By Truan                                              S.B. No. 1815
         77R8998 JJT-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to establishing a loan program to assist communities that
 1-3     may be affected by federal military base closures.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Sections 486.001-486.009, Government Code, are
 1-6     designated as Subchapter A, Chapter 486, Government Code, and a
 1-7     subchapter heading is added to read as follows:
 1-8              SUBCHAPTER A.  GRANTS TO LOCAL AREAS AFFECTED BY
 1-9                           DEFENSE BASE REDUCTION
1-10           SECTION 2. Chapter 486, Government Code, is amended by adding
1-11     Subchapter B to read as follows:
1-12          SUBCHAPTER B.  REVOLVING LOANS TO COMMUNITIES POTENTIALLY
1-13                 AFFECTED BY DEFENSE BASE REDUCTION PROCESS
1-14           Sec. 486.051.  DEFINITIONS. In this subchapter:
1-15                 (1)  "Account" means the community infrastructure
1-16     development revolving loan account.
1-17                 (2)  "Eligible community" means a local governmental
1-18     entity eligible for a grant under Section 486.003 and that is
1-19     located less than 25 miles from a defense base facility described
1-20     by Section 486.003(b)(1).
1-21                 (3)  "Office" means the Office of Defense Affairs.
1-22           Sec. 486.052.  REVOLVING LOAN PROGRAM. (a)  The office shall
1-23     administer a revolving loan program for assistance to an eligible
1-24     community in developing infrastructure to minimize the possibility
 2-1     of or the negative effects of defense base reduction on the
 2-2     eligible community.  The loans may be granted to an eligible
 2-3     community before the neighboring defense base is closed.
 2-4           (b)  The office by rule shall establish criteria and
 2-5     procedures for evaluations of applications for loans under the
 2-6     program.
 2-7           (c)  The office by rule shall establish categories of
 2-8     eligible infrastructure projects for which an eligible community
 2-9     may apply for a loan.
2-10           Sec. 486.053.  REVOLVING LOAN ACCOUNT. (a)  The community
2-11     infrastructure development revolving loan account is an account in
2-12     the general revenue fund.
2-13           (b)  The account may be used only for loans made under this
2-14     subchapter.
2-15           (c)  The office may accept gifts or grants from any source
2-16     for the purposes of this subchapter.  The office shall deposit
2-17     gifts or grants to the credit of the account.
2-18           (d)  The office shall deposit to the credit of the account
2-19     all loan payments made by an eligible community.
2-20           SECTION 3. The Office of Defense Affairs shall adopt rules
2-21     and procedures so that the office may begin to offer loans under
2-22     Subchapter B, Chapter 486, Government Code, as added by this Act,
2-23     on or before September 1, 2003.
2-24           SECTION 4. This Act takes effect September 1, 2001.