88R10893 KBB-D     By: Alvarado S.B. No. 2503       A BILL TO BE ENTITLED   AN ACT   relating to the use of money in the Texas infrastructure resiliency   fund to finance projects related to natural disaster relief.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  The heading to Subchapter L, Chapter 16, Water   Code, is amended to read as follows:   SUBCHAPTER L.  FLOOD PROJECT AND OTHER NATURAL DISASTER RELIEF   PROJECT FUNDING          SECTION 2.  Section 16.451, Water Code, is amended by adding   Subdivision (3-a) to read as follows:                (3-a)  "Natural disaster relief project" means a   project to mitigate the effects of a natural disaster other than   flooding.  The term includes a project to prevent future damage from   a natural disaster other than a flood.          SECTION 3.  Section 16.454, Water Code, is amended to read as   follows:          Sec. 16.454.  NATURAL DISASTER RECOVERY [HURRICANE HARVEY]   ACCOUNT.   (a)  The natural disaster recovery [Hurricane Harvey]   account is an account in the resiliency fund.          (b)  To the extent allowed by federal law, the [The] board   may use the account only to provide money [moneys] to the Texas   Division of Emergency Management for the division to provide   financing for projects related to damage caused by natural   disasters [Hurricane Harvey].  Money in the account subject to   federal restrictions on the purposes for which the money may be   spent may be used only for those purposes.  Financing under this   section includes making a:                (1)  grant to an eligible political subdivision to   provide nonfederal matching funds to enable the subdivision to   participate in a federal program for the participation in or   development of:                      (A)  a hazard mitigation project, under   guidelines issued by the Federal Emergency Management Agency or the   Texas Division of Emergency Management or the successor in function   to those entities;                      (B)  a public assistance project, under   guidelines issued by the Federal Emergency Management Agency or the   Texas Division of Emergency Management or the successor in function   to those entities; or                      (C)  assistance under guidelines issued by the   Natural Resources Conservation Service, the United States Economic   Development Administration, or the United States Department of   Housing and Urban Development, or the successor in function to   those entities; and                (2)  loan to an eligible political subdivision at or   below market interest rates for the political subdivision's   planning or design costs, permitting costs, construction costs, or   other costs associated with state or federal regulatory activities   with respect to a natural disaster relief project or flood project.          (c)  A grant or loan awarded under this section may not   provide more than 75 percent of the portion of the cost of the   project that is paid with money other than money from a federal   program.          (d)  In collaboration with the Texas Division of Emergency   Management, the board shall establish a point system for   prioritizing natural disaster relief projects or flood projects   other than public assistance grants for which money from the   natural disaster recovery [Hurricane Harvey] account is sought.     The system must include a standard for the board to apply in   determining whether a natural disaster relief project or flood   project qualifies for funding at the time the application for   funding is filed with the board.          (e)  The Texas Division of Emergency Management shall give   the highest consideration in awarding points to a natural disaster   relief project or flood project that will have a substantial   effect, including a natural disaster relief project or flood   project that:                (1)  is recommended or approved by the director of the   Texas Division of Emergency Management or the successor in function   to that entity; and                (2)  meets an emergency need in a county where the   governor has declared a state of disaster.          (f)  After review and recommendation by the executive   administrator and with input from the director of the Texas   Division of Emergency Management or the successor in function to   that entity, the Texas Division of Emergency Management may approve   an application for financial assistance under this section only if   the Texas Division of Emergency Management finds that:                (1)  the application and assistance applied for meet   the requirements of this subchapter and Texas Division of Emergency   Management rules;                (2)  the application demonstrates a sufficient level of   cooperation among applicable political subdivisions and includes   all of the political subdivisions substantially affected by the   natural disaster relief project or flood project; and                (3)  the taxes or other revenue, or both the taxes and   other revenue, pledged by the applicant, if applicable, will be   sufficient to meet all the obligations assumed by the applicant.          (g)  Principal and interest payments on loans made under   Subsection (b)(2) may be deferred for not more than 10 years or   until construction of the natural disaster relief project or flood   project is completed, whichever is the shorter period.          (h)  Money from the account may be awarded to several   eligible political subdivisions for a single natural disaster   relief project or flood project.          (i)  An eligible political subdivision that receives a grant   for a natural disaster relief project or flood project also may   receive a loan from the account.          (j)  This section expires September 1, 2031.  The remaining   balance of the account on that date is transferred to the flood plan   implementation account.          SECTION 4.  This Act takes effect September 1, 2023.