Enrolled Bill Summary

            Senate Bill 652, the Military Preparedness Act, amends various codes to enhance efforts, under a pending round of federal defense base realignment and closure scheduled for 2005, to retain Texas military installations. It creates the Texas Military Preparedness Commission, which replaces the Texas Strategic Military Planning Commission, and abolishes the Office of Defense Affairs of the Texas Department of Economic Development, transferring the two former entities' functions, property, records, obligations, and funding to the new commission. The bill authorizes the Texas Public Finance Authority to issue and sell general obligation bonds to establish a Texas military value revolving loan account, and provides for the appropriation of general revenue to the authority to pay the principal, premium if any, and interest on the bonds. The new commission, from the account, may provide loans of financial assistance to defense communities to fund projects that will enhance the military value of local military facilities. The bill elaborates on related loan procedures and commission functions, and includes temporary provisions focusing another existing loan program on communities that are potentially affected by the 2005 round of realignment and closure, giving first priority to such communities for loans from the community infrastructure development revolving loan account. Among other provisions, it allows tax abatements for certain housing units for military personnel, contains measures to ensure that state land transactions materially assist military missions and do not adversely affect nearby defense bases, provides for discounted electric utility rates and energy efficiency incentives targeting military installations, includes such installations among those entities to whom the General Land Office gives priority for sales of power and natural gas, and supports interstate educational reciprocity agreements for public school students who are dependents of relocating military personnel. The bill takes effect May 28, 2003, except for provisions relating to the issuance of bonds and related appropriations, which take effect contingent on voter approval of the constitutional amendment proposed by Senate Joint Resolution 55.