Bill Text: TX HB1800 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the Texas resilience infrastructure fund; authorizing the issuance of revenue bonds; making an appropriation.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-03-04 - Referred to Natural Resources [HB1800 Detail]
Download: Texas-2019-HB1800-Introduced.html
86R5960 SLB-F | ||
By: Bonnen of Galveston | H.B. No. 1800 |
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relating to the Texas resilience infrastructure fund; authorizing | ||
the issuance of revenue bonds; making an appropriation. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 15, Water Code, is amended by adding | ||
Subchapter J-1 to read as follows: | ||
SUBCHAPTER J-1. TEXAS RESILIENCE INFRASTRUCTURE FUND | ||
Sec. 15.651. DEFINITIONS. In this subchapter: | ||
(1) "Advisory committee" means the Texas Resilience | ||
Infrastructure Fund Advisory Committee. | ||
(2) "Coastal public land" means state-owned: | ||
(A) submerged land; and | ||
(B) islands or portions of islands in the coastal | ||
area. | ||
(3) "Historically underutilized business" has the | ||
meaning assigned by Section 2161.001, Government Code. | ||
(4) "Infrastructure fund" means the Texas resilience | ||
infrastructure fund. | ||
(5) "Project sponsor" means a political subdivision | ||
that has the authority and financial capability to implement, | ||
operate, and maintain a resilience project. | ||
(6) "Resilience project" means a project or program in | ||
this state and the coastal public land that prevents flooding or | ||
mitigates the damage from flooding related to a rainstorm, tropical | ||
storm or depression, hurricane, or storm surge affecting: | ||
(A) public health, safety, or welfare; | ||
(B) public property, including infrastructure; | ||
(C) privately owned commercial, agricultural, or | ||
residential property; or | ||
(D) fish or wildlife habitat. | ||
(7) "Trust company" means the Texas Treasury | ||
Safekeeping Trust Company. | ||
Sec. 15.652. INFRASTRUCTURE FUND. (a) The Texas | ||
resilience 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) Money deposited to the credit of the infrastructure fund | ||
may be used only as provided by this subchapter. | ||
(d) The board may establish separate accounts in the | ||
infrastructure fund. | ||
(e) The infrastructure fund and the infrastructure fund's | ||
accounts are kept and held by the trust company for and in the name | ||
of the board. The board has legal title to money and investments in | ||
the infrastructure fund until money is disbursed from the fund as | ||
provided by this subchapter and board rules. | ||
(f) The infrastructure fund consists of: | ||
(1) money transferred or deposited to the credit of | ||
the infrastructure fund by law; | ||
(2) proceeds from the sale of revenue bonds: | ||
(A) issued by the board under this subchapter; | ||
and | ||
(B) designated by the board for the purpose of | ||
providing a loan award from the infrastructure fund in accordance | ||
with Section 15.654; | ||
(3) loan repayments related to the issuance of an | ||
award from the infrastructure fund; | ||
(4) any tax, fee, or other revenue that the | ||
legislature by statute dedicates for deposit to the credit of the | ||
infrastructure fund; | ||
(5) investment earnings and interest earned on amounts | ||
credited to the infrastructure fund; and | ||
(6) any gift or grant to the infrastructure fund. | ||
(g) The Legislative Budget Board must give prior approval of | ||
each expenditure or emergency transfer made from the infrastructure | ||
fund by the board. | ||
Sec. 15.653. MANAGEMENT AND INVESTMENT OF INFRASTRUCTURE | ||
FUND. (a) The trust company shall hold and invest the | ||
infrastructure fund, and any accounts established in the fund, for | ||
and in the name of the board, taking into account the purposes for | ||
which money in the fund may be used. | ||
(b) At all times the trust company shall hold in the | ||
infrastructure fund a reserve of not less than 10 percent of the | ||
aggregate principal amount of revenue bonds issued by the board | ||
under this subchapter. | ||
(c) The trust company may invest not more than 15 percent of | ||
the total balance of the infrastructure fund not held in reserve. | ||
The infrastructure fund may be invested with the state treasury | ||
pool. The overall objective for the investment of the | ||
infrastructure fund is to maintain sufficient liquidity to meet the | ||
needs of the fund while striving to preserve the awarding power of | ||
the fund. | ||
(d) The trust company has any power necessary to accomplish | ||
