86R29684 SLB-F
By: Creighton, et al. S.B. No. 7
(Phelan)
Substitute the following for S.B. No. 7: No.
A BILL TO BE ENTITLED
AN ACT
relating to 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), (f), 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 and 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 and specifications to
provide structural or nonstructural flood mitigation and 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.
(f) The board shall adopt rules establishing criteria of
eligibility for flood control planning money that considers:
(1) the relative need of the political subdivision for
the money, giving greater importance to a county that has a median
household income that is not greater than 85 percent of the median
state household income;
(2) the legal authority of the political subdivision
to plan for and control flooding; and
(3) the effect of flood control planning by the
political subdivision on overall flood control in the state and
within the area in which the political subdivision is located.
(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. FLOOD INFRASTRUCTURE 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 and design activities;
(B) work to obtain regulatory approval to provide
nonstructural and structural flood mitigation and drainage;
(C) construction of structural flood mitigation
and drainage infrastructure; and
(D) construction and implementation of
nonstructural projects, including projects that use nature-based
features to protect, mitigate, or reduce flood risk.
(3) "Infrastructure fund" means the flood
infrastructure fund.
(4) "Metropolitan statistical area" means an area so
designated by the United States Office of Management and Budget.
Sec. 15.532. FINDINGS. The legislature finds that:
(1) the creation of the infrastructure fund and the
administration of the fund by the board will encourage the
development of nonstructural and structural flood mitigation in the
state;
(2) the use of the infrastructure fund is in
furtherance of the public purpose of mitigating the effects of
flooding in the state; and
(3) the use of the infrastructure fund for the
purposes provided by this subchapter is for the benefit of both the
state and the political subdivisions to which the board makes
financial assistance available in accordance with this subchapter
and constitutes a program under Sections 49-d-3 and 52-a, Article
III, Texas Constitution.
Sec. 15.533. FLOOD INFRASTRUCTURE FUND. (a) The flood
infrastructure fund is a special fund in the state treasury outside
the general revenue fund.
(b) The infrastructure fund may be used by the board,
without further legislative appropriation, only as provided by this
subchapter.
(c) The infrastructure fund consists of:
(1) appropriations from the legislature for a purpose
of the infrastructure fund;
(2) proceeds of general obligation bonds issued for a
purpose of the infrastructure fund;
(3) any fees or other sources of revenue that the
legislature dedicates for deposit to the infrastructure fund;
(4) repayments of loans made from the infrastructure
fund;
(5) interest earned on money credited to the
infrastructure fund;
(6) depository interest allocable to the
infrastructure fund;
(7) money from gifts, grants, or donations to the
infrastructure fund; and
(8) money from revenue bonds or other sources
designated by the board for deposit to the infrastructure fund.
Sec. 15.534. USE OF INFRASTRUCTURE FUND. (a) The board may
use the infrastructure fund only:
(1) to make a loan to an eligible political
subdivision at or below market interest rates for a flood project;
(2) to make a grant, low interest loan, or zero
interest loan to an eligible political subdivision for:
(A) a flood project to serve an area outside of a
metropolitan statistical area in order to ensure that the flood
project is implemented; or
(B) a flood project to serve an economically
distressed area;
(3) to make a loan at or below market interest rates
for planning and design costs, permitting costs, and other costs
associated with state or federal regulatory activities with respect
to 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 a
flood project;
(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
infrastructure fund; and
(6) to pay the necessary and reasonable expenses of
the board in administering the infrastructure fund.
(b) Principal and interest payments on loans made under
Subsection (a)(3) may be deferred for not more than 10 years or
until construction of the flood project is completed, whichever is
earlier.
Sec. 15.535. 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 eligible 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. 15.536. APPROVAL OF APPLICATIONS. On review and
recommendation by the executive administrator, 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 eligible 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. 15.537. RULES. The board shall adopt rules necessary
to carry out this subchapter, including rules:
(1) that establish procedures for an application for
and for the award of financial assistance;
(2) for the investment of money; and
(3) for the administration of the infrastructure fund.
Sec. 15.538. 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. 15.539. LIABILITY. Participation in cooperative flood
planning to obtain money under this subchapter does not subject an
eligible political subdivision to civil liability in regard to a
flood project.
SECTION 4. Subchapter H, Chapter 49, Water Code, is amended
by adding Section 49.239 to read as follows:
Sec. 49.239. COOPERATIVE FLOOD CONTROL. A district,
including a river authority, may participate in cooperative flood
control planning for the purpose of obtaining financial assistance
as an eligible political subdivision for a flood control project
under Subchapter I, Chapter 15.
SECTION 5. Contingent on legislation of the 86th
Legislature, Regular Session, 2019, that requires the creation of a
state flood plan passing and becoming law, on the date that the
Texas Water Development Board adopts the initial state flood plan
in accordance with that law:
(1) Section 15.534, Water Code, as added by this Act,
expires; and
(2) Subchapter I, Chapter 15, Water Code, is amended
by adding Section 15.5341 to read as follows:
Sec. 15.5341. USE OF INFRASTRUCTURE FUND. (a) The board may
use the infrastructure fund only to provide financing for flood
projects included in the state flood plan.
(b) Money from the infrastructure fund may be awarded to
several eligible political subdivisions for a single flood project.
SECTION 6. (a) The amount of $3.26 billion is appropriated
out of the economic stabilization fund to the flood infrastructure
fund for purposes of implementing Subchapter I, Chapter 15, Water
Code, as added by this Act.
(b) 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 7. This Act takes effect January 1, 2020, but only
if the constitutional amendment proposed by the 86th Legislature,
Regular Session, 2019, authorizing the legislature to provide for
the creation of the flood infrastructure fund to assist in the
financing of drainage, flood mitigation, and flood control projects
is approved by the voters. If that amendment is not approved by the
voters, this Act has no effect.