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A BILL TO BE ENTITLED
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AN ACT
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relating to the creation of the disaster recovery loan program; |
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making an appropriation. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 418, Government Code, is amended by |
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adding Subchapter C-1 to read as follows: |
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SUBCHAPTER C-1. DISASTER RECOVERY LOAN PROGRAM |
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Sec. 418.061. DEFINITIONS. In this subchapter: |
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(1) "Account" means the disaster recovery loan account |
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created under Section 418.066. |
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(2) "Eligible political subdivision" means a county, |
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municipality, or school district that meets the qualifications |
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prescribed by Section 418.062. |
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Sec. 418.062. ELIGIBILITY FOR LOAN. A political |
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subdivision may apply to the division for a loan under this |
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subchapter if: |
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(1) the political subdivision: |
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(A) is located wholly or partly in an area |
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declared to be a disaster area by the governor or the president of |
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the United States; and |
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(B) before applying to the division for a loan |
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under this subchapter: |
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(i) has submitted to the division, within |
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15 days of the date of its adoption by the governing body of the |
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political subdivision, the political subdivision's operating |
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budget for the most recent fiscal year; and |
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(ii) has submitted an application for a |
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loan from the Federal Emergency Management Agency's community |
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disaster loan program; |
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(2) an assessment of damages due to the disaster for |
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which the declaration was made has been conducted in the political |
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subdivision; and |
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(3) the division, in consultation with the Federal |
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Emergency Management Agency, determines that the estimated cost to |
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rebuild the political subdivision's infrastructure damaged in the |
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disaster is greater than 50 percent of the political subdivision's |
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total revenue for the current year as shown in the most recent |
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operating budget of the political subdivision submitted to the |
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division under this section. |
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Sec. 418.063. DISASTER RECOVERY LOAN PROGRAM. The division |
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by rule shall establish a loan program to use money from the account |
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to provide short-term loans for disaster recovery projects to |
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eligible political subdivisions. |
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Sec. 418.064. LOANS. (a) A loan made from the account must |
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be subject to the following conditions: |
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(1) the loan must be made at or below market interest |
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rates for a term not to exceed 10 years; and |
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(2) the loan proceeds must be expended by the eligible |
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political subdivision solely for disaster recovery projects. |
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(b) The comptroller shall credit to the account all |
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principal and interest payments on a loan from the account. |
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(c) If the term of a loan from the account exceeds two years, |
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the state auditor shall, on the second anniversary of the date on |
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which the eligible political subdivision received the loan, conduct |
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a limited audit of the political subdivision to determine whether |
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the political subdivision has the ability to repay the loan under |
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the terms of the loan. The division may forgive a loan made to an |
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eligible political subdivision if the state auditor determines that |
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the political subdivision is unable to repay the loan. The state |
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auditor's participation under this subsection is subject to |
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approval by the legislative audit committee for inclusion in the |
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audit plan under Section 321.013(c). |
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Sec. 418.065. APPLICATION FOR LOAN. The division shall |
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develop and implement an application process for a loan under this |
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subchapter. At a minimum, the application must include: |
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(1) a description of the disaster recovery project for |
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which the applicant is requesting the loan; |
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(2) an estimate of the total cost of the project; |
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(3) a statement of the amount of federal money that the |
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applicant will receive for the project, or, if that information is |
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not available on the date the applicant submits the application, an |
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estimate of the amount of that money; and |
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(4) evidence that the applicant has staff, policies, |
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and procedures in place adequate to complete the project. |
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Sec. 418.066. CREATION OF ACCOUNT. (a) The disaster |
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recovery loan account is created as an account in the general |
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revenue fund with the comptroller, to be administered by the |
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division. |
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(b) Money in the account may be used only to provide |
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short-term loans to eligible political subdivisions in the manner |
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provided by this subchapter. |
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(c) The account consists of: |
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(1) money appropriated, credited, or transferred to |
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the account by the legislature; |
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(2) money received by the comptroller for the |
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repayment of a loan made from the account; |
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(3) gifts or grants contributed to the account; and |
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(4) interest earned on deposits and investments of the |
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account. |
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Sec. 418.067. RULES. The division shall adopt rules to |
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implement and administer this subchapter. The rules adopted by the |
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division to implement this subchapter must include the development |
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of a form on which a political subdivision may electronically |
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submit its budget to the division. |
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SECTION 2. The amount of $60 million is appropriated from |
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the general revenue fund to the disaster recovery loan account for |
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the state fiscal biennium ending August 31, 2021, for the purpose of |
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providing short-term loans to political subdivisions affected by a |
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disaster in the manner provided by Subchapter C-1, Chapter 418, |
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Government Code, as added by this Act. |
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SECTION 3. This Act takes effect September 1, 2019. |