the purposes of managing and investing the assets of the | ||
infrastructure fund. In managing the assets of the infrastructure | ||
fund, through procedures and subject to restrictions the trust | ||
company considers appropriate, the trust company may acquire, | ||
exchange, sell, supervise, manage, or retain any kind of investment | ||
that a prudent investor, exercising reasonable care, skill, and | ||
caution, would acquire or retain in light of the purposes, terms, | ||
distribution requirements, and other circumstances of the | ||
infrastructure fund then prevailing, taking into consideration the | ||
investment of all the assets of the fund rather than a single | ||
investment. | ||
(e) The trust company may charge the infrastructure fund to | ||
cover its costs incurred in managing and investing the fund. The | ||
charge must be consistent with the fees the trust company charges | ||
other state and local governmental entities for which it provides | ||
investment management services. The trust company may recover | ||
charges under this subsection only from the earnings of the | ||
infrastructure fund. | ||
(f) The trust company annually shall provide a written | ||
report to the board and to the advisory committee with respect to | ||
the investment of the infrastructure fund. The trust company shall | ||
contract with a certified public accountant to conduct an | ||
independent audit of the infrastructure fund annually and shall | ||
present the results of each annual audit to the board and to the | ||
advisory committee. This subsection does not affect the state | ||
auditor's authority to conduct an audit of the infrastructure fund | ||
under Chapter 321, Government Code. | ||
(g) The trust company shall adopt a written investment | ||
policy that is appropriate for the infrastructure fund. The trust | ||
company shall present the investment policy to the investment | ||
advisory board established under Section 404.028, Government Code. | ||
The investment advisory board shall submit to the trust company | ||
recommendations regarding the policy. | ||
(h) The board shall provide to the trust company: | ||
(1) an annual forecast of the cash flows into and out | ||
of the infrastructure fund; and | ||
(2) updates to the forecasts as appropriate to ensure | ||
that the trust company is able to achieve the objective specified by | ||
Subsection (c). | ||
(i) Subject to Subsection (b), the trust company shall | ||
disburse money from the infrastructure fund as directed by the | ||
board. | ||
(j) An investment-related contract entered into under this | ||
section is not subject to Chapter 2260, Government Code. | ||
Sec. 15.654. USE OF INFRASTRUCTURE FUND. (a) The board may | ||
use money from the infrastructure fund to provide financing for | ||
resilience projects. | ||
(b) The board may award money from the infrastructure fund | ||
for a resilience project only in the form of: | ||
(1) a grant to a receiving project sponsor; or | ||
(2) a loan as provided by Subsection (e). | ||
(c) Money from the infrastructure fund may be awarded to | ||
several project sponsors of a single resilience project. | ||
(d) An award issued as a grant may finance: | ||
(1) not more than 75 percent of the total cost of a | ||
resilience project; or | ||
(2) up to 100 percent of the local matching funds for a | ||
federally qualifying resilience project. | ||
(e) A project sponsor receiving a grant for a resilience | ||
project also may receive a loan from the infrastructure fund to | ||
finance the remaining cost of the project if the project sponsor can | ||
certify a source of loan repayment through governmental funding | ||
agreements approved by the attorney general. The project sponsor | ||
must repay to the infrastructure fund any subsequent reimbursements | ||
received by the project sponsor related to the approved funding | ||
agreement until the loan principal and related interest is repaid | ||
in full. In addition, the board may award money from the | ||
infrastructure fund in the form of a loan instead of a grant at any | ||
time the balance of the fund is less than $200 million. The terms of | ||
a loan made under this subsection must be in accordance with board | ||
rules governing the terms of loans for resilience projects. | ||
(f) The board may award money from the infrastructure fund | ||
to finance portions of a resilience project necessary for | ||
construction and implementation of the project, including mapping, | ||
studies, design, right-of-way acquisition, permitting, the | ||
purchase or contracting of goods and services, and administrative | ||
