Texas 2019 - 86th Regular

Texas Senate Bill SB7 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 7
	1	+	86R29684 SLB-F
	2	+	By: Creighton, et al. S.B. No. 7
	3	+	(Phelan)
	4	+	Substitute the following for S.B. No. 7: No.
2	5
3	6
	7	+	A BILL TO BE ENTITLED
4	8		AN ACT
5	9		relating to flood planning, mitigation, and infrastructure
6		-	projects.
	10	+	projects; making an appropriation.
7	11		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8		-	ARTICLE 1. FLOOD CONTROL PLANNING
9		-	SECTION 1.01. The heading to Section 15.405, Water Code, is
	12	+	SECTION 1. The heading to Section 15.405, Water Code, is
10	13		amended to read as follows:
11	14		Sec. 15.405. FLOOD CONTROL PLANNING CONTRACTS.
12		-	SECTION ~~1.02~~. Section 15.405, Water Code, is amended by
	15	+	SECTION 2. Section 15.405, Water Code, is amended by
13	16		amending Subsections (a), (f), and (g) and adding Subsection (a-1)
14	17		to read as follows:
15	18		(a) In this section, "flood control planning" means any work
16	19		related to:
17	20		(1) planning for flood protection;
18	21		(2) preparing applications for and obtaining
19	22		regulatory approvals at the local, state, or federal level;
20	23		(3) activities associated with administrative or
21	24		legal proceedings by regulatory agencies; and
22	25		(4) preparing engineering plans and specifications to
23	26		provide structural or nonstructural flood mitigation and drainage.
24	27		(a-1) The board may enter into contracts with political
25	28		subdivisions to pay from the research and planning fund all or part
26	29		of the cost of [developing] flood control planning [plans] for the
27	30		political subdivision.
28	31		(f) The board shall adopt rules establishing criteria of
29	32		eligibility for flood control planning money that considers:
30	33		(1) the relative need of the political subdivision for
31	34		the money, giving greater importance to a county that has a median
32	35		household income that is not greater than 85 percent of the median
33	36		state household income;
34	37		(2) the legal authority of the political subdivision
35	38		to plan for and control flooding; and
36	39		(3) the effect of flood control planning by the
37	40		political subdivision on overall flood control in the state and
38	41		within the area in which the political subdivision is located.
39	42		(g) The board shall require that flood control planning
40	43		documents [plans] developed under contracts entered into under this
41	44		section be made available to the commission.
42		-	ARTICLE 2. FLOOD INFRASTRUCTURE FUND
43		-	SECTION 2.01. Chapter 15, Water Code, is amended by adding
	45	+	SECTION 3. Chapter 15, Water Code, is amended by adding
44	46		Subchapter I to read as follows:
45	47		SUBCHAPTER I. FLOOD INFRASTRUCTURE FUND
46	48		Sec. 15.531. DEFINITIONS. In this subchapter:
47	49		(1) "Eligible political subdivision" means a district
48	50		or authority created under Section 52, Article III, or Section 59,
49	51		Article XVI, Texas Constitution, a municipality, or a county.
50	52		(2) "Flood project" means a drainage, flood
51	53		mitigation, or flood control project, including:
52	54		(A) planning and design activities;
53	55		(B) work to obtain regulatory approval to provide
54	56		nonstructural and structural flood mitigation and drainage;
55	57		(C) construction of structural flood mitigation
56	58		and drainage infrastructure; and
57	59		(D) construction and implementation of
58	60		nonstructural projects, including projects that use nature-based
59	61		features to protect, mitigate, or reduce flood risk.
60	62		(3) "Infrastructure fund" means the flood
61	63		infrastructure fund.
62	64		(4) "Metropolitan statistical area" means an area so
63	65		designated by the United States Office of Management and Budget.
64	66		Sec. 15.532. FINDINGS. The legislature finds that:
65	67		(1) the creation of the infrastructure fund and the
66	68		administration of the fund by the board will encourage the
67	69		development of nonstructural and structural flood mitigation in the
68	70		state;
69	71		(2) the use of the infrastructure fund is in
70	72		furtherance of the public purpose of mitigating the effects of
71	73		flooding in the state; and
72	74		(3) the use of the infrastructure fund for the
73	75		purposes provided by this subchapter is for the benefit of both the
74	76		state and the political subdivisions to which the board makes
75	77		financial assistance available in accordance with this subchapter
76	78		and constitutes a program under Sections 49-d-3 and 52-a, Article
77	79		III, Texas Constitution.
