88R13543 JAM-D
 
  By: Lopez of Cameron H.B. No. 4742
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the provision of financial assistance from the flood
  infrastructure fund for certain projects.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 15.531, Water Code, is amended by
  amending Subdivisions (1) and (2) and adding Subdivision (1-a) to
  read as follows:
               (1)  "Artificial drainage system" means a system to
  remove floodwater in a community that lacks topographic relief,
  slope, and naturally defined floodways. 
               (1-a)  "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.
               (2)  "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
  nonstructural and structural flood mitigation and drainage;
                     (C)  construction of structural flood mitigation
  and drainage infrastructure, including an artificial drainage
  system; and
                     (D)  construction and implementation of
  nonstructural projects, including projects that use nature-based
  features to protect, mitigate, or reduce flood risk.
         SECTION 2.  Subchapter I, Chapter 15, Water Code, is amended
  by adding Section 15.5345 to read as follows:
         Sec. 15.5345.  PRIORITIZATION OF AND LOAN FORGIVENESS FOR
  PROJECTS BY CERTAIN DISTRICTS OR AUTHORITIES. (a) This section
  applies only to an eligible political subdivision that is a
  district or authority created under Section 52, Article III, or
  Section 59, Article XVI, Texas Constitution, and that:
               (1)  is located in a county located on the
  international border; and
               (2)  has completed a hydrologic and hydraulic study for
  the territory of the district or authority.
         (b)  The board by rule shall establish a program that:
               (1)  prioritizes the provision from the fund of grants
  or no-interest loans to a district or authority for the
  construction or improvement of an artificial drainage system; and
               (2)  provides loan forgiveness for a loan made under
  Subdivision (1) for the construction of an artificial drainage
  system.
         (c)  The board by rule shall adopt scoring criteria to
  prioritize projects by a district or authority that are eligible
  for financial assistance under this section. The criteria must
  give priority to artificial drainage projects in areas with low or
  moderate income that have a regional effect and who serve
  communities for whom drainage problems have a demonstrated effect
  on human health.
         (d)  Loan forgiveness described by Subsection (b)(2) may,
  for a period not to exceed five years, annually forgive not less
  than 10 percent or more than 20 percent of a loan made from the fund
  under this section. 
         SECTION 3.  Section 15.536, Water Code, is amended to read as
  follows:
         Sec. 15.536.  APPROVAL OF APPLICATIONS. (a) On review and
  recommendation by the executive administrator, the board may
  approve an application 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 eligible 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 will be sufficient to meet
  all the obligations assumed by the eligible political subdivision.
         (b)  Subsection (a)(3) does not apply to an application for a
  loan to a district or authority under Section 15.5345.
         SECTION 4.  This Act takes effect September 1, 2023.