By: Creighton S.B. No. 695
A BILL TO BE ENTITLED
AN ACT
relating to state policies and programs that affect the funding of
flood planning, mitigation, and infrastructure projects; making an
appropriation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 15.405, Water Code, is
amended to read as follows:
Sec. 15.405. FLOOD CONTROL PLANNING CONTRACTS.
SECTION 2. Section 15.405, Water Code, is amended by
amending Subsections (a) and (g) and adding Subsection (a-1) to
read as follows:
(a) In this section, "flood control planning" means any work
related to:
(1) planning for flood protection;
(2) preparing applications for obtaining regulatory
approvals at the local, state, or federal level;
(3) activities associated with administrative or
legal proceedings by regulatory agencies; and
(4) preparing engineering plans or specifications to
provide structural or nonstructural flood mitigation or drainage.
(a-1) The board may enter into contracts with political
subdivisions to pay from the research and planning fund all or part
of the cost of [developing] flood control planning [plans] for the
political subdivision.
(g) The board shall require that flood control planning
documents [plans] developed under contracts entered into under this
section be made available to the commission.
SECTION 3. Chapter 15, Water Code, is amended by adding
Subchapter I to read as follows:
SUBCHAPTER I. TEXAS INFRASTRUCTURE RESILIENCY FUND
Sec. 15.531. DEFINITIONS. In this subchapter:
(1) "Eligible political subdivision" means a district
or authority created under Section 52, Article III, or Section 59,
Article XVI, Texas Constitution, a municipality, or a county.
(2) "Flood project" means a drainage, flood
mitigation, or flood control project, including:
(A) planning or design activities;
(B) work to obtain regulatory approval to provide
nonstructural or structural flood mitigation or drainage; and
(C) construction of structural flood mitigation
or drainage infrastructure.
(3) "Fund" means the Texas Infrastructure Resiliency
Fund.
(4) "Political subdivision bonds" means bonds or other
obligations issued by a political subdivision to fund a flood
project.
(5) "Advisory committee" means the Texas
Infrastructure Resiliency Fund Advisory Committee.
Sec. 15.532. TEXAS INFRASTRUCTURE RESILIENCY FUND.
(a) The Texas Infrastructure Resiliency Fund is a special fund in
the state treasury outside the general revenue fund to be used and
administered by the board under this subchapter and under rules
adopted by the board under this subchapter.
(b) The board may establish separate accounts in the fund.
(c) The fund consists of:
(1) appropriations from the legislature for a purpose
of the fund;
(2) proceeds of general obligation bonds issued for a
purpose of the fund;
(3) any fees or other sources of revenue that the
legislature dedicates for deposit to the fund;
(4) repayments of loans made from the fund;
(5) interest earned on money credited to the fund;
(6) depository interest allocable to the fund;
(7) money from gifts, grants, or donations to the
fund;
(8) money from revenue bonds or other sources
designated by the board for deposit to the fund; and
(9) proceeds from the sale of political subdivision
bonds or obligations held in the fund and not otherwise pledged to
the discharge, repayment, or redemption of revenue bonds or other
bonds, the proceeds of which were placed in the fund.
Sec. 15.533. USE OF TEXAS INFRASTRUCTURE RESILIENCY FUND.
(a) The board may use the fund only:
(1) to make a grant, low-interest loan, or
zero-interest loan to an eligible political subdivision for a flood
project;
(2) to make a loan at or below market interest rates
for planning or design costs, permitting costs, or other costs
associated with state or federal regulatory activities with respect
to a flood project;
(3) to make a grant, low-interest loan, or
zero-interest loan to an eligible political subdivision to provide
matching funds to enable the eligible political subdivision to
participate in a federal program for a flood project;
(4) to make a grant to an eligible political
subdivision to provide matching funds to enable the eligible
political subdivision to participate in a federal program for the
development of a hazard mitigation plan, pursuant to guidelines
issued by the Federal Emergency Management Agency or by the Texas
Division of Emergency Management or succeeding equivalent
organization;
(5) as a source of revenue or security for the payment
of principal and interest on bonds issued by the board if the
proceeds of the sale of the bonds will be deposited in the fund;
(6) to purchase political subdivision bonds; and
(7) to pay the necessary and reasonable expenses of
the board in administering the fund.
