| 1 | 1 | | 81R9187 KLA-D |
|---|
| 2 | 2 | | By: Eiland H.B. No. 2749 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to economic recovery grants for certain municipalities |
|---|
| 8 | 8 | | following public calamities. |
|---|
| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 10 | 10 | | SECTION 1. Chapter 418, Government Code, is amended by |
|---|
| 11 | 11 | | adding Subchapter D-1 to read as follows: |
|---|
| 12 | 12 | | SUBCHAPTER D-1. GRANTS FOR ECONOMIC RECOVERY FOLLOWING PUBLIC |
|---|
| 13 | 13 | | CALAMITY |
|---|
| 14 | 14 | | Sec. 418.081. DEFINITIONS. In this subchapter: |
|---|
| 15 | 15 | | (1) "Designated disaster area" means a geographical |
|---|
| 16 | 16 | | area of this state declared a disaster area by the governor under |
|---|
| 17 | 17 | | this chapter. |
|---|
| 18 | 18 | | (2) "Disaster remediation project" means a project |
|---|
| 19 | 19 | | undertaken to restore the economy of a designated disaster area |
|---|
| 20 | 20 | | following a disaster, or to otherwise economically recover from or |
|---|
| 21 | 21 | | mitigate the effects of a disaster in a designated disaster area. |
|---|
| 22 | 22 | | The term includes projects financed in part using matching funds |
|---|
| 23 | 23 | | from a federal or state governmental entity and projects for |
|---|
| 24 | 24 | | removal, cleaning, sanitizing, demolition, reconstruction, or |
|---|
| 25 | 25 | | other treatment of improvements to real property undertaken because |
|---|
| 26 | 26 | | of damage or destruction to that property caused by a natural |
|---|
| 27 | 27 | | disaster. |
|---|
| 28 | 28 | | Sec. 418.082. REQUEST FOR ECONOMIC RECOVERY GRANT. (a) The |
|---|
| 29 | 29 | | governing body of a municipality located in a designated disaster |
|---|
| 30 | 30 | | area may submit to the governor a request for a grant of public |
|---|
| 31 | 31 | | money authorized under Section 52-a, Article III, Texas |
|---|
| 32 | 32 | | Constitution, subject to the requirements of this subchapter, for |
|---|
| 33 | 33 | | the public purposes of redeveloping the municipality's economy |
|---|
| 34 | 34 | | following a disaster and mitigating the effects of that disaster on |
|---|
| 35 | 35 | | both the municipality's and the state's economies. |
|---|
| 36 | 36 | | (b) A request made under this section must include a |
|---|
| 37 | 37 | | detailed disaster remediation plan that specifies: |
|---|
| 38 | 38 | | (1) the period for which the grant is requested, not to |
|---|
| 39 | 39 | | exceed two years from the date of the governor's initial |
|---|
| 40 | 40 | | proclamation or executive order declaring the area in which the |
|---|
| 41 | 41 | | municipality is located to be a disaster area; and |
|---|
| 42 | 42 | | (2) the disaster remediation projects that grant |
|---|
| 43 | 43 | | funds, if approved, would be used to wholly or partly finance, |
|---|
| 44 | 44 | | subject to Subsection (c). |
|---|
| 45 | 45 | | (c) The governor may approve a municipality's request or may |
|---|
| 46 | 46 | | require that the municipality modify and resubmit the request for |
|---|
| 47 | 47 | | consideration and approval. The governor shall notify the |
|---|
| 48 | 48 | | comptroller of an approved request and the period for which the |
|---|
| 49 | 49 | | grant is approved. |
|---|
| 50 | 50 | | Sec. 418.083. FUNDING. (a) An economic recovery grant |
|---|
| 51 | 51 | | approved by the governor under this subchapter for a municipality |
|---|
| 52 | 52 | | is a grant of state aid necessitated by a public calamity and shall |
|---|
| 53 | 53 | | be funded using proceeds from the collection of the taxes imposed by |
|---|
| 54 | 54 | | Chapter 151, Tax Code, in connection with a sale, storage, use, or |
|---|
| 55 | 55 | | other consumption that is consummated in the municipality during |
|---|
| 56 | 56 | | the grant period specified in the municipality's disaster |
|---|
| 57 | 57 | | remediation plan. Notwithstanding Section 151.801(a), Tax Code, |
|---|
