86R13069 CJC-F
 
  By: Morrison, White, Murr, Guillen, H.B. No. 2300
      King of Parker, et al.
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation of the disaster recovery loan program;
  making an appropriation.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 418, Government Code, is amended by
  adding Subchapter C-1 to read as follows:
  SUBCHAPTER C-1. DISASTER RECOVERY LOAN PROGRAM
         Sec. 418.061.  DEFINITIONS. In this subchapter:
               (1)  "Account" means the disaster recovery loan account
  created under Section 418.066.
               (2)  "Eligible political subdivision" means a county,
  municipality, or school district that meets the qualifications
  prescribed by Section 418.062.
         Sec. 418.062.  ELIGIBILITY FOR LOAN. A political
  subdivision may apply to the division for a loan under this
  subchapter if:
               (1)  the political subdivision:
                     (A)  is located wholly or partly in an area
  declared to be a disaster area by the governor or the president of
  the United States; and
                     (B)  before applying to the division for a loan
  under this subchapter:
                           (i)  has submitted to the division, within
  15 days of the date of its adoption by the governing body of the
  political subdivision, the political subdivision's operating
  budget for the most recent fiscal year; and
                           (ii)  has submitted an application for a
  loan from the Federal Emergency Management Agency's community
  disaster loan program;
               (2)  an assessment of damages due to the disaster for
  which the declaration was made has been conducted in the political
  subdivision; and
               (3)  the division, in consultation with the Federal
  Emergency Management Agency, determines that the estimated cost to
  rebuild the political subdivision's infrastructure damaged in the
  disaster is greater than 50 percent of the political subdivision's
  total revenue for the current year as shown in the most recent
  operating budget of the political subdivision submitted to the
  division under this section.
         Sec. 418.063.  DISASTER RECOVERY LOAN PROGRAM. The division
  by rule shall establish a loan program to use money from the account
  to provide short-term loans for disaster recovery projects to
  eligible political subdivisions.
         Sec. 418.064.  LOANS. (a) A loan made from the account 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 10 years; and
               (2)  the loan proceeds must be expended by the eligible
  political subdivision solely for disaster recovery projects.
         (b)  The comptroller shall credit to the account all
  principal and interest payments on a loan from the account.
         (c)  If the term of a loan from the account exceeds two years,
  the state auditor shall, on the second anniversary of the date on
  which the eligible political subdivision received the loan, conduct
  a limited audit of the political subdivision to determine whether
  the political subdivision has the ability to repay the loan under
  the terms of the loan. The division may forgive a loan made to an
  eligible political subdivision if the state auditor determines that
  the political subdivision is unable to repay the loan. The state
  auditor's participation under this subsection is subject to
  approval by the legislative audit committee for inclusion in the
  audit plan under Section 321.013(c).
         Sec. 418.065.  APPLICATION FOR LOAN. The division shall
  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 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.
         Sec. 418.066.  CREATION OF ACCOUNT. (a) The disaster
  recovery loan account is created as an account in the general
  revenue fund with the comptroller, to be administered by the
  division.
         (b)  Money in the account may be used only to provide
  short-term loans to eligible political subdivisions in the manner
  provided by this subchapter.
         (c)  The account consists of:
               (1)  money appropriated, credited, or transferred to
  the account by the legislature;
               (2)  money received by the comptroller for the
  repayment of a loan made from the account;
               (3)  gifts or grants contributed to the account; and
               (4)  interest earned on deposits and investments of the
  account.
         Sec. 418.067.  RULES. The division shall adopt rules to
  implement and administer this subchapter. The rules adopted by the
  division to implement this subchapter must include the development
  of a form on which a political subdivision may electronically
  submit its budget to the division.
         SECTION 2.  The amount of $60 million is appropriated from
  the general revenue fund to the disaster recovery loan account for
  the state fiscal biennium ending August 31, 2021, for the purpose of
  providing short-term loans to political subdivisions affected by a
  disaster in the manner provided by Subchapter C-1, Chapter 418,
  Government Code, as added by this Act.
         SECTION 3.  This Act takes effect September 1, 2019.