Sec. 15.659. RULES. The board shall adopt rules providing
240	240	for the use of money in the fund that are consistent with this
241	241	subchapter, including rules:
242	242	(1) establishing standards for determining whether
243	243	projects meet the criteria provided by Section 15.657; and
244	244	(2) specifying the manner for prioritizing projects
245	245	for purposes of Section 15.657.
246	246	SECTION 3. (a) Not later than September 1, 2021, the
247	247	speaker of the house of representatives, the lieutenant governor,
248	248	and the governor shall appoint the initial members of the State
249	249	Flood Plan Implementation Fund Advisory Committee created under
250	250	Section 15.658, Water Code, as added by this Act.
251	251	(b) Notwithstanding Section 15.658, Water Code, as added by
252	252	this Act, the State Flood Plan Implementation Fund Advisory
253	253	Committee may not perform any duty or function described by
254	254	Subchapter J-1, Chapter 15, Water Code, as added by this Act, before
255	255	September 1, 2021.
256	256	SECTION 4. Not later than December 1, 2019, the Texas Water
257	257	Development Board shall adopt rules under Subchapter J-1, Chapter
258	258	15, Water Code, as added by this Act.
259	259	SECTION 5. (a) Of the $1.2 billion deposited to the credit
260	260	of the state flood plan implementation fund, the comptroller shall
261	261	transfer $591,971,801 to the credit of the dam repair and
262	262	maintenance account described by Section 15.652, Water Code, as
263	263	added by this Act.
264	264	(b) Of the $1.2 billion deposited to the credit of the state
265	265	flood plan implementation fund, the comptroller shall transfer
266	266	$608,028,190 to the credit of the flood plan implementation account
267	267	described by Section 15.652, Water Code, as added by this Act.
268	268	(c) As soon as practicable after the effective date of this
269	269	Act, the Texas Water Development Board shall allocate money from
270	270	the dam repair and maintenance account described by Section 15.652,
271	271	Water Code, to the State Soil and Water Conservation Board for use
272	272	as described by Section 15.655, Water Code, as added by this Act.
273	273	SECTION 6. This Act takes effect on the date on which the
274	274	constitutional amendment proposed by the 86th Legislature, Regular
275	275	Session, 2019, adding Section 49-d-14, Article III, Texas
276	276	Constitution, creating the state flood plan implementation fund
277	277	takes effect. If that amendment is not approved by the voters, this
278	278	Act has no effect.