Texas 2019 - 86th Regular

Texas Senate Bill SB695 Compare Versions

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1	1	By: Creighton S.B. No. 695
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to state policies and programs that affect the funding of
7	7	flood planning, mitigation, and infrastructure projects; making an
8	8	appropriation.
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) and (g) and adding Subsection (a-1) to
15	15	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 obtaining regulatory
20	20	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 or specifications to
24	24	provide structural or nonstructural flood mitigation or 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	(g) The board shall require that flood control planning
30	30	documents [plans] developed under contracts entered into under this
31	31	section be made available to the commission.
32	32	SECTION 3. Chapter 15, Water Code, is amended by adding
33	33	Subchapter I to read as follows:
34	34	SUBCHAPTER I. TEXAS INFRASTRUCTURE RESILIENCY FUND
35	35	Sec. 15.531. DEFINITIONS. In this subchapter:
36	36	(1) "Eligible political subdivision" means a district
37	37	or authority created under Section 52, Article III, or Section 59,
38	38	Article XVI, Texas Constitution, a municipality, or a county.
39	39	(2) "Flood project" means a drainage, flood
40	40	mitigation, or flood control project, including:
41	41	(A) planning or design activities;
42	42	(B) work to obtain regulatory approval to provide
43	43	nonstructural or structural flood mitigation or drainage; and
44	44	(C) construction of structural flood mitigation
45	45	or drainage infrastructure.
46	46	(3) "Fund" means the Texas Infrastructure Resiliency
47	47	Fund.
48	48	(4) "Political subdivision bonds" means bonds or other
49	49	obligations issued by a political subdivision to fund a flood
50	50	project.
51	51	(5) "Advisory committee" means the Texas
52	52	Infrastructure Resiliency Fund Advisory Committee.
53	53	Sec. 15.532. TEXAS INFRASTRUCTURE RESILIENCY FUND.
54	54	(a) The Texas Infrastructure Resiliency Fund is a special fund in
55	55	the state treasury outside the general revenue fund to be used and
56	56	administered by the board under this subchapter and under rules
57	57	adopted by the board under this subchapter.
58	58	(b) The board may establish separate accounts in the fund.
59	59	(c) The fund consists of:
60	60	(1) appropriations from the legislature for a purpose
61	61	of the fund;
62	62	(2) proceeds of general obligation bonds issued for a
63	63	purpose of the fund;
64	64	(3) any fees or other sources of revenue that the
65	65	legislature dedicates for deposit to the fund;
66	66	(4) repayments of loans made from the fund;
67	67	(5) interest earned on money credited to the fund;
68	68	(6) depository interest allocable to the fund;
69	69	(7) money from gifts, grants, or donations to the
70	70	fund;
71	71	(8) money from revenue bonds or other sources
72	72	designated by the board for deposit to the fund; and
73	73	(9) proceeds from the sale of political subdivision
74	74	bonds or obligations held in the fund and not otherwise pledged to
75	75	the discharge, repayment, or redemption of revenue bonds or other
76	76	bonds, the proceeds of which were placed in the fund.
77	77	Sec. 15.533. USE OF TEXAS INFRASTRUCTURE RESILIENCY FUND.
78	78	(a) The board may use the fund only:
79	79	(1) to make a grant, low-interest loan, or
80	80	zero-interest loan to an eligible political subdivision for a flood
81	81	project;
82	82	(2) to make a loan at or below market interest rates
83	83	for planning or design costs, permitting costs, or other costs
84	84	associated with state or federal regulatory activities with respect
85	85	to a flood project;
86	86	(3) to make a grant, low-interest loan, or
87	87	zero-interest loan to an eligible political subdivision to provide
88	88	matching funds to enable the eligible political subdivision to
89	89	participate in a federal program for a flood project;
90	90	(4) to make a grant to an eligible political
91	91	subdivision to provide matching funds to enable the eligible
92	92	political subdivision to participate in a federal program for the
93	93	development of a hazard mitigation plan, pursuant to guidelines
94	94	issued by the Federal Emergency Management Agency or by the Texas
95	95	Division of Emergency Management or succeeding equivalent
96	96	organization;
97	97	(5) as a source of revenue or security for the payment
98	98	of principal and interest on bonds issued by the board if the
99	99	proceeds of the sale of the bonds will be deposited in the fund;
100	100	(6) to purchase political subdivision bonds; and
101	101	(7) to pay the necessary and reasonable expenses of
102	102	the board in administering the fund.