costs. | ||
(g) The board may award money from the infrastructure fund | ||
to finance regular updates and enhancements to the State of Texas | ||
Hazard Mitigation Plan, as well as to finance the development of | ||
hazard mitigation plans of political subdivisions, under | ||
guidelines issued by the Federal Emergency Management Agency and | ||
the Texas Division of Emergency Management. | ||
(h) On recommendation by the advisory committee, the board | ||
shall transfer money from the infrastructure fund to another state | ||
agency to support resilience projects. Not more than a total of 10 | ||
percent of the available and unencumbered infrastructure fund, as | ||
certified by the comptroller at the beginning of a state fiscal | ||
biennium, may be transferred in that biennium under this | ||
subsection. | ||
(i) The board shall ensure that every effort is made to use | ||
money from the infrastructure fund to obtain federal, local, and | ||
private financing for a resilience project. | ||
(j) Money from the infrastructure fund may not be used for | ||
ongoing operation and maintenance costs of a resilience project. | ||
Sec. 15.655. EMERGENCY USE OF INFRASTRUCTURE FUND. (a) | ||
Notwithstanding Section 15.654, on the issuance of an executive | ||
order or proclamation declaring a state of disaster related to | ||
flooding in accordance with Chapter 418, Government Code, the board | ||
may expend an amount not to exceed five percent of the available and | ||
unencumbered infrastructure fund balance at the time of a disaster | ||
declaration for disaster recovery purposes. | ||
(b) The board may expend an additional amount not to exceed | ||
2.5 percent of the available and unencumbered infrastructure fund | ||
balance at the time of a renewal by the governor of a state of | ||
disaster related to flooding for disaster recovery purposes. | ||
(c) Notwithstanding Subsections (a) and (b), the board may | ||
not expend from the infrastructure fund for disaster recovery | ||
purposes during a state fiscal year an amount that exceeds 10 | ||
percent of the available and unencumbered infrastructure fund | ||
balance at the time of the first flooding-related disaster | ||
declaration made during that fiscal year. | ||
Sec. 15.656. PARTNERSHIPS. (a) A project sponsor may enter | ||
into a partnership with a nongovernmental entity to finance the | ||
construction, implementation, operation, and maintenance of a | ||
resilience project. Only a project sponsor may enter into an | ||
agreement with the board for an award from the infrastructure fund. | ||
(b) A project sponsor must include full disclosure of any | ||
partnership between the project sponsor and a nongovernmental | ||
entity in an application for an award from the infrastructure fund. | ||
Sec. 15.657. APPLICATION REVIEW PROCEDURES. (a) The board | ||
shall review an application for an award for a resilience project | ||
immediately on receipt of the application. If the board determines | ||
that an application is incomplete, the board shall notify the | ||
applicant with an explanation of what is missing from the | ||
application. The board shall evaluate the completed application | ||
according to the appropriate project criteria. The board shall | ||
make a final determination on an application as soon as possible. | ||
(b) The board shall make every effort to expedite the | ||
application review process and to award grants or loans to project | ||
sponsors in a timely manner. | ||
(c) At any time the balance of the infrastructure fund is | ||
less than $200 million, the board shall notify all applicants with | ||
applications pending and provide them with the option to apply for a | ||
loan from the fund. | ||
(d) If the board determines that an applicant should receive | ||
an award of money from the infrastructure fund, the board must | ||
submit the application to the advisory committee for review and | ||
comments. | ||
(e) The advisory committee shall review each application | ||
submitted by the board and deliver comments on the application to | ||
the board not later than the 30th day after the date on which the | ||
board received the application. | ||
(f) If revenue bonds are to be issued for the purpose of | ||
awarding to an applicant money from the infrastructure fund, the | ||
board must submit the application and comments from the advisory | ||
committee to the bond review board and the attorney general for | ||
approval. | ||
(g) After an application has been reviewed and received | ||
comments from the advisory committee and, if applicable, has been | ||
