Amend HB 3452 on third reading as follows:
      On page __, insert a new Section __ beginning on line __, and
renumbering accordingly:
      Sec. 481.0065, Government Code.  OFFICE OF DEFENSE AFFAIRS.
(a)  The department shall:
            (1)  establish and maintain an Office of Defense
Affairs; and
            (2)  appoint a director to manage the Office of Defense
Affairs.
      (b)  The Office of Defense Affairs shall:
            (1)  provide information to defense-dependent
communities, the legislature, the Texas congressional delegation,
and state agencies regarding federal actions affecting military
installations and missions;
            (2)  serve as a clearinghouse for:
                  (A)  defense economic adjustment and transition
information and activities <along with the Texas Business and
Community Economic Development Clearinghouse>; and
                  (B)  information about:
                        (i)  issues related to the operating costs
and strategic value of federal military installations located in
the state;
                        (ii)  the loss of jobs in defense-dependent
communities and defense-related businesses; and
                        (iii)  interstate competition relative to
defense strategies and incentive programs that other states are
utilizing to maintain, expand and attract new defense contractors.
            (3)  provide assistance to defense-dependent
communities that have experienced a defense-related closure or
realignment, including the administration and oversight for
implementing the programs established under Subtitle F, Title 4,
Chapter 486, Government Code, and Subtitle G, Title 10, Chapter
2310, Government Code;
            (4)  assist defense-dependent communities in the design
and execution of programs that enhance a community's relationship
with military installations and defense-related businesses; <and>
            (5)  assist communities in the retention, expansion and
recruitment of defense-related businesses; and
            (6)  assist with the development of state strategies
and programs to protect the state's existing military missions and
position Texas to be competitive for new or expanded military
missions.
            (7)  serve as the states focal point for the
coordination of all issues and policies that would affect active,
closed or realigned military installations and defense related
businesses.
      (c)  The Office of Defense Affairs shall prepare an annual
report about the active military installations, defense-dependent
communities, and defense-related businesses in this state.  The
report must include:
            (1)  an economic impact statement describing in detail
the effect of the military on the economy of this state;
            (2)  a statewide assessment of active military
installations and current missions;
            (3)  a statewide strategy to attract defense-related
business and prevent future defense closures and realignments;
            (4)  a list of state and federal activities that have
significant impact on active military installations and current
missions;
            (5)  a statement identifying:
                  (A)  the state and federal programs and services
that assist defense-dependent communities impacted by military base
closures or realignments and the efforts to coordinate those
programs; and
                  (B) the efforts to coordinate state agency
programs and services that assist defense-dependent communities in
retaining active military installations and current missions;
            (6) an evaluation of initiatives to retain existing
defense-related businesses; and
            (7)  a list of agencies with regulations, policies,
programs, or services that impact the operating costs or strategic
value of federal military installations and activities in the
state.
      (d)  State agencies shall cooperate with and assist the
Office of Defense Affairs in the preparation of the report required
under Subsection (c) including providing information about
regulations, policies, programs, and services that may impact
defense-dependent communities, defense-related businesses, and the
viability of existing Texas military missions.  The Office of
Defense Affairs shall submit its report to the governor and the
legislature not later than July 1 of each year.
      (e)  The Office of Defense Affairs shall coordinate an annual
meeting with the head of each state agency, members of the Texas
Strategic Military Planning Commission, and members of the
legislature whose districts contain active, closed, or realigned
military installations to discuss the implementation of the
recommendations outlined in the report required under Subsection
(c).
      (f)  The Office of Defense Affairs shall develop and maintain
a database of the names and public business information of all
prime contractors and subcontractors operating in this state who
perform defense related work.
      (g)  In this section, "state agency" has the meaning assigned
by Section 2151.002.