HBA-DMD H.B. 515 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 515 By: Gray Public Safety 2/11/1999 Introduced BACKGROUND AND PURPOSE Currently, Texas does not have adequate funding to assist local communities in paying for disaster management in the absence of presidential declarations. The disaster contingency fund empowers the governor to provide grants for certain disasters. However, the funds must be appropriated each session, and there is no self-funding mechanism. H.B. 515 imposes a fee on utility bills to provide a mechanism for independent funding of disaster aid and authorizes the governor to request disaster aid from the federal government. The bill renames the fund the "Disaster Management Fund" and sets provisions for use for the fund. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority previously delegated to the governor is modified in SECTION 6 (Section 418.024, Government Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Section 418.004(1), Government Code, to include terrorist activity in a list of occurrences that defines "disaster." SECTION 2. Amends Section 418.021, Government Code, as follows: Sec. 418.021. New Title: FEDERAL AID. Authorizes the governor, rather than applying for a loan with the federal government and dispersing the proceeds on behalf of the local government because of tax and revenue losses, to request assistance from the federal government upon the governor's determination that a situation is of such severity that the state and affected political subdivision need effective response beyond the capabilities of the state and local governments to save lives, protect property, and preserve the public health and safety; lessen or avert the threat of a catastrophe; supplement the efforts of available resources of the state, the affected local government, and organized volunteer groups; and to provide compensation for uninsured disaster-related losses. Deletes language relating to the governor's authority to determine the necessary amount of assistance not to exceed 25 percent of the local government's budget for that fiscal year which the local government is seeking in order to restore or resume its governmental functions. Deletes language relating to the governor's authority to recommend to the federal government that all or part of the repayment be canceled if for the first three fiscal years following the major disaster, the revenues of the local government are insufficient to meet its operating expenses. Deletes "for local government" from title. SECTION 3. Amends Section 418.022, Government Code, as follows: Sec. 418.022. New Title: AID FOR INDIVIDUALS AND FAMILIES. Authorizes the governor, if a disaster is not declared by the president of the United States or if a disaster is declared by the president of the United States but individual or family assistance is not granted, to make grants in an amount not to exceed $5000 per individual or family in order to meet disaster-related necessary expenses or other serious needs of individuals or families affected by the disaster. Provides that grants may be used only for housing repairs; repair or replacement of personal property; transportation expenses; and funeral, dental, medical, and other analogous expenses necessary to meet a serious need. Authorizes the governor to reduce or withdraw assistance if the grants are not used within a period that the governor establishes. Refers to the Texas Department of Human Services rather than Department of Human Services. Changes the disaster contingency fund to the disaster management fund. Redesignates existing Subsection (c) to Subsection (d). Deletes "and families" from title. SECTION 4. Amends Section 418.023, Government Code, by adding Subsection (e), to authorize the governor, when a disaster is not declared by the president of the United States or when a disaster is declared but public assistance is not granted, to provide funds under Section 418.073 (Disaster Management Fund), to a political subdivision for the expenses incurred by the clearance, removal, and disposal of debris. SECTION 5. Amends Subchapter B, Chapter 418, Government Code, by adding Sections 418.0231 and 418.0232, as follows: Sec. 418.0231. ASSISTANCE FOR REPAIR OR REPLACEMENT OF HIGHWAYS OR STREETS; WATER CONTROL STRUCTURES. Authorizes the governor, when a disaster is not declared by the president of the United States or when a disaster is declared but public assistance is not granted, to provide funds under Section 418.073 (Disaster Management Fund), to a political subdivision for the expenses incurred by the replacement or repair of a damaged highway, street, or water control structure if no other means of financial assistance is available. Authorizes the governor to withdraw assistance for repair or replacement work if the work is performed after the first anniversary of the disaster. Defines "highway or street" with the meanings assigned by Section 541.302, Transportation Code (Traffic Areas). Sec. 418.0232. HAZARD MITIGATION ASSISTANCE. Authorizes the governor, when a disaster is not declared by the president of the United States or when a disaster is declared but hazard mitigation assistance is not granted, to provide funds under Section 418.073 (Disaster Management Fund) in an amount not to exceed 50 percent of the cost of hazard mitigation measures that the governor determines