Bill Text: TX HB1917 | 2019-2020 | 86th Legislature | Engrossed


Bill Title: Relating to the creation of the disaster response loan fund and the permissible uses of that fund; making an appropriation; authorizing a fee.

Spectrum: Bipartisan Bill

Status: (Engrossed) 2019-05-10 - Referred to Finance [HB1917 Detail]

Download: Texas-2019-HB1917-Engrossed.html
 
 
  By: Murphy, Zerwas, Phelan, H.B. No. 1917
      Thompson of Harris, Bonnen of Galveston,
 
 
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 an interest rate that is
  equal to the average of:
                     (A)  the most recently published average monthly
  rate of the investment pool managed by the comptroller known as
  TexPool; and
                     (B)  the most recent prime rate published in the
  Wall Street Journal;
               (2)  the loan must be made for a term not to exceed two
  years; and
 
               (3)  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 Texas Division of Emergency Management 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.  On September 1, 2019, the comptroller of public
  accounts shall transfer $500 million of the unencumbered balance of
  the general revenue fund on that date to the credit of the disaster
  response loan fund, as created by this Act.
         SECTION 3.  This Act takes effect September 1, 2019.
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