Bill Text: TX HB4279 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the authority of the Texas Water Development Board to establish, operate, and, through the issuance of general obligation bonds, finance a grant program to provide financial assistance to political subdivisions and the state for projects related to disaster recovery; disaster mitigation; or construct, repair, rehabilitate, or reconstruct state or local infrastructure.
Spectrum: Slight Partisan Bill (Republican 3-1)
Status: (Introduced - Dead) 2019-04-30 - Left pending in committee [HB4279 Detail]
Download: Texas-2019-HB4279-Introduced.html
By: Coleman | H.B. No. 4279 |
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relating to the authority of the Texas Water Development Board to | ||
establish, operate, and, through the issuance of general obligation | ||
bonds, finance a grant program to provide financial assistance to | ||
political subdivisions and the state for projects related to | ||
disaster recovery; disaster mitigation; or construct, repair, | ||
rehabilitate, or reconstruct state or local infrastructure. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Chapter 70, Water Code, is amended by adding | ||
Subchapter A to read as follows: | ||
SUBCHAPTER A. TEXAS DISASTER MITIGATION, RECOVERY, RESPONSE AND | ||
INFRASTRUCTURE GRANT PROGRAM | ||
Sec. 70.001. DEFINITIONS. In this subchapter: | ||
(1) "Advisory committee" means the Texas Disaster | ||
Mitigation, Recovery, Response and Infrastructure Advisory | ||
Committee. | ||
(2) "Board" means the Texas Water Development Board. | ||
(3) "Bonds" means bonds, notes, and other public | ||
securities. | ||
(4) "Credit agreement" has the meaning assigned by | ||
Section 1371.001, Government Code. | ||
(5) "Fund" means the Texas Disaster Mitigation, | ||
Recovery, Response and Infrastructure. | ||
(6) "Historically underutilized business" has the | ||
meaning assigned by Section 2161.001, Government Code. | ||
(7) "Qualifying political subdivision" means a | ||
county, municipality, independent school district, or other | ||
special district. | ||
(8) "Qualifying project" means any of the following, | ||
if undertaken by a qualifying political subdivision or the state in | ||
order to provide: | ||
(A) a project for disaster mitigation | ||
(B) a project for disaster recovery; | ||
(C) a project for disaster response; or | ||
(D) a project to construct, repair, | ||
rehabilitate, or reconstruct state or local infrastructure. | ||
(9) "Trust company" means the Texas Treasury | ||
Safekeeping Trust Company. | ||
Sec. 70.002. TEXAS DISASTER MITIGATION, RECOVERY, RESPONSE | ||
AND INFRASTRUCTURE GRANT PROGRAM. The Board by rule shall | ||
establish a grant program to use the proceeds from the sale of bonds | ||
issued under Section 70.004 and the interest earned on those bonds | ||
to provide financial assistance to qualifying political | ||
subdivisions and the state to finance qualifying projects in the | ||
political subdivision and the state. | ||
Sec. 70.003. APPLICATION FOR GRANT. The Board shall | ||
develop and implement an application process for a grant under this | ||
subchapter. At a minimum, the application must include: | ||
(1) a description of the qualifying project for which | ||
the applicant is requesting the grant; | ||
(2) an estimate of the total cost of the project; and | ||
(3) evidence that the applicant has staff, policies, | ||
and procedures in place adequate to complete the project. | ||
Sec. 70.004. TEXAS DISASTER MITIGATION, RECOVERY, RESPONSE | ||
AND INFRASTRUCTURE BONDS. (a) The Board may issue general | ||
obligation bonds for the purposes provided in this subchapter. The | ||
aggregate principal amount of the bonds that are issued may not | ||
exceed the amount specified by Section 2, Article XIV, Texas | ||
Constitution. | ||
(b) The Board may enter into credit agreements relating to | ||
the bonds. A credit agreement entered into under this subchapter | ||
may be secured by and payable from the same sources as the bonds. | ||
(c) The bonds shall be executed in the form, on the terms, | ||
and in the denominations, bear interest, and be issued as | ||
prescribed by the Board. The bonds may be issued in multiple series | ||
and issues and may have the provisions the Board determines | ||
appropriate and in the interest of the state. | ||
(d) The Board has all powers necessary or appropriate to | ||
carry out this subchapter and to implement Section 2, Article XIV, | ||
Texas Constitution, including the powers granted to other | ||
bond-issuing governmental agencies and units and to nonprofit | ||
corporations by Chapters 1201, 1207, and 1371, Government Code. | ||
(e) The bonds and the record of proceedings authorizing the | ||
bonds and any related credit agreements shall be submitted to the | ||
attorney general for approval. If the attorney general finds that | ||
they will be issued in accordance with this subchapter and other | ||
applicable law, the attorney general shall approve them and deliver | ||
them to the comptroller for registration. After approval by the | ||
attorney general, registration by the comptroller, and payment by | ||
the purchasers of the bonds in accordance with the terms of sale and | ||
after execution and delivery of the related credit agreements, the | ||
bonds and related credit agreements are incontestable for any | ||
cause. | ||
(f) The proceeds from the sale of the bonds must be used to | ||
provide funding for the grant program established under Section | ||
70.002. The Board may use a portion of the proceeds from the sale of | ||
the bonds to pay the cost of the issuance of the bonds. | ||
(g) The comptroller shall pay the principal of the bonds as | ||
they mature and the interest as it becomes payable and shall pay any | ||
cost related to the bonds that becomes due, including payments | ||
under credit agreements. | ||
Sec. 70.005 FEDERAL MATCHING FUNDS. (a) Bond proceeds | ||
described in this subchapter can go towards federal matching funds | ||
including those offered by the Federal Emergency Management Agency, | ||
and United States Army Corps of Engineers; and | ||
(b) bond proceeds described in this subchapter can be used | ||
to reimburse matching payments made to the federal including those | ||
offered by the Federal Emergency Management Agency, and United | ||
States Army Corps of Engineers. | ||
SECTION 2 Chapter 70, Water Code, is amended by adding | ||
Subchapter B to read as follows: | ||
Sec. 70.432. FUND. (a) The Texas Disaster Mitigation, | ||
Recovery, Response and Infrastructure fund is a special fund in the | ||
state treasury outside the general revenue fund to be used by the | ||
board, without further legislative appropriation, for the purpose | ||
of implementing the Texas Disaster Mitigation, Recovery, Response | ||
and Infrastructure Bonds as provided by this subchapter. The board | ||
may establish separate accounts in the fund. The fund and the 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 fund until money is disbursed from the fund as provided by this | ||
subchapter and board rules. It is the intent of the legislature that | ||
the fund will never be used: | ||
(1) for a purpose other than the support of projects in | ||
the Texas Disaster Mitigation, Recovery, Response and | ||
Infrastructure Bonds; or | ||
(2) to certify that appropriations from the treasury | ||
are within the amount estimated to be available in a fund of the | ||
treasury affected by the appropriation. | ||
(b) Money deposited to the credit of the fund may be used | ||
only as provided by this subchapter. | ||
(c) The fund consists of: | ||
(1) money transferred or deposited to the credit of | ||
the fund by law, including money from any source transferred or | ||
deposited to the credit of the fund at the board's discretion as | ||
authorized by law; | ||
(2) the proceeds of any fee or tax imposed by this | ||
state that by statute is dedicated for deposit to the credit of the | ||
fund; | ||
(3) any other revenue that the legislature by statute | ||
dedicates for deposit to the credit of the fund; | ||
(4) investment earnings and interest earned on amounts | ||
credited to the fund; and | ||
(5) money transferred to the fund under a bond | ||
enhancement agreement from another fund or account to which money | ||
from the fund was transferred under a bond enhancement agreement, | ||
as authorized by Section 70.435. | ||
Sec. 70.433. MANAGEMENT AND INVESTMENT OF FUND. (a) The | ||
trust company shall hold and invest the 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. | ||
The fund may be invested with the state treasury pool. | ||
(b) The overall objective for the investment of the fund is | ||
to maintain sufficient liquidity to meet the needs of the fund while | ||
striving to preserve the purchasing power of the fund. | ||
(c) The trust company has any power necessary to accomplish | ||
the purposes of managing and investing the assets of the fund. In | ||
managing the assets of the 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 fund then prevailing, taking into | ||
consideration the investment of all the assets of the fund rather | ||
than a single investment. | ||
(d) The trust company may charge fees to cover its costs | ||
incurred in managing and investing the fund. The fees 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 fees it charges | ||
under this subsection only from the earnings of the fund. | ||
(e) The trust company annually shall provide a written | ||
report to the board and to the advisory committee with respect to | ||
the investment of the fund. The trust company shall contract with a | ||
certified public accountant to conduct an independent audit of the | ||
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 fund | ||
under Chapter 321, Government Code. | ||
(f) The trust company shall adopt a written investment | ||
policy that is appropriate for the 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. | ||
(g) The board annually shall provide to the trust company a | ||
forecast of the cash flows into and out of the fund. The board shall | ||
provide updates to the forecasts as appropriate to ensure that the | ||
trust company is able to achieve the objective specified by | ||
Subsection (b). | ||
(h) The trust company shall disburse money from the fund as | ||
directed by the board. The board shall direct disbursements from | ||
the fund on a semiannual schedule specified by the board and not | ||
more frequently than twice in any state fiscal year. | ||
(i) An investment-related contract entered into under this | ||
section is not subject to Chapter 2260, Government Code. | ||
Sec. 70.434. USE OF FUND; PAYMENTS TO AND FROM OTHER FUNDS | ||
OR ACCOUNTS. (a) At the direction of the board, the trust company | ||
shall make disbursements from the fund to another fund or account | ||
pursuant to a bond enhancement agreement authorized by Section | ||
70.435 in the amounts the board determines are needed for debt | ||
service payments on or security provisions of the board's general | ||
obligation bonds or revenue bonds, shall be paid out of the economic | ||
stabilization fund. | ||
Sec. 70.435. BOND ENHANCEMENT AGREEMENTS. (a) A bond | ||
enhancement agreement entered into under this section is an | ||
agreement for professional services. A bond enhancement agreement | ||
must contain terms that are consistent with Section 70.433(h), and | ||
the agreement, including the period covered by the agreement and | ||
all other terms and conditions of the agreement, must be approved by | ||
the board. An obligation to disburse money from the fund, or from a | ||
special account established by the board, in accordance with a bond | ||
enhancement agreement is a special obligation of the board payable | ||
solely from designated income and receipts of the fund or of the | ||
account, as determined by the board. An obligation to disburse | ||
money from the fund, or from a special account established by the | ||
board, in accordance with a bond enhancement agreement does not | ||
constitute indebtedness of the state. | ||
(b) To facilitate the use of the fund for the purposes of | ||
this subchapter, the board may direct the trust company to enter | ||
into bond enhancement agreements to provide a source of revenue or | ||
security for the payment of the principal of and interest on general | ||
obligation bonds, including bonds issued under Section 2, Article | ||
XIV, Texas Constitution, or revenue bonds issued by the board to | ||
finance or refinance projects included in the state water plan if | ||
the proceeds of the sale of the bonds have been or will be deposited | ||
to the credit of the Texas Disaster Mitigation, Recovery, Response | ||
and Infrastructure revenue fund. | ||
(c) If the trust company enters into a bond enhancement | ||
agreement under Subsection (b), the board may direct the trust | ||
company to make disbursements from the fund to another fund or | ||
account for the support of bonds the proceeds of which are used to | ||
provide financial assistance in the form of: | ||
(1) a loan bearing an interest rate of not less than 50 | ||
percent of the then-current market rate of interest available to | ||
the board; | ||
(2) a loan to finance a facility under repayment terms | ||
similar to the terms of debt customarily issued by the entity | ||
requesting assistance but not to exceed the lesser of: | ||
(A) the expected useful life of the facility; or | ||
(B) 30 years; | ||
(3) a deferral of loan repayment, including deferral | ||
of the repayment of: | ||
(A) principal and interest; or | ||
(B) accrued interest; | ||
(4) incremental repurchase terms for an acquired | ||
facility, including terms for no initial repurchase payment | ||
followed by progressively increasing incremental levels of | ||
interest payment, repurchase of principal and interest, and | ||
ultimate repurchase of the entire state interest in the facility | ||
using simple interest calculations; or | ||
(5) a combination of the methods of financing | ||
described by Subdivisions (1)-(4). | ||
(d) The board may direct the trust company to enter into | ||
bond enhancement agreements with respect to bonds issued by the | ||
board before September 1, 2019, only if: | ||
(1) those bonds otherwise satisfy the requirements of | ||
Subsections (b) and (c); | ||
(2) the proceeds of those bonds were or are required to | ||
be used only for the implementation of Texas Disaster Mitigation, | ||
Recovery, Response and Infrastructure; and | ||
(3) economic stabilization funds of the state was | ||
appropriated before September 1, 2013, for the payment of debt | ||
service on those bonds. | ||
(e) The board may direct the trust company to enter into | ||
bond enhancement agreements with respect to refunding bonds issued | ||
by the board to refund bonds issued by the board the proceeds of | ||
which have been or are to be used for projects included in the state | ||
water plan and which otherwise satisfied the requirements of | ||
Subsections (b) and (c). | ||
(f) The board may not direct the trust company to enter into | ||
a bond enhancement agreement with respect to bonds issued by the | ||
board the proceeds of which have been or are to be used to make | ||
grants. | ||
(g) The board may not direct the trust company to enter into | ||
a bond enhancement agreement with respect to bonds issued by the | ||
board the proceeds of which may be used to provide financial | ||
assistance to an applicant if at the time of the request the | ||
applicant has failed to (2) satisfactorily complete a request by | ||
the Texas Disaster Mitigation, Recovery, Response and | ||
Infrastructure Advisory Committee for information relevant to the | ||
project for which the financial assistance is sought. | ||
(h) The board may not direct the trust company to enter into | ||
a bond enhancement agreement with respect to bonds issued by the | ||
board the proceeds of which may be used to provide financial | ||
assistance to an applicant unless at the time of the request the | ||
applicant has acknowledged its legal obligation to comply with any | ||
applicable requirements of: | ||
(1) federal law relating to contracting with | ||
disadvantaged business enterprises; and | ||
(2) state law relating to contracting with | ||
historically underutilized businesses. | ||
(i) The board may not approve a bond enhancement agreement | ||
with respect to bonds issued by the board unless the agreement | ||
contains a provision to the effect that if the trust company makes a | ||
disbursement under the bond enhancement agreement from the fund to | ||
the credit of another fund or account as provided by Section | ||
70.434(a), the board shall direct the comptroller to transfer an | ||
amount not to exceed that amount from the fund or account receiving | ||
the payment back to the fund if: | ||
(1) money is available in the surplus balance in the | ||
fund or account for that purpose; and | ||
(2) the money transferred back to the fund will not | ||
cause general obligation bonds that are payable from the fund or | ||
account receiving the payment to no longer be self-supporting for | ||
purposes of Section 2, Article XIV, Texas Constitution. | ||
(j) For purposes of Subsection (i)(1), the surplus balance | ||
of a fund or account that receives a disbursement from the fund | ||
under a bond enhancement agreement is the amount of money on deposit | ||
in the fund or account, as determined by the board, that is | ||
attributable to the general obligation bonds or revenue bonds that | ||
are the subject of the bond enhancement agreement, including money | ||
received from the sale or other disposition of the board's rights to | ||
receive repayment of financial assistance, money received from the | ||
sale, transfer, or lease of an acquired facility, money received | ||
from the sale of water associated with an acquired facility, and | ||
related investment earnings, that exceeds the amount required to | ||
pay annual debt service on the bonds and any other amounts specified | ||
in the resolution or other proceedings authorizing the bonds and | ||
any related obligations. | ||
(k) The board shall submit each bond enhancement agreement | ||
and the record relating to the agreement to the attorney general for | ||
examination as to the validity of the agreement. If the attorney | ||
general finds that the agreement has been made in accordance with | ||
the constitution and other laws of this state, the attorney general | ||
shall approve the agreement and the comptroller shall register the | ||
agreement. If the agreement is not submitted at the same time that | ||
the bonds to which it relates are submitted, the agreement shall be | ||
treated as a public security solely for the purposes of Section | ||
1202.004, Government Code. | ||
(l) After a bond enhancement agreement has been approved and | ||
registered as provided by Subsection (k), the agreement is valid | ||
and is incontestable for any cause. | ||
(m) At the direction of the board, the trust company shall | ||
make disbursements from the fund, or from a special account | ||
established by the board, in accordance with a bond enhancement | ||
agreement in the amounts the board determines are needed for debt | ||
service payments on, or for security provisions of, general | ||
obligation bonds or revenue bonds issued by the board the proceeds | ||
of the sale of which have been deposited in another fund | ||
administered by the board, or in an account in that other fund, for | ||
use in accordance with this subchapter, after the board considers | ||
all other sources available for those purposes in that other fund or | ||
account. Money transferred under this subsection may be deposited | ||
into that other fund or into a special account established by the | ||
trust company or a corporate trustee that is a trust company or a | ||
bank that has the powers of a trust company, as determined by the | ||
board. | ||
Sec. 70.437. PRIORITIZATION OF PROJECTS BY BOARD. (a) The | ||
board shall prioritize projects for the purpose of providing | ||
financial assistance under this subchapter. | ||
(b) The board shall establish a point system for | ||
prioritizing projects for which financial assistance is sought from | ||
the board. The system must include a standard for the board to apply | ||
in determining whether a project qualifies for financial assistance | ||
at the time the application for financial assistance is filed with | ||
the board. | ||
(c) The board shall give the highest consideration in | ||
awarding points to projects that will have a substantial effect, | ||
including projects that will: | ||
(1) provide assistance to a diverse rural and urban | ||
population. | ||
(d) In addition to the criteria provided by Subsection (c), | ||
the board must also consider at least the following criteria in | ||
prioritizing projects: | ||
(1) if the applicant is applying for financial | ||
assistance for the project, whether the applicant is ready to | ||
proceed with the project at the time of the application, including | ||
whether: | ||
(A) all preliminary planning and design work | ||
associated with the project has been completed; and | ||
(B) the applicant has acquired the property | ||
rights associated with the project; and | ||
Sec. 15.438. ADVISORY COMMITTEE. (a) The Texas Disaster | ||
Mitigation, Recovery, Response and Infrastructure Advisory | ||
Committee is composed of the following seven members: | ||
(1) the comptroller, or a person designated by the | ||
comptroller; | ||
(2) four 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 intergovernmental relations; and | ||
(3) four 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 county affairs. | ||
(b) The following persons shall serve as staff support for | ||
the advisory committee: | ||
(1) the deputy executive administrator of the board | ||
who is responsible for water science and conservation or a person | ||
who holds an equivalent position at the agency, or a person | ||
designated by that person; | ||
(2) the deputy executive administrator of the board | ||
who is responsible for water resources planning and information or | ||
a person who holds an equivalent position at the agency, or a person | ||
designated by that person; and | ||
(3) the chief financial officer of the board, or a | ||
person who holds an equivalent position at the agency. | ||
(c) An appointed member of the advisory committee serves at | ||
the will of the person who appointed the member. | ||
(d) 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. | ||
(e) 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. | ||
(f) 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. | ||
(g) The advisory committee shall submit comments and | ||
recommendations to the board regarding the use of money in the fund | ||
for use by the board in adopting rules under Section 70.439 and in | ||
adopting policies and procedures under Section 70.441. The | ||
submission must include: | ||
(1) comments and recommendations on rulemaking | ||
related to the prioritization of projects in regional water plans | ||
and the state water plan in accordance with Sections 70.437; | ||
(2) comments and recommendations on rulemaking | ||
related to establishing standards for determining whether projects | ||
meet the criteria provided by Section 70.434(b); | ||
(3) an evaluation of the available programs for | ||
providing financing for projects; | ||
(4) an evaluation of the granting practices of the | ||
board and guidelines for granting standards; | ||
(5) an evaluation of the use of funds by the board to | ||
provide support for financial assistance for Disaster Mitigation, | ||
Recovery, Response and Infrastructure projects; | ||
(6) an evaluation of whether premium financing | ||
programs should be established within the funds described by | ||
Section XX.435 to serve the purposes of this subchapter, especially | ||
in connection with projects described by Section 70.434(b); | ||
(7) 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 | ||
(8) an evaluation of the overall operation, function, | ||
and structure of the fund. | ||
(h) The advisory committee shall review the overall | ||
operation, function, and structure of the fund at least | ||
semiannually and may provide comments and recommendations to the | ||
board on any matter. | ||
(i) The advisory committee may adopt rules, procedures, and | ||
policies as needed to administer this section and implement its | ||
responsibilities. | ||
(j) Chapter 2110, Government Code, does not apply to the | ||
size, composition, or duration of the advisory committee. | ||
(k) The advisory committee is subject to Chapter 325, | ||
Government Code (Texas Sunset Act). Unless continued in existence | ||
as provided by that chapter, the advisory committee is abolished | ||
and this section expires September 1, 2023. | ||
(l) The advisory committee shall make recommendations to | ||
the board regarding information to be posted on the board's | ||
Internet website under Section 70.440(b). | ||
(m) The advisory committee shall evaluate and may provide | ||
comments or recommendations on the feasibility of the state owning, | ||
constructing, and operating water supply projects, including | ||
reservoirs and major water supply conveyance infrastructure, | ||
through existing financial assistance programs under Subchapter A | ||
of this chapter. | ||
(n) 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 projects that receive funding related | ||
to a bond enhancement agreement under this subchapter. | ||
(o) If the aggregate level of participation by historically | ||
underutilized businesses in projects that receive funding related | ||
to a bond enhancement agreement under this subchapter 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. | ||
Sec. 70.439. RULES. (a) The board shall adopt rules | ||
providing for the use of money in the fund that are consistent with | ||
this subchapter, including rules: | ||
(1) establishing standards for determining whether | ||
projects meet the criteria provided by Section 70.434(b); and | ||
(2) specifying the manner for prioritizing projects | ||
for purposes of Section 70.437. | ||
(b) The board shall give full consideration to the | ||
recommendations of the advisory committee before adopting rules | ||
under this subchapter. | ||
Sec. 70.440. REPORTING AND TRANSPARENCY REQUIREMENTS. (a) | ||
Not later than December 1 of each even-numbered year, the board | ||
shall provide a report to the governor, lieutenant governor, | ||
speaker of the house of representatives, and members of the | ||
legislature regarding the use of the fund. | ||
(b) The board shall post information on the board's Internet | ||
website regarding the use of the fund and regularly update the | ||
information posted. | ||
Sec. 15.441. 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 fund. | ||
SUBCHAPTER H. TEXAS DISASTER MITIGATION, RECOVERY, RESPONSE AND | ||
INFRASTRUCTURE FUND | ||
Sec. 15.471. DEFINITION. In this subchapter, "fund" means | ||
the Texas Disaster Mitigation, Recovery, Response and | ||
Infrastructure Fund. | ||
Sec. 15.472. FUND. (a) Texas Disaster Mitigation, | ||
Recovery, Response and Infrastructure Fund is a special fund in the | ||
state treasury outside the general revenue fund to be used by the | ||
board, without further legislative appropriation, only for the | ||
purpose of providing financing for projects under subchapter J. The | ||
board may establish separate accounts in the fund. The board has | ||
legal title to money and investments in the fund until the money is | ||
disbursed as provided by this subchapter and board rules. It is the | ||
intent of the legislature that the fund will never be used: | ||
(1) for a purpose other than the support of projects in | ||
subchapter A; or | ||
(2) to certify that appropriations from the treasury | ||
are within the amount estimated to be available in a fund of the | ||
treasury affected by the appropriation. | ||
(b) Money deposited to the credit of the fund may be used | ||
only as provided by this subchapter. | ||
(c) The fund consists of: | ||
(1) money transferred or deposited to the credit of | ||
the fund by law, including money from any source transferred or | ||
deposited to the credit of the fund at the board's discretion as | ||
authorized by law; | ||
(2) the proceeds of any fee or tax imposed by this | ||
state that by statute is dedicated for deposit to the credit of the | ||
fund; | ||
(3) any other revenue that the legislature by statute | ||
dedicates for deposit to the credit of the fund; | ||
(4) investment earnings and interest earned on amounts | ||
credited to the fund; | ||
(5) the proceeds from the sale of bonds, including | ||
revenue bonds issued by the board under this subchapter, that are | ||
designated by the board for the purpose of providing money for the | ||
fund; | ||
(6) repayments of loans made from the fund; and | ||
(7) money from the sale, transfer, or lease of a | ||
project acquired, constructed, reconstructed, developed, or | ||
enlarged with money from the fund. | ||
Sec. 15.473. MANAGEMENT AND INVESTMENT OF FUND. (a) Money | ||
deposited to the credit of the fund shall be invested as determined | ||
by the board. The fund may be invested with the state treasury pool. | ||
(b) The fund and any accounts established in the fund shall | ||
be kept and maintained by or at the direction of the board. | ||
(c) At the direction of the board, the fund and any accounts | ||
established in the fund may be managed by the comptroller or a | ||
corporate trustee that is a trust company or a bank that has the | ||
powers of a trust company for and on behalf of the board and pending | ||
their use for the purposes provided by this subchapter may be | ||
invested as provided by an order, resolution, or rule of the board. | ||
(d) The comptroller or corporate trustee shall manage the | ||
fund in strict accordance with this subchapter and the orders, | ||
resolutions, and rules of the board. | ||
Sec. 15.474. USE OF FUND. (a) Except as provided by | ||
Subsection (c), money in the fund may be used by the board only to | ||
provide financing or refinancing, under terms specified by the | ||
board, for projects included in Subchapter A. | ||
(b) Financing or refinancing of projects described by | ||
Subsection (a) may be provided by using money in the fund to make | ||
loans to eligible political subdivisions and the state or to | ||
purchase bonds or other obligations of eligible political | ||
subdivisions and the state bearing interest at a rate or rates | ||
determined by the board, including a rate or rates below prevailing | ||
market rates. | ||
(c) The board may use money in the fund: | ||
(1) as a source of revenue or security for: | ||
(A) the payment of the principal of and interest | ||
on: | ||
(i) revenue bonds issued by the board under | ||
this subchapter; or | ||
(ii) other bonds issued by the board if the | ||
proceeds of the bonds will be deposited in the fund; or | ||
(B) a bond enhancement agreement; | ||
(2) to acquire loans or other assets from another fund | ||
or account administered by the board. | ||
(3) to pay the necessary and reasonable expenses of | ||
paying agents, bond counsel, and financial advisory services and | ||
similar costs incurred by the board in administering the fund. | ||
(d) The board, or comptroller or corporate trustee managing | ||
the fund at the direction of the board as provided by Section | ||
70.473(c), shall withdraw from the fund and forward to another | ||
person any amounts, as determined by the board, for timely payment | ||
of: | ||
(1) the principal of and interest on bonds described | ||
by Subsection (c)(1)(A) of this section that mature or become due; | ||
and | ||
(2) any cost related to bonds described by Subsection | ||
(c)(1)(A) of this section that become due, including payments under | ||
related credit agreements or bond enhancement agreements. | ||
Sec. 70.476. SUBCHAPTER CUMULATIVE OF OTHER LAWS. (a) This | ||
subchapter is cumulative of other laws on the subject, and the board | ||
may use provisions of other applicable laws in the issuance of bonds | ||
and other obligations and the execution of bond enhancement | ||
agreements, but this subchapter is wholly sufficient authority for | ||
the issuance of bonds and other obligations, the execution of bond | ||
enhancement agreements, and the performance of all other acts and | ||
procedures authorized by this subchapter. | ||
(b) In addition to other authority granted by this | ||
subchapter, the board may exercise the authority granted to the | ||
governing body of an issuer with regard to the issuance of | ||
obligations under Chapter 1371, Government Code. | ||
SECTION 3. As soon as practicable after the effective date | ||
of this Act, the lieutenant governor and the speaker of the house of | ||
representatives shall appoint the initial appointive members of the | ||
Texas Disaster Mitigation, Recovery, Response and Infrastructure | ||
Advisory Committee as provided by Section 70.438, Water Code, as | ||
added by this Act. | ||
SECTION 4. (a) Not later than September 1, 2014, the Texas | ||
Disaster Mitigation, Recovery, Response and Infrastructure | ||
Advisory Committee shall submit recommendations to the Texas Water | ||
Development Board on the rules to be adopted by the board under | ||
Sections 70.439(a)(1) and (2), Water Code, as added by this Act. | ||
(b) Not later than the later of the 90th day after the date | ||
the Texas Water Development Board receives the recommendations | ||
described by Subsection (a) of this section or March 1, 2021, the | ||
board shall adopt rules under Section 70.439, Water Code, as added | ||
by this Act. | ||
SECTION 5. The Texas Water Development Board shall post the | ||
information described by Section 70.440(b), Water Code, as added by | ||
this Act, on the board's Internet website not later than March 1, | ||
2020. | ||
SECTION 6. Sections 1 and 2 of this article take effect on | ||
the date on which the constitutional amendment proposed by the 86th | ||
Legislature, Regular Session, 2019, adding Sections 2, Article XIV, | ||
Texas Constitution, creating the Texas Disaster Mitigation, | ||
Recovery, Response and Infrastructure Fund. If that amendment is | ||
not approved by the voters, those sections of this article have no | ||
effect. | ||
SECTION 6. Except as otherwise provided by this Act, this | ||
Act takes effect September 1, 2019. |