81R9187 KLA-D
By: Eiland H.B. No. 2749
A BILL TO BE ENTITLED
AN ACT
relating to economic recovery grants for certain municipalities
following public calamities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 418, Government Code, is amended by
adding Subchapter D-1 to read as follows:
SUBCHAPTER D-1. GRANTS FOR ECONOMIC RECOVERY FOLLOWING PUBLIC
CALAMITY
Sec. 418.081. DEFINITIONS. In this subchapter:
(1) "Designated disaster area" means a geographical
area of this state declared a disaster area by the governor under
this chapter.
(2) "Disaster remediation project" means a project
undertaken to restore the economy of a designated disaster area
following a disaster, or to otherwise economically recover from or
mitigate the effects of a disaster in a designated disaster area.
The term includes projects financed in part using matching funds
from a federal or state governmental entity and projects for
removal, cleaning, sanitizing, demolition, reconstruction, or
other treatment of improvements to real property undertaken because
of damage or destruction to that property caused by a natural
disaster.
Sec. 418.082. REQUEST FOR ECONOMIC RECOVERY GRANT. (a) The
governing body of a municipality located in a designated disaster
area may submit to the governor a request for a grant of public
money authorized under Section 52-a, Article III, Texas
Constitution, subject to the requirements of this subchapter, for
the public purposes of redeveloping the municipality's economy
following a disaster and mitigating the effects of that disaster on
both the municipality's and the state's economies.
(b) A request made under this section must include a
detailed disaster remediation plan that specifies:
(1) the period for which the grant is requested, not to
exceed two years from the date of the governor's initial
proclamation or executive order declaring the area in which the
municipality is located to be a disaster area; and
(2) the disaster remediation projects that grant
funds, if approved, would be used to wholly or partly finance,
subject to Subsection (c).
(c) The governor may approve a municipality's request or may
require that the municipality modify and resubmit the request for
consideration and approval. The governor shall notify the
comptroller of an approved request and the period for which the
grant is approved.
Sec. 418.083. FUNDING. (a) An economic recovery grant
approved by the governor under this subchapter for a municipality
is a grant of state aid necessitated by a public calamity and shall
be funded using proceeds from the collection of the taxes imposed by
Chapter 151, Tax Code, in connection with a sale, storage, use, or
other consumption that is consummated in the municipality during
the grant period specified in the municipality's disaster
remediation plan. Notwithstanding Section 151.801(a), Tax Code,
and subject to Sections 151.801(b) and (c), Tax Code, the
comptroller shall deposit the taxes described by this subsection
that are collected by the comptroller in trust in a separate
suspense account of the municipality.
(b) Not later than the fifth day of each month, the
comptroller shall send to the municipal treasurer or to the person
who performs the office of the municipal treasurer the taxes
deposited in the suspense account under Subsection (a), payable to
the municipality.
Sec. 418.084. USE OF GRANT FUNDS. (a) Economic recovery
grant funds received under this subchapter may be used only for
disaster remediation projects included in the municipality's
approved grant request that are undertaken in the municipality to
which the grant is awarded. The municipality shall give first
priority to using the funds to leverage matching funds available
from the Federal Emergency Management Agency and to stabilize the
bond ratings of bonds issued by the municipality.
(b) A municipality may not use grant funds under this
subchapter for ordinary operating expenses of the municipality
unrelated to a disaster remediation project included in the
municipality's approved grant request.
Sec. 418.085. QUARTERLY REPORTS. Not later than the 30th
day after the last day of each calendar quarter during the period
for which a grant is approved, the governing body of the
municipality for which the grant was approved shall submit to the
governor a report regarding the use of the grant funds. The report
must provide a detailed accounting of the amount of funds received
from the comptroller as provided by Section 418.083, the
expenditures of grant funds during the previous calendar quarter,
and the amount of unencumbered grant funds remaining on hand.
Sec. 418.086. FINAL REPORT. (a) Not later than the 180th
day after the expiration of the period for which a grant is
approved, the governing body of the municipality for which the
grant was approved shall submit to the governor and the comptroller
a final report regarding the use of the grant funds. The report
must provide a detailed accounting of the amount of funds received
from the comptroller as provided by Section 418.083 not included on
a previous report, the expenditures of grant funds not included on a
previous report, and the amount of unencumbered grant funds
remaining on hand.
(b) The comptroller shall adjust the municipality's
allocation and distribution of funds under Sections 321.501 and
321.502, Tax Code, in an amount equal to the amount of unencumbered
grant funds remaining on hand or funds the comptroller determines
were used for a purpose not authorized by this subchapter.
SECTION 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2009.