86R7824 CJC-D
By: Murphy H.B. No. 1917
A BILL TO BE ENTITLED
AN ACT
relating to the creation of the disaster response loan fund and the
permissible uses of that fund; making an appropriation; authorizing
a fee.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 403, Government Code, is amended by
adding Subchapter R to read as follows:
SUBCHAPTER R. DISASTER RESPONSE LOAN FUND
Sec. 403.501. DEFINITION. In this subchapter, "fund" means
the disaster response loan fund.
Sec. 403.502. CREATION OF FUND. (a) The disaster response
loan fund is created as a fund outside the state treasury with the
comptroller, to be administered by the comptroller.
(b) Money in the fund may be used only to provide short-term
loans to political subdivisions affected by a disaster in the
manner provided by this subchapter.
(c) The fund consists of:
(1) money appropriated, credited, or transferred to
the fund by the legislature;
(2) money received by the comptroller for the
repayment of a loan made from the fund;
(3) gifts or grants contributed to the fund; and
(4) interest earned on deposits and investments of the
fund.
Sec. 403.503. USE OF MONEY IN FUND. The comptroller by rule
shall establish a loan program to use money from the fund to provide
short-term loans for disaster relief or recovery projects to
political subdivisions that are located wholly or partly in an area
declared by the governor to be a disaster area and that the Federal
Emergency Management Agency has determined are eligible to receive
financial assistance from the agency in response to the disaster.
Sec. 403.504. LOANS FROM FUND. (a) A loan made from the
fund must be subject to the following conditions:
(1) the loan must be made at or below market interest
rates for a term not to exceed two years; and
(2) the loan proceeds must be expended solely for
disaster relief and recovery.
(b) The comptroller shall credit to the fund all principal
and interest payments on a loan from the fund.
(c) The comptroller shall suspend the award of loans from
the fund for the duration of a period during which the balance of
the fund is less than an amount equal to 75 percent of the total
balance of the fund on September 1, 2019. This subsection expires
August 31, 2020.
(d) The comptroller may not award a loan under this
subchapter if the award would affect the political subdivision's
receipt of federal money to which the political subdivision is
eligible as a result of the disaster.
Sec. 403.505. APPLICATION FOR LOAN. (a) The comptroller
and the General Land Office shall jointly develop and implement an
application process for a loan under this subchapter. At a minimum,
the application must include:
(1) a description of the disaster relief or recovery
project for which the applicant is requesting the loan;
(2) an estimate of the total cost of the project;
(3) a statement of the amount of federal money that the
applicant will receive for the project, or, if that information is
not available on the date the applicant submits the application, an
estimate of the amount of that money; and
(4) evidence that the applicant has staff, policies,
and procedures in place adequate to complete the project.
(b) The comptroller may charge the applicant a fee
sufficient to cover the costs of processing the application.
Sec. 403.506. REPORT. Not later than December 31 of each
even-numbered year, the comptroller shall prepare and submit to the
governor, lieutenant governor, and each member of the legislature a
report that includes:
(1) the total amount of loans made from the fund during
the preceding two-year period;
(2) a summary of the disaster relief and recovery
projects for which the loans were made; and
(3) the total balance of the fund as of the date on
which the report is submitted.
SECTION 2. (a) The amount of $1 billion is appropriated
from the economic stabilization fund to the comptroller for the
purpose of transferring that amount immediately to the credit of
the disaster response loan fund, as created by this Act.
(b) This section takes effect only if this Act is approved
by a vote of two-thirds of the members present in each house of the
legislature, as provided by Section 49-g(m), Article III, Texas
Constitution.
SECTION 3. Except as otherwise provided by this Act, this
Act takes effect September 1, 2019.