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A BILL TO BE ENTITLED
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AN ACT
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relating to the Texas Flood Recovery, Reimbursement, and |
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Reconstruction Program; authorizing a civil penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subtitle B, Title 4, Government Code, is amended |
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by adding Chapter 419A to read as follows: |
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CHAPTER 419A. TEXAS FLOOD RECOVERY, REIMBURSEMENT, AND |
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RECONSTRUCTION PROGRAM |
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SUBCHAPTER A. GENERAL PROVISIONS |
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Sec. 419A.001. DEFINITIONS. In this chapter: |
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(1) "Division" means the Texas Division of Emergency |
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Management. |
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(2) "Program" means the Texas Flood Recovery, |
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Reimbursement, and Reconstruction Program established under |
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Subchapter B. |
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(3) "Special flood hazard area" means land in a |
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floodplain subject to at least a one percent annual chance of |
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flooding as designated by the director of the Federal Emergency |
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Management Agency. |
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Sec. 419A.002. PROGRAM REVIEW AND EXPIRATION. (a) The |
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Texas Flood Recovery, Reimbursement, and Reconstruction Program is |
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subject to review by the Legislative Budget Board each odd-numbered |
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year. The Legislative Budget Board shall submit findings and |
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recommendations for the program to the Senate Finance Committee and |
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the House Appropriations Committee, or their successors. |
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(b) Unless continued in existence by the legislature, the |
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program and this chapter expire September 1, 2035. |
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SUBCHAPTER B. PROGRAM ESTABLISHMENT AND ADMINISTRATION |
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Sec. 419A.051. PROGRAM ESTABLISHMENT. The division shall |
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establish the Texas Flood Recovery, Reimbursement, and |
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Reconstruction Program to provide targeted and fiscally |
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responsible relief to persons impacted by the July 2025 Hill |
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Country floods through: |
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(1) reimbursement of real and personal property |
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losses; and |
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(2) incentives for repair and reconstruction of real |
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property above flood levels or in locations not prone to flooding to |
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reduce future risk of loss and taxpayer burden. |
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Sec. 419A.052. PROGRAM ADMINISTRATION. The division shall |
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administer the program in coordination with the General Land Office |
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and the Federal Emergency Management Agency. |
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Sec. 419A.053. DIVISION POWERS AND DUTIES UNDER PROGRAM. |
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(a) The division shall: |
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(1) establish an online application system with |
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auto-population features using Federal Emergency Management Agency |
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claim denial information, county property tax appraisal rolls, and |
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floodplain maps; |
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(2) review documentation for and conduct site |
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inspections of property impacted by the July 2025 Hill Country |
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floods; |
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(3) verify a complete or partial denial of a property |
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insurance claim by an insurer or a flood damage claim by the Federal |
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Emergency Management Agency not later than the 15th business day |
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after the date the division receives an application; |
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(4) approve or deny completed program applications not |
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later than the 30th calendar day after the date the division |
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receives the application, provided the division does not encounter |
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any extraordinary circumstances preventing compliance with that |
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date; |
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(5) annually audit at least 15 percent of the program |
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awards; |
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(6) approve construction plans conforming to |
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resiliency standards described by Section 419A.105 and verify |
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affidavits from applicants certifying compliance with those |
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standards; |
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(7) require proof of a program applicant's |
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expenditures; |
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(8) establish a formal appeals process for denied |
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applications; |
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(9) maintain and quarterly update the dashboard |
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required under Section 419A.054; and |
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(10) coordinate with county and municipal emergency |
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management offices to assist with application intake, damage |
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verification, and applicant outreach. |
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(b) The division may issue: |
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(1) a program award in two installments; and |
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(2) a second installment of a program award contingent |
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on the award recipient providing verification of compliance with |
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this chapter and rules adopted under this chapter. |
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Sec. 419A.054. PROGRAM INFORMATION PUBLISHED ON INTERNET |
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WEBSITE. The division shall develop and publish on the division's |
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publicly available Internet website: |
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(1) the division's program award priorities developed |
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in accordance with the requirements of this chapter; |
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(2) an application scoring system for processing and |
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approving applications submitted under this chapter; and |
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(3) a dashboard listing paid program awards by county, |
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property type, resiliency construction status, average award |
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amount, and any audit results. |
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Sec. 419A.055. LIST OF QUALIFIED PROFESSIONALS. The |
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division may develop and maintain a list of qualified contractors, |
