This bill establishes a Natural Disaster Loan Program that provides zero-interest loans to political subdivisions of the state and electric cooperatives that have been approved for federal public assistance funding due to federally declared natural disasters. The Department of Finance and Administration, in collaboration with the Homeland Security and Emergency Management Department, will administer these loans, which require reimbursement contracts. The contracts will stipulate repayment terms, including a requirement for the loan to be repaid within thirty days of eligibility for federal reimbursement, and penalties for failure to meet deadlines. Additionally, the bill creates a Natural Disaster Revolving Fund to manage these loans and outlines the procedures for loan repayments and enforcement of contract terms.

Furthermore, the bill creates a Federal Reimbursement Revolving Fund to manage reimbursements from the federal government for claims related to the state's response to emergencies. This fund will be used to ensure recovery for local communities affected by emergencies and to respond to future emergencies. The bill also includes provisions for annual transfers from the Appropriation Contingency Fund to the Natural Disaster Revolving Fund, ensuring that adequate resources are available for disaster recovery efforts. The legislation emphasizes the importance of timely financial support for communities affected by natural disasters and aims to streamline the process for accessing federal funds.

Statutes affected:
introduced version: 6-4-2.3
Final Version: 6-4-2.3