1-1                                   AN ACT

 1-2     relating to the funding and operation of certain emergency

 1-3     management and disaster relief programs.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Section 418.004(1), Government Code, is amended

 1-6     to read as follows:

 1-7                 (1)  "Disaster" means the occurrence or imminent threat

 1-8     of widespread or severe damage, injury, or loss of life or property

 1-9     resulting from any natural or man-made cause, including fire,

1-10     flood, earthquake, wind, storm, wave action, oil spill or other

1-11     water contamination, volcanic activity, epidemic, air

1-12     contamination, blight, drought, infestation, explosion, riot,

1-13     terrorist activity, hostile military or paramilitary action, other

1-14     public calamity requiring emergency action, or energy emergency.

1-15           SECTION 2.  Section 418.021, Government Code, is amended to

1-16     read as follows:

1-17           Sec. 418.021.  FEDERAL AID [FOR LOCAL GOVERNMENT].  [(a)]  On

1-18     the governor's determination that a situation is [local government]

1-19     of such severity and magnitude that an effective response is beyond

1-20     the capabilities of the state and the affected political

1-21     subdivision and that federal assistance is necessary [has suffered

1-22     or will suffer a substantial loss of tax and other revenue from a

1-23     major disaster and has demonstrated a need for financial assistance

1-24     to perform its governmental functions], the governor may request

 2-1     [apply to the] federal assistance [government on behalf of the

 2-2     local government for a loan and may receive and disburse the

 2-3     proceeds of an approved loan] to:

 2-4                 (1)  save lives, protect property, and preserve the

 2-5     public health and safety;

 2-6                 (2)  lessen or avert the threat of a catastrophe;

 2-7                 (3)  supplement the efforts of available resources of

 2-8     the state, the affected local government, and organized volunteer

 2-9     groups; and

2-10                 (4)  provide compensation for uninsured

2-11     disaster-related losses.

2-12           [(b)  The governor may determine the amount needed by a local

2-13     government to restore or resume its governmental functions and

2-14     certify that amount to the federal government.  The amount sought

2-15     for the local government may not exceed 25 percent of the annual

2-16     operating budget of the local government for the fiscal year in

2-17     which the major disaster occurs.]

2-18           [(c)  The governor may recommend to the federal government,

2-19     based on the governor's review, the cancellation of all or part of

2-20     repayment if in the first three full fiscal years following the

2-21     major disaster the revenues of the local government are

2-22     insufficient to meet its operating expenses, including additional

2-23     disaster-related expenses of a municipal operation character.]

2-24           SECTION 3.  Section 418.022, Government Code, is amended  to

2-25     read as follows:

2-26           Sec. 418.022.  AID FOR INDIVIDUALS AND FAMILIES.  (a)  On the

2-27     governor's determination that financial assistance is essential to

 3-1     meet disaster-related necessary expenses or serious needs of

 3-2     individuals or families adversely affected by a major disaster that

 3-3     cannot be otherwise adequately met from other means of assistance,

 3-4     the governor may accept a grant by the federal government to fund

 3-5     the financial assistance, subject to the terms and conditions

 3-6     imposed on the grant.  The governor may agree with the federal

 3-7     government or any officer or agency of the United States pledging

 3-8     the state to participate in funding not more than 25 percent of the

 3-9     financial assistance.

3-10           (b)  The governor may make financial grants to meet

3-11     disaster-related necessary expenses or serious needs of individuals

3-12     or families adversely affected by a major disaster that cannot

3-13     otherwise adequately be met from other means of assistance.  The

3-14     grants may not exceed an aggregate amount in excess of that

3-15     established by federal statute for an individual or family in any

3-16     single major disaster declared by the president of the United

3-17     States.

3-18           (c)  In a disaster that is not declared by the president of

3-19     the United States or a disaster that is declared by the president

3-20     of the United States but in which individual or family assistance

3-21     is not granted and in which the governor determines that disaster

3-22     relief will not be sufficient to address serious needs of the

3-23     victims of the disaster, the governor may make grants to meet

3-24     disaster-related necessary expenses or other serious needs of

3-25     individuals or families adversely affected by the disaster.  A

3-26     grant under this subsection is limited to financial assistance for

3-27     housing repairs, repair or replacement of personal property,

 4-1     transportation expenses, and funeral, dental, medical, and other

 4-2     analogous expenses considered necessary to meet a serious need and

 4-3     may not exceed $5,000 per individual or family.  The governor may

 4-4     reduce or withdraw assistance under this subsection if the grants

 4-5     are not used within a period established by the governor.

 4-6           (d)  The governor may designate in the state emergency

 4-7     management plan the Texas Department of Human Services or another

 4-8     state agency to carry out the functions of providing financial aid

 4-9     to individuals or families qualified for disaster relief.  The

4-10     designated agency may employ temporary personnel for those

4-11     functions to be paid from funds appropriated to the agency, from

4-12     federal funds, or from the disaster management [contingency] fund.

4-13     The merit system does not apply to the temporary positions.  The

4-14     governor may allocate funds appropriated under this chapter to

4-15     implement the purposes of this chapter.

