| 1 | | - | By: Morrison, et al. (Senate Sponsor - Kolkhorst) H.B. No. 2696 |
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| 2 | | - | (In the Senate - Received from the House May 17, 2021; |
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| 3 | | - | May 17, 2021, read first time and referred to Committee on Finance; |
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| 4 | | - | May 21, 2021, reported favorably by the following vote: Yeas 9, |
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| 5 | | - | Nays 0; May 21, 2021, sent to printer.) |
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| 6 | | - | Click here to see the committee vote |
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| 1 | + | 87R17872 CJC-F |
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| 2 | + | By: Morrison, Harless, et al. H.B. No. 2696 |
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| 7 | 3 | | |
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| 8 | 4 | | |
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| 9 | 5 | | A BILL TO BE ENTITLED |
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| 10 | 6 | | AN ACT |
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| 11 | 7 | | relating to eligibility for a loan under the disaster recovery loan |
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| 12 | 8 | | program. |
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| 13 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 14 | 10 | | SECTION 1. Section 418.062, Government Code, is amended to |
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| 15 | 11 | | read as follows: |
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| 16 | 12 | | Sec. 418.062. ELIGIBILITY FOR LOAN. (a) A political |
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| 17 | 13 | | subdivision may apply to the division for a loan under this |
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| 18 | 14 | | subchapter if: |
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| 19 | 15 | | (1) the political subdivision: |
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| 20 | 16 | | (A) is located wholly or partly in an area |
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| 21 | 17 | | declared to be a disaster area by the governor or the president of |
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| 22 | 18 | | the United States; and |
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| 23 | 19 | | (B) before applying to the division for a loan |
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| 24 | 20 | | under this subchapter, submits[: |
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| 25 | 21 | | [(i) has submitted] to the division[, |
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| 26 | 22 | | within 15 days of the date of its adoption by the governing body of |
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| 27 | 23 | | the political subdivision,] the political subdivision's operating |
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| 28 | 24 | | budget for the most recent fiscal year; [and |
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| 29 | 25 | | [(ii) has submitted an application for a |
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| 30 | 26 | | loan from the Federal Emergency Management Agency's community |
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| 31 | 27 | | disaster loan program;] |
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| 32 | 28 | | (2) an assessment of damages due to the disaster for |
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| 33 | 29 | | which the declaration was made has been conducted in the political |
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| 34 | 30 | | subdivision; and |
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| 35 | 31 | | (3) the division[, in consultation with the Federal |
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| 36 | 32 | | Emergency Management Agency,] determines that the political |
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| 37 | 33 | | subdivision's estimated cost to appropriately respond to [rebuild |
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| 38 | 34 | | the political subdivision's infrastructure damaged in] the |
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| 39 | 35 | | disaster is greater than 50 percent of the political subdivision's |
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| 40 | 36 | | total revenue for the current year as shown in the most recent |
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| 41 | 37 | | operating budget of the political subdivision submitted to the |
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| 42 | 38 | | division under this section. |
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| 43 | 39 | | (b) The division may consult with the Federal Emergency |
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| 44 | 40 | | Management Agency in making the determination required under |
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| 45 | 41 | | Subsection (a)(3). |
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| 46 | 42 | | SECTION 2. The change in law made by this Act applies only |
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| 47 | 43 | | to a loan the application for which is filed on or after the |
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| 48 | 44 | | effective date of this Act. A loan the application for which is |
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| 49 | 45 | | filed before that date is governed by the law in effect on the date |
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| 50 | 46 | | on which the application was filed, and the former law is continued |
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| 51 | 47 | | in effect for that purpose. |
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| 52 | 48 | | SECTION 3. This Act takes effect immediately if it receives |
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| 53 | 49 | | a vote of two-thirds of all the members elected to each house, as |
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| 54 | 50 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 55 | 51 | | Act does not receive the vote necessary for immediate effect, this |
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| 56 | 52 | | Act takes effect September 1, 2021. |
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