Bill Text: TX HB274 | 2019-2020 | 86th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the establishment of the disaster reinvestment and infrastructure planning board and the creation of the disaster reinvestment and infrastructure planning revolving fund; making an appropriation.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Engrossed - Dead) 2019-04-29 - Received from the House [HB274 Detail]
Download: Texas-2019-HB274-Introduced.html
Bill Title: Relating to the establishment of the disaster reinvestment and infrastructure planning board and the creation of the disaster reinvestment and infrastructure planning revolving fund; making an appropriation.
Spectrum: Slight Partisan Bill (Democrat 2-1)
Status: (Engrossed - Dead) 2019-04-29 - Received from the House [HB274 Detail]
Download: Texas-2019-HB274-Introduced.html
86R373 CJC-D | ||
By: Davis of Harris | H.B. No. 274 |
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relating to the creation of the disaster reinvestment and | ||
infrastructure planning revolving fund and the permissible uses of | ||
that fund; making an appropriation. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 6, Water Code, is amended by adding | ||
Subchapter H to read as follows: | ||
SUBCHAPTER H. DISASTER REINVESTMENT AND INFRASTRUCTURE PLANNING | ||
REVOLVING FUND | ||
Sec. 6.271. DEFINITIONS. In this subchapter: | ||
(1) "Category I qualifying political subdivision" | ||
means a political subdivision located wholly or partly in an area | ||
declared by the governor to be a disaster area that the Federal | ||
Emergency Management Agency has determined is eligible to receive | ||
financial assistance from the agency in response to the disaster. | ||
(2) "Category II qualifying political subdivision" | ||
means a political subdivision located wholly or partly in an area | ||
declared by the governor to be a disaster area that the Federal | ||
Emergency Management Agency has determined is ineligible to receive | ||
financial assistance from the agency in response to the disaster. | ||
(3) "Fund" means the disaster reinvestment and | ||
infrastructure planning revolving fund. | ||
(4) "Qualifying infrastructure project" means a | ||
project located in a Category I or II qualifying political | ||
subdivision to: | ||
(A) rebuild infrastructure damaged or destroyed | ||
in a disaster; or | ||
(B) construct infrastructure to mitigate damage | ||
from a future disaster. | ||
Sec. 6.272. CREATION OF FUND. (a) The disaster | ||
reinvestment and infrastructure planning revolving fund is created | ||
as a fund outside the state treasury with the comptroller, to be | ||
administered by the board. | ||
(b) Money in the fund may be used only to provide financial | ||
assistance to Category I and II qualifying political subdivisions | ||
in the manner provided by this subchapter, and it is the intent of | ||
the legislature that the fund remain available in perpetuity for | ||
that purpose. | ||
(c) The fund consists of: | ||
(1) money appropriated, credited, or transferred to | ||
the fund by the legislature; | ||
(2) federal money appropriated, credited, or | ||
transferred to the fund; | ||
(3) money received by the board for the repayment of a | ||
loan made from the fund; | ||
(4) gifts or grants contributed to the fund; and | ||
(5) interest earned on deposits and investments of the | ||
fund. | ||
Sec. 6.273. USE OF MONEY IN FUND. (a) The board by rule | ||
shall establish a revolving loan and grant program to use money from | ||
the fund to provide financial assistance to Category I and II | ||
qualifying political subdivisions to finance qualifying | ||
infrastructure projects in the political subdivision, subject to | ||
the provisions of this section. | ||
(b) Money in the fund shall be allocated by the board as | ||
follows: | ||
(1) 50 percent of the money in the fund must be | ||
available to provide loans to Category I qualifying political | ||
subdivisions; and | ||
(2) the remainder of the money in the fund must be | ||
available to provide loans or grants to Category II qualifying | ||
political subdivisions. | ||
(c) A loan from the fund must be made subject to the | ||
following conditions: | ||
(1) the loan must be: | ||
(A) made at or below market interest rates for a | ||
term not to exceed 20 years; and | ||
(B) able to be repaid early with no penalty; | ||
(2) principal and interest payments on the loan must | ||
begin not later than 18 months after the loan is originated; and | ||
(3) the fund must be credited with all principal and | ||
interest payments on all loans from the fund. | ||
(d) Subject to Subsection (e), the board may use up to 25 | ||
percent of the money described by Subsection (b)(2) to award grants | ||
to Category II qualifying political subdivisions to: | ||
(1) assist in the payment of the political | ||
subdivision's costs associated with a qualifying infrastructure | ||
project described by Subsection (a); or | ||
(2) pay the principal of and interest on a loan | ||
received from the fund by the political subdivision. | ||
(e) The board shall suspend the award of grants from the | ||
fund under Subsection (d) for the duration of a period during which | ||
the balance of the fund is less than a minimum fund balance | ||
established by rule by the board. | ||
Sec. 6.274. APPLICATION FOR LOAN OR GRANT. (a) The board | ||
shall develop and implement an application process for a loan or | ||
grant under this subchapter. At a minimum, the application must | ||
include: | ||
(1) a description of the qualifying infrastructure | ||
project for which the applicant is requesting the loan or grant; | ||
(2) an estimate of the total cost of the project; | ||
(3) an estimate of the amount of federal money the | ||
applicant expects to receive for the project, if any; and | ||
(4) evidence that the applicant has staff, policies, | ||
and procedures in place adequate to complete the project. | ||
(b) The board shall adopt rules to prioritize certain | ||
applicants based on: | ||
(1) the type of qualifying infrastructure project for | ||
which the applicant is requesting the loan or grant; | ||
(2) information provided by the applicants, or other | ||
information that is available to the board; and | ||
(3) criteria developed by the board. | ||
(c) The board shall adopt rules providing an expedited | ||
procedure for acting on an application for financial assistance | ||
from the fund for a qualifying infrastructure project, provided | ||
that the expedited procedure may not affect an applicant's receipt | ||
of federal money to which the applicant may be eligible as a result | ||
of the disaster. | ||
SECTION 2. (a) The amount of $15 million is appropriated | ||
from the economic stabilization fund to the comptroller for the | ||
purpose of transferring that amount immediately to the credit of | ||
the disaster reinvestment and infrastructure planning revolving | ||
fund. | ||
(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 3. Except as otherwise provided by this Act, this | ||
Act takes effect September 1, 2019. |