78	80		Sec. 15.533. FLOOD INFRASTRUCTURE FUND. (a) The flood
79	81		infrastructure fund is a special fund in the state treasury outside
80	82		the general revenue fund.
81	83		(b) The infrastructure fund may be used by the board,
82	84		without further legislative appropriation, only as provided by this
83	85		subchapter.
84	86		(c) The infrastructure fund consists of:
85	87		(1) appropriations from the legislature for a purpose
86	88		of the infrastructure fund;
87	89		(2) proceeds of general obligation bonds issued for a
88	90		purpose of the infrastructure fund;
89	91		(3) any fees or other sources of revenue that the
90	92		legislature dedicates for deposit to the infrastructure fund;
91	93		(4) repayments of loans made from the infrastructure
92	94		fund;
93	95		(5) interest earned on money credited to the
94	96		infrastructure fund;
95	97		(6) depository interest allocable to the
96	98		infrastructure fund;
97	99		(7) money from gifts, grants, or donations to the
98	100		infrastructure fund; and
99	101		(8) money from revenue bonds or other sources
100	102		designated by the board for deposit to the infrastructure fund.
101		-	Sec. 15.534. USE OF INFRASTRUCTURE FUND. (a) The board
102		-	~~may~~ use the infrastructure fund only:
	103	+	Sec. 15.534. USE OF INFRASTRUCTURE FUND. (a) The board may
	104	+	use the infrastructure fund only:
103	105		(1) to make a loan to an eligible political
104	106		subdivision at or below market interest rates for a flood project;
105		-	(2) to make a grant or loan at or below market interest
106		-	rates to an eligible political subdivision for a flood project to
107		-	serve an area outside of a metropolitan statistical area in order to
108		-	ensure that the flood project is implemented;
	107	+	(2) to make a grant, low interest loan, or zero
	108	+	interest loan to an eligible political subdivision for:
	109	+	(A) a flood project to serve an area outside of a
	110	+	metropolitan statistical area in order to ensure that the flood
	111	+	project is implemented; or
	112	+	(B) a flood project to serve an economically
	113	+	distressed area;
109	114		(3) to make a loan at or below market interest rates
110	115		for planning and design costs, permitting costs, and other costs
111	116		associated with state or federal regulatory activities with respect
112	117		to a flood project;
113	118		(4) to make a grant to an eligible political
114	119		subdivision to provide matching funds to enable the eligible
115	120		political subdivision to participate in a federal program for a
116	121		flood project;
117		-	(5) to make a grant to an eligible political
118		-	subdivision for a flood project if the board determines that the
119		-	eligible political subdivision does not have the ability to repay a
120		-	loan;
121		-	(6) as a source of revenue or security for the payment
	122	+	(5) as a source of revenue or security for the payment
122	123		of principal and interest on bonds issued by the board if the
123	124		proceeds of the sale of the bonds will be deposited in the
124		-	infrastructure fund;
125		-	(7) to pay the necessary and reasonable expenses of
126		-	the board in administering the infrastructure fund; and
127		-	(8) to make transfers to the research and planning
128		-	fund created under Section 15.402 of this chapter.
	125	+	infrastructure fund; and
	126	+	(6) to pay the necessary and reasonable expenses of
	127	+	the board in administering the infrastructure fund.
129	128		(b) Principal and interest payments on loans made under
130	129		Subsection (a)(3) may be deferred for not more than 10 years or
131	130		until construction of the flood project is completed, whichever is
132	131		earlier.
