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A BILL TO BE ENTITLED
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AN ACT
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relating to critical infrastructure resiliency and financing. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 17, Water Code, is amended by adding |
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Subchapter N to read as follows: |
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SUBCHAPTER N. WATER INFRASTRUCTURE RESILIENCY FUND |
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Sec. 17.995. DEFINITION. In this subchapter, |
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"infrastructure fund" means the water infrastructure resiliency |
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fund. |
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Sec. 17.995. WATER INFRASTRUCTURE RESILIENCY FUND. (a) |
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The water resilience infrastructure fund is a special fund in the |
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state treasury outside the general revenue fund. |
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(b) The infrastructure fund may be used by the board, |
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without further legislative appropriation, only as provided by this |
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subchapter. |
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(c) The infrastructure fund consists of: |
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(1) appropriations from the legislature for a purpose |
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of the infrastructure fund; |
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(2) proceeds of general obligation bonds issued for a |
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purpose of the infrastructure fund; |
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(3) any fees or other sources of revenue that the |
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legislature dedicates for deposit to the infrastructure fund; |
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(4) interest earned on money credited to the |
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infrastructure fund; |
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(5) depository interest allocable to the |
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infrastructure fund; |
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(6) money from gifts, grants, or donations to the |
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infrastructure fund; and |
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(7) money from revenue bonds or other sources |
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designated by the commission for deposit to the infrastructure |
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fund. |
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Sec. 17.996. USE OF INFRASTRUCTURE FUND. (a) The board may |
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use the infrastructure fund only: |
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(1) to make a grant to an entity for weatherizing and |
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hardening water and wastewater systems, including, but not limited |
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to: |
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(A) covering wells; |
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(B) purchasing reserve power supply such as such |
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as onsite generation and energy storage systems; and |
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(C) building connectivity to neighboring water |
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suppliers; |
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(2) to pay the necessary and reasonable expenses of |
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the board in administering the infrastructure fund. |
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(b) In making grants under Subsection (a), the board shall |
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consider: |
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(1) the expected number of individuals who will |
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benefit from the project; |
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(2) existing infrastructure and overall need for the |
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project; |
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(3) the potential benefit of the project to: |
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(A) low income communities; and |
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(B) areas in disparate parts of the state; |
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(4) equitable geographic distribution of grants |
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awarded throughout the state; |
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(5) projects that utilize distributed energy |
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resources; |
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(6) the existence of matching federal funds for the |
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project and if available federal funds have been exhausted; and |
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(7) the total effect of the project's goals. |
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(c) Eligible entities include: |
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(1) local government entities that provide water or |
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wastewater services; |
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(2) nonprofit entities that provide water or |
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wastewater services; and |
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(3) investor-owned entities that provide water or |
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wastewater services. |
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(d) Grants under this subsection require a match as follows: |
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(1) entities under subsections (c)(1) and (c)(2) are |
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required to provide a match of at least 10 percent with at least 5 |
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percent of that match coming from local sources; and |
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(2) entities under subsections (c)(3) are required to |
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provide a match of at least 50 percent with at least 30 percent of |
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that coming directly from the entity. |
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Sec. 17.997. RULES. (a) The board shall adopt rules |
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necessary to carry out this subchapter, including rules: |
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(1) that establish procedures for an application for |
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and for the award of financial assistance; |
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(2) for the investment of money; and |
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(3) for the administration of the infrastructure fund. |
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SECTION 2. Chapter 418, Government Code, is amended by |
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adding Subchapter J to read as follows: |
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SUBCHAPTER J. CRITICAL INFRASTRUCTURE RESILIENCY FUND |
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Sec. 418.262. DEFINITION. In this subchapter: |
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(1) "Infrastructure fund" means the critical |
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infrastructure resiliency fund. |
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(2) "Micro-grid" means a group of interconnected loads |
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and distributed energy resources inside clearly defined electrical |
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boundaries that act as a single controllable entity with respect to |
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the grid. |
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Sec. 418.263. CRITICAL INFRASTRUCTURE RESILIENCY FUND. (a) |
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The critical infrastructure resiliency fund is a special fund in |
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the state treasury outside the general revenue fund. |
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(b) The infrastructure fund may be used by the division, |
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without further legislative appropriation, only as provided by this |
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subchapter. |
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(c) The infrastructure fund consists of: |
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(1) appropriations from the legislature for a purpose |
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of the infrastructure fund; |
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(2) proceeds of general obligation bonds issued for a |
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purpose of the infrastructure fund; |
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(3) any fees or other sources of revenue that the |
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legislature dedicates for deposit to the infrastructure fund; |
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(4) interest earned on money credited to the |
