Representative Michael K. McKell proposes the following substitute bill:





Chief Sponsor: Michael K. McKell

Senate Sponsor: Deidre M. Henderson


9     General Description:
10           This bill creates a restricted account and sets eligibility requirements for counties,
11     municipalities, local districts, and special service districts to receive grants from the
12     restricted account.
13     Highlighted Provisions:
14          This bill:
15          ▸      defines terms;
16          ▸     creates the Post Disaster Recovery and Mitigation Restricted Account;
17          ▸     designates the purposes, limitations, and sources of the restricted account;
18          ▸     sets standards and requirements for receiving a grant from funds originating from
19     the restricted account; and
20          ▸     grants rulemaking authority to the Division of Emergency Management.
21     Money Appropriated in this Bill:
22          This bill appropriates in fiscal year 2020:
23          ▸     to the General Fund Restricted -- Post Disaster Recovery and Mitigation Restricted
24     Account -- as an ongoing appropriation:
25               •     from the General Fund, $2,000,000.

26          ▸     to the Department of Public Safety -- as an ongoing appropriation
27               •     from the General Fund Restricted -- Post Disaster Recovery and Mitigation
28     Restricted Account, $2,000,000.
29     Other Special Clauses:
30          None
31     Utah Code Sections Affected:
32     ENACTS:
33          53-2a-1301, Utah Code Annotated 1953
34          53-2a-1302, Utah Code Annotated 1953
35          53-2a-1303, Utah Code Annotated 1953
36          53-2a-1304, Utah Code Annotated 1953
37          53-2a-1305, Utah Code Annotated 1953

39     Be it enacted by the Legislature of the state of Utah:
40          Section 1. Section 53-2a-1301 is enacted to read:
Part 13. Post Disaster Recovery and Mitigation Restricted Account

42          53-2a-1301. Definitions.
43          As used in the part:
44          (1) "Account" means the Post Disaster Recovery and Mitigation Restricted Account
45     created in Section 53-2a-1302.
46          (2) "Affected community" means a community directly affected by an ongoing or
47     recent disaster.
48          (3) "Chief executive officer" means the same as that term is defined in Section
49     53-2a-203.
50          (4) "Community" means a county, municipality, local district, or special service
51     district.
52          (5) "Costs not recoverable" include:
53          (a) the county threshold; and
54          (b) costs covered by insurance or federal government grants, including funding
55     provided to the state by FEMA's Public Assistance grant program described in 44 C.F.R.
56     Chapter 1, Subchapter D, Part 206.

57          (6) "County threshold" means, for each county, the countywide per capita indicator
58     established by FEMA for the state, multiplied by the population of the county as determined by
59     the division.
60          (7) "Disaster recovery" means action taken to remove debris, implement life-saving
61     emergency protective measures, or repair, replace, or restore facilities in response to a disaster.
62          (8) "Disaster recovery grant" means money granted to an affected community for
63     disaster recovery that amounts to not more than 75% of the difference between the cost of
64     disaster recovery, as determined by the division after reviewing the official damage assessment,
65     and costs not recoverable.
66          (9) "FEMA" means the Federal Emergency Management Agency.
67          (10) "Post hazard mitigation" means action taken, after a natural disaster, to reduce or
68     eliminate risk to people or property that may occur as a result of the long-term effects of the
69     natural disaster or a subsequent natural disaster, including action to prevent damage caused by
70     flooding, earthquake, dam failure, wildfire, landslide, severe weather, drought, and problem
71     soil.
72          (11) "Post hazard mitigation grant" means money granted to a community for post
73     hazard mitigation that amounts to not more than 75% of the costs deemed necessary by the
74     division to complete the post hazard mitigation.
75          (12) "Official damage assessment" means a financial assessment of the damage to an
76     affected community, caused by a disaster, that is conducted under the direction of the
77     governing body of the affected community, in accordance with the rules described in Section
78     53-2a-1305.
79          Section 2. Section 53-2a-1302 is enacted to read:
80          53-2a-1302. Post Disaster Recovery and Mitigation Restricted Account.
81          (1) There is created a restricted account in the General Fund known as the "Post
82     Disaster Recovery and Mitigation Restricted Account."
83          (2) The account consists of:
84          (a) money appropriated to the account by the Legislature;
85          (b) income and interest derived from the deposit and investment of money in the
86     account; and
87          (c) private donations, grants, gifts, bequests, or money made available from any other

