Texas 2019 - 86th Regular

Texas House Bill HB1917 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
	1	+	86R17803 CJC-D
1	2		By: Murphy, Zerwas, Phelan, H.B. No. 1917
2		-	Thompson of Harris, Bonnen of Galveston,
	3	+	Thompson of Harris
	4	+	Substitute the following for H.B. No. 1917:
	5	+	By: Longoria C.S.H.B. No. 1917
3	6
4	7
5	8		A BILL TO BE ENTITLED
6	9		AN ACT
7	10		relating to the creation of the disaster response loan fund and the
8	11		permissible uses of that fund; making an appropriation; authorizing
9	12		a fee.
10	13		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	14		SECTION 1. Chapter 403, Government Code, is amended by
12	15		adding Subchapter R to read as follows:
13	16		SUBCHAPTER R. DISASTER RESPONSE LOAN FUND
14	17		Sec. 403.501. DEFINITION. In this subchapter, "fund" means
15	18		the disaster response loan fund.
16	19		Sec. 403.502. CREATION OF FUND. (a) The disaster response
17	20		loan fund is created as a fund outside the state treasury with the
18	21		comptroller, to be administered by the comptroller.
19	22		(b) Money in the fund may be used only to provide short-term
20	23		loans to political subdivisions affected by a disaster in the
21	24		manner provided by this subchapter.
22	25		(c) The fund consists of:
23	26		(1) money appropriated, credited, or transferred to
24	27		the fund by the legislature;
25	28		(2) money received by the comptroller for the
26	29		repayment of a loan made from the fund;
27	30		(3) gifts or grants contributed to the fund; and
28	31		(4) interest earned on deposits and investments of the
29	32		fund.
30	33		Sec. 403.503. USE OF MONEY IN FUND. The comptroller by rule
31	34		shall establish a loan program to use money from the fund to provide
32	35		short-term loans for disaster relief or recovery projects to
33	36		political subdivisions that are located wholly or partly in an area
34	37		declared by the governor to be a disaster area and that the Federal
35	38		Emergency Management Agency has determined are eligible to receive
36	39		financial assistance from the agency in response to the disaster.
37	40		Sec. 403.504. LOANS FROM FUND. (a) A loan made from the
38	41		fund must be subject to the following conditions:
39		-	(1) the loan must be made at an interest rate that is
40		-	equal to the average of:
41		-	(A) the most recently published average monthly
42		-	rate of the investment pool managed by the comptroller known as
43		-	TexPool; and
44		-	(B) the most recent prime rate published in the
45		-	Wall Street Journal;
46		-	(2) the loan must be made for a term not to exceed two
47		-	years; and
48		-	(3) the loan proceeds must be expended solely for
	42	+	(1) the loan must be made at or below market interest
	43	+	rates for a term not to exceed two years; and
	44	+	(2) the loan proceeds must be expended solely for
49	45		disaster relief and recovery.
50	46		(b) The comptroller shall credit to the fund all principal
51	47		and interest payments on a loan from the fund.
52	48		(c) The comptroller shall suspend the award of loans from
53	49		the fund for the duration of a period during which the balance of
54	50		the fund is less than an amount equal to 75 percent of the total
55	51		balance of the fund on September 1, 2019. This subsection expires
56	52		August 31, 2020.
57	53		(d) The comptroller may not award a loan under this
58	54		subchapter if the award would affect the political subdivision's
59	55		receipt of federal money to which the political subdivision is
60	56		eligible as a result of the disaster.
61	57		Sec. 403.505. APPLICATION FOR LOAN. (a) The comptroller
62	58		and the Texas Division of Emergency Management shall jointly
63	59		develop and implement an application process for a loan under this
64	60		subchapter. At a minimum, the application must include:
65	61		(1) a description of the disaster relief or recovery
66	62		project for which the applicant is requesting the loan;
67	63		(2) an estimate of the total cost of the project;
68	64		(3) a statement of the amount of federal money that the
69	65		applicant will receive for the project, or, if that information is
70	66		not available on the date the applicant submits the application, an
71	67		estimate of the amount of that money; and
72	68		(4) evidence that the applicant has staff, policies,
73	69		and procedures in place adequate to complete the project.
74	70		(b) The comptroller may charge the applicant a fee
75	71		sufficient to cover the costs of processing the application.
76	72		Sec. 403.506. REPORT. Not later than December 31 of each
77	73		even-numbered year, the comptroller shall prepare and submit to the
78	74		governor, lieutenant governor, and each member of the legislature a
79	75		report that includes:
80	76		(1) the total amount of loans made from the fund during
81	77		the preceding two-year period;
82	78		(2) a summary of the disaster relief and recovery
83	79		projects for which the loans were made; and
84	80		(3) the total balance of the fund as of the date on
85	81		which the report is submitted.
86		-	SECTION 2. On September 1, 2019, the comptroller of public
87		-	accounts shall transfer $500 million of the unencumbered balance of
88		-	the general revenue fund on that date to the credit of the disaster
89		-	response loan fund, as created by this Act.
90		-	SECTION 3. This Act takes effect September 1, 2019.
	82	+	SECTION 2. (a) The amount of $1 billion is appropriated
	83	+	from the economic stabilization fund to the comptroller for the
	84	+	purpose of transferring that amount immediately to the credit of
	85	+	the disaster response loan fund, as created by this Act.
	86	+	(b) This section takes effect only if this Act is approved
	87	+	by a vote of two-thirds of the members present in each house of the
	88	+	legislature, as provided by Section 49-g(m), Article III, Texas
	89	+	Constitution.
	90	+	SECTION 3. Except as otherwise provided by this Act, this
	91	+	Act takes effect September 1, 2019.