Enrolled Bill Summary

House Bill 2340	House Author:  Corte et al.
Effective:  9-1-05	Senate Sponsor:  Shapleigh

            House Bill 2340 amends the Government Code to authorize the Military Preparedness Commission to use the Texas Military Value Revolving Loan Account to provide loans to defense communities for economic development projects that minimize the negative impact of a defense base reduction on the defense community or for an infrastructure project that accommodates new and expanded military missions as a result of the federal base realignment process.  The bill sets out the criteria for and the administration of such a loan and requires the commission and the Texas Public Finance Authority to determine certain matters relating to the bond to fund the loan.  In addition to a current grant for a community adversely affected by defense reduction, House Bill 2340 authorizes the Department of Commerce to award a grant to a local governmental entity for a restructuring project in positively affected defense communities, but requires that preference for grants be given to adversely affected communities.  The bill also reinstates the deduction from taxable capital under the franchise tax for defense readjustment projects.