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By: Shapleigh, et al. S.B. No. 652
A BILL TO BE ENTITLED
AN ACT
relating to economic development, strategic planning, and other
issues regarding military facilities, and the merger of certain
state agencies with military responsibilities; granting authority
to issue bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. This Act may be known as the Military
Preparedness Act.
SECTION 2. The Military Preparedness Act represents a
proactive response to the presently evolving transformation of
national defense strategies. It clearly conveys this state's
intent to create a business climate that is favorable to defense
installations and activities through legislation that assists in
reducing base operating costs while enhancing military value. To
realign existing infrastructure and generate cost savings
necessary for these new defense strategies, the United States
Department of Defense will undergo another round of base
realignment and closure in 2005. Our military installations and
defense-related businesses are vital to the state's economy. The
United States Department of Defense is Texas' largest employer,
employing 228,790 persons in the year 2000. The $20.9 billion in
military expenditures made in fiscal year 2000 had a total economic
impact of approximately $49.3 billion on the state. It is clearly
evident that the legislature must develop programs to assist
communities in adding military value to their local defense
installations if Texas is to maintain its strong military heritage
and presence.
SECTION 3. Chapter 436, Government Code, is amended and
reorganized into Subchapters A through D to read as follows:
CHAPTER 436. TEXAS MILITARY PREPAREDNESS [STRATEGIC MILITARY
PLANNING] COMMISSION
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 436.001. DEFINITION. In this chapter, "commission"
means the Texas Military Preparedness [Strategic Military
Planning] Commission.
Sec. 436.002. COMMISSION. The commission is within the
office of the governor and shall report to the governor or the
governor's designee.
Sec. 436.003. SUNSET PROVISION. The commission is subject
to Chapter 325 (Texas Sunset Act). Unless continued in existence as
provided by that chapter, the commission is abolished and this
chapter expires September 1, 2007.
[Sections 436.004-436.050 reserved for expansion]
SUBCHAPTER B. ORGANIZATION AND ADMINISTRATION
Sec. 436.051 [436.003]. COMPOSITION; ELIGIBILITY.
(a) The commission is composed of:
(1) nine public members, appointed by the governor;
and
(2) the following ex officio members:
(A) the chair of the committee of the Texas House
of Representatives that has primary jurisdiction of matters
concerning defense affairs and state, federal, and international
relations; and
(B) the chair of the committee of the Texas
Senate that has primary jurisdiction of matters concerning veteran
affairs and military installations.
(b) To be eligible for appointment as a public member to the
commission, a person must have demonstrated experience in economic
development, the defense industry, military installation
operation, environmental issues, finance, local government, or the
use of airspace or outer space for future military missions.
(c) Appointments to the commission shall be made without
regard to the race, color, disability, sex, religion, age, or
national origin of the appointee.
Sec. 436.052 [436.004]. TERMS AND OFFICERS. (a) The nine
public members of the commission serve staggered terms of six
[three] years with the terms of one-third of the members expiring
February 1 of each odd-numbered year. A legislative member vacates
the person's position on the commission if the person ceases to be
the chair of the applicable legislative committee.
(b) The governor shall designate a member of the commission
as the presiding officer of the commission to serve in that capacity
at the pleasure of the governor [from among the members of the
commission].
Sec. 436.053 [436.005]. COMPENSATION AND EXPENSES. A
public member of the commission is not entitled to compensation but
is entitled to reimbursement, from commission funds, for the travel
expenses incurred by the member while conducting the business of
the commission, as provided by the General Appropriations Act. The
entitlement of a legislative member to compensation or
reimbursement for travel expenses is governed by the law applying
to the member's service in that underlying position, and any
payments to the member shall be made from the appropriate funds of
the applicable house of the legislature.
Sec. 436.054 [436.006]. MEETINGS[; OPEN GOVERNMENT].
(a) The commission shall meet at least quarterly. The commission
may meet at other times at the call of the presiding officer or as
provided by the rules of the commission.
(b) The commission is a governmental body for purposes of
the open meetings law, Chapter 551.
Sec. 436.055. CONFLICT OF INTEREST. (a) In this section,
"Texas trade association" means a cooperative and voluntarily
joined statewide association of business or professional
competitors in this state designed to assist its members and its
industry or profession in dealing with mutual business or
professional problems and in promoting their common interest.
(b) A person may not be a public member of the commission and
may not be a commission employee employed in a "bona fide executive,
administrative, or professional capacity," as that phrase is used
for purposes of establishing an exemption to the overtime
provisions of the federal Fair Labor Standards Act of 1938 (29
U.S.C. Section 201 et seq.), and its subsequent amendments, if:
(1) the person is an officer, employee, or paid
consultant of a Texas trade association in the field of military
affairs; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the field of military
affairs.
(c) A person may not be a public member of the commission or
act as the general counsel to the commission if the person is
required to register as a lobbyist under Chapter 305 because of the
person's activities for compensation on behalf of a profession
related to the operation of the commission.
Sec. 436.056. REMOVAL. (a) It is a ground for removal from
the commission that a public member:
(1) does not have at the time of taking office the
qualifications required by Section 436.051(b);
(2) does not maintain during service on the commission
the qualifications required by Section 436.051(b);
(3) is ineligible for membership under Section
436.055;
(4) cannot, because of illness or disability,
discharge the member's duties for a substantial part of the member's
term; or
(5) is absent from more than half of the regularly
scheduled commission meetings that the member is eligible to attend
during a calendar year without an excuse approved by a majority vote
of the commission.
(b) The validity of an action of the commission is not
affected by the fact that it is taken when a ground for removal of a
commission member exists.
(c) If the director has knowledge that a potential ground
for removal exists, the director shall notify the presiding officer
of the commission of the potential ground. The presiding officer
shall then notify the governor and the attorney general that a
potential ground for removal exists. If the potential ground for
removal involves the presiding officer, the director shall notify
the next highest ranking officer of the commission, who shall then
notify the governor and the attorney general that a potential
ground for removal exists.
Sec. 436.057. DIRECTOR. (a) The commission shall hire a
director to serve as the chief executive officer of the commission
and to perform the administrative duties of the commission.
(b) The director serves at the will of the governor.
(c) The director may hire staff within guidelines
established by the commission.