approved by the bond review board and the attorney general, the | ||
board shall submit the application and all related comments and | ||
approvals to the lieutenant governor and speaker of the house of | ||
representatives for approval. | ||
Sec. 15.658. AWARD APPROVAL. (a) The board may award money | ||
from the infrastructure fund for a resilience project only after: | ||
(1) the advisory committee has reviewed and commented | ||
on the project; and | ||
(2) the expenditure is approved by the Legislative | ||
Budget Board. | ||
(b) For purposes of Subsection (a), an award of money from | ||
the infrastructure fund is considered disapproved by the | ||
Legislative Budget Board if that agency does not approve the | ||
proposal to issue the award before the 31st day after the date of | ||
receipt of the proposal from the board. The Legislative Budget | ||
Board may extend the review deadline applicable to that agency for | ||
an additional 14 days by submitting a written notice to that effect | ||
to the board before the expiration of the initial review period. | ||
Sec. 15.659. REPAYMENT OF AWARDS. (a) If an award | ||
recipient has not used or obligated money awarded from the | ||
infrastructure fund for the purposes for which the award was | ||
intended before a date provided in the award agreement, the | ||
recipient must repay to the credit of the fund that amount and pay | ||
to the credit of the fund any related interest at a rate and on terms | ||
as provided by the award agreement. | ||
(b) All payments of principal and interest on a loan awarded | ||
from the infrastructure fund shall be deposited to the credit of the | ||
fund. | ||
Sec. 15.660. REVENUE BONDS. (a) The board may issue | ||
revenue bonds to provide the principal for loan financing of a | ||
resilience project when the balance of the infrastructure fund is | ||
less than $200 million. | ||
(b) Revenue bonds issued under this subchapter are special | ||
obligations of the board payable only from and secured by | ||
designated income and receipts of the infrastructure fund, or of | ||
one or more accounts in the fund, including principal of and | ||
interest paid and to be paid on fund assets or income from accounts | ||
created within the fund by the board, as determined by the board. | ||
(c) Revenue bonds issued under this subchapter do not | ||
constitute indebtedness of the state as prohibited by the | ||
constitution. | ||
(d) The board may require a project sponsor to make charges, | ||
impose taxes that the project sponsor is otherwise authorized to | ||
impose, or otherwise provide for sufficient money to pay acquired | ||
obligations related to an award financed through a revenue bond | ||
issued under this subchapter. | ||
(e) Revenue bonds issued under this subchapter must be | ||
authorized by resolution of the board and must have the form and | ||
characteristics and bear the designations as the resolution | ||
provides. | ||
(f) Revenue bonds issued under this subchapter may: | ||
(1) bear interest at the rate or rates payable | ||
annually or otherwise; | ||
(2) be dated; | ||
(3) mature at the time or times, serially, as term | ||
revenue bonds, or otherwise in not more than the 50th year from the | ||
date the revenue bonds were issued; | ||
(4) be callable before stated maturity on the terms | ||
and at the prices, be in the denominations, be in the form, either | ||
coupon or registered, carry registration privileges as to principal | ||
only or as to both principal and interest and as to successive | ||
exchange of coupon for registered bonds or one denomination for | ||
bonds of other denominations, and successive exchange of registered | ||
revenue bonds for coupon revenue bonds, be executed in the manner, | ||
and be payable at the place or places inside or outside the state, | ||
as provided by the resolution; and | ||
(5) be issued in temporary or permanent form. | ||
(g) Section 17.955 applies to revenue bonds issued under | ||
this subchapter in the same manner as that section applies to water | ||
financial assistance bonds. | ||
(h) The board shall deposit the proceeds from the sale of | ||
revenue bonds issued under this subchapter to the credit of the | ||
infrastructure fund. Money deposited under this subsection may be | ||
used only to finance a resilience project under this subchapter. | ||
(i) Each revenue bond authorization and issuance under this | ||
subchapter must be authorized and issued for a single resilience | ||
project. | ||
(j) On approval by the bond review board and the attorney | ||
general, the board may authorize and issue revenue bonds to finance | ||
