Bill Text: TX SB7 | 2019-2020 | 86th Legislature | Engrossed


Bill Title: Relating to flood control planning and the funding of flood planning, mitigation, and infrastructure projects.

Spectrum: Bipartisan Bill

Status: (Engrossed) 2019-03-28 - Referred to Natural Resources [SB7 Detail]

Download: Texas-2019-SB7-Engrossed.html
 
 
  By: Creighton, et al. S.B. No. 7
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to flood control planning and the funding of flood
  planning, mitigation, and infrastructure projects.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 16, Water Code, is amended by adding
  Subchapter L to read as follows:
  SUBCHAPTER L. FLOOD PROJECT FUNDING
         Sec. 16.451.  DEFINITIONS. In this subchapter:
               (1)  "Advisory committee" means the Texas
  Infrastructure Resiliency Fund Advisory Committee.
               (2)  "Eligible political subdivision" means a district
  or authority created under Section 52, Article III, or Section 59,
  Article XVI, Texas Constitution, a municipality, or a county.
               (3)  "Flood project" means a drainage, flood
  mitigation, or flood control project, including:
                     (A)  planning and design activities;
                     (B)  work to obtain regulatory approval to provide
  structural and nonstructural flood mitigation and drainage;
                     (C)  construction of structural flood mitigation
  and drainage infrastructure; and
                     (D)  nonstructural or natural flood control
  strategies.
               (4)  "Resiliency fund" means the Texas infrastructure
  resiliency fund.
         Sec. 16.452.  TEXAS INFRASTRUCTURE RESILIENCY FUND.
  (a)  The Texas infrastructure resiliency fund is a special fund in
  the state treasury outside the general revenue fund.
         (b)  The resiliency fund shall be administered by the board
  in accordance with this subchapter.
         (c)  The board may invest, reinvest, and direct the
  investment of any available money in the resiliency fund as
  provided by law for the investment of money.
         (d)  Investment earnings, interest earned on amounts
  credited to the resiliency fund, and interest earned on loans made
  from the fund shall be deposited to the credit of the fund.
         Sec. 16.453.  FLOODPLAIN MANAGEMENT ACCOUNT.  (a)  The
  floodplain management account is an account of the resiliency fund.
         (b)  The account consists of:
               (1)  money deposited to the credit of the account under
  Section 251.004, Insurance Code;
               (2)  money directly appropriated to the board; and
               (3)  money from gifts or grants from the United States
  government, local or regional governments, private sources, or
  other sources.
         (c)  The board may use the account to provide financing for:
               (1)  the board's functions under Section 16.316; or
               (2)  any other activities related to:
                     (A)  the collection and analysis of flood-related
  information;
                     (B)  flood planning, protection, mitigation, or
  adaptation;
                     (C)  the provision of flood-related information
  to the public through educational or outreach programs; or
                     (D)  evaluating the response to and mitigation of
  flood incidents affecting residential property, including
  multifamily units, located in floodplains.
         Sec. 16.454.  HURRICANE HARVEY ACCOUNT. (a)  The Hurricane
  Harvey account is an account in the resiliency fund.
         (b)  The board may use the account only to provide financing
  for flood projects related to Hurricane Harvey. Financing under
  this section includes making a:
               (1)  grant, low-interest loan, or zero-interest loan to
  an eligible political subdivision to provide nonfederal matching
  funds to enable the subdivision to participate in a federal program
  for the development of a:
                     (A)  hazard mitigation plan, under guidelines
  issued by the Federal Emergency Management Agency or the Texas
  Division of Emergency Management or the successor in function to
  those entities; or
                     (B)  public assistance plan, under guidelines
  issued by the Federal Emergency Management Agency or the Texas
  Division of Emergency Management or the successor in function to
  those entities; and
               (2)  loan to an eligible political subdivision at or
  below market interest rates for the political subdivision's
  planning or design costs, permitting costs, or other costs
  associated with state or federal regulatory activities with respect
  to a flood project.