103	103	(b) Principal and interest payments on loans made under
104	104	Subsection (a)(2) may be deferred for not more than 10 years or
105	105	until construction of the flood project is completed, whichever is
106	106	earlier.
107	107	(c) A grant made under Subsection (a)(2) may not finance
108	108	more than 75 percent of the total cost of a flood project.
109	109	(d) An eligible political subdivision may receive both a
110	110	grant and a loan under this section for a flood project.
111	111	(e) A grant or loan made under this section may be made to
112	112	multiple eligible political subdivisions for a single flood
113	113	project.
114	114	Sec. 15.534. PRIORITIZATION OF PROJECTS. (a) The board
115	115	shall establish a point system for prioritizing flood projects for
116	116	which money is sought from the fund. The system must include a
117	117	standard for the board to apply in determining whether a flood
118	118	project qualifies for funding at the time the application for
119	119	funding is filed with the board.
120	120	(b) The board shall give the highest consideration in
121	121	awarding points to flood projects that will have a substantial
122	122	effect, including flood projects that:
123	123	(1) are approved or recommended by the director of the
124	124	Texas Division of Emergency Management or succeeding equivalent
125	125	organization;
126	126	(2) are currently receiving, have been awarded, or
127	127	qualify for federal funds;
128	128	(3) meets and emergency need;
129	129	(4) includes a substantial water supply or water
130	130	management benefit;
131	131	(5) will provide regionalization;
132	132	(6) are included in a statewide flood plan;
133	133	(7) the ability of the board and the applicant to
134	134	timely leverage state funding with local or federal funding;
135	135	(8) the project's cost-to-benefit ratio as calculated
136	136	by board rules established in accordance with Section 15.540; and
137	137	Sec. 15.535. REPORTING AND TRANSPARENCY REQUIREMENTS. The
138	138	board shall post the following information on the board's Internet
139	139	website regarding the use of the fund and regularly update the
140	140	information posted:
141	141	(1) the progress made in developing flood projects
142	142	statewide;
143	143	(2) a description of each project financed through
144	144	money from the fund, including:
145	145	(A) the expected date of completion of the
146	146	project;
147	147	(B) the current status of the project;
148	148	(C) the proposed benefit of the project;
149	149	(D) the initial total cost estimate of the
150	150	project and variances to the initial cost estimate exceeding five
151	151	percent;
152	152	(E) a listing of the eligible political
153	153	subdivision or subdivisions receiving money from the fund;
154	154	(F) a listing of the political subdivision or
155	155	subdivisions being served by each resilience project;
156	156	(G) an estimate of any matching funds that will
157	157	be available for the project resulting from the use of the fund;
158	158	(H) the status of repayment of any loan provided
159	159	in connection with a project, including an assessment of the risk of
160	160	default based on a standard risk rating system;
161	161	(I) a listing and description of political
162	162	subdivision bonds purchased in relation to the project, including
163	163	the terms and obligations related to the purchase of the bond; and
164	164	(J) a listing and description of political
165	165	subdivision bonds sold by the board under Section 15.541, including
166	166	the terms and obligations related to the sale of the bond.