Sec. 436.058. PUBLIC ACCESS. The commission shall develop
and implement policies that provide the public with a reasonable
opportunity to appear before the commission and to speak on any
issue under the jurisdiction of the commission.
Sec. 436.059. EQUAL EMPLOYMENT OPPORTUNITY. (a) The
director or the director's designee shall prepare and maintain a
written policy statement that implements a program of equal
employment opportunity to ensure that all personnel decisions are
made without regard to race, color, disability, sex, religion, age,
or national origin.
(b) The policy statement must include:
(1) personnel policies, including policies relating
to recruitment, evaluation, selection, training, and promotion of
personnel, that show the intent of the commission to avoid the
unlawful employment practices described by Chapter 21, Labor Code;
and
(2) an analysis of the extent to which the composition
of the commission's personnel is in accordance with state and
federal law and a description of reasonable methods to achieve
compliance with state and federal law.
(c) The policy statement must:
(1) be updated annually;
(2) be reviewed by the state Commission on Human
Rights for compliance with Subsection (b)(1); and
(3) be filed with the governor's office.
Sec. 436.060. QUALIFICATIONS AND STANDARDS OF CONDUCT. The
director or the director's designee shall provide to members of the
commission and to commission employees, as often as necessary,
information regarding the requirements for office or employment
under this chapter, including information regarding a person's
responsibilities under applicable laws relating to standards of
conduct for state officers or employees.
Sec. 436.061. STATE EMPLOYEE INCENTIVE PROGRAM. The
director or the director's designee shall provide to commission
employees information and training on the benefits and methods of
participation in the State Employee Incentive Program.
Sec. 436.062. COMPLAINTS. (a) The commission shall
maintain a file on each written complaint filed with the
commission. The file must include:
(1) the name of the person who filed the complaint;
(2) the date the complaint is received by the
commission;
(3) the subject matter of the complaint;
(4) the name of each person contacted in relation to
the complaint;
(5) a summary of the results of the review or
investigation of the complaint; and
(6) an explanation of the reason the file was closed,
if the commission closed the file without taking action other than
to investigate the complaint.
(b) The commission shall provide to the person filing the
complaint and to each person who is a subject of the complaint a
copy of the commission's policies and procedures relating to
complaint investigation and resolution.
(c) The commission, at least quarterly until final
disposition of the complaint, shall notify the person filing the
complaint and each person who is a subject of the complaint of the
status of the investigation unless the notice would jeopardize an
undercover investigation.
Sec. 436.063. USE OF ALTERNATIVE PROCEDURES. (a) The
commission shall develop and implement a policy to encourage the
use of:
(1) negotiated rulemaking procedures under Chapter
2008 for the adoption of commission rules; and
(2) appropriate alternative dispute resolution
procedures under Chapter 2009 to assist in the resolution of
internal and external disputes under the commission's
jurisdiction.
(b) The commission's procedures relating to alternative
dispute resolution must conform, to the extent possible, to any
model guidelines issued by the State Office of Administrative
Hearings for the use of alternative dispute resolution by state
agencies.
(c) The commission shall designate a trained person to:
(1) coordinate the implementation of the policy
adopted under Subsection (a);
(2) serve as a resource for any training needed to
implement the procedures for negotiated rulemaking or alternative
dispute resolution; and
(3) collect data concerning the effectiveness of those
procedures, as implemented by the commission.
Sec. 436.064. TECHNOLOGY POLICY. The commission shall
develop and implement a policy requiring the director and
commission employees to research and propose appropriate
technological solutions to improve the commission's ability to
perform its functions. The technological solutions must:
(1) ensure that the public is able to easily find
information about the commission on the Internet;
(2) ensure that persons who want to use the
commission's services are able to:
(A) interact with the commission through the
Internet; and
(B) access any service that can be provided
effectively through the Internet; and
(3) be cost-effective and developed through the
commission's planning processes.
[Sections 436.065-436.100 reserved for expansion]
SUBCHAPTER C. POWERS AND DUTIES
[Sec. 436.007. APPLICABILITY OF ADVISORY COMMITTEE LAW.
Chapter 2110 does not apply to the commission.]
Sec. 436.101 [436.008]. POWERS AND DUTIES OF COMMISSION.
The commission shall:
(1) advise [serve as an advisory committee to the
office of] the governor and the legislature [Office of Defense
Affairs in the Texas Department of Economic Development] on
military issues and economic and industrial development related to
military issues [the effect of the military on the economy of this
state]; [and]
(2) make recommendations regarding:
(A) the development of policies and plans to
support the long-term viability and prosperity of the military,
active and civilian, in this state, including promoting strategic
regional alliances that may extend over state lines;
(B) the development of methods to improve private
and public employment opportunities for former members of the
military residing in this state; and
(C) the development of methods to assist
defense-dependent communities in the design and execution of
programs that enhance a community's relationship with military
installations and defense-related businesses;
(3) 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;
(4) provide information to communities, the
legislature, the state's congressional delegation, and state
agencies regarding federal actions affecting military
installations and missions;
(5) 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,
missions, and strategic value of federal military installations
located in the state;
(ii) employment issues for communities that
depend on defense bases and in defense-related businesses; and
(iii) defense strategies and incentive
programs that other states are using to maintain, expand, and
attract new defense contractors;
(6) provide assistance to communities that have
experienced a defense-related closure or realignment;
(7) assist communities in the design and execution of
programs that enhance a community's relationship with military
installations and defense-related businesses, including regional
alliances that may extend over state lines;
(8) assist communities in the retention and recruiting
of defense-related businesses, including fostering strategic
regional alliances that may extend over state lines;
(9) prepare a biennial strategic plan that:
(A) fosters the enhancement of military value of
the contributions of Texas military installations to national
defense strategies;
(B) considers all current and anticipated base
realignment and closure criteria; and
(C) develops strategies to protect the state's
existing military missions and positions the state to be
competitive for new and expanded military missions; and
(10) encourage economic development in this state by
fostering the development of industries related to defense affairs
[and
[(D) the compilation of information for use in
the report required under Section 481.0065(c)].