multiple resilience project awards if the awards will all be | ||
received by the same project sponsor or sponsors for a single | ||
resilience project. | ||
(k) The aggregate principal amount of revenue bonds issued | ||
by the board for resilience projects may not exceed the lesser of $2 | ||
billion or 1,000 percent of the amount of the infrastructure fund | ||
that the trust company holds in reserve. | ||
(l) A revenue bond may not be issued by the board for a | ||
resilience project unless: | ||
(1) the revenue bond is approved by the bond review | ||
board in accordance with Chapter 1231, Government Code; and | ||
(2) the attorney general approves the issuance of the | ||
bond after finding that the bonds have been authorized in | ||
accordance with the law and that the project sponsor receiving an | ||
award from the infrastructure fund has the legal authority to | ||
implement a resilience project. | ||
(m) The comptroller shall register all revenue bonds issued | ||
by the board for resilience projects. | ||
(n) Following registration of the bonds, revenue bonds | ||
issued by the board for resilience projects are incontestable in | ||
any court or other forum for any reason and are valid and binding | ||
obligations in accordance with their terms for all purposes. | ||
Sec. 15.661. DEFAULT, REMEDIES, AND ENFORCEMENT. (a) In | ||
this section, "Default" means: | ||
(1) default in payment of the principal of or interest | ||
on an award issued as a loan from the infrastructure fund; | ||
(2) a failure to perform any of the terms of a loan, | ||
grant, or other financing agreement; or | ||
(3) any other failure to perform an obligation, breach | ||
of a term of an agreement, or default as provided by any proceeding | ||
or agreement evidencing an obligation or agreement of a recipient, | ||
beneficiary, or guarantor of financial assistance provided by the | ||
board. | ||
(b) In the event of a default by a project sponsor and on | ||
request by the board, the attorney general shall seek: | ||
(1) a writ of mandamus to compel a project sponsor or | ||
the project sponsor's officers, agents, and employees to cure the | ||
default; and | ||
(2) any other legal or equitable remedy the board and | ||
the attorney general consider necessary and appropriate. | ||
(c) A proceeding authorized by this section shall be brought | ||
and venue is in a district court in Travis County. | ||
(d) In a proceeding under this section, the attorney general | ||
may recover reasonable attorney's fees, investigative costs, and | ||
court costs incurred on behalf of the state in the proceeding in the | ||
same manner as provided by general law for a private litigant. | ||
Sec. 15.662. PRIORITIZATION OF PROJECTS. (a) The board may | ||
not prioritize a resilience project under this section unless the | ||
political subdivision benefiting from the proposed resiliency | ||
project is implementing current floodplain regulations. | ||
(b) The board shall establish a point system for | ||
prioritizing resilience projects for which money from the | ||
infrastructure fund is sought. The system must include a standard | ||
for the board to apply in determining whether a resilience project | ||
qualifies for funding at the time the application for funding is | ||
filed with the board. | ||
(c) The board shall give the highest consideration in | ||
awarding points to a resilience project that will have a | ||
substantial effect, including a resilience project that: | ||
(1) has been awarded federal money; | ||
(2) is being studied by the United States Army Corps of | ||
Engineers at the time of the project application; | ||
(3) is included in a signed United States Army Corps of | ||
Engineers Chief's Report at the time of the project application; | ||
(4) aligns with the priorities and goals of the State | ||
of Texas Hazard Mitigation Plan; | ||
(5) will serve a political subdivision that has a | ||
completed hazard mitigation plan approved by the Texas Division of | ||
Emergency Management and the Federal Emergency Management Agency; | ||
(6) will serve diverse urban and rural populations; | ||
(7) will serve a metropolitan statistical area with a | ||
population greater than 250,000; | ||
(8) will contribute to regionalization in resiliency; | ||
(9) is included in the Texas Coastal Resiliency Master | ||
Plan; | ||
(10) is included in the State Flood Assessment or a | ||
statewide flood plan; | ||
(11) will serve a political subdivision that has | ||
received multiple state disaster declarations made under Chapter | ||
418, Government Code, or multiple federal major disaster | ||