4-16           SECTION 4.  Section 418.023, Government Code, is amended by

4-17     adding Subsection (e) to read as follows:

4-18           (e)  In a disaster that is not declared by the president of

4-19     the United States or a disaster that is declared by the president

4-20     of the United States but in which public assistance is not granted,

4-21     the governor may provide funds under Section 418.073 to a political

4-22     subdivision for expenses incurred by the political subdivision in

4-23     the clearance, removal, and disposal of debris.

4-24           SECTION 5.  Subchapter B, Chapter 418, Government Code, is

4-25     amended by adding Sections 418.0231 and 418.0232 to read as

4-26     follows:

4-27           Sec. 418.0231.  ASSISTANCE FOR REPAIR OR REPLACEMENT OF

 5-1     HIGHWAYS OR STREETS;  WATER CONTROL STRUCTURES.  (a)  In a disaster

 5-2     that is not declared by the president of the United States or a

 5-3     disaster that is declared by the president of the United States but

 5-4     in which public assistance is not granted, the governor may provide

 5-5     funds under Section 418.073 to a political subdivision for expenses

 5-6     incurred by the political subdivision in the repair or replacement

 5-7     of a damaged highway or street or water control structure if no

 5-8     other means of financial assistance is available.

 5-9           (b)  The governor may withdraw assistance under this section

5-10     for repair or replacement work that is performed after the first

5-11     anniversary of the date on which the disaster occurred.

5-12           (c)  In this section, "highway or street" has the meaning

5-13     assigned by Section 541.302, Transportation Code.

5-14           Sec. 418.0232.  HAZARD MITIGATION ASSISTANCE.  (a)  In a

5-15     disaster that is not declared by the president of the United States

5-16     or a disaster that is declared by the president of the United

5-17     States but in which hazard mitigation assistance is not granted,

5-18     the governor may provide funds under Section 418.073 for an amount

5-19     not to exceed 50 percent of the cost of hazard mitigation measures

5-20     that are determined by the governor to:

5-21                 (1)  be cost-effective; and

5-22                 (2)  substantially reduce the risk of future damage,

5-23     loss, or suffering in any area affected by the disaster.

5-24           (b)  The total contribution of funds under this section may

5-25     not exceed 20 percent of the estimated aggregate amount of grants

5-26     made under this chapter related to that disaster.

5-27           SECTION 6.  Section 418.024, Government Code, is amended to

 6-1     read as follows:

 6-2           Sec. 418.024.  RULES.  The governor may adopt rules necessary

 6-3     for carrying out the purposes of this chapter, including rules on:

 6-4                 (1)  standards of eligibility for persons and political

 6-5     subdivisions applying for assistance [benefits];

 6-6                 (2)  procedures for applying for assistance [benefits];

 6-7                 (3)  procedures for the administration, investigation,

 6-8     filing, and approval of applications for assistance [benefits];

 6-9                 (4)  procedures for the formation of local or statewide

6-10     boards to pass on applications for assistance [benefits]; and

6-11                 (5)  procedures for appeals of decisions relating to

6-12     applications for assistance [benefits].

6-13           SECTION 7.  Section 418.045, Government Code, is amended to

6-14     read as follows:

6-15           Sec. 418.045.  TEMPORARY PERSONNEL.  The division may employ

6-16     or hire on a contract basis temporary personnel from funds

6-17     appropriated to the division, from federal funds, or from the

6-18     disaster management [contingency] fund.  The merit system does not

6-19     apply to the temporary positions.

6-20           SECTION 8.  Subchapter D, Chapter 418, Government Code, is

6-21     amended by amending Section 418.073 and adding Section 418.0731 to

6-22     read as follows:

6-23           Sec. 418.073.  DISASTER MANAGEMENT [CONTINGENCY] FUND.  (a)

6-24     The disaster management [contingency] fund is a trust fund

6-25     established in the Texas Treasury Safekeeping Trust Company, and

6-26     shall be administered by that company as provided by Subchapter G,

6-27     Chapter 404.  The fund consists of:

 7-1                 (1)  money collected under Section 1.3531, Public

 7-2     Utility Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas

 7-3     Civil Statutes); and

 7-4                 (2)  any additional money appropriated to the fund.

 7-5           (b)  The [If the governor finds that the demands placed on

 7-6     funds regularly appropriated to state and local agencies are

 7-7     unreasonably great for coping with a particular disaster, the]

 7-8     governor, with the concurrence of the disaster emergency funding

 7-9     board, may make funds available from the disaster management

7-10     [contingency] fund to provide money for emergency management and

7-11     disaster relief programs the costs of which exceed the funds

7-12     regularly appropriated to state and local agencies.  It is the

7-13     intent of the legislature that first recourse for emergency

7-14     management and disaster relief be to the funds regularly

7-15     appropriated to state and local agencies for those purposes.

7-16           Sec. 418.0731.  USE OF FUND.  (a)  Except as provided by

7-17     Subsection (b), money in the disaster management fund may be used

7-18     only for emergency management and disaster relief programs.

