SRC-TBR S.B. 1652 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 1652
77R3265 MTB-DBy: Bernsen
Finance
4/9/2001
As Filed


DIGEST AND PURPOSE 

Currently, some disasters do not qualify for federal funding for mitigation
of damages and the local government has to bear the financial burden.  As
proposed, S.B. 1652 provides state funding for certain disasters that do
not qualify for federal funding. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 418.004(1), Government Code, to redefine
"disaster." 

SECTION 2.  Amends Section 418.021, Government Code, as follows:

Sec. 418.021.  New heading: FEDERAL AID.  Authorizes the governor, on the
governor's determination that a situation is of such severity and magnitude
that an effective response is beyond the capabilities of the state and the
affected political subdivision and that federal assistance is necessary, to
request federal assistance to save lives, protect property, and preserve
the public health and safety, lessen or avert the threat of a catastrophe,
supplement the efforts of available resources of the state, the affected
local government, and organized volunteer groups and provide compensation
for uninsured disaster-related losses.  Deletes language regarding
determination of amounts and repayment. 

SECTION 3.  Amends Section 418.022, Government Code, as follows:

Sec. 418.022.  AID FOR INDIVIDUALS AND HOUSEHOLDS.  (a)  Provides that on
the governor's determination that financial assistance is essential to meet
disaster-related necessary expenses or serious needs of individuals and
households, rather than families,  adversely affected by a major disaster
that cannot be otherwise adequately met from other means of assistance, the
governor may accept a grant by the federal government to fund the financial
assistance, subject to the terms and conditions imposed on the grant. 

(b)  Makes a conforming change.

(c)  Authorizes the governor, in a disaster that is not declared by the
president of the United States or a disaster that is declared by the
president of the United States but in which assistance to individuals and
households is not granted and in which the governor determines that
disaster relief will not be sufficient to address serious needs of the
victims of the disaster, to make grants to meet disaster-related necessary
expenses or other serious needs of individuals and households adversely
affected by the disaster. Provides that a grant under this subsection is
limited to financial assistance for housing repairs, repair or replacement
of personal property, transportation expenses, and  funeral, dental,
medical, and other analogous expenses considered necessary to meet a
serious need.  Authorizes he governor to reduce or withdraw assistance
under this subsection if the grants are not used within a period
established by the governor.  

(d)  Makes conforming changes.

(e)  Authorizes the governor, in a disaster that is not declared by the
president of the United States or a disaster that is declared by the
president of the United States but in which public assistance is not
granted, to make funds available to the Texas Department of Mental Health
and Mental Retardation for short-term crisis counseling services if the
governor determines that disaster relief will not be sufficient to address
the mental health needs of affected individuals. 

SECTION 4.  Amends Section 418.023, Government Code, adding Subsection (e),
to authorize the governor, in a disaster that is not declared by the
president of the United States or a disaster that is declared by the
president of the United States but in which public assistance is not
granted, to provide funds under Section 418.0731 to a political subdivision
for expenses incurred by the political subdivision in the clearance,
removal, and disposal of debris.  

SECTION 5.  Amends Chapter 418B, Government Code, by adding Sections
418.0231 and 418.0232, as follows: 

Sec. 418.0231.  ASSISTANCE FOR REPAIR OR REPLACEMENT OF HIGHWAYS OR
STREETS; WATER CONTROL STRUCTURES.  (a)  Authorizes the governor, in a
disaster that is not declared by the president of the United States or a
disaster that is declared by the president of the United States but in
which public assistance is not granted, to provide funds under Section
418.0731 to a political subdivision for expenses incurred by the political
subdivision in the repair or replacement of a damaged highway or street or
water control structure if no other means of financial assistance is
available.  

(b)  Authorizes the governor to withdraw assistance under this section for
repair or replacement work that is performed after the first anniversary of
the date on which the disaster occurred.  

(c)  Defines "highway or street."

Sec. 418.0232.  HAZARD MITIGATION ASSISTANCE.  (a)  Authorizes the
governor, in a disaster that is not declared by the president of the United
States or a disaster that is declared by the president of the United States
but in which hazard mitigation assistance is not granted, to provide funds
under Section 418.0731 for the cost of hazard mitigation measures that are
determined by the governor to be cost-effective and substantially reduce
the risk of future damage, loss, or suffering in any area affected by the
disaster.  

(b)  Provides that the total contribution of funds under Subsection (a) may
not exceed 20 percent of the estimated aggregate amount of grants made
under this chapter related to that disaster.  