declarations under the Robert T. Stafford Disaster Relief and | ||
Emergency Assistance Act (42 U.S.C. 5121 et seq.), during the five | ||
years before the date the board receives an application for the | ||
resilience project under consideration; or | ||
(12) includes a substantial water supply or water | ||
management benefit. | ||
(d) In addition to the criteria provided by Subsection (c), | ||
the board must also consider at least the following criteria in | ||
prioritizing projects: | ||
(1) the contribution to be made by the applicant to | ||
finance the resilience project, including the up-front capital to | ||
be provided by the applicant; | ||
(2) the ability of the board and the applicant to use | ||
state financing to obtain local and federal funding; | ||
(3) whether there is an emergency need for the | ||
resilience project; | ||
(4) whether federal funding for which the resilience | ||
project is eligible has been used or sought; | ||
(5) whether the applicant is ready to proceed with the | ||
resilience project at the time of the application, including | ||
whether: | ||
(A) all preliminary planning and design work | ||
associated with the resilience project has been completed; | ||
(B) the applicant has acquired right-of-way | ||
associated with the resilience project; | ||
(C) the applicant has secured funding for the | ||
resilience project from other sources; and | ||
(D) the applicant is able to begin implementing | ||
or constructing the resilience project; | ||
(6) the resilience project's cost-to-benefit ratio as | ||
calculated according to board rules; and | ||
(7) if applicable, the ability of the applicant to | ||
repay a loan awarded from the infrastructure fund. | ||
Sec. 15.663. REPORTING AND TRANSPARENCY REQUIREMENTS. (a) | ||
Not later than December 1 of each even-numbered year, the board | ||
shall provide to the governor, lieutenant governor, speaker of the | ||
house of representatives, and members of the legislature a report | ||
regarding the use of the infrastructure fund. | ||
(b) The board shall post the following information on the | ||
board's Internet website regarding the use of the infrastructure | ||
fund and regularly update the information posted: | ||
(1) the progress made in developing resilience | ||
projects statewide; | ||
(2) a description of each resilience project that | ||
receives money from the infrastructure fund, including: | ||
(A) the expected date of completion of the | ||
resilience project; | ||
(B) the current status of the resilience project; | ||
(C) the proposed benefit of the resilience | ||
project; | ||
(D) the initial total cost estimate of the | ||
resilience project and variances to the initial cost estimate | ||
exceeding five percent; | ||
(E) a listing of the project sponsor receiving | ||
money from the infrastructure fund; | ||
(F) a listing of each political subdivision | ||
served by each resilience project; | ||
(G) an estimate of matching funds that will be | ||
available for the resilience project resulting from the use of the | ||
infrastructure fund; | ||
(H) if applicable, the amount of bonds issued and | ||
the terms of the bonds; and | ||
(I) the status of repayment of each loan provided | ||
in connection with a resilience project, including an assessment of | ||
the risk of default based on a standard risk rating system; | ||
(3) a description of the investment portfolio of the | ||
infrastructure fund; | ||
(4) the expenses incurred in investing money in the | ||
infrastructure fund; | ||
(5) the rate of return on the investment of money in | ||
the infrastructure fund; | ||
(6) a description of the point system for prioritizing | ||
resilience projects established by the board under Section 15.662 | ||
and the number of points awarded by the board for each resilience | ||
project; | ||
(7) any nonconfidential information submitted to the | ||
board as part of an application for funding under this subchapter | ||
that is approved by the board; | ||
(8) the administrative and operating expenses | ||
incurred by the board in administering the infrastructure fund; and | ||
(9) any other information required by board rule. | ||
(c) In addition to the information described by Subsection | ||
(b), the report described by Subsection (a) must also include: | ||
(1) the policies and procedures used for any | ||
procurement of property or services related to a resilience | ||
project, including any policies and procedures meant to increase | ||
participation by historically underutilized businesses; | ||
(2) the written standards of conduct covering | ||