167	167	(3) a description of the point system for prioritizing
168	168	projects established by the board under Section 15.535 and the
169	169	number of points awarded by the board for each project;
170	170	(4) any nonconfidential information submitted to the
171	171	board as part of an application for financial assistance under this
172	172	subchapter that is approved by the board;
173	173	(5) the administrative and operating expenses
174	174	incurred by the board in administering the fund; and
175	175	(6) any other information required by board rule.
176	176	Sec. 15.536. APPLICATION REQUIREMENTS. (a) Except as
177	177	provided by Subsection (c), an eligible political subdivision
178	178	applying for financial assistance under this subchapter for a
179	179	proposed flood project must demonstrate in the application that:
180	180	(1) the eligible political subdivision has acted
181	181	cooperatively with other political subdivisions to address flood
182	182	control needs in the area in which the eligible political
183	183	subdivisions are located;
184	184	(2) all political subdivisions substantially affected
185	185	by the proposed flood project have participated in the process of
186	186	developing the proposed flood project;
187	187	(3) the eligible political subdivisions, separately
188	188	or in cooperation, have held public meetings to accept comment on
189	189	proposed flood projects from interested parties; and
190	190	(4) the technical requirements for the proposed flood
191	191	project have been completed and compared against any other
192	192	potential flood projects in the same area.
193	193	(b) The application must include an analysis of whether the
194	194	proposed flood project could use floodwater capture techniques for
195	195	water supply purposes, including floodwater harvesting, detention
196	196	or retention basins, or other methods of capturing storm flow or
197	197	unappropriated flood flow.
198	198	(c) An eligible political subdivision applying for
199	199	assistance under Section 15.534(a)(3) is not required to make the
200	200	demonstration described by Subsection (a)(4) of this section.
201	201	Sec. 15.537. APPROVAL OF APPLICATIONS. On review and
202	202	recommendation by the executive administrator, with input from the
203	203	director of the Texas Division of Emergency Management or the
204	204	succeeding equivalent organization, the board may approve an
205	205	application only if the board finds that:
206	206	(1) the application and the assistance applied for
207	207	meet the requirements of this subchapter and board rules;
208	208	(2) the application demonstrates a sufficient level of
209	209	cooperation among eligible political subdivisions and includes all
210	210	of the political subdivisions substantially affected by the flood
211	211	project; and
212	212	(3) the taxes or other revenue, or both the taxes and
213	213	other revenue, pledged by the applicant will be sufficient to meet
214	214	all the obligations assumed by the eligible political subdivision.
215	215	Sec. 15.538. APPLICABLE LAW. Subchapter E, Chapter 17,
216	216	applies to financial assistance made available from the fund,
217	217	except that the board may execute contracts as necessary to
218	218	evidence grant agreements.
219	219	Sec. 15.539. RULES. (a) The board shall adopt rules
220	220	necessary to carry out this subchapter, including rules:
221	221	(1) that establish procedures for an application for
222	222	the award of financial assistance;
223	223	(2) that establish the prioritization of flood
224	224	projects that receive money from the fund;
225	225	(3) for the repayment of a loan from the fund;
226	226	(4) for the investment of money; and
227	227	(5) for the administration of the fund.
228	228	(b) In establishing rules for the repayment of a loan from
229	229	the fund, the terms shall include:
230	230	(1) an amortization schedule not to exceed 30 years;
231	231	(2) an interest rate at or below the current market
232	232	rate at the time an application is approved for a loan from the
233	233	fund;
234	234	(3) no penalties for early repayment; and
235	235	(4) except as provided by Section 15.534(b), a
236	236	requirement that principal and interest payments on the loan must
237	237	begin no later than 18 months after the loan is originated.
238	238	(c) The board shall give appropriate consideration to the
239	239	recommendations of the advisory committee before adopting rules
240	240	under this section.
241	241	Sec. 15.540. SALE OF POLITICAL SUBDIVISION BONDS. (a) The
242	242	board may sell or dispose of political subdivision bonds at the
243	243	price and under the terms that the board determines to be
244	244	reasonable.