Sec. 436.102. CONSULTING AGREEMENTS. With prior approval
of the governor, the commission may enter into an agreement with a
consulting firm to provide information and assistance on a pending
decision of the United States Department of Defense or other
federal agency regarding the status of military installations and
defense-related businesses located in this state.
Sec. 436.103. ANNUAL REPORT; ANNUAL MEETING. (a) In this
section, "state agency" has the meaning assigned by Section
2151.002.
(b) Not later than July 1 of each year, the commission shall
prepare and submit a report to the governor and the legislature
about the active military installations, communities that depend on
military installations, 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 new military
missions and defense-related business and include specific actions
that add military value to existing military installations;
(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 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 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.
(c) State agencies shall cooperate with and assist the
commission in the preparation of the report required under
Subsection (b), including providing information about regulations,
policies, programs, and services that may impact communities
dependent on military installations, defense-related businesses,
and the viability of existing Texas military missions.
(d) The commission shall coordinate annual meetings with
the head of each state agency or member of the legislature whose
district contains an active, closed, or realigned military
installation to discuss the implementation of the recommendations
outlined in the report required under Subsection (b).
Sec. 436.104. COORDINATING ASSISTANCE FOR EVALUATION OF
MILITARY BASE. When a commander of a military installation
receives a copy of the evaluation criteria for the base under the
United States Department of Defense base realignment or closure
process, the base commander may request that the commission
coordinate assistance from other state agencies to assist the
commander in preparing the evaluation. If the commission asks a
state agency for assistance under this section, the state agency
shall make the provision of that assistance a top priority
[Sec. 436.009. ADMINISTRATIVE SUPPORT. The Texas Department of
Economic Development shall provide administrative support to the
commission].
[Sections 436.105-436.150 reserved for expansion]
SUBCHAPTER D. FISCAL PROVISIONS
Sec. 436.151. DEFINITIONS. In this subchapter, "defense
community" has the meaning assigned by Section 397.001, Local
Government Code.
Sec. 436.152. ANALYSIS OF PROJECTS; FINANCING. (a) A
defense community may submit the community's military value
enhancement statement prepared under Chapter 397, Local Government
Code, to the commission.
(b) On receiving a defense community's military value
enhancement statement, the commission shall analyze the projects
included in the statement using the criteria it has developed. The
commission shall develop project analysis criteria based on the
criteria the United States Department of Defense uses for
evaluating military facilities in the department's base
realignment and closure process.
(c) The commission shall determine whether each project
identified in the defense community's military value enhancement
statement will enhance the military value of the military facility.
The commission shall assist the community in prioritizing the
projects that enhance the military value of a military facility,
giving the highest priority to projects that add the most military
value to bases considered by the commission to be most likely
affected by closure and realignment.
(d) The commission shall refer the defense community to the
appropriate state agency that has an existing program to provide
financing for each project identified in the community's military
value enhancement statement that adds military value to a military
facility. If there is no existing program to finance a project, the
commission may provide a loan of financial assistance to the
defense community for the project.
Sec. 436.153. LOANS. (a) The commission may provide a
loan of financial assistance to a defense community for a project
that will enhance the military value of a military facility located
in, near, or adjacent to the defense community.
(b) On receiving an application for a loan under this
section, the commission shall confirm that the project adds
military value to the military facility.
(c) If the commission determines that a project will enhance
the military value of the military facility, the commission shall,
in consultation with the Texas Department of Economic Development:
(1) analyze the creditworthiness of the defense
community to determine the defense community's ability to repay the
loan; and
(2) evaluate the feasibility of the project to be
financed to ensure that the defense community has pledged a source
of revenue or taxes sufficient to repay the bonds issued to fund the
loan for the project.
(d) If the commission, in consultation with the Texas
Department of Economic Development, determines that the funds will
be used to enhance the military value of the military facility based
on the base realignment and closure criteria and that the project is
financially feasible, the commission may award a loan to the
defense community for the project.
(e) After the commission approves an application for a loan
to a defense community, the commission shall notify the Texas
Department of Economic Development of the loan approval. The Texas
Department of Economic Development shall issue the general
obligation bonds to fund the project and transfer funds from the
Texas military value revolving loan account to the defense
community.
(f) The Texas Department of Economic Development shall
administer the loan and repay the general obligation bonds issued
to finance the project.
(g) The commission may provide a loan only for a project
that is included in the political subdivision's statement under
Section 397.002, Local Government Code, or to prepare a
comprehensive defense installation and community strategic impact
plan under Section 397.003, Local Government Code.
(h) A project financed with a loan under this section must
be completed on or before the fifth anniversary of the date the loan
is awarded.
(i) The amount of a loan under this section may not exceed
the total cost of the project.
Sec. 436.154. LOAN APPLICATION. (a) The commission shall
adopt a loan application form. The application form may include:
(1) the name of the defense community and its
principal officers;
(2) the total cost of the project;
(3) the amount of state financial assistance
requested;
(4) the plan for repaying the loan; and
(5) any other information the commission requires to
perform its duties and to protect the public interest.
(b) The commission may not accept an application for a loan
from the Texas military value revolving loan account unless the
application is submitted in affidavit form by the officials of the
defense community. The board shall prescribe the affidavit form.
Sec. 436.155. INCURRENCE OF DEBT BY PUBLIC ENTITY. (a) A
defense community in this state may borrow money from the state,
including by direct loan, based on the credit of the defense
community to finance a project included in the community's military
value enhancement statement.
(b) A defense community may enter into a loan agreement with
the state to provide financing for a project. The defense community
may pledge the taxes of the community or provide any other guarantee
for the loan.
(c) Money borrowed must be segregated from other funds under
the control of the defense community and may only be used for
purposes related to a specific project.
(d) The authority granted by this section does not affect
the ability of a defense community to incur debt using other
statutorily authorized methods.
Sec. 436.156. TEXAS MILITARY VALUE REVOLVING LOAN ACCOUNT.
(a) The Texas military value revolving loan account is an account
in the general revenue fund.
(b) The account may be used only for loans made under this
subchapter.
(c) The Texas Department of Economic Development shall
deposit to the credit of the account all loan payments made by a
political subdivision for a loan under Section 436.153.