(b) Principal and interest payments on loans made under
Subsection (a)(2) may be deferred for not more than 10 years or
until construction of the flood project is completed, whichever is
earlier.
(c) A grant made under Subsection (a)(2) may not finance
more than 75 percent of the total cost of a flood project.
(d) An eligible political subdivision may receive both a
grant and a loan under this section for a flood project.
(e) A grant or loan made under this section may be made to
multiple eligible political subdivisions for a single flood
project.
Sec. 15.534. PRIORITIZATION OF PROJECTS. (a) The board
shall establish a point system for prioritizing flood projects for
which money is sought from the fund. The system must include a
standard for the board to apply in determining whether a flood
project qualifies for funding at the time the application for
funding is filed with the board.
(b) The board shall give the highest consideration in
awarding points to flood projects that will have a substantial
effect, including flood projects that:
(1) are approved or recommended by the director of the
Texas Division of Emergency Management or succeeding equivalent
organization;
(2) are currently receiving, have been awarded, or
qualify for federal funds;
(3) meets and emergency need;
(4) includes a substantial water supply or water
management benefit;
(5) will provide regionalization;
(6) are included in a statewide flood plan;
(7) the ability of the board and the applicant to
timely leverage state funding with local or federal funding;
(8) the project's cost-to-benefit ratio as calculated
by board rules established in accordance with Section 15.540; and
Sec. 15.535. REPORTING AND TRANSPARENCY REQUIREMENTS. The
board shall post the following information on the board's Internet
website regarding the use of the fund and regularly update the
information posted:
(1) the progress made in developing flood projects
statewide;
(2) a description of each project financed through
money from the fund, including:
(A) the expected date of completion of the
project;
(B) the current status of the project;
(C) the proposed benefit of the project;
(D) the initial total cost estimate of the
project and variances to the initial cost estimate exceeding five
percent;
(E) a listing of the eligible political
subdivision or subdivisions receiving money from the fund;
(F) a listing of the political subdivision or
subdivisions being served by each resilience project;
(G) an estimate of any matching funds that will
be available for the project resulting from the use of the fund;
(H) the status of repayment of any loan provided
in connection with a project, including an assessment of the risk of
default based on a standard risk rating system;
(I) a listing and description of political
subdivision bonds purchased in relation to the project, including
the terms and obligations related to the purchase of the bond; and
(J) a listing and description of political
subdivision bonds sold by the board under Section 15.541, including
the terms and obligations related to the sale of the bond.
(3) a description of the point system for prioritizing
projects established by the board under Section 15.535 and the
number of points awarded by the board for each project;
(4) any nonconfidential information submitted to the
board as part of an application for financial assistance under this
subchapter that is approved by the board;
(5) the administrative and operating expenses
incurred by the board in administering the fund; and
(6) any other information required by board rule.
Sec. 15.536. APPLICATION REQUIREMENTS. (a) Except as
provided by Subsection (c), an eligible political subdivision
applying for financial assistance under this subchapter for a
proposed flood project must demonstrate in the application that:
(1) the eligible political subdivision has acted
cooperatively with other political subdivisions to address flood
control needs in the area in which the eligible political
subdivisions are located;
(2) all political subdivisions substantially affected
by the proposed flood project have participated in the process of
developing the proposed flood project;
(3) the eligible political subdivisions, separately
or in cooperation, have held public meetings to accept comment on
proposed flood projects from interested parties; and
(4) the technical requirements for the proposed flood
project have been completed and compared against any other
potential flood projects in the same area.
