SRC-TBR, BWC S.B. 1815 77(R)BILL ANALYSIS


Senate Research CenterS.B. 1815
By: Truan
Veteran Affairs & Military Installations
6/13/2001
Enrolled


DIGEST AND PURPOSE 

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

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Office of Defense Affairs
in SECTION 2 (Section 486.052, Government Code) and SECTION 3 in this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Designates Sections 486.001-486.009, Government Code, as
Chapter 486A, Government Code, and adds subchapter heading, as follows: 

SUBCHAPTER A.  GRANTS TO LOCAL AREAS AFFECTED BY 
DEFENSE BASE REDUCTION

SECTION 2.  Amends Chapter 486, Government Code, by adding Subchapter B, as
follows: 

SUBCHAPTER B.  REVOLVING LOANS TO COMMUNITIES POTENTIALLY 
AFFECTED BY DEFENSE BASE REDUCTION PROCESS

 Sec. 486.051.  DEFINITIONS.  Defines "account," "eligible community," and
"office."   

Sec. 486.052.  REVOLVING LOAN PROGRAM.  Requires the Office of Defense
Affairs (office) 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.  Authorizes the loans to be granted to an eligible
community before the neighboring defense base is closed.  Requires the
office by rule to establish criteria and procedures for evaluations of
applications for loans under the program. Requires the office by rule to
establish categories of eligible infrastructure projects for which an
eligible community is authorized to apply for a loan.   

Sec. 486.053.  REVOLVING LOAN ACCOUNT.  Provides that the community
infrastructure development revolving loan account is an account in the
general revenue fund. Authorizes the account to be used only for loans made
under this subchapter.  Authorizes the office to accept gifts or grants
from any source for the purposes of this subchapter.  Requires the office
to deposit gifts or grants to the credit of the account.  Requires the
office deposit to the credit of the account all loan payments made by an
eligible community.  

SECTION 3.  Requires the Office of Defense Affairs to adopt rules and
procedures so that the office  may begin to offer loans under Chapter 486B,
Government Code, as added by this Act, on or before September 1, 2003.
Provides that the Office of Defense Affairs has no duty to act under this
section or Subchapter B, Chapter 486, Government Code, as added by this
Act, unless the infrastructure development revolving loan account in the
general revenue fund is funded sufficiently to enable the Office of Defense
Affairs to make loans under that subchapter and to pay the office's costs
of administering that subchapter. 

SECTION 4.  Effective date: September 1, 2001.