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A BILL TO BE ENTITLED
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AN ACT
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relating to the funding of flood planning, mitigation, and |
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infrastructure projects. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 15.405, Water Code, is |
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amended to read as follows: |
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Sec. 15.405. FLOOD CONTROL PLANNING CONTRACTS. |
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SECTION 2. Section 15.405, Water Code, is amended by |
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amending Subsections (a), (f), and (g) and adding Subsection (a-1) |
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to read as follows: |
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(a) In this section, "flood control planning" means any work |
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related to: |
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(1) planning for flood protection; |
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(2) preparing applications for and obtaining |
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regulatory approvals at the local, state, or federal level; |
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(3) activities associated with administrative or |
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legal proceedings by regulatory agencies; and |
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(4) preparing engineering plans and specifications to |
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provide structural or nonstructural flood mitigation and drainage. |
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(a-1) The board may enter into contracts with political |
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subdivisions to pay from the research and planning fund all or part |
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of the cost of [developing] flood control planning [plans] for the |
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political subdivision. |
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(f) The board shall adopt rules establishing criteria of |
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eligibility for flood control planning money that considers: |
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(1) the relative need of the political subdivision for |
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the money, giving greater importance to a county that has a median |
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household income that is not greater than 85 percent of the median |
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state household income; |
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(2) the legal authority of the political subdivision |
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to plan for and control flooding; and |
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(3) the effect of flood control planning by the |
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political subdivision on overall flood control in the state and |
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within the area in which the political subdivision is located. |
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(g) The board shall require that flood control planning |
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documents [plans] developed under contracts entered into under this |
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section be made available to the commission. |
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SECTION 3. Chapter 15, Water Code, is amended by adding |
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Subchapter I to read as follows: |
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SUBCHAPTER I. FLOOD INFRASTRUCTURE FUND |
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Sec. 15.531. DEFINITIONS. In this subchapter: |
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(1) "Economically distressed area" means an area that |
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has a median household income that is not greater than 85 percent of |
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the median state household income for the most recent year for which |
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the applicable statistics are available. |
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(2) "Eligible political subdivision" means a district |
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or authority created under Section 52, Article III, or Section 59, |
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Article XVI, Texas Constitution, a municipality, or a county. |
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(3) "Flood project" means a drainage, flood |
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mitigation, or flood control project, including: |
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(A) planning and design activities; |
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(B) work to obtain regulatory approval to provide |
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nonstructural and structural flood mitigation and drainage; and |
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(C) construction of structural flood mitigation |
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and drainage infrastructure. |
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(4) "Fund" means the flood infrastructure fund. |
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(5) "Metropolitan statistical area" means an area so |
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designated by the United States Office of Management and Budget. |
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(6) "Political subdivision bonds" means bonds or other |
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obligations issued by a political subdivision to fund a project and |
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purchased by the board from money in the fund. |
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Sec. 15.532. FINDINGS. The legislature finds that: |
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(1) the creation of the fund and the administration of |
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the fund by the board will encourage the development of |
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nonstructural and structural flood mitigation in the state; |
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(2) the use of the fund is in furtherance of the public |
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purpose of mitigating the effects of flooding in the state; and |
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(3) the use of the fund for the purposes provided by |
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this subchapter is for the benefit of both the state and the |
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political subdivisions to which the board makes financial |
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assistance available in accordance with this subchapter and |
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constitutes a program under Sections 49-d-3 and 52-a, Article III, |
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Texas Constitution. |
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Sec. 15.533. FLOOD INFRASTRUCTURE FUND. (a) The flood |
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infrastructure fund is a special fund in the state treasury outside |
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the general revenue fund to be administered by the board under this |
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subchapter and rules adopted by the board under this subchapter. |
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(b) The fund consists of: |
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(1) appropriations from the legislature for a purpose |
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of the fund; |
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(2) proceeds of general obligation bonds issued for a |
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purpose of the 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 fund; |
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(4) repayments of loans made from the fund; |
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(5) interest earned on money credited to the fund; |
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(6) depository interest allocable to the fund; |
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(7) money from gifts, grants, or donations to the |
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fund; |
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(8) money from revenue bonds or other sources |
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designated by the board for deposit to the fund; and |
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(9) proceeds from the sale of political subdivision |
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bonds or obligations held in the fund and not otherwise pledged to |
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the discharge, repayment, or redemption of revenue bonds or other |
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bonds, the proceeds of which were placed in the fund. |
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Sec. 15.534. USE OF FLOOD INFRASTRUCTURE FUND. (a) The |
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board may use the fund only: |
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(1) to make a loan to an eligible political |
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subdivision at or below market interest rates for a flood project; |
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(2) to make a grant, low interest loan, or zero |
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interest loan to an eligible political subdivision for: |
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(A) a flood project to serve an area outside of a |
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metropolitan statistical area in order to ensure that the flood |
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project is implemented; or |
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(B) a flood project to serve an economically |
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distressed area; |
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(3) to make a loan at or below market interest rates |
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for planning and design costs, permitting costs, and other costs |
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associated with state or federal regulatory activities with respect |
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to a flood project; |
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(4) to make a grant to an eligible political |
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subdivision to provide matching funds to enable the eligible |
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political subdivision to participate in a federal program for a |
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flood project; |
