C.S.H.B. 1521 78(R)    BILL ANALYSIS


C.S.H.B. 1521
By: Corte
Defense Affairs and State-Federal Relations
Committee Report (Substituted)



BACKGROUND AND PURPOSE 

Texas' 18 major military installations are important economic contributors
to the state, producing a combined economic impact on Texas of nearly $49
billion and employing some 22,000 Texans. The presence of these military
bases is important not only economically but also for the increased level
of security protection they offer as well as their vital historical and
cultural significance. 

The United States Department of Defense (DOD) has announced plans to
facilitate the transition and transformation of bases largely through
dollar savings associated with the 2005 Base Realignment and Closure
(BRAC) process which could close and realign as much as 25 percent of DOD
bases. HB 1521 assists local defense communities in identifying and
resourcing cooperative economic development initiatives that enhance the
real military value of their installations, providing important cost
saving options to reduce overall base operating costs, and by
institutionalizing the process of investing in Texas' military bases. It
also encourages state agencies and local governments to prioritize issues
regarding military bases.  The bill abolishes the Texas Strategic Military
Planning Commission and the Office of Defense Affairs, and moves their
duties, and assigns additional duties, into a new commission to be named
the Texas Military Preparedness Commission. 


RULEMAKING AUTHORITY  

Rulemaking authority is expressly granted to the Public Utility Commission
of Texas in SECTION 23 (Section 39.910, Utilities Code).  Additionally, in
SECTION 27 (a) and SECTION 28 (a) of the bill, the Office of Defense
Affairs and the Texas Strategic Military Planning Commission are abolished
and all powers , duties obligations, etc.. are transferred to the Texas
Military Preparedness Commission. 


ANALYSIS

HB 1521 renames the Texas Strategic Military Planning Commission to the
Texas Military Preparedness  Commission (Commission) and changes the
certain qualifications, duties and terms of office of the Commissioners.
The Commission will advise the Governor and the legislature on
defense-related issues, including private industry and Federal actions
that will affect Texas.  The bill lays out other specific duties of the
Commission.  The Commission is authorized to hire consulting firms to
provide information or assist on a pending decision of the U.S. Department
of Defense relating to military installations and defense-related
businesses located in Texas.  The bill requires the Commission to submit
an annual report to the Governor and the Legislature.  The Commission will
also assist base commanders to coordinate assistance from other state
agencies in preparing an evaluation of their base as required by the U.S.
DOD. 

The bill authorizes the Commission to provide loans from the Texas
Military Value Revolving Loan Account, created by this bill, to certain
political subdivisions for projects that will enhance the military value
of a military facility in, or adjacent to the political subdivision.  It
requires the Commission, upon receipt of the loan application, to analyze
the project with the criteria used by U.S. DOD to evaluate military bases
in the BRAC process.  Upon receiving a Military Value Enhancement
Statement, the Commission shall first refer the defense community to a
state agency that has existing programs to address their needs.  If none
exist, then the Commission may provide loans as stated above.  A project
financed with a loan under this section must be completed within  five
years. 


The revolving loan account is to be funded through the issuance of general
obligation bonds issued by the Texas Department of Economic Development,
or by gifts and grants. 

The bill requires a state agency to consider enhancing military value of
federally owned or operated military installations or facilities when
establishing agency goals. It provides that the state agency is encouraged
to use the most current Texas Military Preparedness Commission criteria in
making that evaluation.  The bill requires the state agency to make an
expenditure high priority if, based on base realignment and closure
criteria, the agency determines it will enhance the military value of a
federally owned or operated military installation or facility. 

HB 1521 directs state agencies searching to lease office space around the
state to give consideration to a military base. 

