S.B. No. 2 establishes a grant program administered by the office of the governor to assist municipalities, counties, and other governmental entities in covering the costs of installing outdoor warning sirens in flood-prone areas, as mandated by Section 16.502 of the Water Code. The bill outlines the responsibilities of the governor's office in setting eligibility criteria, application procedures, grant amounts, and monitoring compliance with grant conditions. Additionally, it allows the governor to delegate the administration of this grant program to a state agency.

The bill also introduces a new subchapter in the Water Code that defines "flood-prone area" and "outdoor warning siren," and mandates the installation of these sirens in areas identified by the board as having a history of severe flooding. Municipalities or counties are required to install, maintain, and operate the sirens, with provisions for joint agreements between governmental entities. The board is tasked with establishing rules for the operation and maintenance of these sirens, including minimum standards and testing requirements to ensure functionality. The board's decisions regarding the necessity of sirens in specific areas are deemed final and binding.

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