7-19           (b)  In addition to the uses authorized under Subsection (a),

7-20     the governor may authorize the use of:

7-21                 (1)  10 percent of the disaster management fund for

7-22     payment of the administrative expenses of the division;

7-23                 (2)  15 percent of the disaster management fund for

7-24     payment of expenses relating to emergency management training as

7-25     prescribed by the division that are incurred by state agencies or

7-26     political subdivisions;

7-27                 (3)  the disaster management fund for expenses incurred

 8-1     in implementation of the mutual aid assistance authorized under

 8-2     Section 418.109 and prescribed by the division; and

 8-3                 (4)  four percent of the disaster management fund for

 8-4     expenses for implementation of statewide notification systems or

 8-5     services.

 8-6           SECTION 9.  Subtitle J, Title I, Public Utility Regulatory

 8-7     Act of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is

 8-8     amended by adding Section 1.3531 to read as follows:

 8-9           Sec. 1.3531.  ASSESSMENT FOR DISASTER RELIEF.  (a)  In

8-10     addition to the assessment imposed on each public utility within

8-11     the commission's jurisdiction under Section 1.351 of this Act, an

8-12     annual assessment is imposed under this section on each electric

8-13     utility and municipally owned utility serving the ultimate

8-14     customer.

8-15           (b)  The assessment imposed under this section is equal to

8-16     one-thirtieth of one percent of the gross receipts of the utility

8-17     from rates charged to ultimate consumers in this state.  The

8-18     assessment shall be deposited in the disaster management fund

8-19     established under Section 418.073, Government Code.

8-20           (c)  Notwithstanding any other provision of this Act,

8-21     including a provision that authorizes or requires a freeze of

8-22     utility rates, the regulatory authority shall provide for the

8-23     adjustment of a public or municipally owned electric utility's

8-24     billings to recover the additional assessment imposed under this

8-25     section and any additional taxes and fees resulting from that

8-26     assessment.

8-27           (d)  Each public utility and municipally owned electric

 9-1     utility shall include the adjustment established under Subsection

 9-2     (c) of this section in its rates, but may not separately state the

 9-3     additional assessment on consumers' bills.

 9-4           (e)  Each public utility and municipally owned electric

 9-5     utility shall file a tariff with each regulatory authority that has

 9-6     original jurisdiction over the rates of ultimate consumers for that

 9-7     utility.  The adjustment provision takes effect and becomes part of

 9-8     the utility's rates on the date on which that tariff is filed with

 9-9     the appropriate regulatory authority.  Section 2.108 of this Act

9-10     does not apply to any action taken under this section.

9-11           (f)  Sections 1.352 and 1.353 of this Act apply to an

9-12     assessment made under this section.

9-13           (g)  The assessment imposed by this section shall not apply

9-14     to any investor-owned electric utility reorganized under a plan of

9-15     reorganization that has been confirmed by a federal bankruptcy

9-16     court if such utility cannot adjust its rates to recover the

9-17     assessment.

9-18           (h)  This section expires September 1, 2000.

9-19           SECTION 10.  Section 1.354(a), Public Utility Regulatory Act

9-20     of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is

9-21     amended to read as follows:

9-22           (a)  The comptroller shall collect and pay into:

9-23                 (1)  the general revenue fund all [All] fees,

9-24     penalties, and interest paid under the provisions of Sections

9-25     1.351, 1.352, and 1.353 of this Act; and

9-26                 (2)  the disaster management fund established under

9-27     Section 418.073, Government Code, the additional assessment imposed

 10-1    under Section 1.3531 of this Act, and all fees, penalties, and

 10-2    interest related to that assessment [shall be collected by the

 10-3    comptroller of public accounts and paid into the general revenue

 10-4    fund].

 10-5          SECTION 11.  On the effective date of this Act, the disaster

 10-6    contingency fund account is abolished, and the comptroller shall

 10-7    transfer any unencumbered credit in that account to the disaster

 10-8    management fund established as a trust fund in the Texas Treasury

 10-9    Safekeeping Trust Company, as provided under Section 418.073,

10-10    Government Code, as amended by this Act.

10-11          SECTION 12.  The importance of this legislation and the

10-12    crowded condition of the calendars in both houses create an

10-13    emergency and an imperative public necessity that the

10-14    constitutional rule requiring bills to be read on three several

10-15    days in each house be suspended, and this rule is hereby suspended,

10-16    and that this Act take effect and be in force from and after its

10-17    passage, and it is so enacted.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I certify that H.B. No. 99 was passed by the House on May 9,

         1997, by a non-record vote; and that the House concurred in Senate

         amendments to H.B. No. 99 on May 30, 1997, by the following vote:

         Yeas 139, Nays 1, 1 present, not voting.

                                             _______________________________

                                                 Chief Clerk of the House

               I certify that H.B. No. 99 was passed by the Senate, with

         amendments, on May 28, 1997, by the following vote:  Yeas 22, Nays

         2.

                                             _______________________________

                                                 Secretary of the Senate

         APPROVED:  _____________________

                            Date

                    _____________________

                          Governor