Sec. 436.157. GIFTS AND GRANTS. The commission may solicit
and accept gifts and grants from any source for the purposes of this
chapter. The commission shall deposit a gift or grant to the credit
of the specific account that is established for the purpose for
which the gift or grant was made. If a gift or grant is not made for
a specific purpose, the commission may deposit the gift or grant to
the credit of any of the commission's accounts created under this
chapter.
Sec. 436.158. ISSUANCE OF GENERAL OBLIGATION BONDS FOR
MILITARY VALUE ACCOUNT. (a) The Texas Department of Economic
Development may issue and sell general obligation bonds of the
state as authorized by the Texas Constitution for the purpose of
providing money to establish the Texas military value revolving
loan account. The department may issue the bonds in one or several
installments.
(b) Proceeds of the bonds issued under this section shall be
deposited in the Texas military value revolving loan account.
(c) The bonds issued by the Texas Department of Economic
Development must mature not later than the 25th anniversary of the
date the bonds are issued.
SECTION 4. Subdivision (3), Section 486.051, Government
Code, is amended to read as follows:
(3) "Office" means the Texas Military Preparedness
Commission [Office of Defense Affairs].
SECTION 5. Section 486.052, Government Code, is amended by
adding Subsection (d) to read as follows:
(d) The office shall give first priority to awarding loans
under the program according to the economic development needs of
eligible communities with neighboring federal military
installations that, after the effective date of the legislation
enacting this subsection and before January 1, 2006, are publicly
proposed for action by the department of defense or applicable
military department under the base realignment or closure process.
This subsection expires September 1, 2007.
SECTION 6. Subsection (b), Section 2056.002, Government
Code, is amended to read as follows:
(b) The Legislative Budget Board and the Governor's Office
of Budget, Policy, and Planning shall determine the elements
required to be included in each agency's strategic plan. Unless
modified by the Legislative Budget Board and the Governor's Office
of Budget, Policy, and Planning, and except as provided by
Subsection (c), a plan must include:
(1) a statement of the mission and goals of the state
agency;
(2) a description of the indicators developed under
this chapter and used to measure the output and outcome of the
agency;
(3) identification of the groups of people served by
the agency, including those having service priorities, or other
service measures established by law, and estimates of changes in
those groups expected during the term of the plan;
(4) an analysis of the use of the agency's resources to
meet the agency's needs, including future needs, and an estimate of
additional resources that may be necessary to meet future needs;
(5) an analysis of expected changes in the services
provided by the agency because of changes in state or federal law;
(6) a description of the means and strategies for
meeting the agency's needs, including future needs, and achieving
the goals established under Section 2056.006 for each area of state
government for which the agency provides services;
(7) a description of the capital improvement needs of
the agency during the term of the plan and a statement, if
appropriate, of the priority of those needs;
(8) identification of each geographic region of this
state, including the Texas-Louisiana border region and the
Texas-Mexico border region, served by the agency, and if
appropriate the agency's means and strategies for serving each
region;
(9) a description of the training of the agency's
contract managers under Section 2262.053; [and]
(10) an analysis of the agency's expected expenditures
that relate to federally owned or operated military installations
or facilities, or communities where a federally owned or operated
military installation or facility is located; and
(11) other information that may be required.
SECTION 7. Chapter 2056, Government Code, is amended by
adding Section 2056.0065 to read as follows:
Sec. 2056.0065. GOALS: EMPHASIS ON ENHANCING MILITARY
FACILITIES. (a) In establishing the goals of a state agency, the
agency shall consider the enhancement of military value to
federally owned or operated military installations or facilities.
The state agency is encouraged to make this evaluation using the
most current criteria provided by the Texas Military Preparedness
Commission.
(b) If the state agency determines that an expenditure will
enhance the military value of a federally owned or operated
military installation or facility based on the base realignment and
closure criteria, the state agency shall make that expenditure a
high priority.
SECTION 8. Subchapter A, Chapter 2167, Government Code, is
amended by adding Section 2167.009 to read as follows:
Sec. 2167.009. CONSIDERATION TO MILITARY INSTALLATION. In
leasing space for the use of a state agency, the commission or the
private brokerage or real estate firm assisting the commission
shall give consideration to a federally owned or operated military
installation or facility.
SECTION 9. Subtitle C, Title 12, Local Government Code, is
amended by adding Chapter 397 to read as follows:
CHAPTER 397. STRATEGIC PLANNING RELATING TO MILITARY
INSTALLATIONS
Sec. 397.001. DEFINITIONS. In this subchapter:
(1) "Defense base" means a federally owned or operated
military installation or facility that is presently functioning.
(2) "Defense community" means a political
subdivision, including a municipality, county, or special
district, that is adjacent to, is near, or encompasses any part of a
defense base.
Sec. 397.002. DEFENSE BASE MILITARY VALUE ENHANCEMENT
STATEMENT. (a) A defense community that applies for financial
assistance from the Texas military value revolving loan account
shall prepare, in consultation with the authorities from each
defense base associated with the community, a defense base military
value enhancement statement that illustrates specific ways the
funds will enhance the military value of the installations and
mitigate the effects of potential realignment and closure and must
include the following information for each project:
(1) the purpose for which financial assistance is
requested, including a description of the project;
(2) the source of other funds for the project;
(3) a statement on how the project will enhance the
military value of the installation and mitigate the effects of
potential realignment and closure;
(4) whether the defense community has coordinated the
project with authorities of the military installation and whether
any approval has been obtained from those authorities;
(5) whether any portion of the project is to occur on
the military installation;
(6) whether the project will have any negative impact
on the natural or cultural environment; and
(7) a description of any known negative factors
arising from the project that will affect the community or the
military installation.
(b) The Texas Military Preparedness Commission may require
a defense community to provide any additional information the
commission requires to evaluate the community's request for
financial assistance under this section.
(c) Two or more defense communities near the same defense
base that apply for financial assistance from the Texas military
value revolving loan account may prepare a joint statement.
(d) A copy of the defense base military value enhancement
statement shall be distributed to the authorities of each defense
base included in the statement and the Texas Military Preparedness
Commission.
(e) This section does not prohibit a defense community that
is not applying for financial assistance from preparing a defense
base military value enhancement statement under this section.