245	245	(b) The board may sell political subdivision bonds without
246	246	making a previous offer to the eligible political subdivision that
247	247	issued the bonds and without advertising, soliciting, or receiving
248	248	bids for sale.
249	249	(c) Notwithstanding other provisions of this chapter, the
250	250	board may sell to the Texas Water Resources Finance Authority any
251	251	political subdivision bonds purchased with money in the fund and
252	252	may apply the proceeds of a sale in the manner provided by this
253	253	section.
254	254	(d) Proceeds from the sale of political subdivision bonds
255	255	under this section shall be deposited in the fund for use as
256	256	provided by Section 15.534.
257	257	(e) As part of a sales agreement with the Texas Water
258	258	Resources Finance Authority, the board by contract may agree to
259	259	perform the functions required to ensure that the eligible
260	260	political subdivision pays the debt service on political
261	261	subdivision bonds sold and observes the conditions and requirements
262	262	stated in those bonds.
263	263	(f) The board may exercise any powers necessary to carry out
264	264	the authority granted by this section, including the authority to
265	265	contract with any person to accomplish the purposes of this
266	266	section.
267	267	Sec. 15.541. INFORMATION CLEARINGHOUSE. The board shall
268	268	act as a clearinghouse for information about state and federal
269	269	flood planning, mitigation, and control programs that may serve as
270	270	a source of funding for flood projects.
271	271	Sec. 15.542. LIABILITY. Participation in cooperative flood
272	272	planning to obtain money under this subchapter does not subject an
273	273	eligible political subdivision to civil liability in regards to a
274	274	flood project.
275	275	Sec. 15.543. ADVISORY COMMITTEE. (a) The Texas
276	276	Infrastructure Resiliency Fund Advisory Committee is composed of
277	277	the following members:
278	278	(1) the members that serve on the State Water
279	279	Implementation Fund for Texas Advisory Committee described by
280	280	Section 15.438; and
281	281	(2) the director of the Texas Division of Emergency
282	282	Management or the succeeding equivalent organization.
283	283	(b) The advisory committee may hold public hearings, formal
284	284	meetings, or work sessions. Either co-presiding officer of the
285	285	advisory committee may call a public hearing, formal meeting, or
286	286	work session of the advisory committee at any time. The advisory
287	287	committee may not take formal action at a public hearing, formal
288	288	meeting, or work session unless a quorum of the committee is
289	289	present.
290	290	(c) Except as otherwise provided by this subsection, a
291	291	member of the advisory committee is not entitled to receive
292	292	compensation for service on the committee or reimbursement for
293	293	expenses incurred in the performance of official duties as a member
294	294	of the committee. Service on the advisory committee by a member of
295	295	the senate or house of representatives is considered legislative
296	296	service for which the member is entitled to reimbursement and other
297	297	benefits in the same manner and to the same extent as for other
298	298	legislative service.
299	299	(d) The advisory committee may submit comments and
300	300	recommendations to the board regarding the use of money in the fund
301	301	and for use by the board in adopting rules under Section 15.540.
302	302	(e) The advisory committee shall review the overall
303	303	operation, function, and structure of the fund at least annually
304	304	and may provide comments and recommendations to the board on any
305	305	matter.
306	306	(f) The advisory committee may adopt rules, procedures, and
307	307	policies as needed to administer this section and implement its
308	308	responsibilities.
309	309	(g) Chapter 2110, Government Code, does not apply to the
310	310	size, composition, or duration of the advisory committee.
311	311	(h) The advisory committee may make recommendations to the
312	312	board regarding information to be posted on the board's Internet
313	313	website.
314	314	(i) The advisory committee may evaluate and provide
315	315	comments or recommendations to the board on the feasibility of the
316	316	state owning, constructing, operating, and maintaining flood
317	317	projects, including reservoirs and coastal barriers.