(b) The application must include an analysis of whether the
proposed flood project could use floodwater capture techniques for
water supply purposes, including floodwater harvesting, detention
or retention basins, or other methods of capturing storm flow or
unappropriated flood flow.
(c) An eligible political subdivision applying for
assistance under Section 15.534(a)(3) is not required to make the
demonstration described by Subsection (a)(4) of this section.
Sec. 15.537. APPROVAL OF APPLICATIONS. On review and
recommendation by the executive administrator, with input from the
director of the Texas Division of Emergency Management or the
succeeding equivalent organization, the board may approve an
application only if the board finds that:
(1) the application and the assistance applied for
meet the requirements of this subchapter and board rules;
(2) the application demonstrates a sufficient level of
cooperation among eligible political subdivisions and includes all
of the political subdivisions substantially affected by the flood
project; and
(3) the taxes or other revenue, or both the taxes and
other revenue, pledged by the applicant will be sufficient to meet
all the obligations assumed by the eligible political subdivision.
Sec. 15.538. APPLICABLE LAW. Subchapter E, Chapter 17,
applies to financial assistance made available from the fund,
except that the board may execute contracts as necessary to
evidence grant agreements.
Sec. 15.539. RULES. (a) The board shall adopt rules
necessary to carry out this subchapter, including rules:
(1) that establish procedures for an application for
the award of financial assistance;
(2) that establish the prioritization of flood
projects that receive money from the fund;
(3) for the repayment of a loan from the fund;
(4) for the investment of money; and
(5) for the administration of the fund.
(b) In establishing rules for the repayment of a loan from
the fund, the terms shall include:
(1) an amortization schedule not to exceed 30 years;
(2) an interest rate at or below the current market
rate at the time an application is approved for a loan from the
fund;
(3) no penalties for early repayment; and
(4) except as provided by Section 15.534(b), a
requirement that principal and interest payments on the loan must
begin no later than 18 months after the loan is originated.
(c) The board shall give appropriate consideration to the
recommendations of the advisory committee before adopting rules
under this section.
Sec. 15.540. SALE OF POLITICAL SUBDIVISION BONDS. (a) The
board may sell or dispose of political subdivision bonds at the
price and under the terms that the board determines to be
reasonable.
(b) The board may sell political subdivision bonds without
making a previous offer to the eligible political subdivision that
issued the bonds and without advertising, soliciting, or receiving
bids for sale.
(c) Notwithstanding other provisions of this chapter, the
board may sell to the Texas Water Resources Finance Authority any
political subdivision bonds purchased with money in the fund and
may apply the proceeds of a sale in the manner provided by this
section.
(d) Proceeds from the sale of political subdivision bonds
under this section shall be deposited in the fund for use as
provided by Section 15.534.
(e) As part of a sales agreement with the Texas Water
Resources Finance Authority, the board by contract may agree to
perform the functions required to ensure that the eligible
political subdivision pays the debt service on political
subdivision bonds sold and observes the conditions and requirements
stated in those bonds.
(f) The board may exercise any powers necessary to carry out
the authority granted by this section, including the authority to
contract with any person to accomplish the purposes of this
section.
Sec. 15.541. INFORMATION CLEARINGHOUSE. The board shall
act as a clearinghouse for information about state and federal
flood planning, mitigation, and control programs that may serve as
a source of funding for flood projects.
Sec. 15.542. LIABILITY. Participation in cooperative flood
planning to obtain money under this subchapter does not subject an
eligible political subdivision to civil liability in regards to a
flood project.
Sec. 15.543. ADVISORY COMMITTEE. (a) The Texas
Infrastructure Resiliency Fund Advisory Committee is composed of
the following members:
(1) the members that serve on the State Water
Implementation Fund for Texas Advisory Committee described by
Section 15.438; and
(2) the director of the Texas Division of Emergency
Management or the succeeding equivalent organization.
(b) The advisory committee may hold public hearings, formal
meetings, or work sessions. Either co-presiding officer of the
advisory committee may call a public hearing, formal meeting, or
work session of the advisory committee at any time. 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.