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infrastructure fund; |
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(5) depository interest allocable to the |
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infrastructure fund; |
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(6) money from gifts, grants, or donations to the |
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infrastructure fund; and |
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(7) money from revenue bonds or other sources |
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designated by the commission for deposit to the infrastructure |
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fund. |
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Sec. 418.264. USE OF INFRASTRUCTURE FUND. (a) The division |
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may use the infrastructure fund only: |
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(1) to make a grant to an entity for the purposes |
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described under this subchapter; and |
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(2) to pay the necessary and reasonable expenses of |
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the division in administering the infrastructure fund. |
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(b) In making grants under Subsection (a), the division |
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shall consider: |
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(1) the expected number of individuals who will |
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benefit from the project; |
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(2) existing infrastructure and overall need for the |
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project; |
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(3) the potential benefit of the project to: |
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(A) low income communities; and |
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(B) areas in disparate parts of the state; |
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(4) equitable geographic distribution of grants |
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awarded throughout the state; |
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(5) projects that utilize distributed energy |
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resources; |
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(6) the existence of matching federal funds for the |
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project and if available federal funds have been exhausted; and |
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(7) the total effect of the project's goals. |
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(c) Eligible entities include: |
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(1) municipally-owned electric utilities; |
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(2) electric cooperatives; |
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(3) investor-owned utilities; |
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(4) government-owned hospitals; |
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(5) non-profit hospitals; |
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(6) for-profit hospitals; and |
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(7) telecommunications providers. |
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(d) Grants under this subsection require a match as follows: |
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(1) entities under subsections (c)(1), (c)(2), |
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(c)(4), and (c)(5) are required to provide a match of at least 10 |
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percent with at least 5 percent of that match coming from local |
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sources; and |
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(2) entities under subsections (c)(3), (c)(6), and |
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(c)(7) are required to provide a match of at least 50 percent with |
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at least 30 percent of that coming directly from the entity. |
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Sec. 418.265. ELECTRIC GRID IMPROVEMENT ACCOUNT. (a) The |
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electric grid improvement account is an account of the critical |
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infrastructure fund. |
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(b) The account consists of: |
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(1) money directly appropriated to the division; and |
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(2) money from gifts or grants from the United States |
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government, local or regional governments, private sources, or |
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other sources. |
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(c) The division may use the account to provide grants for |
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activities related to: |
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(1) localized improvements to the electric grid and |
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other energy systems with onsite generation including, but not |
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limited to, smart metering; and |
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(2) improvements at and between buildings to create |
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micro-grids using onsite generation and energy storage. |
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Sec. 418.266. LOCAL COMMUNICATIONS RESILIENCY ACCOUNT. (a) |
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The local communications resiliency account is an account of the |
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critical infrastructure fund. |
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(b) The account consists of: |
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(1) money directly appropriated to the division; and |
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(2) money from gifts or grants from the United States |
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government, local or regional governments, private sources, or |
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other sources. |
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(c) The division may use the account to provide grants for |
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activities related to: |
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(1) hardening lines of emergency communication; and |
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(2) purchasing reserve power supply such as onsite |
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generation and energy storage systems necessary to sustain |
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emergency communications. |
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Sec. 418.267. MEDICAL INFRASTRUCTURE RESILIENCY ACCOUNT. |
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(a) The medical infrastructure resiliency account is an account of |
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the critical infrastructure fund. |
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(b) The account consists of: |
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(1) money directly appropriated to the division; and |
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(3) money from gifts or grants from the United States |
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government, local or regional governments, private sources, or |
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other sources. |
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(c) The division may use the account to provide grants for |
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activities related to: |
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(1) purchasing reserve power supply such as onsite |
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generation and energy storage systems necessary to sustain critical |
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medical care. |
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Sec. 418.268. RULES. The board shall adopt rules necessary |
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to carry out this subchapter, including rules: |
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(1) that establish procedures for an application for |
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and for the award of financial assistance; |
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(2) for the investment of money; and |
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(3) for the administration of the infrastructure fund. |
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SECTION 3. This Act takes effect January 1, 2022, but only |
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if the constitutional amendment proposed by the 87th Legislature, |
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Regular Session, 2021, authorizing the legislature to provide for |
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the creation of the modern infrastructure fund to assist in the |
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financing of modern electric, transportation, and communications |
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infrastructure projects is approved by the voters. If that |
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amendment is not approved by the voters, this Act has no effect. |