| 58 | 58 | | and subject to Sections 151.801(b) and (c), Tax Code, the |
|---|
| 59 | 59 | | comptroller shall deposit the taxes described by this subsection |
|---|
| 60 | 60 | | that are collected by the comptroller in trust in a separate |
|---|
| 61 | 61 | | suspense account of the municipality. |
|---|
| 62 | 62 | | (b) Not later than the fifth day of each month, the |
|---|
| 63 | 63 | | comptroller shall send to the municipal treasurer or to the person |
|---|
| 64 | 64 | | who performs the office of the municipal treasurer the taxes |
|---|
| 65 | 65 | | deposited in the suspense account under Subsection (a), payable to |
|---|
| 66 | 66 | | the municipality. |
|---|
| 67 | 67 | | Sec. 418.084. USE OF GRANT FUNDS. (a) Economic recovery |
|---|
| 68 | 68 | | grant funds received under this subchapter may be used only for |
|---|
| 69 | 69 | | disaster remediation projects included in the municipality's |
|---|
| 70 | 70 | | approved grant request that are undertaken in the municipality to |
|---|
| 71 | 71 | | which the grant is awarded. The municipality shall give first |
|---|
| 72 | 72 | | priority to using the funds to leverage matching funds available |
|---|
| 73 | 73 | | from the Federal Emergency Management Agency and to stabilize the |
|---|
| 74 | 74 | | bond ratings of bonds issued by the municipality. |
|---|
| 75 | 75 | | (b) A municipality may not use grant funds under this |
|---|
| 76 | 76 | | subchapter for ordinary operating expenses of the municipality |
|---|
| 77 | 77 | | unrelated to a disaster remediation project included in the |
|---|
| 78 | 78 | | municipality's approved grant request. |
|---|
| 79 | 79 | | Sec. 418.085. QUARTERLY REPORTS. Not later than the 30th |
|---|
| 80 | 80 | | day after the last day of each calendar quarter during the period |
|---|
| 81 | 81 | | for which a grant is approved, the governing body of the |
|---|
| 82 | 82 | | municipality for which the grant was approved shall submit to the |
|---|
| 83 | 83 | | governor a report regarding the use of the grant funds. The report |
|---|
| 84 | 84 | | must provide a detailed accounting of the amount of funds received |
|---|
| 85 | 85 | | from the comptroller as provided by Section 418.083, the |
|---|
| 86 | 86 | | expenditures of grant funds during the previous calendar quarter, |
|---|
| 87 | 87 | | and the amount of unencumbered grant funds remaining on hand. |
|---|
| 88 | 88 | | Sec. 418.086. FINAL REPORT. (a) Not later than the 180th |
|---|
| 89 | 89 | | day after the expiration of the period for which a grant is |
|---|
| 90 | 90 | | approved, the governing body of the municipality for which the |
|---|
| 91 | 91 | | grant was approved shall submit to the governor and the comptroller |
|---|
| 92 | 92 | | a final report regarding the use of the grant funds. The report |
|---|
| 93 | 93 | | must provide a detailed accounting of the amount of funds received |
|---|
| 94 | 94 | | from the comptroller as provided by Section 418.083 not included on |
|---|
| 95 | 95 | | a previous report, the expenditures of grant funds not included on a |
|---|
| 96 | 96 | | previous report, and the amount of unencumbered grant funds |
|---|
| 97 | 97 | | remaining on hand. |
|---|
| 98 | 98 | | (b) The comptroller shall adjust the municipality's |
|---|
| 99 | 99 | | allocation and distribution of funds under Sections 321.501 and |
|---|
| 100 | 100 | | 321.502, Tax Code, in an amount equal to the amount of unencumbered |
|---|
| 101 | 101 | | grant funds remaining on hand or funds the comptroller determines |
|---|
| 102 | 102 | | were used for a purpose not authorized by this subchapter. |
|---|
| 103 | 103 | | SECTION 2. This Act takes effect immediately if it receives |
|---|
| 104 | 104 | | a vote of two-thirds of all the members elected to each house, as |
|---|
| 105 | 105 | | provided by Section 39, Article III, Texas Constitution. If this |
|---|
| 106 | 106 | | Act does not receive the vote necessary for immediate effect, this |
|---|
| 107 | 107 | | Act takes effect September 1, 2009. |
|---|