(c)  Authorizes the governor to provide funds for the costs associated with
pre-disaster mitigation projects that are determined by the governor to be
cost-effective and substantially reduce the risk of damage, loss, or
suffering in an area of the state at risk from future disasters. 

SECTION 6.  Amends Section 418.024, Government Code, to make nonsubstantive
and conforming changes. 

 SECTION 7.  Amends Section 418.045, Government Code, authorizing the
division of emergency management in the office of the governor to employ or
contract with temporary personnel from funds appropriated to the division,
from federal funds, or from the disaster management, rather than
contingency, fund. 

SECTION 8.  Amends Chapter 418D, Government Code, by amending Section
418.073 and adding Section 418.0731, as follows: 

Sec. 418.073.  New heading: DISASTER MANAGEMENT FUND.  (a)  Provides that
the disaster management fund is a trust  fund established in the Texas
Treasury Safekeeping Trust Company and requires it to be administered by
that company as provided by  Chapter 404G. Provides that the fund consists
of money collected under Chapter 18, Utilities Code, and any additional
money appropriated to the fund.  

(b)  Authorizes the governor, with the concurrence of the disaster
emergency funding board, to make funds available from the disaster
management fund to provide money for emergency management and disaster
relief programs the costs of which exceed the funds regularly appropriated
to state and local agencies.  Provides that it is the intent of the
legislature that first recourse for emergency management and  disaster
relief be to the funds regularly appropriated to state and local agencies
for those purposes.  

Sec. 418.0731.  USE OF FUND.  (a)  Provides that except as provided by
Subsection (b), money in the disaster management fund may be used only for
emergency management and disaster relief programs. 

(b)  Prescribes the amount of the disaster management fund which may be
authorized by the governor for use in meeting certain expenses. 

SECTION 9.  Amends Title 2A, Utilities Code, by adding Chapter 18, as
follows: 

CHAPTER 18.  ASSESSMENT FOR DISASTER RELIEF

Sec. 18.001.  ASSESSMENT.  (a)  Provides that in addition to the assessment
imposed on each public utility within the commission's jurisdiction under
Section 16.001, an annual assessment is imposed under this section on each
electric utility and municipally owned utility serving the ultimate
customer. 

(b)  Provides that the assessment imposed under this section is equal to
one-thirtieth of one percent of the gross receipts of the utility from
rates charged to ultimate consumers in this state.  Requires the assessment
to be deposited in the disaster management fund established under Section
418.073, Government Code.  

(c)  Requires the regulatory authority, notwithstanding any other provision
of this title, including a provision that authorizes or requires a freeze
of utility rates, to provide for the adjustment of a public or municipally
owned electric utility's billings to recover the additional assessment
imposed under this section and any additional taxes and fees resulting from
that assessment.  

(d)  Requires each public utility and municipally owned electric utility to
include the adjustment established under Subsection (c) in its rates but
prohibits it from separately stating the additional assessment on
consumers' bills. 

(e)  Provides that Sections 16.002 and 16.003 apply to an assessment made
under this section.  

 Sec. 18.002.  TARIFF FILING.  (a)  Requires each public utility and
municipally owned electric utility to file a tariff with each regulatory
authority that has original jurisdiction over the rates of ultimate
consumers for that utility.  Provides that the adjustment provision takes
effect and becomes part of the utility's rates on the date on which that
tariff is filed with the appropriate regulatory authority. 

(b)  Provides that Subchapters C, D, and E, Chapter 33, do not apply to any
action taken under this chapter.  

Sec. 18.003.  EXCEPTION.  Provides that the assessment imposed by this
chapter does not apply to an investor-owned electric utility reorganized
under a plan of reorganization that has been confirmed by a federal
bankruptcy court if that utility cannot adjust its rates to recover the
assessment.  

Sec. 18.004.  COLLECTION BY COMPTROLLER.  Requires the comptroller to
collect and deposit into the disaster management fund established under
Section 418.073, Government Code, the additional assessment imposed under
Section 18.001 and any fee, penalty, or interest related to that
assessment.  

SECTION 10.  Requires that on the effective date of this Act, the disaster
contingency fund account is abolished, and requires the comptroller to
transfer any unencumbered amount in that account to the disaster management
fund established as provided by Section 418.073, Government Code, as
amended by this Act.  

SECTION 11.  Effective date: upon passage or September 1, 2001.