Bill Text: TX SB7 | 2019-2020 | 86th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to flood planning, mitigation, and infrastructure projects.
Spectrum: Bipartisan Bill
Status: (Passed) 2019-06-13 - See remarks for effective date [SB7 Detail]
Download: Texas-2019-SB7-Introduced.html
Bill Title: Relating to flood planning, mitigation, and infrastructure projects.
Spectrum: Bipartisan Bill
Status: (Passed) 2019-06-13 - See remarks for effective date [SB7 Detail]
Download: Texas-2019-SB7-Introduced.html
86R15767 SLB-F | ||
By: Creighton, et al. | S.B. No. 7 |
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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; and | ||
(C) construction of structural flood mitigation | ||
and drainage infrastructure. | ||
(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 under Section 404.024, | ||
Government Code. | ||
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 | ||
multi-family 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: | ||
(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) 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) 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 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. | ||
(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; and | ||
(2) meets an emergency need in a county where the | ||
governor has declared a state of disaster. | ||
(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 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. | ||
(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 eligible political subdivision that receives a grant | ||
for a flood project also may receive a loan from the account. | ||
(i) This section expires September 1, 2031. The remaining | ||
balance of the account on that date is transferred to the economic | ||
stabilization fund. | ||
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: | ||
(1) to make 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) to make 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) to make 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 only if the board | ||
finds that: | ||
(1) the application and the assistance applied for | ||
meet the requirements of this subchapter and board rules; and | ||
(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. | ||
(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 16.3161, Water Code, is repealed. | ||
SECTION 3. 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 4. (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 5. 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 6. 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. |