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(5) as a source of revenue or security for the payment |
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of principal and interest on bonds issued by the board if the |
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proceeds of the sale of the bonds will be deposited in the fund; and |
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(6) to pay the necessary and reasonable expenses of |
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the board in administering the fund. |
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(b) Principal and interest payments on loans made under |
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Subsection (a)(3) may be deferred for not more than 10 years or |
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until construction of the flood project is completed, whichever is |
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earlier. |
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Sec. 15.535. APPLICATION REQUIREMENTS. (a) Except as |
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provided by Subsection (c), an eligible political subdivision |
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applying for financial assistance under this subchapter for a |
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proposed flood project must demonstrate in the application that: |
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(1) the eligible political subdivision has acted |
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cooperatively with other political subdivisions to address flood |
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control needs in the area in which the eligible political |
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subdivisions are located; |
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(2) all eligible political subdivisions substantially |
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affected by the proposed flood project have participated in the |
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process of developing the proposed flood project; |
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(3) the eligible political subdivisions, separately |
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or in cooperation, have held public meetings to accept comment on |
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proposed flood projects from interested parties; and |
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(4) the technical requirements for the proposed flood |
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project have been completed and compared against any other |
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potential flood projects in the same area. |
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(b) The application must include an analysis of whether the |
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proposed flood project could use floodwater capture techniques for |
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water supply purposes, including floodwater harvesting, detention |
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or retention basins, or other methods of capturing storm flow or |
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unappropriated flood flow. |
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(c) An eligible political subdivision applying for |
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assistance under Section 15.534(a)(3) is not required to make the |
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demonstration described by Subsection (a)(4) of this section. |
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Sec. 15.536. APPROVAL OF APPLICATIONS. On review and |
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recommendation by the executive administrator, the board may |
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approve an application only if the board finds that: |
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(1) the application and the assistance applied for |
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meet the requirements of this subchapter and board rules; |
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(2) the application demonstrates a sufficient level of |
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cooperation among eligible political subdivisions and includes all |
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of the eligible political subdivisions substantially affected by |
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the flood project; and |
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(3) the taxes or other revenue, or both the taxes and |
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other revenue, pledged by the applicant will be sufficient to meet |
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all the obligations assumed by the eligible political subdivision. |
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Sec. 15.537. APPLICABLE LAW. Subchapter E, Chapter 17, |
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applies to financial assistance made available from the fund, |
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except that the board may execute contracts as necessary to |
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evidence grant agreements. |
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Sec. 15.538. 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 fund. |
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Sec. 15.539. SALE OF POLITICAL SUBDIVISION BONDS. (a) The |
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board may sell or dispose of political subdivision bonds at the |
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price and under the terms that the board determines to be |
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reasonable. |
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(b) The board may sell political subdivision bonds without |
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making a previous offer to the eligible political subdivision that |
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issued the bonds and without advertising, soliciting, or receiving |
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bids for sale. |
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(c) Notwithstanding other provisions of this chapter, the |
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board may sell to the Texas Water Resources Finance Authority any |
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political subdivision bonds purchased with money in the fund and |
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may apply the proceeds of a sale in the manner provided by this |
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section. |
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(d) Proceeds from the sale of political subdivision bonds |
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under this section shall be deposited in the fund for use as |
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provided by Section 15.534. |
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(e) As part of a sales agreement with the Texas Water |
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Resources Finance Authority, the board by contract may agree to |
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perform the functions required to ensure that the eligible |
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political subdivision pays the debt service on political |
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subdivision bonds sold and observes the conditions and requirements |
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stated in those bonds. |
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(f) The board may exercise any powers necessary to carry out |
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the authority granted by this section, including the authority to |
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contract with any person to accomplish the purposes of this |
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section. |
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Sec. 15.540. INFORMATION CLEARINGHOUSE. The board shall |
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act as a clearinghouse for information about state and federal |
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flood planning, mitigation, and control programs that may serve as |
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a source of funding for flood projects. |
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Sec. 15.541. LIABILITY. Participation in cooperative flood |
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planning to obtain money under this subchapter does not subject an |
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eligible political subdivision to civil liability in regards to a |
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flood project. |
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SECTION 4. Title 5, Water Code, is amended by designating |
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Chapter 152 as Subtitle A and adding a subtitle heading to read as |
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follows: |
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SUBTITLE A. RIVER AUTHORITIES |
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SECTION 5. Subtitle A, Title 5, Water Code, as added by this |
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Act, is amended by adding Chapter 150 to read as follows: |
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CHAPTER 150. PROVISIONS GENERALLY APPLICABLE TO RIVER AUTHORITIES |
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Sec. 150.0101. DEFINITIONS. In this chapter: |
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(1) "Director" means a member of the board of |
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directors of a river authority. |
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(2) "River authority" means a district created under |
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the authority of Section 59, Article XVI, Texas Constitution, as a |
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regional water management entity to provide water development and |
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planning services and other services to a river basin or portion of |
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a river basin. |
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Sec. 150.0102. PARTICIPATION IN COOPERATIVE FLOOD |
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PLANNING. A river authority may participate in cooperative flood |
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planning to obtain money from the flood infrastructure fund under |
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Subchapter I, Chapter 15, Water Code, including: |
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(1) providing administrative or technical support; |
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and |
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(2) participation by a director, general manager, or |
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other river authority staff in the cooperative flood planning |
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process. |
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SECTION 6. This Act takes effect September 1, 2019. |