Enrolled Bill Summary

House Bill 4102	House Author:  Eiland et al.
Effective:  6-19-09	Senate Sponsor:  Carona et al.

            House Bill 4102 amends the Education Code to establish provisions, to be implemented by the commissioner of education, relating to a school district located in a declared disaster area that incurs disaster remediation costs.  For the two-year period following the governor's initial disaster declaration, the bill reduces the total amount a district must pay for attendance credits by the amount of any disaster remediation costs the district pays during that period and does not anticipate recovering through insurance, federal disaster relief, or another reimbursement source.  The bill sets forth a temporary provision expiring September 1, 2010, providing for the determination of the reduction to which a district is entitled for the 2009-2010 school year.  The bill permits a district, during the two-year period, to apply to the commissioner for reimbursement of disaster remediation costs paid during that period and not anticipated to be recovered through other reimbursement sources, and authorizes a district to seek reimbursement for costs paid on or after September 1, 2008.  The bill sets forth provisions for funding reimbursements from the Foundation School Program and other sources, requiring full reimbursement of each district that is at or below the equalized wealth level before reimbursing districts that are above the level.  The bill prohibits a district that exceeds the equalized wealth level from obtaining reimbursement for the payment of any disaster remediation costs that resulted in a reduction of the district's cost of attendance credits.  It authorizes the commissioner to permit a district to use funds available as a result of either a reduction in attendance credit costs or a reimbursement for disaster remediation costs to replace a facility instead of repairing it, but prohibits the district from receiving a reduction  or reimbursement that exceeds the lesser amount of repairing or replacing the facility. 

            House Bill 4102 requires the commissioner, for the two-year period following the governor's disaster declaration date and from funds appropriated or otherwise available for the purpose, to adjust the average daily attendance (ADA) of a district that experiences a decline in ADA due to the impact of a disaster in order to ensure that the district receives funding comparable to the funding it would have received if such decline had not occurred.  The bill requires the commissioner to adjust the taxable value of such a district to ensure that it receives funding based as soon as possible on property values as affected by the disaster. 

            House Bill 4102 authorizes the board of trustees of a school district, in the event of a catastrophe, emergency, or natural disaster affecting the district, to delegate to the superintendent or designated person the authority to contract for the emergency replacement, construction, or repair of school equipment or facilities if necessary for the health and safety of district students and staff. 

             House Bill 4102 amends the Government Code to allow any state or local government entity that participates in disaster preparation or recovery is eligible to request and receive funding from the disaster contingency fund to pay for any costs incurred by the state or local government entity in preparing for or recovering from a disaster. The bill removes provisions that limit the use of the funds to paying for extraordinary preventive costs and costs incurred in repairing damage suffered during a declared disaster. The bill requires a state or local government entity or other eligible entity that receives the funds for disaster recovery costs and that is subsequently reimbursed from the federal government, an insurer, or another source to reimburse the fund, and requires the governor's division of emergency management to implement reimbursement procedures.  Money in the fund may be used for a disaster risk financing instrument to leverage funds to cover extraordinary expenses and for providing funds to a local government entity suffering financial hardship due to a declared state of disaster in order to provide local matching funds for Federal Emergency Management Agency qualifying projects.