A. There is hereby created in the State Treasury a revolving fund for the Oklahoma Water Resources Board to be designated the “Hazard Mitigation Financial Assistance Fund”. The fund shall be a continuing fund, not subject to fiscal year limitations, and shall consist of all monies received by the Oklahoma Water Resources Board from appropriations, dedicated revenues, fees or other sources as provided by law. All monies accruing to the credit of said fund are hereby appropriated and may be budgeted and expended by the Oklahoma Water Resources Board for the purpose of providing loans and grants for hazard mitigation. Expenditures from said fund shall be made upon warrants issued by the State Treasurer against claims filed as prescribed by law with the Director of the Office of Management and Enterprise Services for approval and payment.

B. In addition to other lawful purposes, monies placed in the Fund, exclusive of such amounts of interest derived from investment deposits necessary to maintain the grant account, may be used by the Board to implement hazard mitigation planning and projects, including but not limited to, providing grants or loans to eligible entities to:

C. Monies in, or investment income derived from, the Hazard Mitigation Financial Assistance Fund which is used to match any grant funds provided by the Federal Emergency Management Agency or any other federal agencies shall be restricted and used consistent with federal agencies procedures or guidance or regulations promulgated thereunder for hazard mitigation projects.

D. Monies in the Hazard Mitigation Financial Assistance Fund, or investment income derived therefrom, shall be used by the Oklahoma Water Resources Board and the Oklahoma Department of Emergency Management and Homeland Security in carrying out their responsibilities as provided in a written annual joint operating agreement which shall include, among other matters, a budget for administering the Oklahoma Hazard Mitigation Program.

E. The monies placed in the Hazard Mitigation Financial Assistance Fund may be invested by the State Treasurer in an adequately collateralized manner and as prescribed by Section 89.2 of Title 62 of the Oklahoma Statutes or pursuant to investment contracts or agreements with entities maintaining a rating in the top two categories by a nationally recognized municipal bond rating agency, all in a manner consistent with promulgated regulations. The Board may transfer to the Hazard Mitigation Financial Assistance Fund income derived from investment of the fund. Monies invested by the State Treasurer shall be available to implement hazard mitigation projects.

F. The Board shall cause to be completed an annual audit of any expenditures from the Hazard Mitigation Financial Assistance Fund, and such audit cost shall be included in the budget for administering the Oklahoma Hazard Mitigation Program.