86R9869 SLB-D
	By: Hinojosa	S.B. No. 1521

	A BILL TO BE ENTITLED
	AN ACT
	relating to the funding of flood planning, mitigation, and
	infrastructure projects; making an appropriation.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  The heading to Section 15.405, Water Code, is
	amended to read as follows:
	Sec. 15.405.  FLOOD CONTROL PLANNING CONTRACTS.
	SECTION 2.  Section 15.405, Water Code, is amended by
	amending Subsections (a), (f), and (g) and adding Subsection (a-1)
	to read as follows:
	(a)  In this section, "flood control planning" means any work
	related to:
	(1)  planning for flood protection;
	(2)  preparing applications for and obtaining
	regulatory approvals at the local, state, or federal level;
	(3)  activities associated with administrative or
	legal proceedings by regulatory agencies; and
	(4)  preparing engineering plans and specifications to
	provide structural or nonstructural flood mitigation and drainage.
	(a-1)  The board may enter into contracts with political
	subdivisions to pay from the research and planning fund all or part
	of the cost of [developing] flood control planning [plans] for the
	political subdivision.
	(f)  The board shall adopt rules establishing criteria of
	eligibility for flood control planning money that considers:
	(1)  the relative need of the political subdivision for
	the money, giving greater importance to a county that has a median
	household income that is not greater than 85 percent of the median
	state household income;
	(2)  the legal authority of the political subdivision
	to plan for and control flooding; and
	(3)  the effect of flood control planning by the
	political subdivision on overall flood control in the state and
	within the area in which the political subdivision is located.
	(g)  The board shall require that flood control planning
	documents [plans] developed under contracts entered into under this
	section be made available to the commission.
	SECTION 3.  Chapter 15, Water Code, is amended by adding
	Subchapter I to read as follows:
	SUBCHAPTER I. FLOOD INFRASTRUCTURE FUND
	Sec. 15.531.  DEFINITIONS. In this subchapter:
	(1)  "Economically distressed area" means an area that
	has a median household income that is not greater than 85 percent of
	the median state household income for the most recent year for which
	the applicable statistics are available.
	(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
	nonstructural and structural flood mitigation and drainage; and
	(C)  construction of structural flood mitigation
	and drainage infrastructure.
	(4)  "Fund" means the flood infrastructure fund.
	(5)  "Metropolitan statistical area" means an area so
	designated by the United States Office of Management and Budget.
	(6)  "Political subdivision bonds" means bonds or other
	obligations issued by a political subdivision to fund a project and
	purchased by the board from money in the fund.
	Sec. 15.532.  FINDINGS. The legislature finds that:
	(1)  the creation of the fund and the administration of
	the fund by the board will encourage the development of
	nonstructural and structural flood mitigation in the state;
	(2)  the use of the fund is in furtherance of the public
	purpose of mitigating the effects of flooding in the state; and
	(3)  the use of the fund for the purposes provided by
	this subchapter is for the benefit of both the state and the
	political subdivisions to which the board makes financial
	assistance available in accordance with this subchapter and
	constitutes a program under Sections 49-d-3 and 52-a, Article III,
	Texas Constitution.
	Sec. 15.533.  FLOOD INFRASTRUCTURE FUND. (a) The flood
	infrastructure fund is a special fund in the state treasury outside
	the general revenue fund.
	(b)  The fund may be used by the board, without further
	legislative appropriation, only as provided by this subchapter.
	(c)  The fund consists of:
	(1)  appropriations from the legislature for a purpose
	of the fund;
	(2)  proceeds of general obligation bonds issued for a
	purpose of the fund;
	(3)  any fees or other sources of revenue that the
	legislature dedicates for deposit to the fund;
	(4)  repayments of loans made from the fund;
	(5)  interest earned on money credited to the fund;
	(6)  depository interest allocable to the fund;
	(7)  money from gifts, grants, or donations to the
	fund;
	(8)  money from revenue bonds or other sources
	designated by the board for deposit to the fund; and
	(9)  proceeds from the sale of political subdivision
	bonds or obligations held in the fund and not otherwise pledged to
	the discharge, repayment, or redemption of revenue bonds or other
	bonds, the proceeds of which were placed in the fund.
	Sec. 15.534.  USE OF FUND. (a) The board may use the 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, low interest loan, or zero
	interest loan to an eligible political subdivision for:
	(A)  a flood project to serve an area outside of a
	metropolitan statistical area in order to ensure that the flood
	project is implemented; or
	(B)  a flood project to serve an economically
	distressed area;
	(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)  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 fund; and
	(6)  to pay the necessary and reasonable expenses of
	the board in administering the fund.
	(b)  Principal and interest payments on loans made under
	Subsection (a)(3) may be deferred for not more than 10 years or
	until construction of the flood project is completed, whichever is
	earlier.
