By Gray H.B. No. 99
75R1700 PB-D
A BILL TO BE ENTITLED
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 418.022, Government Code, is amended by
1-16 amending Subsections (b) and (c) and by adding Subsection (d) to
1-17 read as follows:
1-18 (b) The governor may make financial grants to meet
1-19 disaster-related necessary expenses or serious needs of individuals
1-20 or families adversely affected by a major disaster that cannot
1-21 otherwise adequately be met from other means of assistance. The
1-22 grants may not exceed an aggregate amount in excess of that
1-23 established by federal statute for an individual or family in any
1-24 single major disaster declared by the president of the United
2-1 States or the governor of this state.
2-2 (c) The governor may designate in the state emergency
2-3 management plan the Department of Human Services or another state
2-4 agency to carry out the functions of providing financial aid to
2-5 individuals or families qualified for disaster relief. The
2-6 designated agency may employ temporary personnel for those
2-7 functions to be paid from funds appropriated to the agency, from
2-8 federal funds, or from the disaster management [contingency] fund.
2-9 The merit system does not apply to the temporary positions. The
2-10 governor may allocate funds appropriated under this chapter to
2-11 implement the purposes of this chapter.
2-12 (d) For purposes of this section, "disaster relief" includes
2-13 "individual assistance" and "public assistance" as those terms are
2-14 defined under 44 C.F.R. Section 206.2.
2-15 SECTION 3. Section 418.045, Government Code, is amended to
2-16 read as follows:
2-17 Sec. 418.045. TEMPORARY PERSONNEL. The division may employ
2-18 or hire on a contract basis temporary personnel from funds
2-19 appropriated to the division, from federal funds, or from the
2-20 disaster management [contingency] fund. The merit system does not
2-21 apply to the temporary positions.
2-22 SECTION 4. Subchapter D, Chapter 418, Government Code, is
2-23 amended by amending Section 418.073 and adding Sections
2-24 418.0731-418.0734 to read as follows:
2-25 Sec. 418.073. DISASTER MANAGEMENT [CONTINGENCY] FUND. (a)
2-26 The disaster management [contingency] fund is a dedicated fund in
2-27 the state treasury. The fund consists of:
3-1 (1) money collected under Section 418.0731; and
3-2 (2) any additional money appropriated to the fund.
3-3 (b) The [If the governor finds that the demands placed on
3-4 funds regularly appropriated to state and local agencies are
3-5 unreasonably great for coping with a particular disaster, the]
3-6 governor, with the concurrence of the disaster emergency funding
3-7 board, may make funds available from the disaster management
3-8 [contingency] fund to provide money for emergency management and
3-9 disaster relief programs the costs of which exceed the funds
3-10 regularly appropriated to state and local agencies. It is the
3-11 intent of the legislature that first recourse for emergency
3-12 management and disaster relief be to the funds regularly
3-13 appropriated to state and local agencies for those purposes.
3-14 Sec. 418.0731. INSURANCE POLICY SURCHARGE. (a) Except as
3-15 provided by Subsection (b) and in addition to premium taxes, a
3-16 surcharge is assessed each year in the following amounts and on
3-17 each of the following policies of insurance:
3-18 (1) $2 for each:
3-19 (A) homeowner's policy;
3-20 (B) residential fire and allied lines insurance
3-21 policy; and
3-22 (C) farm and ranch owner's insurance policy;
3-23 (2) $4 for each commercial property lines policy; and
3-24 (3) $1 for each motor vehicle policy.
3-25 (b) The surcharge is payable at the time the policy of
3-26 insurance is issued or renewed. If the period for which a policy
3-27 is issued is six months, one-half of the amount of the surcharge
4-1 shall be collected. If the period for which a policy is issued is
4-2 less than six months, one-half of the amount of the surcharge shall
4-3 be collected for the first period and the remainder collected for
4-4 the first period occurring after the expiration of six months.
4-5 (c) The surcharge does not apply to a policy of insurance
4-6 the premiums of which are not included in the tax imposed by
4-7 Article 4.10, Insurance Code.
4-8 (d) The surcharge assessed under Subsection (a) shall be
4-9 paid by the policyholder to the insurer. The insurer shall collect
4-10 the surcharge and send it to the comptroller in the manner provided
4-11 by rules adopted under this subchapter.
4-12 (e) The surcharge does not constitute a premium owed for
4-13 insurance coverage, but the failure to pay the surcharge
4-14 constitutes a ground for cancellation of the policy on which the
4-15 surcharge is owed.
4-16 Sec. 418.0732. SUSPENSION OF ASSESSMENT; FUND CEILING. (a)
4-17 When the disaster management fund has an unencumbered credit of
4-18 $500 million or more, the surcharge provided by Section 418.0731 is
4-19 suspended subject to the notice required by this section.
4-20 (b) When the comptroller determines that the unencumbered
4-21 credit of the disaster management fund has risen to or descended
4-22 below the amount provided by Subsection (a), the comptroller shall
4-23 certify that determination to the division and shall send written
4-24 notice of the suspension of the surcharge or the termination of a
4-25 surcharge suspension, as appropriate, to each insurer who is
4-26 responsible for the collection of the surcharge under Section
4-27 418.0731(d). The surcharge may not be collected or required to be
5-1 paid on or after the first day of the second month after the date
5-2 on which the comptroller notifies the insurer of the suspension of
5-3 the surcharge.
5-4 (c) On receipt of a notice announcing the termination of a
5-5 surcharge suspension, an insurer shall notify each affected
5-6 policyholder in writing and shall resume collection of the
5-7 surcharge not later than the first day of the second month after
5-8 the date on which the comptroller notifies the insurer of the
5-9 termination of a surcharge suspension.
5-10 (d) For purposes of this section, the comptroller shall
5-11 determine the amount of unencumbered credit to the disaster
5-12 management fund at the end of each month.
5-13 Sec. 418.0733. RULES. The comptroller, in cooperation with
5-14 the commissioner of insurance, shall adopt rules as necessary to
5-15 implement this subchapter.
5-16 Sec. 418.0734. USE OF FUND. (a) Except as provided by
5-17 Subsection (b), money in the disaster management fund may be used
5-18 only for emergency management and disaster relief programs.
5-19 (b) In addition to the uses authorized under Subsection (a),
5-20 the governor may authorize the use of the disaster management fund
5-21 for payment of:
5-22 (1) the administrative expenses of the division;
5-23 (2) emergency management training expenses incurred by
5-24 state agencies or political subdivisions; and
5-25 (3) expenses incurred in implementation of the mutual
5-26 aid assistance authorized under Section 418.109.
5-27 SECTION 5. (a) Except as provided by Subsection (c) of this
6-1 section, this Act takes effect September 1, 1997.
6-2 (b) On the effective date of this Act, the disaster
6-3 contingency fund account is abolished, and the comptroller shall
6-4 transfer any unencumbered credit in that account to the disaster
6-5 management fund established under Section 418.073, Government Code,
6-6 as amended by this Act.
6-7 (c) Section 418.0731, Government Code, as added by this Act,
6-8 applies only to an insurance policy that is delivered, issued for
6-9 delivery, or renewed on or after January 1, 1998. A policy that is
6-10 delivered, issued for delivery, or renewed before January 1, 1998,
6-11 is governed by the law as it existed immediately before the
6-12 effective date of this Act, and that law is continued in effect for
6-13 that purpose.
6-14 SECTION 6. The importance of this legislation and the
6-15 crowded condition of the calendars in both houses create an
6-16 emergency and an imperative public necessity that the
6-17 constitutional rule requiring bills to be read on three several
6-18 days in each house be suspended, and this rule is hereby suspended.