Sec. 397.003. COMPREHENSIVE DEFENSE INSTALLATION AND
COMMUNITY STRATEGIC IMPACT PLAN. (a) A defense community may
request financial assistance from the Texas military value
revolving loan account to prepare a comprehensive defense
installation and community strategic impact plan that states the
defense community's long-range goals and development proposals
relating to the following purposes:
(1) controlling negative effects of future growth of
the defense community on the defense base and minimizing
encroachment on military exercises or training activities
connected to the base;
(2) enhancing the military value of the defense base
while reducing operating costs and mitigating the effect of
potential realignment and closure; and
(3) identifying which, if any, property and services
in a region can be shared by the defense base and the defense
community.
(b) The comprehensive defense installation and community
strategic impact plan should include, if appropriate, maps,
diagrams, and text to support its proposals and must include the
following elements as they relate to each defense base included in
the plan:
(1) a land use element that identifies:
(A) proposed distribution, location, and extent
of land uses such as housing, business, industry, agriculture,
recreation, public buildings and grounds, and other categories of
public and private land uses as those uses may impact the defense
base; and
(B) existing and proposed regulations of land
uses, including zoning, annexation, or planning regulations as
those regulations may impact the defense base;
(2) a transportation element that identifies the
location and extent of existing and proposed freeways, streets, and
roads and other modes of transportation;
(3) a population growth element that identifies past
and anticipated population trends;
(4) a water resources element that:
(A) addresses currently available surface water
and groundwater supplies; and
(B) addresses future growth projections and ways
in which the water supply needs of the defense community and the
defense base can be adequately served by the existing resources, or
if such a need is anticipated, plans for securing additional water
supplies;
(5) a conservation element that describes methods for
conservation, development, and use of natural resources, including
land, forests, soils, rivers and other waters, wildlife, and other
natural resources;
(6) an open-space area element that includes:
(A) a list of existing open-space land areas;
(B) an analysis of the defense base's forecasted
needs for open-space areas to conduct its military training
activities; and
(C) suggested strategies under which land on
which some level of development has occurred can make a transition
to an open-space area, if needed;
(7) a restricted airspace element that creates buffer
zones, if needed, between the defense base and the defense
community; and
(8) a military training route element that identifies
existing routes and proposes plans for additional routes, if
needed.
(c) Two or more defense communities near the same defense
base may prepare a joint plan.
Sec. 397.004. PLANNING MANUAL. A defense community that
has prepared a comprehensive defense installation and community
strategic impact plan described by Section 397.003 is encouraged to
develop, in coordination with the authorities of each defense base
associated with the community, a planning manual based on the
proposals contained in the plan. The manual should adopt
guidelines for community planning and development to further the
purposes described under Section 397.002. The defense community
should, from time to time, consult with defense base authorities
regarding any changes needed in the planning manual guidelines
adopted under this section.
Sec. 397.005. CONSULTATION WITH DEFENSE BASE AUTHORITIES.
If a defense community determines that an ordinance, rule, or plan
proposed by the community may impact a defense base or the military
exercise or training activities connected to the base, the defense
community shall seek comments and analysis from the defense base
authorities concerning the compatibility of the proposed
ordinance, rule, or plan with base operations. The defense
community shall consider and analyze the comments and analysis
before making a final determination relating to the proposed
ordinance, rule, or plan.
SECTION 10. Section 31.1571, Natural Resources Code, is
amended by adding Subsection (c) to read as follows:
(c) Any unused or underused state property may be sold or
leased, or an easement over the property may be granted, to the
United States for the use and benefit of the United States armed
forces if the commissioner or the commissioner's designee, after
consultation with appropriate military authorities, determines
that the sale, lease, or easement would materially assist the
military in accomplishing its mission. A sale, lease, or easement
under this subsection must be at market value. The state shall
retain all minerals it owns with respect to the land, but it may
relinquish the right to use the surface to extract them.
SECTION 11. Section 32.101, Natural Resources Code, is
amended to read as follows:
Sec. 32.101. APPLICABLE LAW. Land shall be offered for
sale, lease, or commitment to a contract for development subject to
the terms and conditions provided by law. Sales and leases of
upland within 2,500 feet of a military base may not be made unless
the commissioner or the commissioner's designee, after
consultation with appropriate military authorities, determines
that the sale or lease will not adversely affect the mission of the
military base.
SECTION 12. Section 33.103, Natural Resources Code, is
amended to read as follows:
Sec. 33.103. INTERESTS WHICH MAY BE GRANTED BY THE BOARD.
(a) The board may grant the following interests in coastal public
land for the indicated purposes:
(1) leases for public purposes;
(2) easements for purposes connected with:
(A) ownership of littoral property; or
(B) the operation of a facility operated by an
existing channel and dock corporation that was issued articles of
incorporation under Chapters 13 and 14, Title 32, Revised Statutes;
(3) permits authorizing limited continued use of
previously unauthorized structures on coastal public land not
connected with ownership of littoral property; and
(4) channel easements to the holder of any surface or
mineral interest in coastal public land for purposes necessary or
appropriate to the use of the interests.
(b) The board may not grant any interest in land within
2,500 feet of a military base unless the commissioner or the
commissioner's designee, after consultation with appropriate
military authorities, determines that the grant will not adversely
affect the mission of the military base.
SECTION 13. Section 51.011, Natural Resources Code, is
amended to read as follows:
Sec. 51.011. SALE AND LEASE OF PUBLIC SCHOOL AND ASYLUM
LAND. (a) Any land that is set apart to the permanent school fund
and the various asylum funds under the constitution and laws of this
state together with the mineral estate in riverbeds, channels, and
the tidelands, including islands, shall be controlled, sold, and
leased by the school land board and the commissioner under the
provisions of this chapter.
(b) Notwithstanding any other provision of this chapter,
land within 2,500 feet of a military base may not be sold or leased
and an easement over the land may not be granted unless the
commissioner or the commissioner's designee, after consultation
with appropriate military authorities, determines that the grant
will not adversely affect the mission of the military base.
(c) Any public land may be sold or leased, or an easement
over the property may be granted, to the United States for the use
and benefit of the United States armed forces if the commissioner or
the commissioner's designee, after consultation with appropriate
military authorities, determines that the sale, lease, or easement
would materially assist the military in accomplishing its mission.
