By Bernsen                                            S.B. No. 1652
         77R3265 MTB-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. The
 4-3     governor may reduce or withdraw assistance under this subsection if
 4-4     the grants are not used within a period established by the
 4-5     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           (e)  In a disaster that is not declared by the president of
4-17     the United States or a disaster that is declared by the president
4-18     of the United States but in which public assistance is not granted,
4-19     the governor may make funds available to the Texas Department of
4-20     Mental Health and Mental Retardation for short-term crisis
4-21     counseling services if the governor determines that disaster relief
4-22     will not be sufficient to address the mental health needs of
4-23     affected individuals.
4-24           SECTION 4.  Section 418.023, Government Code, is amended by
4-25     adding Subsection (e) to read as follows:
4-26           (e)  In a disaster that is not declared by the president of
4-27     the United States or a disaster that is declared by the president
 5-1     of the United States but in which public assistance is not granted,
 5-2     the governor may provide funds under Section 418.0731 to a
 5-3     political subdivision for expenses incurred by the political
 5-4     subdivision in the clearance, removal, and disposal of debris.
 5-5           SECTION 5.  Subchapter B, Chapter 418, Government Code, is
 5-6     amended by adding Sections 418.0231 and 418.0232 to read as
 5-7     follows:
 5-8           Sec. 418.0231.  ASSISTANCE FOR REPAIR OR REPLACEMENT OF
 5-9     HIGHWAYS OR STREETS; WATER CONTROL STRUCTURES.  (a)  In a disaster
5-10     that is not declared by the president of the United States or a
5-11     disaster that is declared by the president of the United States but
5-12     in which public assistance is not granted, the governor may provide
5-13     funds under Section 418.0731 to a political subdivision for
5-14     expenses incurred by the political subdivision in the repair or
5-15     replacement of a damaged highway or street or water control
5-16     structure if no other means of financial assistance is available.
5-17           (b)  The governor may withdraw assistance under this section
5-18     for repair or replacement work that is performed after the first
5-19     anniversary of the date on which the disaster occurred.
5-20           (c)  In this section, "highway or street" has the meaning
5-21     assigned by Section 541.302, Transportation Code.
5-22           Sec. 418.0232.  HAZARD MITIGATION ASSISTANCE.  (a)  In a
5-23     disaster that is not declared by the president of the United States
5-24     or a disaster that is declared by the president of the United
5-25     States but in which hazard mitigation assistance is not granted,
5-26     the governor may provide funds under Section 418.0731 for the cost
5-27     of hazard mitigation measures that are determined by the governor
 6-1     to:
 6-2                 (1)  be cost-effective; and
 6-3                 (2)  substantially reduce the risk of future damage,
 6-4     loss, or suffering in any area affected by the disaster.
 6-5           (b)  The total contribution of funds under Subsection (a) may
 6-6     not exceed 20 percent of the estimated aggregate amount of grants
 6-7     made under this chapter related to that disaster.
 6-8           (c)  The governor may provide funds for the costs associated
 6-9     with pre-disaster mitigation projects that are determined by the
6-10     governor to:
6-11                 (1)  be cost-effective; and
6-12                 (2)  substantially reduce the risk of damage, loss, or
6-13     suffering in an area of the state at risk from future disasters.
6-14           SECTION 6.  Section 418.024, Government Code, is amended to
6-15     read as follows:
6-16           Sec. 418.024.  RULES. The governor may adopt rules necessary
6-17     for carrying out the purposes of this chapter, including rules on:
6-18                 (1)  standards of eligibility for persons and political
6-19     subdivisions applying for assistance [benefits];
6-20                 (2)  procedures for applying for assistance [benefits];
6-21                 (3)  procedures for the administration, investigation,
6-22     filing, and approval of applications for assistance [benefits];
6-23                 (4)  procedures for the formation of local or statewide
6-24     boards to pass on applications for assistance [benefits]; and
6-25                 (5)  procedures for appeals of decisions relating to
6-26     applications for assistance [benefits].
6-27           SECTION 7.  Section 418.045, Government Code, is amended to
 7-1     read as follows:
 7-2           Sec. 418.045.  TEMPORARY PERSONNEL.  The division may employ
 7-3     or contract with temporary personnel from funds appropriated to the
 7-4     division, from federal funds, or from the disaster management
 7-5     [contingency] fund.  The merit system does not apply to the
 7-6     temporary or contract positions.
 7-7           SECTION 8.  Subchapter D, Chapter 418, Government Code, is
 7-8     amended by amending Section 418.073 and adding Section 418.0731 to
 7-9     read as follows:
7-10           Sec. 418.073.  DISASTER MANAGEMENT [CONTINGENCY] FUND.  (a)
7-11     The disaster management [contingency] fund is a trust  fund
7-12     established in the Texas Treasury Safekeeping Trust Company and
7-13     shall be administered by that company as provided by Subchapter G,
7-14     Chapter 404.  The fund consists of:
7-15                 (1)  money collected under Chapter 18, Utilities Code;
7-16     and
7-17                 (2)  any additional money appropriated to the fund.
