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  86R17803 CJC-D
  By: Murphy, Zerwas, Phelan, H.B. No. 1917
      Thompson of Harris
  Substitute the following for H.B. No. 1917:
  By:  Longoria C.S.H.B. No. 1917
  relating to the creation of the disaster response loan fund and the
  permissible uses of that fund; making an appropriation; authorizing
  a fee.
         SECTION 1.  Chapter 403, Government Code, is amended by
  adding Subchapter R to read as follows:
         Sec. 403.501.  DEFINITION. In this subchapter, "fund" means
  the disaster response loan fund.
         Sec. 403.502.  CREATION OF FUND. (a) The disaster response
  loan fund is created as a fund outside the state treasury with the
  comptroller, to be administered by the comptroller.
         (b)  Money in the fund may be used only to provide short-term
  loans to political subdivisions affected by a disaster in the
  manner provided by this subchapter.
         (c)  The fund consists of:
               (1)  money appropriated, credited, or transferred to
  the fund by the legislature;
               (2)  money received by the comptroller for the
  repayment of a loan made from the fund;
               (3)  gifts or grants contributed to the fund; and
               (4)  interest earned on deposits and investments of the
         Sec. 403.503.  USE OF MONEY IN FUND. The comptroller by rule
  shall establish a loan program to use money from the fund to provide
  short-term loans for disaster relief or recovery projects to
  political subdivisions that are located wholly or partly in an area
  declared by the governor to be a disaster area and that the Federal
  Emergency Management Agency has determined are eligible to receive
  financial assistance from the agency in response to the disaster.
         Sec. 403.504.  LOANS FROM FUND. (a) A loan made from the
  fund must be subject to the following conditions:
               (1)  the loan must be made at or below market interest
  rates for a term not to exceed two years; and
               (2)  the loan proceeds must be expended solely for
  disaster relief and recovery.
         (b)  The comptroller shall credit to the fund all principal
  and interest payments on a loan from the fund.
         (c)  The comptroller shall suspend the award of loans from
  the fund for the duration of a period during which the balance of
  the fund is less than an amount equal to 75 percent of the total
  balance of the fund on September 1, 2019. This subsection expires
  August 31, 2020.
         (d)  The comptroller may not award a loan under this
  subchapter if the award would affect the political subdivision's
  receipt of federal money to which the political subdivision is
  eligible as a result of the disaster.
         Sec. 403.505.  APPLICATION FOR LOAN. (a) The comptroller
  and the Texas Division of Emergency Management shall jointly
  develop and implement an application process for a loan under this
  subchapter. At a minimum, the application must include:
               (1)  a description of the disaster relief or recovery
  project for which the applicant is requesting the loan;
               (2)  an estimate of the total cost of the project;
               (3)  a statement of the amount of federal money that the
  applicant will receive for the project, or, if that information is
  not available on the date the applicant submits the application, an
  estimate of the amount of that money; and
               (4)  evidence that the applicant has staff, policies,
  and procedures in place adequate to complete the project.
         (b)  The comptroller may charge the applicant a fee
  sufficient to cover the costs of processing the application.
         Sec. 403.506.  REPORT. Not later than December 31 of each
  even-numbered year, the comptroller shall prepare and submit to the
  governor, lieutenant governor, and each member of the legislature a
  report that includes:
               (1)  the total amount of loans made from the fund during
  the preceding two-year period;
               (2)  a summary of the disaster relief and recovery
  projects for which the loans were made; and
               (3)  the total balance of the fund as of the date on
  which the report is submitted.
         SECTION 2.  (a) The amount of $1 billion is appropriated
  from the economic stabilization fund to the comptroller for the
  purpose of transferring that amount immediately to the credit of
  the disaster response loan fund, as created by this Act.
         (b)  This section takes effect only if this Act is approved
  by a vote of two-thirds of the members present in each house of the
  legislature, as provided by Section 49-g(m), Article III, Texas
         SECTION 3.  Except as otherwise provided by this Act, this
  Act takes effect September 1, 2019.