Bill Text: TX HB2300 | 2019-2020 | 86th Legislature | Engrossed

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Bill Title: Relating to the creation of the disaster recovery loan program; making an appropriation.

Spectrum: Moderate Partisan Bill (Republican 9-1)

Status: (Engrossed - Dead) 2019-05-08 - Referred to Finance [HB2300 Detail]

Download: Texas-2019-HB2300-Engrossed.html

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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.