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engineers, and vendors for expedited review and approval of |
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applications submitted under this chapter. |
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SUBCHAPTER C. AWARD FOR FLOOD DAMAGE AFFECTING REAL PROPERTY |
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Sec. 419A.101. ELIGIBILITY FOR AWARD. (a) A person is |
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eligible for a program award for a loss of or damage to real |
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property under this subchapter only if: |
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(1) the person is a resident of or a legal entity |
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domiciled in this state; |
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(2) the person owns real property that sustained flood |
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damage during the July 2025 Hill Country floods; |
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(3) the person maintained residential or commercial |
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insurance coverage, other than flood insurance coverage, for the |
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real property at the time the property sustained the flood damage; |
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(4) an insurer or the Federal Emergency Management |
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Agency wholly or partly denied the person's property insurance |
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claim or flood damage claim; and |
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(5) the person submits an application for an award |
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under this subchapter. |
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(b) An application for an award under this subchapter must |
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include: |
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(1) except as otherwise provided by this section, |
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documentation the person was not required, including by a lender |
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for property subject to a mortgage, to maintain flood insurance |
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coverage for the property; |
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(2) documentation of a complete or partial denial of |
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the person's property insurance claim by an insurer or flood damage |
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claim by the Federal Emergency Management Agency; and |
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(3) receipts or cost estimates for repair or |
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reconstruction of the person's real property, which may include |
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architectural designs, geotechnical analyses, cost modeling, and |
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permit costs. |
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(c) An applicant who is otherwise eligible for an award |
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under this subchapter may not be considered ineligible based on: |
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(1) a requirement for the person to obtain flood |
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insurance as a result of a change in the floodplain map that |
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occurred after July 1, 2023; and |
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(2) the lack of formal notice to the person from the |
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Federal Emergency Management Agency or a mortgage lender of the |
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requirement to obtain flood insurance as a result of the change in |
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the floodplain map. |
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(d) If a person's real property is not subject to a mortgage |
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and the person did not receive notice of the real property's |
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floodplain designation from the Federal Emergency Management |
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Agency, the person is presumed to have been unaware of the |
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floodplain designation and is eligible for an award under this |
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subchapter. |
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Sec. 419A.102. APPLICATION DEADLINE; EXTENSION. (a) |
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Except as provided by this section, a person eligible for an award |
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under this subchapter must submit an application not later than May |
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1, 2026. |
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(b) The division may extend the application deadline |
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described by Subsection (a) for categories of applicants if the |
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division determines the extension is necessary because of: |
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(1) delays by insurers in assessing property insurance |
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claims or by the Federal Emergency Management Agency in assessing |
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flood damage claims; |
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(2) natural barriers to a person's access to the real |
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property; or |
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(3) other extenuating circumstances preventing |
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otherwise eligible persons from submitting an application on or |
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before that date. |
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(c) If the division extends an application deadline under |
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this section, the division shall post on its publicly available |
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Internet website: |
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(1) the categories of eligible persons for whom the |
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deadline is extended; |
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(2) the reason for the extension; and |
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(3) the date of the extended deadline. |
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Sec. 419A.103. AWARD PRIORITIES. (a) The division shall |
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prioritize awards under this subchapter to eligible applicants as |
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follows: |
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(1) first priority to applicants whose flood damage |
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claim for the applicant's primary place of residence or small |
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business was denied by an insurer or the Federal Emergency |
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Management Agency; |
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(2) second priority to applicants whose flood damage |
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claim for the applicant's nonprimary residence or other |
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family-owned property was denied by an insurer or the Federal |
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Emergency Management Agency; and |
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(3) third priority to applicants whose paid flood |
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damage claim equaled an amount less than 50 percent of the |
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applicant's total claimed losses. |
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(b) For each priority category described by Subsection (a), |
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the division shall further prioritize awards for applicants, as |
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applicable, by: |
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(1) household or business income; |
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(2) property value according to the applicable county |
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property tax appraisal roll; |
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(3) applicant age; |
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(4) the number of applicant dependents; and |