318	318	(j) The board shall provide an annual report to the advisory
319	319	committee on:
320	320	(1) the board's compliance with statewide annual goals
321	321	relating to historically underutilized businesses; and
322	322	(2) the participation level of historically
323	323	underutilized businesses in flood projects that receive money from
324	324	the fund.
325	325	(k) If the aggregate level of participation by historically
326	326	underutilized businesses in projects that receive money from the
327	327	fund does not meet statewide annual goals adopted under Chapter
328	328	2161, Government Code, the advisory committee shall make
329	329	recommendations to the board to improve the participation level.
330	330	(l) The board shall provide staff support for the advisory
331	331	committee.
332	332	SECTION 4. Title 5, Water Code, is amended by designating
333	333	Chapter 152 as Subtitle A and adding a subtitle heading to read as
334	334	follows:
335	335	SUBTITLE A. RIVER AUTHORITIES
336	336	SECTION 5. Subtitle A, Title 5, Water Code, as added by this
337	337	Act, is amended by adding Chapter 150 to read as follows:
338	338	CHAPTER 150. PROVISIONS GENERALLY APPLICABLE TO RIVER AUTHORITIES
339	339	Sec. 150.0101. DEFINITIONS. In this chapter:
340	340	(1) "Director" means a member of the board of
341	341	directors of a river authority.
342	342	(2) "River authority" means a district created under
343	343	the authority of Section 59, Article XVI, Texas Constitution, as a
344	344	regional water management entity to provide water development and
345	345	planning services and other services to a river basin or portion of
346	346	a river basin.
347	347	Sec. 150.0102. PARTICIPATION IN COOPERATIVE FLOOD
348	348	PLANNING. A river authority may participate in cooperative flood
349	349	planning to obtain money from the Texas infrastructure resiliency
350	350	fund under Subchapter I, Chapter 15, including:
351	351	(1) providing administrative or technical support;
352	352	and
353	353	(2) participation by a director, general manager, or
354	354	other river authority staff in the cooperative flood planning
355	355	process.
356	356	SECTION 6. Provisions under this bill will be repealed on
357	357	December 31st, 2031. Any dollars remaining in the account will be
358	358	sent back to the Economic Stabilization Fund.
359	359	SECTION 7. Not later than 30 days after the effective date
360	360	of this Act, the Texas Infrastructure Resiliency Fund Advisory
361	361	Committee shall select the Accredited Economic Development
362	362	Organization that will serve on the advisory committee created
363	363	under Section 15.543, Water Code, as added by this Act.
364	364	SECTION 8. (a) Not later than 90 days after the effective
365	365	date of this Act, the Texas Infrastructure Resiliency Fund Advisory
366	366	Committee shall submit recommendations to the Texas Water
367	367	Development Board on rules to be adopted by the board under Section
368	368	15.540, Water Code, as added by the Act.
369	369	(b) Not later than 60 days after the Texas Water Development
370	370	Board receives the recommendations described by Subsection (a) of
371	371	this section, the board shall adopt rules under Section 15.540,
372	372	Water Code, as added by this Act.
373	373	SECTION 9. (a) The amount of $3,000,000,000 is
374	374	appropriated out of the economic stabilization fund to the flood
375	375	infrastructure fund to implement the provisions of this
376	376	legislation.
377	377	(b) Appropriations made in this section shall be available
378	378	to the Texas Water Development Board for the purpose of financing
379	379	resilience projects according to the provisions of this
380	380	legislation.
381	381	(c) This section takes effect only if this Act is approved
382	382	by a vote of two-thirds of the members present in each house of the
383	383	legislature, as provided by Section 49-g(m), Article III, Texas
384	384	Constitution.
385	385	SECTION 10. This Act takes effect immediately if it
386	386	receives a vote of two-thirds of all the members elected to each
387	387	house, as provided by Section 39, Article III, Texas Constitution.
388	388	If this Act does not receive the vote necessary for immediate
389	389	effect, this Act takes effect September 1, 2019.