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  H.B. No. 2694
  relating to the disaster contingency fund.
         SECTION 1.  Section 418.073, Government Code, is amended by
  amending Subsection (b) and adding Subsections (c) and (d) to read
  as follows:
         (b)  [If the governor finds that the demands placed on funds
  regularly appropriated to state and local agencies are unreasonably
  great for coping with a particular disaster, the governor with the
  concurrence of the disaster emergency funding board may make funds
  available from the disaster contingency fund.] It is the intent of
  the legislature that in responding to an emergency or disaster, the
  first recourse of state and local agencies should be to the funds
  regularly appropriated to those [state and local] agencies.
         (c)  A state agency, local government, or other eligible
  entity may request funding from the disaster contingency fund to
  pay for:
               (1)  extraordinary costs incurred in implementing
  preventive measures taken before or during an emergency; and
               (2)  costs incurred in repairing damage suffered during
  a disaster for which:
                     (A)  the presiding officer of a municipal or
  county government has declared a local state of disaster for
  affected areas within the jurisdiction of the municipality or
  county; and
                     (B)  the governor has also declared a state of
  disaster for the affected county or counties.
         (d)  The governor's division of emergency management shall
  administer the disaster contingency fund and shall develop and
  implement rules and procedures for providing emergency assistance
  from the fund.
         SECTION 2.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2007.
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
         I certify that H.B. No. 2694 was passed by the House on May 7,
  2007, by the following vote:  Yeas 138, Nays 0, 1 present, not
  voting; and that the House concurred in Senate amendments to H.B.
  No. 2694 on May 23, 2007, by the following vote:  Yeas 141, Nays 0,
  2 present, not voting.
  Chief Clerk of the House   
         I certify that H.B. No. 2694 was passed by the Senate, with
  amendments, on May 21, 2007, by the following vote:  Yeas 31, Nays
  Secretary of the Senate   
  APPROVED: __________________