The bill requires a defense community that applies for financial
assistance from the Texas military value revolving loan account to
prepare, in consultation with each defense base associated with the
community, a defense base military value enhancement statement
illustrating specifically how the funds will enhance the military value of
the installations.  It also requires the community to prepare a
Comprehensive Defense Installation and Community Strategic Impact Plan
explaining effects of future growth on the defense base and minimizing
encroachment.  The plan would include maps, diagrams and other elements
related to zoning annexation, and other associated regulations and
potential impacts.  The Community is also encouraged to prepare a planning
manual based on information in the impact plan and enhancement statement. 

The bill also requires a defense community to consult with base
authorities regarding any proposed ordinance, rule, or plan that the
communities determine will impact a defense base. 

The bill creates a buffer-zone around bases that are adjacent to
state-owned property requiring any sales or development of that land to be
done in consultation with the base commanders. 

The bill includes natural gas in the specification of what an agency can
sell or convey on behalf of the state.  

It would requires each municipally owned utility, electric cooperative, or
electric utility in an area without customer choice or where the Public
Utility Commission (PUC) has delayed customer choice implementation to
provide a 20% discount off their base commercial rate for electric service
provided to a military base.  The bill also encourages military bases to
aggregate their electrical facilities to create a single purchasing unit
to reduce the cost of electricity used by the bases.  The bill also
directs the PUC to establish an electric energy efficiency incentive
program. 

HB 1521 requires the Texas Education Agency (TEA) to pursue reciprocity
agreements with other states to address the needs of military dependents
transferring into, out of and between Texas.  The TEA is to give priority
to pursuing agreements with Florida, Georgia, North Carolina and Virginia. 

Time lines regarding appointments and other administrative issues
associated with the realignment of the new agency are further elaborated
in the bill, including the abolishment of the Texas Strategic Military
Planning Commission (TSMPC) and the Office of Defense Affairs  (ODA).
Powers, duties, rules, etc... from the TSMPC and the ODA are transferred
to the new Texas Military Preparedness Commission. 

EFFECTIVE DATE

This Act takes effect on September 1, 2003, unless it receives the votes
necessary for immediate effect.  


COMPARISON OF SUBSTITUTE TO THE ORIGINAL
 
The Substitute modifies the original version of the bill by removing the
Texas Aerospace Commission (TAC) from the list of agencies that are to be
abolished and merged into the new Commission.  Other references to the
duties and responsibilities related to the TAC are stricken throughout the
bill.  


The Substitute modifies the original version of the bill by removing the
requirement that members of the Commission must go through a training
program before serving in their role as a commissioner. 

The Substitute modifies the original version of the bill by striking
homeland security, commercial and private aviation and space-related
research and operations from the list of issues on which the Commission is
to advise the Governor.  The substitute also adds other powers and duties,
including to serve as a clearinghouse for information regarding what other
states are doing to maintain, expand and attract new defense-related
businesses and contractors.  

The Substitute modifies the original version of the bill by renaming the
revolving loan account to the Texas Military Value Revolving Loan Account.
The substitute also requires the commissioners to refer defense-related
communities to state agencies with existing programs that may address
their infrastructure needs.  The substitute version also requires the new
Commission to consult with the Texas Department of Economic Development in
determining whether to award loans.  The substitute version also removes
the requirement of a community to provide a match of 50% to receive a loan
under the provisions of this bill. 

The Substitute modifies the original version of the bill by authorizing
the issuance of general obligation bonds by the Texas Department of
Economic Development. 

The Substitute modifies the original version of the bill by removing the
requirement for local municipalities to inspect buildings located on
military facilities to determine their compliance to plumbing, building
and mechanical codes. 

The Substitute modifies the original version of the bill by creating a
2500 foot buffer zone of state owned land around military bases. 

The Substitute modifies the original version of the bill by clarifying the
requirement for an electric utility in non-competitive areas to provide a
20% discount off of the base "commercial" rate and allows for communities
that are already providing this discount to be exempted from providing a
further discount. 

The Substitute modifies the original version of the bill by clarifying the
language requiring the Texas Education Agency to pursue reciprocity
agreements and requires priority for certain states.