88R18785 KBB-F
 
  By: Harris of Anderson H.B. No. 3582
 
  Substitute the following for H.B. No. 3582:
 
  By:  Thompson of Brazoria C.S.H.B. No. 3582
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the composition and use of money in the flood
  infrastructure fund.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 15.001, Water Code, is amended by adding
  Subdivision (14) to read as follows:
               (14)  "Rural political subdivision" means:
                     (A)  a nonprofit water supply or sewer service
  corporation created and operating under Chapter 67 of this code or a
  district or authority created under Section 52, Article III, or
  Section 59, Article XVI, Texas Constitution, no part of the service
  area of which is located in an urban area with a population of more
  than 50,000;
                     (B)  a municipality:
                           (i)  with a population of 10,000 or less no
  part of the service area of which is located in an urban area with a
  population of 50,000 or more; or
                           (ii)  located wholly in a county in which no
  urban area has a population of more than 50,000;
                     (C)  a county in which no urban area has a
  population of more than 50,000; or 
                     (D)  an entity that:
                           (i)  is a nonprofit water supply or sewer
  service corporation created and operating under Chapter 67 of this
  code, a district or authority created under Section 52, Article
  III, or Section 59, Article XVI, Texas Constitution, municipality,
  county, or other political subdivision of the state, or an
  interstate compact commission to which the state is a party; and
                           (ii)  demonstrates in a manner satisfactory
  to the board that the entity is rural or the area to be served by the
  project is a wholly rural area despite not otherwise qualifying
  under Paragraph (A), (B), or (C).
         SECTION 2.  Section 15.534, Water Code, is amended by
  amending Subsection (a) and adding Subsections (c) and (d) to read
  as follows:
         (a)  The board may use the infrastructure fund only:
               (1)  to make a loan to an eligible political
  subdivision at or below market interest rates for a flood project;
               (2)  to make a grant or loan at or below market interest
  rates to an eligible political subdivision for a flood project to
  serve a rural political subdivision [an area outside of a
  metropolitan statistical area] in order to ensure that the flood
  project is implemented;
               (3)  to make a loan at or below market interest rates
  for planning and design costs, permitting costs, and other costs
  associated with state or federal regulatory activities with respect
  to a flood project;
               (4)  to make a grant to an eligible political
  subdivision to provide matching funds to enable the eligible
  political subdivision to participate in a federal program for a
  flood project;
               (5)  to make a grant to an eligible political
  subdivision for a flood project if the board determines that the
  eligible political subdivision does not have the ability to repay a
  loan;
               (6)  as a source of revenue or security for the payment
  of principal and interest on bonds issued by the board if the
  proceeds of the sale of the bonds will be deposited in the
  infrastructure fund;
               (7)  to pay the necessary and reasonable expenses of
  the board in administering the infrastructure fund; and
               (8)  to make transfers to the research and planning
  fund created under Section 15.402 [of this chapter].
         (c)  Except as provided by Subsections (a)(6)-(8), after the
  adoption of the initial state flood plan, the board may use the
  infrastructure fund to provide financing only for flood projects
  included in the state flood plan.
         (d)  Money from the infrastructure fund may be awarded to
  several eligible political subdivisions for a single flood project.
         SECTION 3.  Section 16.454(j), Water Code, is amended to
  read as follows:
         (j)  This section expires September 1, 2031.  The remaining
  balance of the account on that date is transferred to the flood
  infrastructure fund [plan implementation account].
         SECTION 4.  (a)  The following provisions of the Water Code
  are repealed:
               (1)  Section 15.531(4);
               (2)  Section 15.5341;
               (3)  Section 15.992(4); and
               (4)  Section 16.4545.
         (b)  The following provisions of Chapter 947 (S.B. 7), Acts
  of the 86th Legislature, Regular Session, 2019, are repealed:
               (1)  Section 2.03; and
               (2)  Section 3.06.
         SECTION 5.  This Act takes effect September 1, 2023.