133	132		Sec. 15.535. APPLICATION REQUIREMENTS. (a) Except as
134	133		provided by Subsection (c), an eligible political subdivision
135	134		applying for financial assistance under this subchapter for a
136	135		proposed flood project must demonstrate in the application that:
137	136		(1) the eligible political subdivision has acted
138	137		cooperatively with other political subdivisions to address flood
139	138		control needs in the area in which the eligible political
140	139		subdivisions are located;
141	140		(2) all eligible political subdivisions substantially
142	141		affected by the proposed flood project have participated in the
143	142		process of developing the proposed flood project;
144	143		(3) the eligible political subdivisions, separately
145	144		or in cooperation, have held public meetings to accept comment on
146	145		proposed flood projects from interested parties; and
147	146		(4) the technical requirements for the proposed flood
148	147		project have been completed and compared against any other
149	148		potential flood projects in the same area.
150	149		(b) The application must include an analysis of whether the
151	150		proposed flood project could use floodwater capture techniques for
152	151		water supply purposes, including floodwater harvesting, detention
153	152		or retention basins, or other methods of capturing storm flow or
154	153		unappropriated flood flow.
155	154		(c) An eligible political subdivision applying for
156	155		assistance under Section 15.534(a)(3) is not required to make the
157	156		demonstration described by Subsection (a)(4) of this section.
158	157		Sec. 15.536. APPROVAL OF APPLICATIONS. On review and
159	158		recommendation by the executive administrator, the board may
160	159		approve an application only if the board finds that:
161	160		(1) the application and the assistance applied for
162	161		meet the requirements of this subchapter and board rules;
163	162		(2) the application demonstrates a sufficient level of
164	163		cooperation among eligible political subdivisions and includes all
165	164		of the eligible political subdivisions substantially affected by
166	165		the flood project; and
167	166		(3) the taxes or other revenue, or both the taxes and
168	167		other revenue, pledged by the applicant will be sufficient to meet
169	168		all the obligations assumed by the eligible political subdivision.
170	169		Sec. 15.537. RULES. The board shall adopt rules necessary
171	170		to carry out this subchapter, including rules:
172	171		(1) that establish procedures for an application for
173	172		and for the award of financial assistance;
174	173		(2) for the investment of money; and
175	174		(3) for the administration of the infrastructure fund.
176	175		Sec. 15.538. INFORMATION CLEARINGHOUSE. The board shall
177	176		act as a clearinghouse for information about state and federal
178	177		flood planning, mitigation, and control programs that may serve as
179	178		a source of funding for flood projects.
180	179		Sec. 15.539. LIABILITY. Participation in cooperative flood
181		-	planning to obtain money under this subchapter does not subject the
182		-	state or an eligible political subdivision to civil liability in
183		-	regard to a flood project.
184		-	Sec. 15.540. ADVISORY COMMITTEE. (a) In this section,
185		-	"advisory committee" means the State Water Implementation Fund for
186		-	Texas Advisory Committee described by Section 15.438.
187		-	(b) The advisory committee shall:
188		-	(1) review the overall operation, function, and
189		-	structure of the infrastructure fund at least semiannually and may
190		-	provide comments and recommendations to the board on any matter;
191		-	and
192		-	(2) make recommendations to the board regarding
193		-	information on the infrastructure fund to be posted on the board's
194		-	Internet website.
195		-	(c) The advisory committee may:
196		-	(1) submit comments and recommendations to the board
197		-	regarding the use of money in the infrastructure fund and for use by
198		-	the board in adopting rules; and
199		-	(2) adopt rules, procedures, and policies as needed to
200		-	administer this section and implement its responsibilities.
201		-	SECTION 2.02. Subchapter H, Chapter 49, Water Code, is
202		-	amended by adding Section 49.239 to read as follows:
	180	+	planning to obtain money under this subchapter does not subject an
	181	+	eligible political subdivision to civil liability in regard to a
	182	+	flood project.
	183	+	SECTION 4. Subchapter H, Chapter 49, Water Code, is amended
	184	+	by adding Section 49.239 to read as follows:
203	185		Sec. 49.239. COOPERATIVE FLOOD CONTROL. A district,
204	186		including a river authority, may participate in cooperative flood
205	187		control planning for the purpose of obtaining financial assistance
206	188		as an eligible political subdivision for a flood control project
207	189		under Subchapter I, Chapter 15.