to be cost-effective and will substantially reduce the risk of future damage, loss, or suffering in any area affected by the disaster. Prohibits the total contribution of funds under this section from exceeding 20 percent of the estimated aggregate amount of grants made under this chapter related to the disaster. SECTION 6. Amends Section 418.024, Government Code, to authorize the governor to adopt rules for carrying out the purposes of this chapter, including standards of eligibility for political subdivisions that are applying for assistance. Makes conforming and nonsubstantive changes. SECTION 7. Amends Section 418.045, Government Code, to change the disaster contingency fund to the disaster management fund. SECTION 8. Amends Subchapter D, Chapter 418, Government Code, by amending Section 418.073 and adding Section 418.0731, as follows: Sec. 418.073. DISASTER MANAGEMENT FUND. Sets forth that the disaster management fund (fund), rather than the disaster contingency fund, is a trust fund established by and required to be administered by the Texas Treasury Safekeeping Trust Company as provided by Subchapter G, Chapter 404 (Texas Treasury Safekeeping Trust Company). Establishes that the fund consists of money colleted under Chapter 17, Utilities Code (Assessment for Disaster Relief), and any additional money appropriated to the fund. Authorizes the governor, with concurrence of the disaster emergency funding board, to make funds available from the fund for emergency management and disaster relief which exceed the regularly appropriated funds to state and local agencies. Makes conforming and nonsubstantive changes. Sec. 418.0731. USE OF FUND. Establishes that money in the fund is authorized to be used only for the emergency management and disaster relief programs except on occasions when the governor is authorized to use no more than 10 percent of the fund for administrative expenses incurred by the division of emergency management (division); no more than 15 percent of the fund for emergency management training by the division for state agencies or political subdivisions; the money in the fund to cover expenses incurred during the implementation of the mutual aid assistance authorized under 418.109 (Mutual Aid) and prescribed by the division; and not more than 4 percent of the fund for the expenses for implementation of statewide notification systems or services. SECTION 9. Amends Subtitle A, Title 2, Utilities Code, by adding Chapter 17, as follows: CHAPTER 17. ASSESSMENT FOR DISASTER RELIEF Sec. 17.001. ASSESSMENT. Establishes an annual assessment to be imposed on each electric utility and municipality owned utility serving the ultimate consumer in addition to the assessment already imposed on each public utility within the Public Utility Commission's jurisdiction under Section 16.001 (Assessment on Public Utilities). Provides that the assessment imposed is equal to one-thirteenth of one percent of the utility from rates charged to the consumer and requires the assessment to be deposited in the fund established under Section 418.073, Government Code (Disaster Management Fund). Requires the regulatory authority to provide for the adjustment of a public or municipally owned electric utility's billings to recover the additional assessment imposed under this section and any additional taxes and fees resulting from that assessment, regardless of any other provision of this Act, including a provision that authorizes or requires a freeze of utility rates. Requires each public utility and municipally owned electric utility to include the adjustment in its rates but prohibits the utility from specifying the adjustment on the consumer's bills. Sets forth that Sections 16.002 (Payment Dates) and 16.003 (Late Payment Penalty) apply to an assessment made under this section. Sec. 17.002. TARIFF FILING. Requires each public utility and municipally owned electric utility to file a tariff with each regulatory authority that has original jurisdiction over the rates of consumers and specifies that the adjustment provision will take effect and become part of the utility's rates on the date that the tariff is filed with the appropriate regulatory authority. Establishes that Subchapters C, D, and E, Chapter 33 (Appeal of Municipal Order, Provisions Applicable to Appeal by Ratepayers Outside Municipality, Rate Determination and Appeal of Orders of Certain Municipal Utilities), does not apply to any action taken under this chapter. Sec. 17.003. EXCEPTION. Establishes that the assessment imposed by this chapter does not apply to an investor-owned electric utility that has been reorganized and confirmed by a federal bankruptcy court if that utility cannot adjust its rates to recover the assessment. Sec. 17.004. COLLECTION BY COMPTROLLER. Requires the comptroller to collect and deposit into the fund established under Section 418.073, Government Code, the additional assessment imposed under Section 17.001, and any fee, penalty, or interest related to that offense. SECTION 10. Sets forth that on the effective date of this Act, the disaster contingency fund is eliminated and requires the comptroller to transfer any unencumbered amount in that account to the disaster management fund established as provided by Section 418.073, Government Code, as amended by this Act. SECTION 11. Emergency clause. Effective date: upon passage.