7-18           (b)  The [If the governor finds that the demands placed on
7-19     funds regularly appropriated to state and local agencies are
7-20     unreasonably great for coping with a particular disaster, the]
7-21     governor, with the concurrence of the disaster emergency funding
7-22     board, may make funds available from the disaster management
7-23     [contingency] fund to provide money for emergency management and
7-24     disaster relief programs the costs of which exceed the funds
7-25     regularly appropriated to state and local agencies.  It is the
7-26     intent of the legislature that first recourse for emergency
7-27     management and  disaster relief be to the funds regularly
 8-1     appropriated to state and local agencies for those purposes.
 8-2           Sec. 418.0731.  USE OF FUND.  (a)  Except as provided by
 8-3     Subsection (b), money in the disaster management fund may be used
 8-4     only for emergency management and disaster relief programs.
 8-5           (b)  In a fiscal year the governor may authorize the use of:
 8-6                 (1)  not more than 10 percent of the disaster
 8-7     management fund for payment of the administrative expenses of the
 8-8     division;
 8-9                 (2)  not more than 15 percent of the disaster
8-10     management fund for payment of expenses relating to emergency
8-11     management training as prescribed by the division that are incurred
8-12     by state agencies or political subdivisions;
8-13                 (3)  money in the disaster management fund for expenses
8-14     incurred in implementation of the mutual aid assistance authorized
8-15     under Section 418.109 and prescribed by the division;
8-16                 (4)  not more than four percent of the disaster
8-17     management fund for expenses for implementation of statewide
8-18     notification systems or services;
8-19                 (5)  money in the disaster management fund for expenses
8-20     incurred under Section 418.022(c);
8-21                 (6)  money in the disaster management fund for at least
8-22     one-half of eligible project costs under Sections 418.023(e),
8-23     418.0231, and 418.0232;
8-24                 (7)  money in the disaster management fund for at least
8-25     one-half of a local political subdivision's share of expenses
8-26     incurred on public assistance projects eligible for federal
8-27     assistance if the county has been declared a disaster area by the
 9-1     president of the United States; and
 9-2                 (8)  money in the disaster management fund for
 9-3     competitive grants for emergency preparedness and recovery projects
 9-4     conducted by volunteer groups, nonprofit organizations, and local
 9-5     political subdivisions.
 9-6           SECTION 9.  Subtitle A, Title 2, Utilities Code, is amended
 9-7     by adding Chapter 18 to read as follows:
 9-8                 CHAPTER 18.  ASSESSMENT FOR DISASTER RELIEF
 9-9           Sec. 18.001.  ASSESSMENT.  (a)  In addition to the assessment
9-10     imposed on each public utility within the commission's jurisdiction
9-11     under Section 16.001, an annual assessment is imposed under this
9-12     section on each electric utility and municipally owned utility
9-13     serving the ultimate customer.
9-14           (b)  The assessment imposed under this section is equal to
9-15     one-thirtieth of one percent of the gross receipts of the utility
9-16     from rates charged to ultimate consumers in this state.  The
9-17     assessment shall be deposited in the disaster management fund
9-18     established under Section 418.073, Government Code.
9-19           (c)  Notwithstanding any other provision of this title,
9-20     including a provision that authorizes or requires a freeze of
9-21     utility rates, the regulatory authority shall provide for the
9-22     adjustment of a public or municipally owned electric utility's
9-23     billings to recover the additional assessment imposed under this
9-24     section and any additional taxes and fees resulting from that
9-25     assessment.
9-26           (d)  Each public utility and municipally owned electric
9-27     utility shall include the adjustment established under Subsection
 10-1    (c) in its rates but may not separately state the additional
 10-2    assessment on consumers' bills.
 10-3          (e)  Sections 16.002 and 16.003 apply to an assessment made
 10-4    under this section.
 10-5          Sec. 18.002.  TARIFF FILING.  (a)  Each public utility and
 10-6    municipally owned  electric utility shall file a tariff with each
 10-7    regulatory authority that has original jurisdiction over the rates
 10-8    of ultimate consumers for that utility.  The adjustment provision
 10-9    takes effect and becomes part of the utility's rates on the date on
10-10    which that tariff is filed with the appropriate regulatory
10-11    authority.
10-12          (b)  Subchapters C, D, and E, Chapter 33, do not apply to any
10-13    action taken under this chapter.
10-14          Sec. 18.003.  EXCEPTION. The assessment imposed by this
10-15    chapter does not apply to an investor-owned electric utility
10-16    reorganized under a plan of reorganization that has been confirmed
10-17    by a federal bankruptcy court if that utility cannot adjust its
10-18    rates to recover the assessment.
10-19          Sec. 18.004.  COLLECTION BY COMPTROLLER.  The comptroller
10-20    shall collect and deposit into the disaster management fund
10-21    established under Section 418.073, Government Code, the additional
10-22    assessment imposed under Section 18.001 and any fee, penalty, or
10-23    interest related to that assessment.
10-24          SECTION 10.  On the effective date of this Act, the disaster
10-25    contingency fund account is abolished, and the comptroller shall
10-26    transfer any unencumbered amount in that account to the disaster
10-27    management fund established as provided by Section 418.073,
 11-1    Government Code, as amended by this Act.
 11-2          SECTION 11.  This Act takes effect immediately if it receives
 11-3    a vote of two-thirds of all the members elected to each house, as
 11-4    provided by Section 39, Article III, Texas Constitution.  If this
 11-5    Act does not receive the vote necessary for immediate effect, this
 11-6    Act takes effect September 1, 2001.