208		-	SECTION ~~2.03~~. Contingent on legislation of the 86th
	190	+	SECTION 5. Contingent on legislation of the 86th
209	191		Legislature, Regular Session, 2019, that requires the creation of a
210	192		state flood plan passing and becoming law, on the date that the
211	193		Texas Water Development Board adopts the initial state flood plan
212	194		in accordance with that law:
213	195		(1) Section 15.534, Water Code, as added by this Act,
214	196		expires; and
215	197		(2) Subchapter I, Chapter 15, Water Code, is amended
216	198		by adding Section 15.5341 to read as follows:
217		-	Sec. 15.5341. USE OF INFRASTRUCTURE FUND. (a) The board
218		-	~~may~~ use the infrastructure fund only to provide financing for flood
	199	+	Sec. 15.5341. USE OF INFRASTRUCTURE FUND. (a) The board may
	200	+	use the infrastructure fund only to provide financing for flood
219	201		projects included in the state flood plan.
220	202		(b) Money from the infrastructure fund may be awarded to
221	203		several eligible political subdivisions for a single flood project.
222		-	ARTICLE 3. TEXAS INFRASTRUCTURE RESILIENCY FUND
223		-	SECTION 3.01. Chapter 16, Water Code, is amended by adding
224		-	Subchapter L to read as follows:
225		-	SUBCHAPTER L. FLOOD PROJECT FUNDING
226		-	Sec. 16.451. DEFINITIONS. In this subchapter:
227		-	(1) "Advisory committee" means the Texas
228		-	Infrastructure Resiliency Fund Advisory Committee.
229		-	(2) "Eligible political subdivision" means a district
230		-	or authority created under Section 52, Article III, or Section 59,
231		-	Article XVI, Texas Constitution, a municipality, or a county.
232		-	(3) "Flood project" means a drainage, flood
233		-	mitigation, or flood control project, including:
234		-	(A) planning and design activities;
235		-	(B) work to obtain regulatory approval to provide
236		-	structural and nonstructural flood mitigation and drainage;
237		-	(C) construction of structural flood mitigation
238		-	and drainage infrastructure;
239		-	(D) nonstructural or natural flood control
240		-	strategies; and
241		-	(E) a federally authorized project to deepen a
242		-	ship channel affected by a flooding event.
243		-	(4) "Resiliency fund" means the Texas infrastructure
244		-	resiliency fund.
245		-	Sec. 16.452. TEXAS INFRASTRUCTURE RESILIENCY FUND.
246		-	(a) The Texas infrastructure resiliency fund is a special fund in
247		-	the state treasury outside the general revenue fund.
248		-	(b) The resiliency fund shall be administered by the board
249		-	in accordance with this subchapter.
250		-	(c) The board may invest, reinvest, and direct the
251		-	investment of any available money in the resiliency fund as
252		-	provided by law for the investment of public funds.
253		-	(d) Investment earnings, interest earned on amounts
254		-	credited to the resiliency fund, and interest earned on loans made
255		-	from the fund shall be deposited to the credit of the fund.
256		-	Sec. 16.453. FLOODPLAIN MANAGEMENT ACCOUNT. (a) The
257		-	floodplain management account is an account of the resiliency fund.
258		-	(b) The account consists of:
259		-	(1) money deposited to the credit of the account under
260		-	Section 251.004, Insurance Code;
261		-	(2) money directly appropriated to the board; and
262		-	(3) money from gifts or grants from the United States
263		-	government, local or regional governments, private sources, or
264		-	other sources.
265		-	(c) The board may use the account to provide financing for
266		-	activities related to:
267		-	(1) the collection and analysis of flood-related
268		-	information;
269		-	(2) flood planning, protection, mitigation, or
270		-	adaptation;
271		-	(3) the provision of flood-related information to the
272		-	public through educational or outreach programs; or
273		-	(4) evaluating the response to and mitigation of flood
274		-	incidents affecting residential property, including multifamily
275		-	units, located in floodplains.
276		-	Sec. 16.454. HURRICANE HARVEY ACCOUNT. (a) The Hurricane
277		-	Harvey account is an account in the resiliency fund.
278		-	(b) The board may use the account only to provide moneys to
279		-	the Texas Division of Emergency Management for the division to
280		-	provide financing for projects related to Hurricane Harvey.