conflicts of interest and governing the performance of the board's | ||
staff who engage in the review, recommendation, and administration | ||
of awards from the infrastructure fund; | ||
(3) all direct and indirect administrative costs | ||
related to the administration of the infrastructure fund; | ||
(4) the cost-to-benefit ratio related to each | ||
resilience project; | ||
(5) the end of fiscal year balance of the | ||
infrastructure fund as estimated by the comptroller; and | ||
(6) a record of all transfers made from the | ||
infrastructure fund to other state agencies, including: | ||
(A) an account of each receiving state agency; | ||
(B) the amount of each transfer; | ||
(C) a description of each receiving state | ||
agency's program that supports resilience projects; and | ||
(D) an account of all disbursements made by | ||
receiving state agencies in support of resilience projects during | ||
the fiscal year. | ||
Sec. 15.664. TEXAS RESILIENCE INFRASTRUCTURE FUND ADVISORY | ||
COMMITTEE. (a) The Texas Resilience Infrastructure Fund Advisory | ||
Committee is composed of the following five members: | ||
(1) the comptroller, or a person designated by the | ||
comptroller; | ||
(2) two members of the senate appointed by the | ||
lieutenant governor, including: | ||
(A) a member of the committee of the senate | ||
having primary jurisdiction over matters relating to finance; and | ||
(B) a member of the committee of the senate | ||
having primary jurisdiction over agriculture, water, and rural | ||
affairs; and | ||
(3) two members of the house of representatives | ||
appointed by the speaker of the house of representatives, | ||
including: | ||
(A) a member of the committee of the house of | ||
representatives having primary jurisdiction over appropriations; | ||
and | ||
(B) a member of the committee of the house of | ||
representatives having primary jurisdiction over natural | ||
resources. | ||
(b) The lieutenant governor shall appoint a co-presiding | ||
officer of the advisory committee from among the members appointed | ||
by the lieutenant governor, and the speaker of the house of | ||
representatives shall appoint a co-presiding officer of the | ||
committee from among the members appointed by the speaker. | ||
(c) 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. | ||
(d) 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. | ||
(e) The advisory committee shall submit comments and | ||
recommendations to the board regarding the use of money in the | ||
infrastructure fund for use by the board in adopting rules, | ||
policies, and procedures. The submission must include: | ||
(1) comments and recommendations on rulemaking | ||
related to the prioritization of resilience projects; | ||
(2) comments and recommendations on rulemaking | ||
related to establishing standards for determining whether | ||
resilience projects meet the criteria provided by Section 15.658; | ||
(3) an evaluation of the use of money by the board to | ||
provide funding for resilience projects, including meeting federal | ||
and local matching requirements; | ||
(4) an evaluation of methods for encouraging | ||
participation in the procurement process by companies domiciled in | ||
this state or that employ a significant number of residents of this | ||
state; and | ||
(5) an evaluation of the overall operation, function, | ||
and structure of the infrastructure fund. | ||
(f) The advisory committee shall review the overall | ||
operation, function, and structure of the infrastructure fund at | ||
least semiannually and may provide comments and recommendations to | ||
the board on any matter. | ||
(g) The advisory committee may adopt rules, procedures, and | ||
policies as needed to administer this section and implement its | ||
responsibilities. | ||
(h) Chapter 2110, Government Code, does not apply to the | ||
size, composition, or duration of the advisory committee. | ||
(i) The advisory committee shall make recommendations to | ||
the board regarding information to be posted on the board's | ||
Internet website. | ||
(j) The advisory committee shall evaluate and may provide | ||
comments or recommendations on the feasibility of the state owning, | ||
constructing, operating, and maintaining resilience projects, | ||
including reservoirs and coastal barriers. | ||
(k) The advisory committee independently may propose and | ||
make recommendations for the funding and implementation of a | ||
resilience project and identify and recommend an appropriate | ||
project sponsor. | ||
(l) The advisory committee may identify programs | ||
administered by state agencies that support resilience projects and | ||
