Texas House Bill HB2812

Texas 2021 - 87th Regular

Caption

Relating to the creation of the disaster response loan fund and the permissible uses of that fund; making an appropriation.

Impact

The bill amends Chapter 403 of the Government Code, creating a specific subchapter dedicated to the Disaster Response Loan Fund. According to the bill, the fund will consist of money appropriated by the legislature, repayments and interest earned on loans, as well as possible gifts and grants. An appropriation of $500 million from the unencumbered balance of the general revenue fund will initially capitalize the Disaster Response Loan Fund. This financial framework ensures that sufficient resources are available for rapid response in times of statewide emergencies caused by natural disasters.

Summary

House Bill 2812 is an act that establishes the Disaster Response Loan Fund to provide short-term loans to political subdivisions affected by disasters. This fund is intended to assist areas declared disaster zones by the governor, particularly those recognized by the Federal Emergency Management Agency (FEMA) as eligible for federal financial assistance. The fund is created outside the state treasury and will be administered by the comptroller, who will also provide the rules for loan distribution.

Contention

Discussion surrounding HB 2812 may center on the criteria and conditions of the loans. For instance, loans made from the fund must be at a specific interest rate and can only fund projects directly related to disaster relief and recovery. There could be points of contention regarding the potential impact on the communities' ability to manage their recovery and how the fund's established rules may influence the speed and accessibility of aid. Furthermore, the potential suspension of loan awards if the fund balance drops below a certain threshold raises concerns about maintaining ongoing support through long-term recovery efforts.