281		-	Financing under this section includes making a:
282		-	(1) grant to an eligible political subdivision to
283		-	provide nonfederal matching funds to enable the subdivision to
284		-	participate in a federal program for the participation in or
285		-	development of:
286		-	(A) a hazard mitigation project, under
287		-	guidelines issued by the Federal Emergency Management Agency or the
288		-	Texas Division of Emergency Management or the successor in function
289		-	to those entities;
290		-	(B) a public assistance project, under
291		-	guidelines issued by the Federal Emergency Management Agency or the
292		-	Texas Division of Emergency Management or the successor in function
293		-	to those entities; or
294		-	(C) assistance under guidelines issued by the
295		-	Natural Resources Conservation Service, the United States Economic
296		-	Development Administration, or the United States Department of
297		-	Housing and Urban Development, or the successor in function to
298		-	those entities; and
299		-	(2) loan to an eligible political subdivision at or
300		-	below market interest rates for the political subdivision's
301		-	planning or design costs, permitting costs, construction costs, or
302		-	other costs associated with state or federal regulatory activities
303		-	with respect to a flood project.
304		-	(c) A grant or loan awarded under this section may not
305		-	provide more than 75 percent of the portion of the cost of the
306		-	project that is paid with money other than money from a federal
307		-	program.
308		-	(d) In collaboration with the Texas Division of Emergency
309		-	Management, the board shall establish a point system for
310		-	prioritizing flood projects other than public assistance grants for
311		-	which money from the Hurricane Harvey account is sought. The system
312		-	must include a standard for the board to apply in determining
313		-	whether a flood project qualifies for funding at the time the
314		-	application for funding is filed with the board.
315		-	(e) The Texas Division of Emergency Management shall give
316		-	the highest consideration in awarding points to a flood project
317		-	that will have a substantial effect, including a flood project
318		-	that:
319		-	(1) is recommended or approved by the director of the
320		-	Texas Division of Emergency Management or the successor in function
321		-	to that entity; and
322		-	(2) meets an emergency need in a county where the
323		-	governor has declared a state of disaster.
324		-	(f) After review and recommendation by the executive
325		-	administrator and with input from the director of the Texas
326		-	Division of Emergency Management or the successor in function to
327		-	that entity, the Texas Division of Emergency Management may approve
328		-	an application for financial assistance under this section only if
329		-	the Texas Division of Emergency Management finds that:
330		-	(1) the application and assistance applied for meet
331		-	the requirements of this subchapter and Texas Division of Emergency
332		-	Management rules;
333		-	(2) the application demonstrates a sufficient level of
334		-	cooperation among applicable political subdivisions and includes
335		-	all of the political subdivisions substantially affected by the
336		-	flood project; and
337		-	(3) the taxes or other revenue, or both the taxes and
338		-	other revenue, pledged by the applicant, if applicable, will be
339		-	sufficient to meet all the obligations assumed by the applicant.
340		-	(g) Principal and interest payments on loans made under
341		-	Subsection (b)(2) may be deferred for not more than 10 years or
342		-	until construction of the flood project is completed, whichever is
343		-	the shorter period.
344		-	(h) Money from the account may be awarded to several
345		-	eligible political subdivisions for a single flood project.
346		-	(i) An eligible political subdivision that receives a grant
347		-	for a flood project also may receive a loan from the account.
348		-	(j) This section expires September 1, 2031. The remaining
349		-	balance of the account on that date is transferred to the flood plan
350		-	implementation account.
351		-	Sec. 16.455. FEDERAL MATCHING ACCOUNT. (a) The federal
352		-	matching account is an account in the resiliency fund.
353		-	(b) The board may use the account only to meet matching
354		-	requirements for projects funded partially by federal money,
355		-	including projects funded by the United States Army Corps of
356		-	Engineers.
357		-	(c) The board may use the account to make a loan to an
358		-	eligible political subdivision below market interest rates and
359		-	under flexible repayment terms, including a line of credit or loan
360		-	obligation with early prepayment terms, to provide financing for
361		-	the local share of a federally authorized ship channel improvement
362		-	project.
