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 consultation 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 becoming eligible 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 enforcement of loan contract terms.

Furthermore, the bill creates a Federal Reimbursement Revolving Fund to utilize reimbursements from the federal government for claims related to the state's response to emergencies. This fund will support disaster relief efforts and ensure recovery for local communities affected by emergencies. The bill also includes provisions for annual transfers from the Appropriation Contingency Fund to the Natural Disaster Revolving Fund, with a cap on the amount transferred based on the fund's balance. The legislation declares an emergency, allowing it to take effect immediately for the public peace, health, and safety.

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