	Sec. 15.535.  APPLICATION REQUIREMENTS. (a) Except as
	provided by Subsection (c), an eligible political subdivision
	applying for financial assistance under this subchapter for a
	proposed flood project must demonstrate in the application that:
	(1)  the eligible political subdivision has acted
	cooperatively with other political subdivisions to address flood
	control needs in the area in which the eligible political
	subdivisions are located;
	(2)  all eligible political subdivisions substantially
	affected by the proposed flood project have participated in the
	process of developing the proposed flood project;
	(3)  the eligible political subdivisions, separately
	or in cooperation, have held public meetings to accept comment on
	proposed flood projects from interested parties; and
	(4)  the technical requirements for the proposed flood
	project have been completed and compared against any other
	potential flood projects in the same area.
	(b)  The application must include an analysis of whether the
	proposed flood project could use floodwater capture techniques for
	water supply purposes, including floodwater harvesting, detention
	or retention basins, or other methods of capturing storm flow or
	unappropriated flood flow.
	(c)  An eligible political subdivision applying for
	assistance under Section 15.534(a)(3) is not required to make the
	demonstration described by Subsection (a)(4) of this section.
	Sec. 15.536.  APPROVAL OF APPLICATIONS. On review and
	recommendation by the executive administrator, 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;
	(2)  the application demonstrates a sufficient level of
	cooperation among eligible political subdivisions and includes all
	of the eligible 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 will be sufficient to meet
	all the obligations assumed by the eligible political subdivision.
	Sec. 15.537.  APPLICABLE LAW. Subchapter E, Chapter 17,
	applies to financial assistance made available from the fund,
	except that the board may execute contracts as necessary to
	evidence grant agreements.
	Sec. 15.538.  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)  for the investment of money; and
	(3)  for the administration of the fund.
	Sec. 15.539.  SALE OF POLITICAL SUBDIVISION BONDS. (a) The
	board may sell or dispose of political subdivision bonds at the
	price and under the terms that the board determines to be
	reasonable.
	(b)  The board may sell political subdivision bonds without
	making a previous offer to the eligible political subdivision that
	issued the bonds and without advertising, soliciting, or receiving
	bids for sale.
	(c)  Notwithstanding other provisions of this chapter, the
	board may sell to the Texas Water Resources Finance Authority any
	political subdivision bonds purchased with money in the fund and
	may apply the proceeds of a sale in the manner provided by this
	section.
	(d)  Proceeds from the sale of political subdivision bonds
	under this section shall be deposited in the fund for use as
	provided by Section 15.534.
	(e)  As part of a sales agreement with the Texas Water
	Resources Finance Authority, the board by contract may agree to
	perform the functions required to ensure that the eligible
	political subdivision pays the debt service on political
	subdivision bonds sold and observes the conditions and requirements
	stated in those bonds.
	(f)  The board may exercise any powers necessary to carry out
	the authority granted by this section, including the authority to
	contract with any person to accomplish the purposes of this
	section.
	Sec. 15.540.  INFORMATION CLEARINGHOUSE. The board shall
	act as a clearinghouse for information about state and federal
	flood planning, mitigation, and control programs that may serve as
	a source of funding for flood projects.
	Sec. 15.541.  LIABILITY. Participation in cooperative flood
	planning to obtain money under this subchapter does not subject an
	eligible political subdivision to civil liability in regards to a
	flood project.
	SECTION 4.  Title 5, Water Code, is amended by designating
	Chapter 152 as Subtitle A and adding a subtitle heading to read as
	follows:
	SUBTITLE A. RIVER AUTHORITIES
	SECTION 5.  Subtitle A, Title 5, Water Code, as added by this
	Act, is amended by adding Chapter 150 to read as follows:
	CHAPTER 150. PROVISIONS GENERALLY APPLICABLE TO RIVER AUTHORITIES
	Sec. 150.0101.  DEFINITIONS. In this chapter:
	(1)  "Director" means a member of the board of
	directors of a river authority.
	(2)  "River authority" means a district created under
	the authority of Section 59, Article XVI, Texas Constitution, as a
	regional water management entity to provide water development and
	planning services and other services to a river basin or portion of
	a river basin.
	Sec. 150.0102.  PARTICIPATION IN COOPERATIVE FLOOD
	PLANNING. A river authority may participate in cooperative flood
	planning to obtain money from the flood infrastructure fund under
	Subchapter I, Chapter 15, Water Code, including:
	(1)  providing administrative or technical support;
	and
	(2)  participation by a director, general manager, or
	other river authority staff in the cooperative flood planning
	process.
	SECTION 6.  (a)  The amount of $3.26 billion is appropriated
	out of the economic stabilization fund to the flood infrastructure
	fund for purposes of implementing Subchapter I, Chapter 15, Water
	Code, as added by this Act.
	(b)  This section takes effect only if this Act is approved
	by a vote of two-thirds of the members present in each house of the
	legislature, as provided by Section 49-g(m), Article III, Texas
	Constitution.
	SECTION 7.  This Act takes effect January 1, 2020, but only
	if the constitutional amendment proposed by the 86th Legislature,
	Regular Session, 2019, authorizing the legislature to provide for
	the creation of the flood infrastructure fund to assist in the
	financing of drainage, flood mitigation, and flood control projects
	is approved by the voters.  If that amendment is not approved by the
	voters, this Act has no effect.