363		-	Sec. 16.456. TEXAS INFRASTRUCTURE RESILIENCY FUND ADVISORY
364		-	COMMITTEE. (a) The Texas Infrastructure Resiliency Fund Advisory
365		-	Committee is composed of the seven members that serve on the State
366		-	Water Implementation Fund for Texas Advisory Committee described by
367		-	Section 15.438, with the co-presiding officers of that committee
368		-	serving as presiding officers of the advisory committee. The
369		-	director of the Texas Division of Emergency Management or the
370		-	successor in function to that entity serves as a nonvoting member of
371		-	the advisory committee, as an additional duty of the director's
372		-	office.
373		-	(b) The advisory committee may hold public hearings, formal
374		-	meetings, or work sessions. Either co-presiding officer of the
375		-	advisory committee may call a public hearing, formal meeting, or
376		-	work session of the advisory committee at any time. The advisory
377		-	committee may not take formal action at a public hearing, formal
378		-	meeting, or work session unless a quorum of the committee is
379		-	present.
380		-	(c) Except as otherwise provided by this subsection, a
381		-	member of the advisory committee is not entitled to receive
382		-	compensation for service on the committee or reimbursement for
383		-	expenses incurred in the performance of official duties as a member
384		-	of the committee. Service on the advisory committee by a member of
385		-	the senate or house of representatives is considered legislative
386		-	service for which the member is entitled to reimbursement and other
387		-	benefits in the same manner and to the same extent as for other
388		-	legislative service.
389		-	(d) The advisory committee may submit comments and
390		-	recommendations to the board regarding the use of money in the
391		-	resiliency fund and for use by the board in adopting rules.
392		-	(e) The advisory committee shall review the overall
393		-	operation, function, and structure of the resiliency fund at least
394		-	semiannually and may provide comments and recommendations to the
395		-	board on any matter.
396		-	(f) The advisory committee may adopt rules, procedures, and
397		-	policies as needed to administer this section and implement its
398		-	responsibilities.
399		-	(g) The advisory committee shall make recommendations to
400		-	the board regarding information on the resiliency fund to be posted
401		-	on the board's Internet website.
402		-	(h) The advisory committee may evaluate and may provide
403		-	comments or recommendations on the feasibility of the state owning,
404		-	constructing, operating, and maintaining flood projects, including
405		-	reservoirs and coastal barriers.
406		-	(i) The board shall provide an annual report to the advisory
407		-	committee on:
408		-	(1) the board's compliance with statewide annual goals
409		-	relating to historically underutilized businesses; and
410		-	(2) the participation level of historically
411		-	underutilized businesses in flood projects that receive money from
412		-	the resiliency fund.
413		-	(j) If the aggregate level of participation by historically
414		-	underutilized businesses in flood projects that receive money from
415		-	the resiliency fund does not meet statewide annual goals adopted
416		-	under Chapter 2161, Government Code, the advisory committee shall
417		-	make recommendations to the board to improve the participation
418		-	level.
419		-	(k) The board shall supply staff support to the advisory
420		-	committee.
421		-	(l) Chapter 2110, Government Code, does not apply to the
422		-	size, composition, or duration of the advisory committee.
423		-	Sec. 16.457. REPORT REQUIRED. (a) In this section, "state
424		-	agency" means:
425		-	(1) a department, commission, board, office, or other
426		-	agency in the executive branch of state government created by the
427		-	state constitution or a state statute; and
428		-	(2) a general academic teaching institution as defined
429		-	by Section 61.003, Education Code.
430		-	(b) A state agency that uses or disburses federal money for
431		-	flood research, planning, or mitigation projects shall submit a
432		-	report to the board on a quarterly basis.
433		-	(c) The report must include the following information about
434		-	federal money used or disbursed for flood research, planning, or
435		-	mitigation projects:
436		-	(1) the original total of federal money received;
437		-	(2) the amount of the federal money spent or disbursed
438		-	to date; and
439		-	(3) the eligibility requirements for receiving the
440		-	federal money.
441		-	Sec. 16.458. APPLICABLE LAW. Subchapter E, Chapter 17,
442		-	applies to financial assistance made available from the resiliency
443		-	fund, except that the board may execute contracts as necessary to
444		-	evidence grant agreements.