(c) 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.
(d) The advisory committee may submit comments and
recommendations to the board regarding the use of money in the fund
and for use by the board in adopting rules under Section 15.540.
(e) The advisory committee shall review the overall
operation, function, and structure of the fund at least annually
and may provide comments and recommendations to the board on any
matter.
(f) The advisory committee may adopt rules, procedures, and
policies as needed to administer this section and implement its
responsibilities.
(g) Chapter 2110, Government Code, does not apply to the
size, composition, or duration of the advisory committee.
(h) The advisory committee may make recommendations to the
board regarding information to be posted on the board's Internet
website.
(i) The advisory committee may evaluate and provide
comments or recommendations to the board on the feasibility of the
state owning, constructing, operating, and maintaining flood
projects, including reservoirs and coastal barriers.
(j) The board shall provide an annual report to the advisory
committee on:
(1) the board's compliance with statewide annual goals
relating to historically underutilized businesses; and
(2) the participation level of historically
underutilized businesses in flood projects that receive money from
the fund.
(k) If the aggregate level of participation by historically
underutilized businesses in projects that receive money from the
fund does not meet statewide annual goals adopted under Chapter
2161, Government Code, the advisory committee shall make
recommendations to the board to improve the participation level.
(l) The board shall provide staff support for the advisory
committee.
SECTION 4. Title 5, Water Code, is amended by designating
Chapter 152 as Subtitle A and adding a subtitle heading to read as
follows:
SUBTITLE A. RIVER AUTHORITIES
SECTION 5. Subtitle A, Title 5, Water Code, as added by this
Act, is amended by adding Chapter 150 to read as follows:
CHAPTER 150. PROVISIONS GENERALLY APPLICABLE TO RIVER AUTHORITIES
Sec. 150.0101. DEFINITIONS. In this chapter:
(1) "Director" means a member of the board of
directors of a river authority.
(2) "River authority" means a district created under
the authority of Section 59, Article XVI, Texas Constitution, as a
regional water management entity to provide water development and
planning services and other services to a river basin or portion of
a river basin.
Sec. 150.0102. PARTICIPATION IN COOPERATIVE FLOOD
PLANNING. A river authority may participate in cooperative flood
planning to obtain money from the Texas infrastructure resiliency
fund under Subchapter I, Chapter 15, including:
(1) providing administrative or technical support;
and
(2) participation by a director, general manager, or
other river authority staff in the cooperative flood planning
process.
SECTION 6. Provisions under this bill will be repealed on
December 31st, 2031. Any dollars remaining in the account will be
sent back to the Economic Stabilization Fund.
SECTION 7. Not later than 30 days after the effective date
of this Act, the Texas Infrastructure Resiliency Fund Advisory
Committee shall select the Accredited Economic Development
Organization that will serve on the advisory committee created
under Section 15.543, Water Code, as added by this Act.
SECTION 8. (a) Not later than 90 days after the effective
date of this Act, the Texas Infrastructure Resiliency Fund Advisory
Committee shall submit recommendations to the Texas Water
Development Board on rules to be adopted by the board under Section
15.540, Water Code, as added by the Act.
(b) Not later than 60 days after the Texas Water Development
Board receives the recommendations described by Subsection (a) of
this section, the board shall adopt rules under Section 15.540,
Water Code, as added by this Act.
SECTION 9. (a) The amount of $3,000,000,000 is
appropriated out of the economic stabilization fund to the flood
infrastructure fund to implement the provisions of this
legislation.
(b) Appropriations made in this section shall be available
to the Texas Water Development Board for the purpose of financing
resilience projects according to the provisions of this
legislation.
(c) This section takes effect only if this Act is approved
by a vote of two-thirds of the members present in each house of the
legislature, as provided by Section 49-g(m), Article III, Texas
Constitution.
SECTION 10. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2019.