By Gray                                               H.B. No. 2618
         77R10875 MCK-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 418.021, 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 HOUSEHOLDS.  (a)  On
2-27     the governor's determination that financial assistance is essential
 3-1     to meet disaster-related necessary expenses or serious needs of
 3-2     individuals and households [or families] adversely affected by a
 3-3     major disaster that cannot be otherwise adequately met from other
 3-4     means of assistance, the governor may accept a grant by the federal
 3-5     government to fund the financial assistance, subject to the terms
 3-6     and conditions imposed on the grant.  The governor may agree with
 3-7     the federal government or any officer or agency of the United
 3-8     States pledging the state to participate in funding not more than
 3-9     25 percent of the 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     and households [or families] adversely affected by a major disaster
3-13     that cannot otherwise adequately be met from other means of
3-14     assistance.  The grants may not exceed an aggregate amount in
3-15     excess of that established by federal statute for individuals and
3-16     households [an individual or family] in any single major disaster
3-17     declared by the president of the United 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 assistance to individuals and
3-21     households is not granted and in which the governor determines that
3-22     disaster relief will not be sufficient to address serious needs of
3-23     the 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 and households 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.
 4-3     The governor may reduce or withdraw assistance under this
 4-4     subsection if the grants are not used within a period established
 4-5     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 and households [or families] qualified for disaster
4-10     relief.  The designated agency may employ temporary personnel for
4-11     those functions to be paid from funds appropriated to the agency,
4-12     from federal funds, or from the disaster management [contingency]
4-13     fund.  The merit system does not apply to the temporary positions.
4-14     The 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 and in which the governor determines that
4-20     disaster relief will not be sufficient to address the mental health
4-21     needs of the affected population, the governor may make funds
4-22     available to the Texas Department of Mental Health and Mental
4-23     Retardation in order to provide short-term crisis counseling
4-24     services.
4-25           SECTION 5.  Subchapter B, Chapter 418, Government Code, is
4-26     amended by adding Sections 418.0231 and 418.0232 to read as
4-27     follows:
 5-1           Sec. 418.0231.  ASSISTANCE FOR REPAIR OR REPLACEMENT OF
 5-2     HIGHWAYS OR STREETS; WATER CONTROL STRUCTURES.  (a)  In a disaster
 5-3     that is not declared by the president of the United States or a
 5-4     disaster that is declared by the president of the United States but
 5-5     in which public assistance is not granted, the governor may provide
 5-6     funds under Section 418.073 to a political subdivision for expenses
 5-7     incurred by the political subdivision in the repair or replacement
 5-8     of a damaged highway or street or water control structure if no
 5-9     other means of financial assistance is available.
5-10           (b)  The governor may withdraw assistance under this section
5-11     for repair or replacement work that is performed after the first
5-12     anniversary of the date on which the disaster occurred.
5-13           (c)  In this section, "highway or street" has the meaning
5-14     assigned by Section 541.302, Transportation Code.
5-15           Sec. 418.0232.  HAZARD MITIGATION ASSISTANCE.  (a)  In a
5-16     disaster that is not declared by the president of the United States
5-17     or a disaster that is declared by the president of the United
5-18     States but in which hazard mitigation assistance is not granted,
5-19     the governor may provide funds under Section 418.073 for the cost
5-20     of hazard mitigation measures that are determined by the governor
5-21     to:
5-22                 (1)  be cost-effective; and
5-23                 (2)  substantially reduce the risk of future damage,
5-24     loss, or suffering in any area affected by the disaster.
5-25           (b)  The total contribution of funds under this section may
5-26     not exceed 20 percent of the estimated aggregate amount of grants
5-27     made under this chapter related to that disaster.
 6-1           (c)  The governor may provide funds for the costs associated
 6-2     with pre-disaster mitigation projects that are determined by the
 6-3     governor to:
 6-4                 (1)  be cost-effective; and
 6-5                 (2)  substantially reduce the risk of damage, loss, or
 6-6     suffering in an area of the state at risk from a disaster.