         (c)  A grant or loan awarded under this section:
               (1)  may be awarded only after the applicant
  demonstrates that any available insurance, other state funds, and
  eligible federal funds have been exhausted and that community
  development block grant disaster recovery funds from the United
  States Department of Housing and Urban Development have been
  applied toward the cost of eligible matching funds; and
               (2)  may not provide more than 75 percent of the portion
  of the cost of the project that is paid with money other than money
  from a federal program.
         (d)  The board shall establish a point system for
  prioritizing flood projects for which money from the Hurricane
  Harvey account is sought. The system must include a standard for
  the board to apply in determining whether a flood project qualifies
  for funding at the time the application for funding is filed with
  the board.
         (e)  The board shall give the highest consideration in
  awarding points to a flood project that will have a substantial
  effect, including a flood project that:
               (1)  is recommended or approved by the director of the
  Texas Division of Emergency Management or the successor in function
  to that entity; and
               (2)  meets an emergency need in a county where the
  governor has declared a state of disaster.
         (f)  After review and recommendation by the executive
  administrator and with input from the director of the Texas
  Division of Emergency Management or the successor in function to
  that entity, the board may approve an application for financial
  assistance under this section only if the board finds that:
               (1)  the application and assistance applied for meet
  the requirements of this subchapter and board rules;
               (2)  the application demonstrates a sufficient level of
  cooperation among applicable political subdivisions and includes
  all of the political subdivisions substantially affected by the
  flood project; and
               (3)  the taxes or other revenue, or both the taxes and
  other revenue, pledged by the applicant, if applicable, will be
  sufficient to meet all the obligations assumed by the applicant.
         (g)  Principal and interest payments on loans made under
  Subsection (b)(2) may be deferred for not more than 10 years or
  until construction of the flood project is completed, whichever is
  earlier.
         (h)  Money from the account may be awarded to several
  eligible political subdivisions for a single flood project.
         (i)  An eligible political subdivision that receives a grant
  for a flood project also may receive a loan from the account.
         (j)  This section expires September 1, 2031.  The remaining
  balance of the account on that date is transferred to the flood plan
  implementation account.
         Sec. 16.455.  FLOOD PLAN IMPLEMENTATION ACCOUNT. (a)  The
  flood plan implementation account is an account in the resiliency
  fund.
         (b)  The board may use the account only to make:
               (1)  a grant, low-interest loan, or zero-interest loan
  to an eligible political subdivision:
                     (A)  for a flood project; or
                     (B)  to provide matching funds to enable the
  subdivision to participate in a federal program for a flood
  project;
               (2)  a loan to an eligible political subdivision at or
  below market interest rates for the subdivision's planning or
  design costs, permitting costs, or other costs associated with
  state or federal regulatory activities with respect to a flood
  project; and
               (3)  a grant to an eligible political subdivision to
  provide matching funds to enable the subdivision to participate in
  a federal program for the development of a hazard mitigation plan,
  under guidelines issued by the Federal Emergency Management Agency
  or the Texas Division of Emergency Management or the successor in
  function to those entities.
         (c)  The board shall establish a point system for
  prioritizing flood projects for which money from the flood plan
  implementation account is sought. The system must include a
  standard for the board to apply in determining whether a flood
  project qualifies for funding at the time the application for
  funding is filed with the board.
         (d)  The board shall give the highest consideration in
  awarding points to a flood project that will have a substantial
  effect, including a flood project that:
               (1)  is recommended or approved by the director of the
  Texas Division of Emergency Management or the successor in function
  to that entity;
               (2)  meets an emergency need in a county where the
  governor has declared a state of disaster;
               (3)  is funded partially through federal matching
  funds;
               (4)  includes a component that will increase water
  supply; and
               (5)  contains any other factor the board determines is
  relevant to the purposes of resiliency.
