88R10893 KBB-D
By: Alvarado S.B. No. 2503
A BILL TO BE ENTITLED
AN ACT
relating to the use of money in the Texas infrastructure resiliency
fund to finance projects related to natural disaster relief.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Subchapter L, Chapter 16, Water
Code, is amended to read as follows:
SUBCHAPTER L. FLOOD PROJECT AND OTHER NATURAL DISASTER RELIEF
PROJECT FUNDING
SECTION 2. Section 16.451, Water Code, is amended by adding
Subdivision (3-a) to read as follows:
(3-a) "Natural disaster relief project" means a
project to mitigate the effects of a natural disaster other than
flooding. The term includes a project to prevent future damage from
a natural disaster other than a flood.
SECTION 3. Section 16.454, Water Code, is amended to read as
follows:
Sec. 16.454. NATURAL DISASTER RECOVERY [HURRICANE HARVEY]
ACCOUNT. (a) The natural disaster recovery [Hurricane Harvey]
account is an account in the resiliency fund.
(b) To the extent allowed by federal law, the [The] board
may use the account only to provide money [moneys] to the Texas
Division of Emergency Management for the division to provide
financing for projects related to damage caused by natural
disasters [Hurricane Harvey]. Money in the account subject to
federal restrictions on the purposes for which the money may be
spent may be used only for those purposes. Financing under this
section includes making a:
(1) grant to an eligible political subdivision to
provide nonfederal matching funds to enable the subdivision to
participate in a federal program for the participation in or
development of:
(A) a hazard mitigation project, under
guidelines issued by the Federal Emergency Management Agency or the
Texas Division of Emergency Management or the successor in function
to those entities;
(B) a public assistance project, under
guidelines issued by the Federal Emergency Management Agency or the
Texas Division of Emergency Management or the successor in function
to those entities; or
(C) assistance under guidelines issued by the
Natural Resources Conservation Service, the United States Economic
Development Administration, or the United States Department of
Housing and Urban Development, or the successor in function to
those entities; and
(2) loan to an eligible political subdivision at or
below market interest rates for the political subdivision's
planning or design costs, permitting costs, construction costs, or
other costs associated with state or federal regulatory activities
with respect to a natural disaster relief project or flood project.
(c) A grant or loan awarded under this section may not
provide more than 75 percent of the portion of the cost of the
project that is paid with money other than money from a federal
program.
(d) In collaboration with the Texas Division of Emergency
Management, the board shall establish a point system for
prioritizing natural disaster relief projects or flood projects
other than public assistance grants for which money from the
natural disaster recovery [Hurricane Harvey] account is sought.
The system must include a standard for the board to apply in
determining whether a natural disaster relief project or flood
project qualifies for funding at the time the application for
funding is filed with the board.
(e) The Texas Division of Emergency Management shall give
the highest consideration in awarding points to a natural disaster
relief project or flood project that will have a substantial
effect, including a natural disaster relief project or flood
project that:
(1) is recommended or approved by the director of the
Texas Division of Emergency Management or the successor in function
to that entity; and
(2) meets an emergency need in a county where the
governor has declared a state of disaster.
(f) After review and recommendation by the executive
administrator and with input from the director of the Texas
Division of Emergency Management or the successor in function to
that entity, the Texas Division of Emergency Management may approve
an application for financial assistance under this section only if
the Texas Division of Emergency Management finds that:
(1) the application and assistance applied for meet
the requirements of this subchapter and Texas Division of Emergency
Management rules;
(2) the application demonstrates a sufficient level of
cooperation among applicable political subdivisions and includes
all of the political subdivisions substantially affected by the
natural disaster relief project or flood project; and
(3) the taxes or other revenue, or both the taxes and
other revenue, pledged by the applicant, if applicable, will be
sufficient to meet all the obligations assumed by the applicant.
(g) Principal and interest payments on loans made under
Subsection (b)(2) may be deferred for not more than 10 years or
until construction of the natural disaster relief project or flood
project is completed, whichever is the shorter period.
(h) Money from the account may be awarded to several
eligible political subdivisions for a single natural disaster
relief project or flood project.
(i) An eligible political subdivision that receives a grant
for a natural disaster relief project or flood project also may
receive a loan from the account.
(j) This section expires September 1, 2031. The remaining
balance of the account on that date is transferred to the flood plan
implementation account.
SECTION 4. This Act takes effect September 1, 2023.