A sale, lease, or easement under this subsection must be at market
value. The state shall retain all minerals it owns with respect to
the land, but it may relinquish the right to use the surface to
extract them.
(d) The commissioner shall determine whether a conveyance
under this section takes priority over any preference otherwise
granted by law, including the preferential right of a surrounding
landowner. In making the determination, the commissioner must only
consider the interests of preference holders who assert their
preferences in writing after notice of the proposed conveyance is
published in a newspaper of general circulation in the area. The
commissioner shall, in the commissioner's discretion, balance the
competing interests of the preference holders and the military.
The commissioner's determination is final. After land is conveyed
to the military, all competing preferences terminate.
SECTION 14. Section 53.011, Natural Resources Code, is
amended to read as follows:
Sec. 53.011. LAND SUBJECT TO PROSPECT. Any tract of land
that belongs to the state, including islands, salt and freshwater
lakes, bays, inlets, marshes, and reefs owned by the state within
tidewater limits, the part of the Gulf of Mexico within the state's
jurisdiction, unsold surveyed public school land, rivers and
channels that belong to the state, and land sold with a reservation
of minerals to the state are subject to prospect by any person for
those minerals which are not subject to lease or permit under any
other statute. A person may not prospect from a location within
2,500 feet of a military base, but prospectors may, from a location
more than 2,500 feet from a base, look for minerals within the
2,500-foot strip.
SECTION 15. Subsection (b), Section 53.016, Natural
Resources Code, is amended to read as follows:
(b) Any lease covering land adjacent to a military base
shall require the lessee to forego the right to use the surface
within 2,500 feet of the military base while exploiting the
minerals. The commissioner may include in the lease any other
provision the commissioner considers necessary for protection of
the interests of the state.
SECTION 16. Subsection (a), Section 53.064, Natural
Resources Code, is amended to read as follows:
(a) No lease executed by the owner of the surface is binding
on the state unless it recites the actual consideration paid or
promised for the lease. A lease covering land adjacent to a
military base shall require the lessee to forego the right to use
the surface within 2,500 feet of the military base while exploiting
the minerals.
SECTION 17. Section 53.151, Natural Resources Code, is
amended to read as follows:
Sec. 53.151. LEASE OF CERTAIN AREAS. (a) Under the
provisions of this subchapter, the board may lease to any person for
the production of coal, lignite, sulphur, salt, and potash:
(1) islands, saltwater lakes, bays, inlets, marshes,
and reefs owned by the state within tidewater limits;
(2) the portion of the Gulf of Mexico within the
jurisdiction of the state;
(3) rivers and channels that belong to the state;
(4) all unsold surveyed and unsurveyed public school
land; and
(5) all land sold with a reservation of minerals to the
state under Section 51.054 of this code in which the state has
retained leasing rights.
(b) The lease may not be granted for any land within 2,500
feet of a military base.
SECTION 18. Section 312.204, Tax Code, is amended by adding
Subsection (g) to read as follows:
(g) Notwithstanding the other provisions of this chapter,
the governing body of a municipality eligible to enter into tax
abatement agreements under Section 312.002 may agree in writing
with the owner of real property that is located in a reinvestment
zone to exempt from taxation for a period not to exceed five years a
portion of the value of the real property or of tangible personal
property located on the real property, or both, that is used to
provide housing for military personnel employed at a military
facility located in or near the municipality. An agreement may
provide for the exemption of the real property in each year covered
by the agreement only to the extent its value for that year exceeds
its value for the year in which the agreement is executed. An
agreement may provide for the exemption of tangible personal
property located on the real property in each year covered by the
agreement other than tangible personal property that was located on
the real property at any time before the period covered by the
agreement with the municipality and other than inventory or
supplies. The governing body of the municipality may adopt
guidelines and criteria for tax abatement agreements entered into
under this subsection that are different from the guidelines and
criteria that apply to tax abatement agreements entered into under
another provision of this section. Tax abatement agreements
entered into under this subsection are not required to contain
identical terms for the portion of the value of the property that is
to be exempt or for the duration of the exemption as tax abatement
agreements entered into with the owners of property in the
reinvestment zone under another provision of this section.
SECTION 19. Subdivision (2), Section 35.101, Utilities
Code, is amended to read as follows:
(2) "Public retail customer" means a retail customer
that is an agency of this state, a state institution of higher
education, a public school district, [or] a political subdivision
of this state, a military installation of the United States, or a
United States Department of Veterans Affairs facility.
SECTION 20. Section 35.102, Utilities Code, is amended to
read as follows:
Sec. 35.102. STATE AUTHORITY TO SELL OR CONVEY POWER OR
NATURAL GAS. (a) The commissioner, acting on behalf of the state,
may sell or otherwise convey power or natural gas generated from
royalties taken in kind as provided by Sections 52.133(f), 53.026,
and 53.077, Natural Resources Code, directly to a public retail
customer regardless of whether the public retail customer is also
classified as a wholesale customer under other provisions of this
title.
(b) To ensure that the state receives the maximum benefit
from the sale of power or natural gas generated from royalties taken
in kind, the commissioner shall use all feasible means to sell that
power or natural gas first to public retail customers that are
military installations of the United States, agencies of this
state, institutions of higher education, or public school
districts. The remainder of the power or natural gas, if any, may
be sold to public retail customers that are political subdivisions
of this state or to a United States Department of Veterans Affairs
facility.
SECTION 21. Subchapter H, Chapter 36, Utilities Code, is
amended by adding Section 36.354 to read as follows:
Sec. 36.354. DISCOUNTED RATES FOR MILITARY BASES.
(a) Notwithstanding any other provision of this title, each
municipally owned utility, electric cooperative, or electric
utility in an area where customer choice is not available or the
commission has delayed the implementation of full customer choice
in accordance with Section 39.103 shall discount charges for
electric service provided to a military base.
(b) The discount under Subsection (a) is a 20 percent
reduction of the base commercial rate that the municipally owned
utility, electric cooperative, or electric utility would otherwise
charge the military installation.
(c) An electric utility, municipally owned utility, or
electric cooperative may assess a surcharge to all of the utility's
retail customers in the state to recover the difference in revenue
between the revenues from the discounted rate for military bases
provided under Subsection (a) and the base commercial rate. This
subsection does not apply to an electric utility, municipally owned
utility, or electric cooperative that was providing electric
service to a military base on December 31, 2002, at a rate
constituting a discount of 20 percent or more from the utility's
base commercial rate that the utility would otherwise charge the
military base.