recommend that money from the infrastructure fund be transferred to | ||
those agencies for the support of resilience projects. | ||
(m) The executive administrator 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 resilience projects that receive money | ||
from the infrastructure fund. | ||
(n) If the aggregate level of participation by historically | ||
underutilized businesses in resilience projects that receive money | ||
from the infrastructure 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. | ||
(o) The board shall supply staff support to the advisory | ||
committee. | ||
Sec. 15.665. RULES. (a) The board shall adopt rules | ||
providing for the use of money in the infrastructure fund that are | ||
consistent with this subchapter, including rules: | ||
(1) establishing standards for the eligibility for | ||
funding of resilience projects; | ||
(2) establishing the prioritization of resilience | ||
projects; | ||
(3) establishing terms for the repayment of a loan | ||
award from the infrastructure fund; and | ||
(4) establishing terms for the completion of a | ||
resilience project. | ||
(b) The rules establishing terms for the repayment of a loan | ||
award from the infrastructure fund must provide for: | ||
(1) an amortization schedule not to exceed 30 years; | ||
(2) an interest rate at or below the market rate at the | ||
time an application is approved for an award; | ||
(3) no penalties for early repayment; and | ||
(4) principal and interest payments on the loan to | ||
begin not later than 18 months after the date the loan is | ||
originated. | ||
(c) The board shall give full consideration to the | ||
recommendations of the advisory committee before adopting rules | ||
under this subchapter. | ||
Sec. 15.666. POLICIES AND PROCEDURES TO MITIGATE OR | ||
MINIMIZE ADVERSE EFFECTS OF CERTAIN FEDERAL LAWS. The board shall | ||
adopt, and may amend from time to time at the board's discretion, | ||
policies and procedures for the purpose of mitigating or minimizing | ||
the adverse effects, if any, of federal laws and regulations | ||
relating to income taxes, arbitrage, rebates, and related matters | ||
that may restrict the board's ability to freely invest all or part | ||
of the fund or to receive and retain all the earnings from the | ||
infrastructure fund. | ||
SECTION 2. Not later than the 30th day after the effective | ||
date of this Act, the lieutenant governor and the speaker of the | ||
house of representatives shall appoint the initial members of the | ||
Texas Resilience Infrastructure Fund Advisory Committee as | ||
provided by Section 15.664, Water Code, as added by this Act. | ||
SECTION 3. (a) Not later than the 120th day after the | ||
effective date of this Act, the Texas Resilience Infrastructure | ||
Fund Advisory Committee shall submit recommendations to the Texas | ||
Water Development Board on the rules to be adopted by the board | ||
under Section 15.665, Water Code, as added by this Act, and the | ||
policies and procedures to be adopted by the board under Section | ||
15.666, Water Code, as added by this Act. | ||
(b) Not later than the 90th day after the date the Texas | ||
Water Development Board receives the recommendations described by | ||
Subsection (a) of this section, the board shall adopt rules under | ||
Section 15.665, Water Code, as added by this Act, and policies and | ||
procedures under Section 15.666, Water Code, as added by this Act. | ||
SECTION 4. (a) The amount of $1.5 billion is appropriated | ||
out of the economic stabilization fund to the Texas resilience | ||
infrastructure fund for purposes of implementing Subchapter J-1, | ||
Chapter 15, Water Code, as added by this Act. | ||
(b) The amount of $1.5 billion is appropriated out of the | ||
economic stabilization fund to general revenue dedicated account | ||
number 453, Disaster Contingency Fund, and, in addition to other | ||
amounts appropriated to the Department of Public Safety for the | ||
state fiscal biennium ending August 31, 2021, $1.5 billion is | ||
appropriated out of general revenue dedicated account number 453, | ||
Disaster Contingency Fund, to the Department of Public Safety for | ||
that state fiscal biennium for purposes of providing local | ||
government entities local matching funds related to the Public | ||
Assistance Grant Program and Hazard Mitigation Grant Program | ||
administered by the Federal Emergency Management Agency. | ||
(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 5. Except as otherwise provided by this Act, 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. |