HBA-CMT S.B. 1815 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 1815
By: Truan
State, Federal & International Relations
5/5/2001
Engrossed



BACKGROUND AND PURPOSE 

Recent legislation was introduced in the United States Congress authorized
additional rounds of federal base closures throughout the United States.
Texas needs to be prepared should any military bases be closed or
realigned.  Senate Bill 1815 authorizes the Office of Defense Affairs to
administer a revolving loan program to help eligible communities develop
infrastructure to minimize the possibility of or the negative effects of a
base closure on that community.  

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Office of Defense Affairs in
SECTION 2 (Section 486.052, Government Code) and SECTION 3 of this bill. 

ANALYSIS

Senate Bill 1815 amends the Government Code to require the Office of
Defense Affairs (office) is sufficiently funded to administer a revolving
loan program for assistance to an eligible community in developing
infrastructure to minimize the possibility of or the negative effects of
defense base reduction on the eligible community.  The loans may to be
granted to an eligible community before the neighboring defense base is
closed.   

The bill requires the office by rule to establish criteria and procedures
for evaluations of loan applications and to establish categories of
eligible infrastructure projects for which an eligible community may apply
for a loan.  The bill requires the office to adopt rules and procedures so
that the office may begin to offer loans on or before September 1, 2003.  

EFFECTIVE DATE

September 1, 2001.