445		-	Sec. 16.459. TRANSPARENCY REQUIREMENTS. The board shall
446		-	post the following information on the board's Internet website
447		-	regarding the use of the resiliency fund and regularly update the
448		-	information posted:
449		-	(1) the progress made in developing flood projects
450		-	statewide;
451		-	(2) a description of each flood project that receives
452		-	money from the resiliency fund, including:
453		-	(A) the expected date of completion of the flood
454		-	project;
455		-	(B) the current status of the flood project;
456		-	(C) the proposed benefit of the flood project;
457		-	(D) the initial total cost estimate of the flood
458		-	project and variances to the initial cost estimate exceeding five
459		-	percent;
460		-	(E) a listing of the eligible political
461		-	subdivisions receiving money from the resiliency fund;
462		-	(F) a listing of each political subdivision
463		-	served by each flood project;
464		-	(G) an estimate of matching funds that will be
465		-	available for the flood project resulting from the use of the
466		-	resiliency fund; and
467		-	(H) the status of repayment of each loan provided
468		-	in connection with a flood project, including an assessment of the
469		-	risk of default based on a standard risk rating system;
470		-	(3) a description of the point system for prioritizing
471		-	flood projects and the number of points awarded by the board for
472		-	each flood project;
473		-	(4) any nonconfidential information submitted to the
474		-	board as part of an application for funding under this subchapter
475		-	that is approved by the board;
476		-	(5) the administrative and operating expenses
477		-	incurred by the board in administering the resiliency fund; and
478		-	(6) any other information required by board rule.
479		-	Sec. 16.460. RULES. The board shall adopt rules necessary
480		-	to carry out this subchapter, including rules:
481		-	(1) that establish procedures for an application for
482		-	and for the award of financial assistance;
483		-	(2) that establish the prioritization system for flood
484		-	projects that receive money from the resiliency fund;
485		-	(3) for the repayment of a loan from the resiliency
486		-	fund; and
487		-	(4) for the administration of the resiliency fund.
488		-	SECTION 3.02. Section 251.004(b), Insurance Code, is
489		-	amended to read as follows:
490		-	(b) Each state fiscal year, the comptroller shall
491		-	reallocate to the floodplain management account established under
492		-	Section 16.453 [16.3161], Water Code, the first $3.05 million of
493		-	the maintenance taxes collected under Chapter 252 and deposited in
494		-	the general revenue fund.
495		-	SECTION 3.03. Section 16.3161, Water Code, is repealed.
496		-	SECTION 3.04. On the effective date of this Act, the
497		-	Floodplain Management Account No. 0330 is transferred to the Texas
498		-	infrastructure resiliency fund as an account of that fund and the
499		-	balance of the Floodplain Management Account No. 0330 is
500		-	transferred to the floodplain management account of the Texas
501		-	infrastructure resiliency fund.
502		-	SECTION 3.05. (a) Not later than the 90th day after the
503		-	effective date of this Act, the Texas Infrastructure Resiliency
504		-	Fund Advisory Committee shall submit recommendations to the Texas
505		-	Water Development Board on the rules to be adopted by the board
506		-	under Section 16.460, Water Code, as added by this Act.
507		-	(b) Not later than the 90th day after the date the Texas
508		-	Water Development Board receives the recommendations described by
509		-	Subsection (a) of this section, the board shall adopt rules under
510		-	Section 16.460, Water Code, as added by this Act.
511		-	SECTION 3.06. Contingent on legislation of the 86th
512		-	Legislature, Regular Session, 2019, that requires the creation of a
513		-	state flood plan passing and becoming law, on the date that the
514		-	Texas Water Development Board adopts the initial state flood plan
515		-	in accordance with that law, Subchapter L, Chapter 16, Water Code,
516		-	as added by this Act, is amended by adding Section 16.4545 to read
517		-	as follows:
518		-	Sec. 16.4545. FLOOD PLAN IMPLEMENTATION ACCOUNT. (a) The
519		-	flood plan implementation account is an account in the resiliency
520		-	fund.
521		-	(b) The board may use the account only to provide financing
522		-	for projects included in the state flood plan.
523		-	(c) Money from the account may be awarded to several
524		-	eligible political subdivisions for a single flood project.
525		-	ARTICLE 4. REVENUE BONDS
526		-	SECTION 4.01. Section 17.852(5), Water Code, is amended to
527		-	read as follows:
528		-	(5) "Project" includes water supply projects,
529		-	treatment works, and flood [control] projects, as defined by
530		-	Section 15.531 or 16.451.
