HB 66

89S20226 CS-D
		By: Darby
  H.B. No. 66
  A BILL TO BE ENTITLED
  AN ACT
  relating to the creation of the disaster relief and prevention
  matching grant and loan program and the disaster relief and
  prevention account.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 418, Government Code, is amended by
  adding Subchapter D-2 to read as follows:
  SUBCHAPTER D-2.  TEXAS DISASTER RELIEF AND PREVENTION MATCHING
  GRANT AND LOAN PROGRAM
         Sec. 418.091.  DEFINITIONS.  In this subchapter:
               (1)  "Account" means the disaster relief and prevention
  account created under Section 418.097.
               (2)  "Administration" means the United States Small
  Business Administration.
               (3)  "Agency" means the Federal Emergency Management
  Agency.
               (4)  "Disaster area" means an area of this state that
  has been declared to be a disaster area by the governor.
         Sec. 418.092.  ESTABLISHMENT OF PROGRAM; RULES.  (a) The
  division shall establish a program that uses money from the account
  to provide matching grants and loans to eligible individuals and
  entities for the purposes of providing disaster relief and
  preventing future disasters.
         (b)  The division may adopt rules as necessary to implement
  and administer this subchapter.
         Sec. 418.093.  MATCHING GRANTS.  (a)  The division may use
  money in the account to provide matching grants to political
  subdivisions and businesses that are eligible under Subsection (b)
  for:
               (1)  disaster recovery and remediation; and
               (2)  construction of infrastructure to mitigate the
  effects of future disasters.
         (b)  A political subdivision or business may apply to the
  division for a matching grant under this subchapter if:
               (1)  the political subdivision or business is located
  wholly or partly in an area declared to be a disaster area; and
               (2)  the political subdivision or business is eligible
  for:
                     (A)  assistance under the agency's public
  assistance program; or
                     (B)  a disaster loan from the administration.
         Sec. 418.094.  LOANS.  (a)  The division may use money in the
  account to provide loans to:
               (1)  political subdivisions and businesses that are
  eligible under Subsection (b) for:
                     (A)  disaster recovery and remediation; and
                     (B)  construction of infrastructure to mitigate
  the effects of future disasters; and
               (2)  individuals who are eligible under Subsection (c)
  for:
                     (A)  the repair or rebuilding of a residence owned
  by the individual and damaged by a disaster; and
                     (B)  additional improvements to the residence
  described by Paragraph (A) to mitigate the effects of future
  disasters.
         (b)  A political subdivision or business that is located
  wholly or partly in an area declared to be a disaster area may apply
  to the division for a loan under this subchapter if the political
  subdivision or business is eligible for:
               (1)  assistance under the agency's public assistance
  program; or
               (2)  a disaster loan from the administration.
         (c)  An individual who owns a residence located wholly or
  partly in an area declared to be a disaster area may apply to the
  division for a loan under this subchapter if the individual is
  eligible for assistance under the agency's public assistance
  program for the residence.
         Sec. 418.095.  APPLICATION FOR MATCHING GRANT OR LOAN.  (a)
  The division shall develop and implement an application process for
  a matching grant or loan under this subchapter.
         (b)  The application process developed by the division must
  require an applicant to provide:
               (1)  a description of the disaster that is the basis for
  the application;
               (2)  a description of the disaster recovery and
  remediation project, mitigating infrastructure, or repairs and
  improvements to a residence, as applicable, for which the applicant
  intends to use the proceeds of the matching grant or loan;
               (3)  documentation demonstrating the estimated cost of
  each item or project described by Subdivision (2);
               (4)  evidence that the applicant meets the eligibility
  requirements under Section 418.093 or 418.094, as applicable;
               (5)  if the application is for a matching grant,
  evidence that the applicant has the ability to provide the required
  matching funds; and
               (6)  if the application is for a loan, evidence that the
  applicant has the ability to repay the loan.
         (c)  The division shall develop and make available on its
  publicly available Internet website an electronic form an applicant
  may use to apply for a matching grant or loan under this subchapter.
         Sec. 418.096.  USE OF MATCHING GRANT OR LOAN PROCEEDS;
  TERMS.  (a)  A matching grant or loan provided under this subchapter
  may only be used for a purpose authorized under this subchapter and
  as authorized by division rule.
         (b)  A loan under this subchapter must be made at or below
  market interest rates for a term not to exceed 10 years.
         (c)  The division shall enter into a written agreement with
  the recipient of a matching grant or loan under this subchapter.  
  The agreement must give the division the authority to audit the
  individual or entity receiving the matching grant or loan to ensure
  the money is used in compliance with this subchapter.
         Sec. 418.097.  CREATION OF ACCOUNT; GIFTS, GRANTS, AND
  DONATIONS.  (a)  The disaster relief and prevention account is
  created as an account in the general revenue fund with the
  comptroller, to be administered by the division.
         (b)  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; and
               (3)  gifts, grants, or other donations made to the
  division for deposit to the account.
         (c)  Money in the account may be appropriated to the division
  only for a purpose described by this subchapter.
         (d)  The division may solicit or accept gifts, grants, and
  donations of money from any source for purposes of this subchapter.
         SECTION 2.  As soon as practicable after the effective date
  of this Act, the Texas Division of Emergency Management shall:
               (1)  establish the matching grant and loan program
  required by Subchapter D-2, Chapter 418, Government Code, as added
  by this Act; and
               (2)  adopt the rules necessary to implement and
  administer the matching grant and loan program.
         SECTION 3.  This Act takes effect on the 91st day after the
  last day of the legislative session.