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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 relief and prevention |
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matching grant and loan program and the disaster relief and |
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prevention account. |
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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 D-2 to read as follows: |
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SUBCHAPTER D-2. TEXAS DISASTER RELIEF AND PREVENTION MATCHING |
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GRANT AND LOAN PROGRAM |
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Sec. 418.091. DEFINITIONS. In this subchapter: |
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(1) "Account" means the disaster relief and prevention |
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account created under Section 418.097. |
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(2) "Administration" means the United States Small |
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Business Administration. |
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(3) "Agency" means the Federal Emergency Management |
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Agency. |
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(4) "Disaster area" means an area of this state that |
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has been declared to be a disaster area by the governor. |
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Sec. 418.092. ESTABLISHMENT OF PROGRAM; RULES. (a) The |
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division shall establish a program that uses money from the account |
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to provide matching grants and loans to eligible individuals and |
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entities for the purposes of providing disaster relief and |
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preventing future disasters. |
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(b) The division may adopt rules as necessary to implement |
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and administer this subchapter. |
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Sec. 418.093. MATCHING GRANTS. (a) The division may use |
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money in the account to provide matching grants to political |
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subdivisions and businesses that are eligible under Subsection (b) |
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for: |
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(1) disaster recovery and remediation; and |
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(2) construction of infrastructure to mitigate the |
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effects of future disasters. |
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(b) A political subdivision or business may apply to the |
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division for a matching grant under this subchapter if: |
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(1) the political subdivision or business is located |
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wholly or partly in an area declared to be a disaster area; and |
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(2) the political subdivision or business is eligible |
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for: |
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(A) assistance under the agency's public |
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assistance program; or |
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(B) a disaster loan from the administration. |
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Sec. 418.094. LOANS. (a) The division may use money in the |
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account to provide loans to: |
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(1) political subdivisions and businesses that are |
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eligible under Subsection (b) for: |
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(A) disaster recovery and remediation; and |
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(B) construction of infrastructure to mitigate |
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the effects of future disasters; and |
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(2) individuals who are eligible under Subsection (c) |
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for: |
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(A) the repair or rebuilding of a residence owned |
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by the individual and damaged by a disaster; and |
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(B) additional improvements to the residence |
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described by Paragraph (A) to mitigate the effects of future |
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disasters. |
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(b) A political subdivision or business that is located |
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wholly or partly in an area declared to be a disaster area may apply |
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to the division for a loan under this subchapter if the political |
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subdivision or business is eligible for: |
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(1) assistance under the agency's public assistance |
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program; or |
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(2) a disaster loan from the administration. |
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(c) An individual who owns a residence located wholly or |
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partly in an area declared to be a disaster area may apply to the |
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division for a loan under this subchapter if the individual is |
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eligible for assistance under the agency's public assistance |
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program for the residence. |
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Sec. 418.095. APPLICATION FOR MATCHING GRANT OR LOAN. (a) |
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The division shall develop and implement an application process for |
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a matching grant or loan under this subchapter. |
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(b) The application process developed by the division must |
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require an applicant to provide: |
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(1) a description of the disaster that is the basis for |
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the application; |
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(2) a description of the disaster recovery and |
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remediation project, mitigating infrastructure, or repairs and |
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improvements to a residence, as applicable, for which the applicant |
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intends to use the proceeds of the matching grant or loan; |
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(3) documentation demonstrating the estimated cost of |
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each item or project described by Subdivision (2); |
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(4) evidence that the applicant meets the eligibility |
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requirements under Section 418.093 or 418.094, as applicable; |
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(5) if the application is for a matching grant, |
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evidence that the applicant has the ability to provide the required |
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matching funds; and |
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(6) if the application is for a loan, evidence that the |
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applicant has the ability to repay the loan. |
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(c) The division shall develop and make available on its |
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publicly available Internet website an electronic form an applicant |
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may use to apply for a matching grant or loan under this subchapter. |
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Sec. 418.096. USE OF MATCHING GRANT OR LOAN PROCEEDS; |
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TERMS. (a) A matching grant or loan provided under this subchapter |
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may only be used for a purpose authorized under this subchapter and |
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as authorized by division rule. |
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(b) A loan under this subchapter must be made at or below |
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market interest rates for a term not to exceed 10 years. |
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(c) The division shall enter into a written agreement with |
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the recipient of a matching grant or loan under this subchapter. |
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The agreement must give the division the authority to audit the |
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individual or entity receiving the matching grant or loan to ensure |
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the money is used in compliance with this subchapter. |
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Sec. 418.097. CREATION OF ACCOUNT; GIFTS, GRANTS, AND |
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DONATIONS. (a) The disaster relief and prevention account is |
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created as an account in the general revenue fund with the |
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comptroller, to be administered by the division. |
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(b) 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; and |
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(3) gifts, grants, or other donations made to the |
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division for deposit to the account. |
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(c) Money in the account may be appropriated to the division |
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only for a purpose described by this subchapter. |
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(d) The division may solicit or accept gifts, grants, and |
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donations of money from any source for purposes of this subchapter. |
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SECTION 2. As soon as practicable after the effective date |
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of this Act, the Texas Division of Emergency Management shall: |
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(1) establish the matching grant and loan program |
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required by Subchapter D-2, Chapter 418, Government Code, as added |
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by this Act; and |
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(2) adopt the rules necessary to implement and |
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administer the matching grant and loan program. |
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SECTION 3. This Act takes effect on the 91st day after the |
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last day of the legislative session. |