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(5) the applicant's disability status. |
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(c) The division shall expedite applications for applicants |
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who are seeking an award of $35,000 or less and agree to: |
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(1) simplified documentation of the award; |
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(2) public disclosure of the award; and |
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(3) waiver of an audit of the award. |
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Sec. 419A.104. AWARD AMOUNTS; LIMITATIONS. (a) Subject to |
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the limitations of this section, the division may award to eligible |
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applicants: |
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(1) an amount equal to either: |
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(A) 50 percent of the total cost for |
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reconstructing a residential or commercial structure in the same |
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floodplain location without additional flood mitigation measures; |
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or |
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(B) 100 percent of the total cost for |
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reconstructing a residential or commercial structure at a location: |
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(i) other than a location in a designated |
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floodplain; or |
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(ii) above the Federal Emergency Management |
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Agency's base flood elevation, in compliance with resiliency |
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standards described by Section 419A.105; and |
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(2) an amount equal to not more than 15 percent of |
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additional costs for construction or reconstruction of shared |
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flood-resilient infrastructure benefiting three or more |
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residential or commercial structures, as determined by the |
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division. |
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(b) An award amount under Subsection (a) may not exceed: |
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(1) $250,000 for a single-family primary residential |
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structure; |
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(2) $500,000 for a commercial structure of a small |
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business employing not more than 50 employees; and |
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(3) $750,000 for an agricultural structure, essential |
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infrastructure, or a multifamily residential structure. |
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(c) Costs eligible for an award under this subchapter |
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include: |
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(1) structural repairs; |
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(2) plumbing, HVAC, or electrical system repairs; |
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(3) major appliance repairs or purchases; |
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(4) replacement or repair of essential personal |
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property necessary for habitation or business functions in amounts |
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not to exceed: |
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(A) $25,000 for a single-family primary |
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residential structure; or |
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(B) $50,000 for a commercial structure; |
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(5) replacement or repair of vehicles essential to |
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residential, agricultural, or commercial operations, including |
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tractors, watercraft, and all-terrain vehicles; and |
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(6) repair or construction of dams or levees located |
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on private property and serving flooding mitigation, irrigation, or |
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livestock water supply functions. |
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(d) The division shall determine the reimbursable amount |
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for an item eligible under this section based on the actual cost to |
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repair or replace the item. |
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(e) The division by rule may: |
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(1) distinguish the cash value of eligible items from |
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the cost to repair the eligible items, in a manner consistent with |
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Federal Emergency Management Agency standards and industry |
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practices; and |
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(2) further limit the reimbursement amount for |
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personal property, such as recreational vehicles, luxury |
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watercraft, or other nonessential personal property, unless the |
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applicant demonstrates the personal property is: |
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(A) essential for agricultural, business, or |
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public utility operations; and |
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(B) not eligible for reimbursement from an |
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insurer or the Federal Emergency Management Agency. |
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Sec. 419A.105. RESILIENCY STANDARDS. To be eligible for an |
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award reimbursing 100 percent of costs under Section |
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419A.104(a)(1)(B), a person must reconstruct a structure in |
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accordance with the following resiliency standards: |
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(1) finished flooring must be at least two feet above |
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the Federal Emergency Management Agency's base flood elevation; |
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(2) the structure must be constructed or repaired |
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using flood-resistant materials, as described in Federal Emergency |
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Management Agency P-348, Protecting Building Utility Systems from |
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Flood Damage (2nd ed. Feb. 2017); |
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(3) the structure must include flood mitigation |
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measures such as flood venting, reinforced foundations, and |
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elevated utility connections; and |
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(4) the reconstruction plans must be certified by a |
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licensed engineer. |
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SUBCHAPTER D. AWARD FOR FLOOD DAMAGE OF PERSONAL PROPERTY IN RENTAL |
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PROPERTY |
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Sec. 419A.151. ELIGIBILITY FOR AWARD. (a) A person is |
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eligible for an award for the loss of or damage to essential |
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personal property under this subchapter only if: |
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(1) the person is a resident of this state and was a |
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tenant of a rental property that: |
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(A) was located in a county included in the July |
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5, 2025, disaster declaration issued by the governor under Section |
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418.014 in response to the July 2025 Hill Country floods; and |
