Bill Text: TX HB1917 | 2019-2020 | 86th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
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 - Dead) 2019-05-10 - Referred to Finance [HB1917 Detail]
Download: Texas-2019-HB1917-Comm_Sub.html
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 - Dead) 2019-05-10 - Referred to Finance [HB1917 Detail]
Download: Texas-2019-HB1917-Comm_Sub.html
86R17803 CJC-D | |||
By: Murphy, Zerwas, Phelan, | H.B. No. 1917 | ||
Thompson of Harris | |||
Substitute the following for H.B. No. 1917: | |||
By: Longoria | C.S.H.B. No. 1917 |
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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 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. (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. |