         (e)  After review and recommendation by the executive
  administrator and with input from the director of the Texas
  Division of Emergency Management or the successor in function to
  that entity, the board may approve an application under this
  section only if the board finds that:
               (1)  the application and the assistance applied for
  meet the requirements of this subchapter and board rules;
               (2)  the application demonstrates a sufficient level of
  cooperation among eligible political subdivisions and includes all
  of the political subdivisions substantially affected by the flood
  project;
               (3)  the taxes or other revenue, or both the taxes and
  other revenue, pledged by the applicant, if applicable, will be
  sufficient to meet all the obligations assumed by the applicant;
  and
               (4)  any other state funds and eligible federal funds
  have been exhausted and that community development block grant
  disaster recovery funds from the United States Department of
  Housing and Urban Development have been applied toward the cost of
  eligible matching funds.
         (f)  Principal and interest payments on loans made under
  Subsection (b)(2) may be deferred for not more than 10 years or
  until construction of the flood project is completed, whichever is
  earlier.
         (g)  Money from the account may be awarded to several
  eligible political subdivisions for a single flood project.
         (h)  An award issued as a grant may finance not more than 75
  percent of the total cost of a flood project.
         (i)  An eligible political subdivision that receives a grant
  for a flood project also may receive a loan from the account.
         Sec. 16.456.  FEDERAL MATCHING ACCOUNT. (a)  The federal
  matching account is an account in the resiliency fund.
         (b)  The board may use the account only to meet matching
  requirements for projects funded partially by federal money,
  including projects funded by the United States Army Corps of
  Engineers.
         Sec. 16.457.  TEXAS INFRASTRUCTURE RESILIENCY FUND ADVISORY
  COMMITTEE. (a)  The Texas Infrastructure Resiliency Fund Advisory
  Committee is composed of the seven members that serve on the State
  Water Implementation Fund for Texas Advisory Committee described by
  Section 15.438, with the co-presiding officers of that committee
  serving as presiding officers of the advisory committee. The
  director of the Texas Division of Emergency Management or the
  successor in function to that entity serves as a nonvoting member of
  the advisory committee, as an additional duty of the director's
  office.
         (b)  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.
         (c)  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.
         (d)  The advisory committee may submit comments and
  recommendations to the board regarding the use of money in the
  resiliency fund and for use by the board in adopting rules.
         (e)  The advisory committee shall review the overall
  operation, function, and structure of the resiliency fund at least
  semiannually and may provide comments and recommendations to the
  board on any matter.
         (f)  The advisory committee may adopt rules, procedures, and
  policies as needed to administer this section and implement its
  responsibilities.
         (g)  The advisory committee shall make recommendations to
  the board regarding information on the resiliency fund to be posted
  on the board's Internet website.
         (h)  The advisory committee may evaluate and may provide
  comments or recommendations on the feasibility of the state owning,
  constructing, operating, and maintaining flood projects, including
  reservoirs and coastal barriers.
         (i)  The board 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 flood projects that receive money from
  the resiliency fund.
         (j)  If the aggregate level of participation by historically
  underutilized businesses in flood projects that receive money from
  the resiliency 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.
         (k)  The board shall supply staff support to the advisory
  committee.
         (l)  Chapter 2110, Government Code, does not apply to the
  size, composition, or duration of the advisory committee.
         Sec. 16.458.  REPORT REQUIRED. (a)  In this section, "state
  agency" means:
               (1)  a department, commission, board, office, or other
  agency in the executive branch of state government created by the
  state constitution or a state statute; and
               (2)  a general academic teaching institution as defined
  by Section 61.003, Education Code.
         (b)  A state agency that uses or disburses federal money for
  flood research, planning, or mitigation projects shall submit a
  report to the board on a quarterly basis.
         (c)  The report must include the following information about
  federal money used or disbursed for flood research, planning, or
  mitigation projects:
               (1)  the original total of federal money received;
               (2)  the amount of the federal money spent or disbursed
  to date; and
               (3)  the eligibility requirements for receiving the
  federal money.