 6-7           SECTION 6. Section 418.024, Government Code, is amended to
 6-8     read as follows:
 6-9           Sec. 418.024.  RULES.  The governor may adopt rules necessary
6-10     for carrying out the purposes of this chapter, including rules on:
6-11                 (1)  standards of eligibility for persons and political
6-12     subdivisions applying for assistance [benefits];
6-13                 (2)  procedures for applying for assistance [benefits];
6-14                 (3)  procedures for the administration, investigation,
6-15     filing, and approval of applications for assistance [benefits];
6-16                 (4)  procedures for the formation of local or statewide
6-17     boards to pass on applications for assistance [benefits]; and
6-18                 (5)  procedures for appeals of decisions relating to
6-19     applications for assistance [benefits].
6-20           SECTION 7.  Section 418.045, Government Code, is amended to
6-21     read as follows:
6-22           Sec. 418.045.  TEMPORARY PERSONNEL.  The division may employ
6-23     or contract with temporary personnel from funds appropriated to the
6-24     division, from federal funds, or from the disaster management
6-25     [contingency] fund.  The merit system does not apply to the
6-26     temporary or contract positions.
6-27           SECTION 8.  Subchapter D, Chapter 418, Government Code, is
 7-1     amended by amending Section 418.073 and adding Section 418.0731 to
 7-2     read as follows:
 7-3           Sec. 418.073.  DISASTER MANAGEMENT [CONTINGENCY] FUND.  (a)
 7-4     The disaster management [contingency] fund is a trust  fund
 7-5     established in the Texas Treasury Safekeeping Trust Company and
 7-6     shall be administered by that company as provided by Subchapter G,
 7-7     Chapter 404.  The fund consists of money appropriated to the fund. 
 7-8           (b)  The [If the governor finds that the demands placed on
 7-9     funds regularly appropriated to state and local agencies are
7-10     unreasonably great for coping with a particular disaster, the]
7-11     governor, with the concurrence of the disaster emergency funding
7-12     board, may make funds available from the disaster management
7-13     [contingency] fund to provide money for emergency management and
7-14     disaster relief programs the costs of which exceed the funds
7-15     regularly appropriated to state and local agencies.  It is the
7-16     intent of the legislature that first recourse for emergency
7-17     management and  disaster relief be to the funds regularly
7-18     appropriated to state and local agencies for those purposes.
7-19           Sec. 418.0731.  USE OF FUND.  (a)  Except as provided by
7-20     Subsection (b), money in the disaster management fund may be used
7-21     only for emergency management and disaster relief programs.
7-22           (b)  In a fiscal year the governor may authorize the use of:
7-23                 (1)  not more than 10 percent of the disaster
7-24     management fund for payment of the administrative expenses of the
7-25     division;
7-26                 (2)  not more than 15 percent of the disaster
7-27     management fund for payment of expenses relating to emergency
 8-1     management training as prescribed by the division that are incurred
 8-2     by state agencies or political subdivisions;
 8-3                 (3)  money in the disaster management fund for expenses
 8-4     incurred in implementation of the mutual aid assistance authorized
 8-5     under Section 418.109 and prescribed by the division;
 8-6                 (4)  not more than four percent of the disaster
 8-7     management fund for expenses for implementation of statewide
 8-8     notification systems or services;
 8-9                 (5)  money in the disaster management fund for expenses
8-10     incurred under Section 418.022(c);
8-11                 (6)  money in the disaster management fund for at least
8-12     one-half of eligible project costs under Sections 418.023(e),
8-13     418.0231, and 418.0232;
8-14                 (7)  money in the disaster management fund for at least
8-15     one-half of a local political subdivision's share of expenses
8-16     incurred on public assistance projects eligible for federal
8-17     assistance if the county has been declared a disaster area by the
8-18     president of the United States; and
8-19                 (8)  money in the disaster management fund for
8-20     competitive grants for emergency preparedness and recovery projects
8-21     conducted by volunteer groups, nonprofit organizations, and local
8-22     political subdivisions.
8-23           SECTION 9. On the effective date of this Act, the disaster
8-24     contingency fund account is abolished, and the comptroller shall
8-25     transfer any unencumbered amount in that account to the disaster
8-26     management fund established as provided by Section 418.073,
8-27     Government Code, as amended by this Act.
 9-1           SECTION 10. This Act takes effect immediately if it receives
 9-2     a vote of two-thirds of all the members elected to each house, as
 9-3     provided by Section 39, Article III, Texas Constitution.  If this
 9-4     Act does not receive the vote necessary for immediate effect, this
 9-5     Act takes effect September 1, 2001.