H.B. No. 232 proposes the establishment of a Disaster Recovery Fund within the Texas Government Code, specifically under a new Subchapter M. The fund aims to provide financial compensation to residents affected by natural disasters when federal assistance is insufficient. The bill defines key terms such as "claimant," who may be individuals suffering personal injury or property damage due to qualifying weather events, and outlines the types of expenses eligible for compensation, including property repairs, medical costs, and temporary housing. The fund will be financed through legislative appropriations, federal grants, donations, and other revenue sources.

The bill also sets forth the eligibility criteria for claimants, requiring them to submit applications within two years of the qualifying event. It mandates that the division responsible for administering the fund must approve or deny claims within 60 days of receiving a completed application. Additionally, the division has the authority to prioritize claims based on need and severity, and it may establish maximum compensation limits for different categories of expenses. The act is set to take effect on January 1, 2026.

Statutes affected:
Introduced: ()