(d) Each electric utility shall file a tariff with the
commission reflecting the discount required by Subsection (a) and
may file a tariff reflecting the surcharge provided by Subsection
(c). Not later than the 30th day after the date the commission
receives the electric utility's tariff reflecting the surcharge,
the commission shall approve the tariff. A proceeding under this
subsection is not a rate change for purposes of Subchapter C.
(e) An electric utility, municipally owned utility, or
electric cooperative is exempt from the requirements of Subsection
(a) if:
(1) the 20 percent discount would result in a
reduction of revenue in an amount that is greater than one percent
of the utility's total annual revenues; or
(2) the utility:
(A) was providing electric service to a military
base on December 31, 2002, at a rate constituting a discount of 20
percent or more from the utility's base commercial rate that the
utility would otherwise charge the military base; and
(B) continues to provide electric service to the
military base at a rate constituting a discount of 20 percent or
more from the utility's base commercial rate that the utility would
otherwise charge the military base.
(f) Each electric utility shall provide the Texas Military
Preparedness Commission with the base commercial rate that the
utility would otherwise charge the military base and the rate the
utility is charging the military base.
(g) For the purposes of this section, the term "military
base" does not include a military base:
(1) that has been closed or realigned under the
Defense Base Closure and Realignment Act of 1990 (10 U.S.C. Section
2687) and its subsequent amendments;
(2) that is administered by an authority established
by a municipality under Chapter 378, Local Government Code, as
added by Chapter 1221, Acts of the 76th Legislature, Regular
Session, 1999;
(3) that is operated by or for the benefit of the Texas
National Guard, as defined by Section 431.001, Government Code,
unless the base is served by a municipally owned utility owned by a
city with a population of 650,000 or more; or
(4) for which a municipally owned utility has acquired
the electric distribution system under 10 U.S.C. Section 2688.
SECTION 22. Subchapter H, Chapter 39, Utilities Code, is
amended by adding Section 39.3535 to read as follows:
Sec. 39.3535. MILITARY BASES AGGREGATORS. (a) In this
section, "military bases aggregator" means a person joining two or
more military bases that are located in areas of the state offering
customer choice under this chapter into a single purchasing unit to
negotiate electricity purchases from retail electric providers.
(b) It is the policy of this state to encourage military
bases located in areas of the state offering customer choice under
this chapter to aggregate their facilities into a single purchasing
unit as a method to reduce costs of electricity consumed by those
bases. The commission shall provide assistance to a military bases
aggregator regarding the evaluation of offers from retail electric
providers on the request of the military bases aggregator.
(c) An aggregator registered under another section of this
subchapter may provide aggregation services to military bases.
(d) A person, including a state agency, may register as a
military bases aggregator to provide aggregation services
exclusively to military bases located in areas of the state
offering customer choice under this chapter.
(e) A person registered as a military bases aggregator under
Subsection (d) is not required to comply with customer protection
provisions, disclosure requirements, or marketing guidelines
prescribed by this title or established by the commission while
providing aggregation services exclusively to military bases.
(f) The commission shall expedite consideration of an
application submitted by an applicant for registration under
Subsection (d).
SECTION 23. Subchapter Z, Chapter 39, Utilities Code, is
amended by adding Section 39.910 to read as follows:
Sec. 39.910. INCENTIVE PROGRAM AND GOAL FOR ENERGY
EFFICIENCY FOR MILITARY BASES. (a) The commission by rule shall
establish an electric energy efficiency incentive program under
which each electric utility in an area where customer choice is not
available will provide incentives sufficient for military bases,
retail electric providers, or competitive energy service providers
to install energy efficiency devices or other alternatives at
military bases. The commission shall design the program to provide
military bases with a variety of choices for cost-effective energy
efficiency devices and other alternatives from the market to reduce
energy consumption and energy costs.
(b) The commission shall establish a goal for the program to
reduce, before January 1, 2005, the consumption of electricity by
military bases in this state by five percent as compared to
consumption levels in 2002.
(c) The commission shall approve a nonbypassable surcharge
or other rate mechanism to recover costs associated with the
program established under this section.
(d) An electric utility shall administer the electric
energy efficiency incentive program in a market-neutral,
nondiscriminatory manner. An electric utility may not offer
underlying competitive services.
SECTION 24. Section 25.005, Education Code, is amended to
read as follows:
Sec. 25.005. RECIPROCITY AGREEMENTS REGARDING MILITARY
PERSONNEL AND DEPENDENTS. (a) To facilitate the transfer of
military personnel and their dependents to and from the public
schools of this state, the agency shall [may] pursue reciprocity
agreements with other states governing the terms of those
transfers.
(b) A reciprocity agreement must:
(1) address procedures for:
(A) transferring student records;
(B) [(2) address procedures for] awarding credit
for completed course work; and
(C) permitting a student to satisfy the
requirements of Section 39.025 through successful performance on
comparable exit-level assessment instruments administered in
another state; and
(2) [(3)] include appropriate criteria developed by
the agency.
SECTION 25. Sections 481.0065, 482.002, 482.003, and
482.004, Government Code, and Section 502.271, Transportation
Code, are repealed.
SECTION 26. (a) Not later than the 90th day after the
effective date of this Act, the governor shall appoint the initial
members of the Texas Military Preparedness Commission in accordance
with Chapter 436, Government Code, as amended by this Act. The
governor shall appoint three members for a term expiring February
1, 2005, three members for a term expiring February 1, 2007, and
three members for a term expiring February 1, 2009. The commission
may not take action until a majority of the appointed members have
taken office.
(b) Not later than the 30th day after the date that a
majority of the initial appointed members of the Texas Military
Preparedness Commission take office, the commission shall employ a
director in accordance with Chapter 436, Government Code, as
amended by this Act.
(c) As soon as possible after the effective date of this
Act, the governor shall select a presiding officer for the Texas
Military Preparedness Commission.
