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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation of the disaster response loan fund and the |
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permissible uses of that fund; making an appropriation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 403, Government Code, is amended by |
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adding Subchapter R to read as follows: |
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SUBCHAPTER R. DISASTER RESPONSE LOAN FUND |
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Sec. 403.501. DEFINITION. In this subchapter, "fund" means |
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the disaster response loan fund. |
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Sec. 403.502. CREATION OF FUND. (a) The disaster response |
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loan fund is created as a fund outside the state treasury with the |
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comptroller, to be administered by the comptroller. |
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(b) Money in the fund may be used only to provide short-term |
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loans to political subdivisions affected by a disaster in the |
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manner provided by this subchapter. |
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(c) The fund consists of: |
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(1) money appropriated, credited, or transferred to |
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the fund by the legislature; |
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(2) money received by the comptroller for the |
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repayment of a loan made from the fund; |
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(3) gifts or grants contributed to the fund; and |
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(4) interest earned on deposits and investments of the |
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fund. |
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Sec. 403.503. USE OF MONEY IN FUND. The comptroller by rule |
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shall establish a loan program to use money from the fund to provide |
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short-term loans for disaster relief or recovery projects to |
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political subdivisions that are located wholly or partly in an area |
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declared by the governor to be a disaster area and that the Federal |
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Emergency Management Agency has determined are eligible to receive |
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financial assistance from the agency in response to the disaster. |
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Sec. 403.504. LOANS FROM FUND. (a) A loan made from the |
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fund must be subject to the following conditions: |
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(1) the loan must be made at an interest rate that is |
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equal to the average of: |
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(A) the most recently published average monthly |
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rate of the investment pool managed by the comptroller known as |
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TexPool; and |
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(B) the most recent prime rate published in the |
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Wall Street Journal; |
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(2) the loan must be made for a term not to exceed two |
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years; and |
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(3) the loan proceeds must be expended solely for |
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disaster relief and recovery. |
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(b) The comptroller shall credit to the fund all principal |
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and interest payments on a loan from the fund. |
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(c) The comptroller shall suspend the award of loans from |
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the fund for the duration of a period during which the balance of |
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the fund is less than an amount equal to 75 percent of the total |
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balance of the fund on September 1, 2021. This subsection expires |
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August 31, 2022. |
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(d) The comptroller may not award a loan under this |
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subchapter if the award would affect the political subdivision's |
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receipt of federal money to which the political subdivision is |
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eligible as a result of the disaster. |
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Sec. 403.505. APPLICATION FOR LOAN. (a) The comptroller |
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and the Texas Division of Emergency Management shall jointly |
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develop and implement an application process for a loan under this |
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subchapter. At a minimum, the application must include: |
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(1) a description of the disaster relief or recovery |
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project for which the applicant is requesting the loan; |
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(2) an estimate of the total cost of the project; |
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(3) a statement of the amount of federal money that the |
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applicant will receive for the project, or, if that information is |
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not available on the date the applicant submits the application, an |
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estimate of the amount of that money; and |
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(4) evidence that the applicant has staff, policies, |
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and procedures in place adequate to complete the project. |
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(b) The comptroller may charge the applicant a fee |
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sufficient to cover the costs of processing the application. |
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Sec. 403.506. REPORT. Not later than December 31 of each |
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even-numbered year, the comptroller shall prepare and submit to the |
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governor, lieutenant governor, and each member of the legislature a |
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report that includes: |
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(1) the total amount of loans made from the fund during |
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the preceding two-year period; |
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(2) a summary of the disaster relief and recovery |
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projects for which the loans were made; and |
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(3) the total balance of the fund as of the date on |
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which the report is submitted. |
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SECTION 2. On September 1, 2021, the comptroller of public |
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accounts shall transfer $500 million of the unencumbered balance of |
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the general revenue fund on that date to the credit of the disaster |
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response loan fund, as created by this Act. |
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SECTION 3. This Act takes effect September 1, 2021. |