88     source to implement this section.
89          (3) At the close of a fiscal year, money in the account exceeding $10,000,000,
90     excluding money granted to the account under Subsection (2)(c), shall be transferred to the
91     General Fund.
92          (4) Subject to the requirements described in this part, and upon appropriation by the
93     Legislature, the division may grant money appropriated from the account:
94          (a) to an affected community for the affected community's disaster recovery efforts as
95     described in Section 53-2a-1303; or
96          (b) to a community for post hazard mitigation as described in Section 53-2a-1304.
97          Section 3. Section 53-2a-1303 is enacted to read:
98          53-2a-1303. Disaster Recovery Grant.
99          (1) The division may grant money under Subsection 53-2a-1302(4)(a) appropriated
100     from the account after receiving an application from an affected community for a disaster
101     recovery grant.
102          (2) An affected community is eligible to receive a disaster recovery grant appropriated
103     from the account if:
104          (a) the affected community submits an application described in Subsection (1) that
105     includes the information required by the rules described in Section 53- 2a-1305;
106          (b) the occurrence of disaster in the affected community results in:
107          (i) the president of the United States declaring an emergency or major disaster in the
108     state;
109          (ii) the governor declaring a state of emergency under Section 53-2a-206; or
110          (iii) the chief executive officer of a local government within the affected community
111     declaring a local emergency under Section 53-2a-205;
112          (c) the governing body of the affected community conducts an official damage
113     assessment of the disaster;
114          (d) the cost of disaster recovery, as determined by the division after reviewing the
115     official damage assessment, exceeds the county threshold for the county in which the affected
116     community is located; and
117          (e) the division maintains sufficient money for the grant.
118          Section 4. Section 53-2a-1304 is enacted to read:

119          53-2a-1304. Post Hazard Mitigation Grant.
120          (1) The division may grant money under Subsection 53-2a-1302(4)(b) appropriated
121     from the account after receiving an application from a community for post hazard mitigation if:
122          (a) the non-lapsing balance available from money appropriated by the Legislature for
123     the previous fiscal year exceeds the amount of money appropriated by the Legislature for the
124     current fiscal year; and
125          (b) the total money granted by the division for post hazard mitigation does not exceed
126     the difference between the amount of non-lapsing funds from the previous fiscal year and the
127     amount of money appropriated by the Legislature for the current fiscal year.
128          (2) A community is eligible to receive a post hazard mitigation grant if the division
129     determines the post hazard mitigation to be funded by the post hazard mitigation grant:
130          (a) is reasonably likely to mitigate:
131          (i) economically significant property damage resulting from a disaster; or
132          (ii) threats to human safety resulting from a disaster;
133          (b) will be designed and constructed in a economically efficient manner that comports
134     with accepted industry standards; and
135          (c) addresses a threat of disaster that is plausible and not merely speculative.
136          Section 5. Section 53-2a-1305 is enacted to read:
137          53-2a-1305. Rulemaking authority and division responsibilities.
138          (1) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
139     division may make rules to:
140          (a) designate the requirements and procedures:
141          (i) for the governing body of an affected community to:
142          (A) apply for a disaster recovery grant; and
143          (B) conduct an official damage assessment; and
144          (ii) for the governing body of a community to apply for a post hazard mitigation grant;
145     and
146          (b) establish standards to ensure that projects completed in accordance with this section
147     are completed in a cost effective manner, are reasonably necessary for disaster recovery or post
148     hazard mitigation, and that all receipts and invoices are documented.
149          (2) No later than December 31 of each year, the division shall provide the governor and

150     the Criminal Justice Appropriations Subcommittee a written report of the division's activities
151     under this part, including:
152          (a) an accounting of the money expended or committed to be expended under this part;
153     and
154          (b) the balance of the account.
155          Section 6. Appropriation.
156          The following sums of money are appropriated for the fiscal year beginning July 1,
157     2019, and ending June 30, 2020. These are additions to amounts previously appropriated for
158     fiscal year 2020.
159          Subsection 6a. Restricted Fund and Account Transfers.
160          The Legislature authorizes the State Division of Finance to transfer the following
161     amounts between the following funds or accounts as indicated. Expenditures and outlays from
162     the funds or accounts to which the money is transferred must be authorized by an
163     appropriation.
164     ITEM 1
165          To the General Fund Restricted -- Post Disaster Recovery and Mitigation
166           Restricted Account
167               From General Fund

168               Schedule of Programs:
169                    General Fund Restricted -- Post Disaster Recovery and
170                     Mitigation Restricted Account          $2,000,000
171          Subsection 6b. Operating and Capital Budgets.
172          Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures Act, the
173     Legislature appropriates the following sums of money from the funds or accounts indicated for
174     the use and support of the government of the state of Utah.
175     ITEM 2
176          To Department of Public Safety -- Emergency Management
177               From General Fund Restricted -- Post Disaster Recovery and Mitigation
178                Restricted Account

179               Schedule of Programs:
180                    Emergency Management:               $2,000,000

181          The Legislature intends that:
182          (1) appropriations provided under this Subsection (6)(b) be used for Disaster Recovery
183     Grants and Post Hazard Mitigation Grants described in Sections 53-2a-1303 and 53-2a-1304;
184     and
185          (2) under Section 63J-1-603, appropriations provided under this section not lapse at the
186     close of fiscal year 2020.