         Sec. 16.459.  APPLICABLE LAW. Subchapter E, Chapter 17,
  applies to financial assistance made available from the resiliency
  fund, except that the board may execute contracts as necessary to
  evidence grant agreements.
         Sec. 16.460.  TRANSPARENCY REQUIREMENTS. The board shall
  post the following information on the board's Internet website
  regarding the use of the resiliency fund and regularly update the
  information posted:
               (1)  the progress made in developing flood projects
  statewide;
               (2)  a description of each flood project that receives
  money from the resiliency fund, including:
                     (A)  the expected date of completion of the flood
  project;
                     (B)  the current status of the flood project;
                     (C)  the proposed benefit of the flood project;
                     (D)  the initial total cost estimate of the flood
  project and variances to the initial cost estimate exceeding five
  percent;
                     (E)  a listing of the eligible political
  subdivisions receiving money from the resiliency fund;
                     (F)  a listing of each political subdivision
  served by each flood project;
                     (G)  an estimate of matching funds that will be
  available for the flood project resulting from the use of the
  resiliency fund; and
                     (H)  the status of repayment of each loan provided
  in connection with a flood project, including an assessment of the
  risk of default based on a standard risk rating system;
               (3)  a description of the point system for prioritizing
  flood projects established by the board under Sections 16.454 and
  16.455 and the number of points awarded by the board for each flood
  project;
               (4)  any nonconfidential information submitted to the
  board as part of an application for funding under this subchapter
  that is approved by the board;
               (5)  the administrative and operating expenses
  incurred by the board in administering the resiliency fund; and
               (6)  any other information required by board rule.
         Sec. 16.461.  RULES. The board shall adopt rules necessary
  to carry out this subchapter, including rules:
               (1)  that establish procedures for an application for
  and for the award of financial assistance;
               (2)  that establish the prioritization system for flood
  projects that receive money from the resiliency fund;
               (3)  for the repayment of a loan from the resiliency
  fund; and
               (4)  for the administration of the resiliency fund.
         SECTION 2.  Section 251.004(b), Insurance Code, is amended
  to read as follows:
         (b)  Each state fiscal year, the comptroller shall
  reallocate to the floodplain management account established under
  Section 16.453 [16.3161], Water Code, the first $3.05 million of
  the maintenance taxes collected under Chapter 252 and deposited in
  the general revenue fund.
         SECTION 3.  Section 16.3161, Water Code, is repealed.
         SECTION 4.  On the effective date of this Act, the Floodplain
  Management Account No. 0330 is transferred to the Texas
  infrastructure resiliency fund as an account of that fund and the
  balance of the Floodplain Management Account No. 0330 is
  transferred to the floodplain management account of the Texas
  infrastructure resiliency fund.
         SECTION 5.  (a)  Not later than the 90th day after the
  effective date of this Act, the Texas Infrastructure Resiliency
  Fund Advisory Committee shall submit recommendations to the Texas
  Water Development Board on the rules to be adopted by the board
  under Section 16.461, 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 16.461, Water Code, as added by this Act.
         SECTION 6.  Contingent on legislation of the 86th
  Legislature, Regular Session, 2019, that requires the creation of a
  state flood plan passing and becoming law, on the date that the
  Texas Water Development Board adopts the initial state flood plan
  in accordance with that law:
               (1)  Section 16.455, Water Code, as added by this Act,
  expires; and
               (2)  Subchapter L, Chapter 16, Water Code, is amended
  by adding Section 16.4551 to read as follows:
         Sec. 16.4551.  FLOOD PLAN IMPLEMENTATION ACCOUNT. (a)  The
  flood plan implementation account is an account in the resiliency
  fund.
         (b)  The board may use the account only to provide financing
  for projects included in the state flood plan.
         (c)  Money from the account may be awarded to several
  eligible political subdivisions for a single flood project.
         SECTION 7.  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.
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