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(B) sustained flood damage during the July 2025 |
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Hill Country floods; and |
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(2) the person submits an application for an award |
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under this subchapter. |
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(b) An application for an award under this subchapter must |
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include: |
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(1) itemized documentation of the flood damage to the |
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personal property, including receipts, photographs, affidavits, or |
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third-party verification of the losses; and |
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(2) either: |
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(A) for personal property insured at the time the |
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property was damaged, documentation of: |
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(i) the denial of the person's property |
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insurance claim by an insurer or flood damage claim by the Federal |
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Emergency Management Agency; or |
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(ii) payment of the person's property |
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insurance claim by an insurer or flood damage claim by the Federal |
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Emergency Management Agency in an amount equal to less than 50 |
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percent of the documented losses; or |
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(B) for personal property not insured for flood |
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damage losses, the applicant's attestation the person had not |
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received written notice of the rental property's location in a |
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special flood hazard area during the applicant's tenancy. |
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Sec. 419A.152. APPLICATION DEADLINE; EXTENSION. (a) |
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Except as provided by this section, a person eligible for an award |
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under this subchapter must submit an application not later than May |
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1, 2026. |
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(b) The division may extend the application deadline |
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described by Subsection (a) for categories of applicants if the |
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division determines the extension is necessary because of: |
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(1) delays by insurers in assessing property insurance |
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claims or by the Federal Emergency Management Agency in assessing |
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flood damage claims; |
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(2) natural barriers to a person's access to or a |
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person's displacement from the rental property; or |
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(3) other extenuating circumstances preventing |
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otherwise eligible persons from submitting an application on or |
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before that date. |
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(c) If the division extends an application deadline under |
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this section, the division shall post on its publicly available |
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Internet website: |
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(1) the categories of eligible persons for whom the |
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deadline is extended; |
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(2) the reason for the extension; and |
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(3) the date of the extended deadline. |
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Sec. 419A.153. AWARD LIMITATIONS. (a) An award for |
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personal property losses under this subchapter is limited to |
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amounts for essential personal property, including furniture, |
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clothing, appliances, medical devices, educational tools, and |
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work-related equipment necessary for employment. |
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(b) An award for personal property losses under this |
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subchapter may not exceed $25,000 per household unless: |
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(1) the applicant demonstrates the property is: |
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(A) essential for agricultural, business, or |
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public utility operations; and |
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(B) not eligible for reimbursement from an |
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insurer or the Federal Emergency Management Agency; and |
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(2) the total award amount does not exceed $50,000. |
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(c) Luxury goods, recreational equipment, or personal |
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property included in a flood damage claim reimbursed by or eligible |
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for reimbursement from an insurer, the Federal Emergency Management |
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Agency, or the National Flood Insurance Program are ineligible for |
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an award under this subchapter. |
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SUBCHAPTER E. FUNDING AND FRAUD PREVENTION |
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Sec. 419A.201. FUNDING. The division may administer the |
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program and fund awards provided under the program using: |
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(1) legislative appropriations to the division for |
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program purposes; and |
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(2) gifts, grants, and donations for program purposes. |
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Sec. 419A.202. LIMITATIONS ON RECOVERY. The division may |
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not issue an award under this chapter for an amount paid in a flood |
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damage claim by an insurer, the Federal Emergency Management |
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Agency, the National Flood Insurance Program, or another private or |
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public assistance program. |
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Sec. 419A.203. FRAUD PREVENTION; CIVIL PENALTY. (a) The |
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division shall report a suspected instance of fraud in an award |
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under this chapter to the attorney general. |
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(b) On the attorney general's determination that a person |
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has committed fraud in applying for or accepting an award under this |
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chapter, the attorney general may bring an action against the |
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person to recover for the division the award, interest on the award, |
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and a civil penalty as determined by the attorney general. |
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(c) The attorney general may recover reasonable expenses |
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incurred in bringing an action under this section, including court |
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costs, reasonable attorney's fees, investigative costs, witness |
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fees, and deposition costs. |
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SECTION 2. This Act takes effect on the 91st day after the |
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last day of the legislative session. |