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A BILL TO BE ENTITLED
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AN ACT
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relating to the use of money in the Texas infrastructure resiliency |
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fund to finance projects related to natural disaster relief. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Subchapter L, Chapter 16, Water |
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Code, is amended to read as follows: |
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SUBCHAPTER L. FLOOD PROJECT AND OTHER NATURAL DISASTER RELIEF |
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PROJECT FUNDING |
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SECTION 2. Section 16.451, Water Code, is amended by adding |
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Subdivision (3-a) to read as follows: |
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(3-a) "Natural disaster relief project" means a |
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project to mitigate the effects of a natural disaster other than |
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flooding. The term includes a project to prevent future damage from |
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a natural disaster other than a flood. |
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SECTION 3. Section 16.454, Water Code, is amended to read as |
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follows: |
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Sec. 16.454. NATURAL DISASTER RECOVERY [HURRICANE HARVEY] |
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ACCOUNT. (a) The natural disaster recovery [Hurricane Harvey] |
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account is an account in the resiliency fund. |
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(b) To the extent allowed by federal law, the [The] board |
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may use the account only to provide money [moneys] to the Texas |
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Division of Emergency Management for the division to provide |
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financing for projects related to damage caused by natural |
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disasters [Hurricane Harvey]. Money in the account subject to |
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federal restrictions on the purposes for which the money may be |
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spent may be used only for those purposes. Financing under this |
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section includes making a: |
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(1) grant to an eligible political subdivision to |
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provide nonfederal matching funds to enable the subdivision to |
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participate in a federal program for the participation in or |
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development of: |
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(A) a hazard mitigation project, under |
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guidelines issued by the Federal Emergency Management Agency or the |
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Texas Division of Emergency Management or the successor in function |
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to those entities; |
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(B) a public assistance project, under |
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guidelines issued by the Federal Emergency Management Agency or the |
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Texas Division of Emergency Management or the successor in function |
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to those entities; or |
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(C) assistance under guidelines issued by the |
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Natural Resources Conservation Service, the United States Economic |
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Development Administration, or the United States Department of |
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Housing and Urban Development, or the successor in function to |
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those entities; and |
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(2) loan to an eligible political subdivision at or |
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below market interest rates for the political subdivision's |
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planning or design costs, permitting costs, construction costs, or |
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other costs associated with state or federal regulatory activities |
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with respect to a natural disaster relief project or flood project. |
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(c) A grant or loan awarded under this section may not |
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provide more than 75 percent of the portion of the cost of the |
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project that is paid with money other than money from a federal |
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program. |
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(d) In collaboration with the Texas Division of Emergency |
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Management, the board shall establish a point system for |
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prioritizing natural disaster relief projects or flood projects |
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other than public assistance grants for which money from the |
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natural disaster recovery [Hurricane Harvey] account is sought. |
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The system must include a standard for the board to apply in |
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determining whether a natural disaster relief project or flood |
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project qualifies for funding at the time the application for |
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funding is filed with the board. |
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(e) The Texas Division of Emergency Management shall give |
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the highest consideration in awarding points to a natural disaster |
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relief project or flood project that will have a substantial |
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effect, including a natural disaster relief project or flood |
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project that: |
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(1) is recommended or approved by the director of the |
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Texas Division of Emergency Management or the successor in function |
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to that entity; and |
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(2) meets an emergency need in a county where the |
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governor has declared a state of disaster. |
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(f) After review and recommendation by the executive |
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administrator and with input from the director of the Texas |
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Division of Emergency Management or the successor in function to |
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that entity, the Texas Division of Emergency Management may approve |
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an application for financial assistance under this section only if |
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the Texas Division of Emergency Management finds that: |
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(1) the application and assistance applied for meet |
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the requirements of this subchapter and Texas Division of Emergency |
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Management rules; |
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(2) the application demonstrates a sufficient level of |
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cooperation among applicable political subdivisions and includes |
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all of the political subdivisions substantially affected by the |
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natural disaster relief project or 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, if applicable, will be |
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sufficient to meet all the obligations assumed by the applicant. |
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(g) Principal and interest payments on loans made under |
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Subsection (b)(2) may be deferred for not more than 10 years or |
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until construction of the natural disaster relief project or flood |
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project is completed, whichever is the shorter period. |
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(h) Money from the account may be awarded to several |
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eligible political subdivisions for a single natural disaster |
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relief project or flood project. |
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(i) An eligible political subdivision that receives a grant |
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for a natural disaster relief project or flood project also may |
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receive a loan from the account. |
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(j) This section expires September 1, 2031. The remaining |
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balance of the account on that date is transferred to the flood plan |
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implementation account. |
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SECTION 4. This Act takes effect September 1, 2023. |