SECTION 27. (a) On the date on which a majority of the
initial appointed members of the Texas Military Preparedness
Commission have taken office, the Office of Defense Affairs is
abolished and all powers, duties, obligations, rights, contracts,
leases, records, property, and unspent and unobligated
appropriations and other funds of the Office of Defense Affairs are
transferred to the Texas Military Preparedness Commission.
(b) The abolishment of the Office of Defense Affairs does
not affect the validity of a right, privilege, or obligation
accrued, a contract or acquisition made, any liability incurred, a
permit or license issued, any penalty, forfeiture, or punishment
assessed, a rule adopted, a proceeding, investigation, or remedy
begun, a decision made, or other action taken by or in connection
with the Office of Defense Affairs.
(c) All rules, policies, procedures, and decisions of the
Office of Defense Affairs are continued in effect as rules,
policies, procedures, and decisions of the Texas Military
Preparedness Commission until superseded by a rule or other
appropriate action of the Texas Military Preparedness Commission.
(d) Any action or proceeding before the Office of Defense
Affairs is transferred without change in status to the Texas
Military Preparedness Commission, and the Texas Military
Preparedness Commission assumes, without a change in status, the
position of the Office of Defense Affairs in any action or
proceeding to which the Office of Defense Affairs is a party.
(e) The Texas Military Preparedness Commission is
authorized to employ the same number of full-time equivalent
employees as the Office of Defense Affairs to exercise the powers
and perform the duties transferred under this section.
(f) A fund, foundation, or account administered by the
Office of Defense Affairs is not considered to be abolished and
re-created by this Act but is considered to be transferred to the
Texas Military Preparedness Commission.
(g) Until the date the Office of Defense Affairs is
abolished as provided by Subsection (a) of this section, the Office
of Defense Affairs shall continue to exercise the powers and
perform the duties assigned to the Office of Defense Affairs under
the law as it existed immediately before the effective date of this
Act or as modified by another Act of the 78th Legislature, Regular
Session, 2003, that becomes law, and the former law is continued in
effect for that purpose.
SECTION 28. (a) On the date on which a majority of the
initial appointed members of the Texas Military Preparedness
Commission have taken office, the Texas Strategic Military Planning
Commission is abolished and all powers, duties, obligations,
rights, contracts, leases, records, personnel, property, and
unspent and unobligated appropriations and other funds of the Texas
Strategic Military Planning Commission are transferred to the Texas
Military Preparedness Commission.
(b) The abolishment of the Texas Strategic Military
Planning Commission does not affect the validity of a right,
privilege, or obligation accrued, a contract or acquisition made,
any liability incurred, a permit or license issued, any penalty,
forfeiture, or punishment assessed, a rule adopted, a proceeding,
investigation, or remedy begun, a decision made, or other action
taken by or in connection with the Texas Strategic Military
Planning Commission.
(c) All rules, policies, procedures, and decisions of the
Texas Strategic Military Planning Commission are continued in
effect as rules, policies, procedures, and decisions of the Texas
Military Preparedness Commission until superseded by a rule or
other appropriate action of the Texas Military Preparedness
Commission.
(d) Any action or proceeding before the Texas Strategic
Military Planning Commission is transferred without change in
status to the Texas Military Preparedness Commission, and the Texas
Military Preparedness Commission assumes, without a change in
status, the position of the Texas Strategic Military Planning
Commission in any action or proceeding to which the Texas Strategic
Military Planning Commission is a party.
(e) The Texas Military Preparedness Commission is
authorized to employ the same number of full-time equivalent
employees as the Texas Strategic Military Planning Commission to
exercise the powers and perform the duties transferred under this
section.
(f) A fund, foundation, or account administered by the Texas
Strategic Military Planning Commission is not considered to be
abolished and re-created by this Act but is considered to be
transferred to the Texas Military Preparedness Commission.
(g) Until the date the Texas Strategic Military Planning
Commission is abolished as provided by Subsection (a) of this
section, the Texas Strategic Military Planning Commission shall
continue to exercise the powers and perform the duties assigned to
the Texas Strategic Military Planning Commission under the law as
it existed immediately before the effective date of this Act or as
modified by another Act of the 78th Legislature, Regular Session,
2003, that becomes law, and the former law is continued in effect
for that purpose.
SECTION 29. (a) In implementing Section 25.005, Education
Code, as amended by this Act, the Texas Education Agency shall give
priority to pursuing reciprocity agreements with Florida, Georgia,
North Carolina, and Virginia.
(b) Not later than January 1, 2004, the Texas Education
Agency shall report the results of its efforts to enter into
reciprocity agreements in compliance with Section 25.005,
Education Code, as amended by this Act, to the presiding officers of
the Senate Committee on Veteran Affairs and Military Installations
and the House of Representatives Committee on Defense Affairs and
State-Federal Relations. If the agency has been unable to enter
into a reciprocity agreement with each state identified in
Subsection (a) of this section by the date of the report, the report
must include, for each state with which the agency did not enter
into an agreement:
(1) a detailed description of the agency's efforts to
reach an agreement; and
(2) an explanation of each factor contributing to the
failure to reach an agreement.
SECTION 30. The director of the Texas Military Preparedness
Commission may change the duties of any employee who is transferred
to the Texas Military Preparedness Commission.
SECTION 31. The Office of the Governor shall resolve any
disputes about which obligations, rights, contracts, leases,
records, personnel, property, and unspent and unobligated
appropriations or other funds are entitled to be transferred to the
Texas Military Preparedness Commission.
SECTION 32. Section 397.005, Local Government Code, as
added by this Act, applies only to an ordinance, rule, or plan that
is proposed on or after the effective date of this Act.
SECTION 33. The community infrastructure development
revolving loan account described by Section 486.053, Government
Code, is re-created as a separate account in the general revenue
fund. Any money in the account is rededicated for the purposes
described by Subsection (b), Section 486.053, Government Code.
SECTION 34. Section 436.158, Government Code, as added by
this Act, takes effect only if the constitutional amendment
proposed by the 78th Texas Legislature, Regular Session, 2003,
authorizing the issuance of general obligation bonds to provide
loans to defense-related communities for economic development
projects, including projects that enhance the military value of
military installations is approved by the voters. If that
amendment is not approved by the voters, Section 436.158,
Government Code, has no effect.
SECTION 35. This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2003.