531		-	SECTION 4.02. Section 17.853(c), Water Code, is amended to
532		-	read as follows:
533		-	(c) The board may use the fund only:
534		-	(1) to provide state matching funds for federal funds
535		-	provided to the state water pollution control revolving fund or to
536		-	any additional state revolving fund created under Subchapter J,
537		-	Chapter 15;
538		-	(2) to provide financial assistance from the proceeds
539		-	of taxable bond issues to water supply corporations organized under
540		-	Chapter 67, and other participants;
541		-	(3) to provide financial assistance to participants
542		-	for the construction of water supply projects and treatment works;
543		-	(4) to provide financial assistance for an interim
544		-	construction period to participants for projects for which the
545		-	board will provide long-term financing through the water
546		-	development fund;
547		-	(5) to provide financial assistance for water supply
548		-	and sewer service projects in economically distressed areas as
549		-	provided by Subchapter K, Chapter 17, to the extent the board can
550		-	make that assistance without adversely affecting the current or
551		-	future integrity of the fund or of any other financial assistance
552		-	program of the board;
553		-	(6) to provide funds to the water infrastructure fund
554		-	created under Section 15.973; [and]
555		-	(7) to provide funds to the state water implementation
556		-	revenue fund for Texas;
557		-	(8) to provide funds to the flood infrastructure fund
558		-	created under Section 15.533; and
559		-	(9) to provide funds to the Texas infrastructure
560		-	resiliency fund created under Section 16.452.
561		-	ARTICLE 5. EFFECTIVE DATE
562		-	SECTION 5.01. (a) Except as provided by Subsection (b) of
563		-	this section, this Act takes effect immediately if it receives a
564		-	vote of two-thirds of all the members elected to each house, as
565		-	provided by Section 39, Article III, Texas Constitution. If this
566		-	Act does not receive the vote necessary for immediate effect, this
567		-	Act takes effect September 1, 2019.
568		-	(b) Article 2 of this Act takes effect January 1, 2020, but
569		-	only if the constitutional amendment proposed by the 86th
570		-	Legislature, Regular Session, 2019, authorizing the legislature to
571		-	provide for the creation of the flood infrastructure fund to assist
572		-	in the financing of drainage, flood mitigation, and flood control
573		-	projects is approved by the voters. If that amendment is not
574		-	approved by the voters, Article 2 has no effect.
575		-	______________________________ ______________________________
576		-	President of the Senate Speaker of the House
577		-	I hereby certify that S.B. No. 7 passed the Senate on
578		-	March 20, 2019, by the following vote: Yeas 31, Nays 0; and that
579		-	the Senate concurred in House amendments on May 22, 2019, by the
580		-	following vote: Yeas 31, Nays 0.
581		-	______________________________
582		-	Secretary of the Senate
583		-	I hereby certify that S.B. No. 7 passed the House, with
584		-	amendments, on May 16, 2019, by the following vote: Yeas 143,
585		-	Nays 1, two present not voting.
586		-	______________________________
587		-	Chief Clerk of the House
588		-	Approved:
589		-	______________________________
590		-	Date
591		-	______________________________
592		-	Governor
	204	+	SECTION 6. (a) The amount of $3.26 billion is appropriated
	205	+	out of the economic stabilization fund to the flood infrastructure
	206	+	fund for purposes of implementing Subchapter I, Chapter 15, Water
	207	+	Code, as added by this Act.
	208	+	(b) This section takes effect only if this Act is approved
	209	+	by a vote of two-thirds of the members present in each house of the
	210	+	legislature, as provided by Section 49-g(m), Article III, Texas
	211	+	Constitution.
	212	+	SECTION 7. This Act takes effect January 1, 2020, but only
	213	+	if the constitutional amendment proposed by the 86th Legislature,
	214	+	Regular Session, 2019, authorizing the legislature to provide for
	215	+	the creation of the flood infrastructure fund to assist in the
	216	+	financing of drainage, flood mitigation, and flood control projects
	217	+	is approved by the voters. If that amendment is not approved by the
	218	+	voters, this Act has no effect.