H.B. No. 3582
AN ACT
relating to the composition and use of money in the flood
infrastructure fund.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 15.001, Water Code, is amended by adding
Subdivision (14) to read as follows:
(14) "Rural political subdivision" means:
(A) a nonprofit water supply or sewer service
corporation created and operating under Chapter 67 of this code or a
district or authority created under Section 52, Article III, or
Section 59, Article XVI, Texas Constitution, no part of the service
area of which is located in an urban area with a population of more
than 50,000;
(B) a municipality:
(i) with a population of 10,000 or less no
part of the service area of which is located in an urban area with a
population of 50,000 or more; or
(ii) located wholly in a county in which no
urban area has a population of more than 50,000;
(C) a county in which no urban area has a
population of more than 50,000; or
(D) an entity that:
(i) is a nonprofit water supply or sewer
service corporation created and operating under Chapter 67 of this
code, a district or authority created under Section 52, Article
III, or Section 59, Article XVI, Texas Constitution, municipality,
county, or other political subdivision of the state, or an
interstate compact commission to which the state is a party; and
(ii) demonstrates in a manner satisfactory
to the board that the entity is rural or the area to be served by the
project is a wholly rural area despite not otherwise qualifying
under Paragraph (A), (B), or (C).
SECTION 2. Section 15.534, Water Code, is amended by
amending Subsection (a) and adding Subsections (c) and (d) to read
as follows:
(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 or loan at or below market interest
rates to an eligible political subdivision for a flood project to
serve a rural political subdivision [an area outside of a
metropolitan statistical area] in order to ensure that the flood
project is implemented;
(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) to make a grant to an eligible political
subdivision for a flood project if the board determines that the
eligible political subdivision does not have the ability to repay a
loan;
(6) 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;
(7) to pay the necessary and reasonable expenses of
the board in administering the infrastructure fund; and
(8) to make transfers to the research and planning
fund created under Section 15.402 [of this chapter].
(c) Except as provided by Subsections (a)(6)-(8), after the
adoption of the initial state flood plan, the board may use the
infrastructure fund to provide financing only for flood projects
included in the state flood plan.
(d) Money from the infrastructure fund may be awarded to
several eligible political subdivisions for a single flood project.
SECTION 3. Section 16.454(j), Water Code, is amended to
read as follows:
(j) This section expires September 1, 2031. The remaining
balance of the account on that date is transferred to the flood
infrastructure fund [plan implementation account].
SECTION 4. (a) The following provisions of the Water Code
are repealed:
(1) Section 15.531(4);
(2) Section 15.5341;
(3) Section 15.992(4); and
(4) Section 16.4545.
(b) The following provisions of Chapter 947 (S.B. 7), Acts
of the 86th Legislature, Regular Session, 2019, are repealed:
(1) Section 2.03; and
(2) Section 3.06.
SECTION 5. This Act takes effect September 1, 2023.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3582 was passed by the House on April
14, 2023, by the following vote: Yeas 140, Nays 3, 2 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3582 was passed by the Senate on May
17, 2023, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor