Bill Text: TX SB397 | 2019-2020 | 86th Legislature | Introduced


Bill Title: Relating to funding of certain flood-related projects by the Texas Water Development Board and the reporting and administration of certain flood-related projects by the State Soil and Water Conservation Board.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2019-02-14 - Referred to Water & Rural Affairs [SB397 Detail]

Download: Texas-2019-SB397-Introduced.html
  86R5453 SLB-D
 
  By: Perry S.B. No. 397
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to funding of certain flood-related projects by the Texas
  Water Development Board and the reporting and administration of
  certain flood-related projects by the State Soil and Water
  Conservation Board.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 201, Agriculture Code, is
  amended by adding Section 201.0227 to read as follows:
         Sec. 201.0227.  TEN-YEAR DAM REPAIR AND MAINTENANCE PLAN;
  REPORT. (a) In this section:
               (1)  "Plan" means the 10-year dam repair and
  maintenance plan adopted under this section.
               (2)  "Water development board" means the Texas Water
  Development Board.
         (b)  The state board shall prepare and adopt a plan
  describing the repair and maintenance needs of flood control dams
  in this state and prepare and adopt a new plan before the expiration
  of the 10th year following the adoption of a plan.
         (c)  The state board shall deliver the plan adopted under
  this section to the water development board.
         (d)  Each year, the state board shall deliver to the water
  development board a report regarding progress made on items listed
  in the plan. If an update to the report or plan is necessary before
  the yearly report or before the end of the 10-year cycle, the state
  board must deliver to the water development board an amended report
  or plan.
         SECTION 2.  Chapter 15, Water Code, is amended by adding
  Subchapter J-1 to read as follows:
  SUBCHAPTER J-1. STATE FLOOD PLAN IMPLEMENTATION FUND
         Sec. 15.651.  DEFINITIONS. In this subchapter:
               (1)  "Advisory committee" means the State Flood Plan
  Implementation Advisory Committee.
               (2)  "Fund" means the state flood plan implementation
  fund.
               (3)  "Trust company" means the Texas Treasury
  Safekeeping Trust Company.
         Sec. 15.652.  FUND. (a)  The state flood plan implementation
  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 state flood plan
  and flood control projects administered by the State Soil and Water
  Conservation Board as provided by this subchapter.
         (b)  The fund contains the following two accounts:
               (1)  the dam repair and maintenance account, from which
  the board may allocate money to be transferred to the State Soil and
  Water Conservation Board to be used as provided by Section 15.655;
  and
               (2)  the flood plan implementation account, from which
  the board may provide financing for the implementation of the state
  flood plan, as provided by this subchapter.
         (c)  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.
         (d)  Money in the fund may be used only as provided by this
  subchapter.
         (e)  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)  any other revenue that the legislature by statute
  dedicates for deposit to the credit of the fund; and
               (3)  investment earnings and interest earned on amounts
  credited to the fund.
         Sec. 15.653.  MANAGEMENT AND INVESTMENT OF FUND. (a)  The
  trust company shall hold and invest the fund, and the 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.
         Sec. 15.654.  DISBURSEMENTS FROM FUND.  The trust company
  shall disburse money from the fund as directed by the board.
         Sec. 15.655.  USE OF DAM REPAIR AND MAINTENANCE ACCOUNT. (a)  
  The board shall allocate money in the dam repair and maintenance
  account to the State Soil and Water Conservation Board solely for
  use by the conservation board to fund projects described in the
  10-year dam repair and maintenance plan described by Section
  201.0227, Agriculture Code, including projects authorized under:
               (1)  the Flood Control Act of 1944 (Pub. L. No. 78-534,
  Section 13);
               (2)  the pilot watershed program authorized under the
  Department of Agriculture Appropriation Act, 1954 (Pub. L. No.
  156-67);
               (3)  the Watershed Protection and Flood Prevention Act
  (Pub. L. No. 83-566); and
               (4)  Subtitle H, Title XV, of the Agriculture and Food
  Act of 1981 (Pub. L. No. 97-98).
         (b)  The board shall adopt rules for the use of the money
  allocated under this section.
         Sec. 15.656.  USE OF FLOOD PLAN IMPLEMENTATION ACCOUNT. (a)  
  The board shall allocate money in the flood plan implementation
  account solely for the purpose of providing financial assistance
  for projects included in the state flood plan.
         (b)  The board shall allocate not less than 25 percent of the
  money in the flood plan implementation account solely for projects
  in rural areas.
         Sec. 15.657.  PRIORITIZATION OF PROJECTS BY BOARD. (a)  The
  board shall prioritize projects included in the state flood plan
  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)  meet an emergency need;
               (2)  be funded partially through federal matching
  funds; and
               (3)  include a component that will increase water
  supply.
         Sec. 15.658.  ADVISORY COMMITTEE. (a)  The State Flood Plan
  Implementation Fund Advisory Committee is composed of the following
  seven members:
               (1)  the comptroller, or a person designated by the
  comptroller;
               (2)  three 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 water; and
               (3)  three 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 water.
         (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 flood mitigation or a
  person who holds an equivalent position at the board, or a person
  designated by that person;
               (2)  the deputy executive administrator of the board
  who is responsible for state flood planning and information or a
  person who holds an equivalent position at the board, or a person
  designated by that person;
               (3)  the chief financial officer of the board, or a
  person who holds an equivalent position at the board;
               (4)  the fiscal officer of the State Soil and Water
  Conservation Board; and
               (5)  the deputy executive administrator of the State
  Soil and Water Conservation Board who is responsible for water
  science and flood mitigation or a person who holds an equivalent
  position at the conservation board, or a person designated by that
  person.
         (c)  The advisory committee may hold public hearings, formal
  meetings, or work sessions.  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 flood
  plan implementation account of the fund for use by the board in
  adopting rules, policies, and procedures under this subchapter.
  The submission must include:
               (1)  comments and recommendations on rulemaking
  related to the prioritization of projects in the state flood plan;
               (2)  comments and recommendations on rulemaking
  related to establishing standards for determining whether projects
  meet the criteria provided by the board;
               (3)  an evaluation of the available programs for
  providing financing for projects included in the state flood plan
  and guidelines for implementing those programs, including
  guidelines for providing financing for projects included in the
  state flood plan;
               (4)  an evaluation of the funding practices of the
  board and guidelines for funding standards;
               (5)  an evaluation of the use of money by the board to
  provide support for financial assistance for flood projects;
               (6)  an evaluation of methods for encouraging
  participation in the procurement process by companies domiciled in
  this state; and
               (7)  an evaluation of the overall operation, function,
  and structure of the flood plan implementation account of the fund.
         (f)  The advisory committee shall review the overall
  operation, function, and structure of the flood plan implementation
  account of the 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)  The advisory committee shall make recommendations to
  the board regarding information to be posted on the board's
  Internet website under Section 15.440(b).
         Sec. 15.659.  RULES. 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 15.657; and
               (2)  specifying the manner for prioritizing projects
  for purposes of Section 15.657.
         SECTION 3.  (a)  Not later than September 1, 2021, the
  speaker of the house of representatives, the lieutenant governor,
  and the governor shall appoint the initial members of the State
  Flood Plan Implementation Fund Advisory Committee created under
  Section 15.658, Water Code, as added by this Act.
         (b)  Notwithstanding Section 15.658, Water Code, as added by
  this Act, the State Flood Plan Implementation Fund Advisory
  Committee may not perform any duty or function described by
  Subchapter J-1, Chapter 15, Water Code, as added by this Act, before
  September 1, 2021.
         SECTION 4.  Not later than December 1, 2019, the Texas Water
  Development Board shall adopt rules under Subchapter J-1, Chapter
  15, Water Code, as added by this Act.
         SECTION 5.  (a) Of the $1.2 billion deposited to the credit
  of the state flood plan implementation fund, the comptroller shall
  transfer $591,971,801 to the credit of the dam repair and
  maintenance account described by Section 15.652, Water Code, as
  added by this Act.
         (b)  Of the $1.2 billion deposited to the credit of the state
  flood plan implementation fund, the comptroller shall transfer
  $608,028,190 to the credit of the flood plan implementation account
  described by Section 15.652, Water Code, as added by this Act.
         (c)  As soon as practicable after the effective date of this
  Act, the Texas Water Development Board shall allocate money from
  the dam repair and maintenance account described by Section 15.652,
  Water Code, to the State Soil and Water Conservation Board for use
  as described by Section 15.655, Water Code, as added by this Act.
         SECTION 6.  This Act takes effect on the date on which the
  constitutional amendment proposed by the 86th Legislature, Regular
  Session, 2019, adding Section 49-d-14, Article III, Texas
  Constitution, creating the state flood plan implementation fund
  takes effect. If that amendment is not approved by the voters, this
  Act has no effect.
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