This website will be unavailable from Friday, April 26, 2024 at 6:00 p.m. through Monday, April 29, 2024 at 7:00 a.m. due to data center maintenance.


                                                                                

78R6440 MCK-D

By:  Shapleigh                                                    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 aerospace or 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-D to read as follows:
CHAPTER 436. TEXAS DEFENSE, AVIATION, AND SPACE [STRATEGIC MILITARY PLANNING] COMMISSION
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 436.001. DEFINITION. In this chapter, "commission" means the Texas Defense, Aviation, and Space [Strategic Military Planning] Commission. Sec. 436.002. COMMISSION. The commission is within the office of the governor. 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 nine members appointed by the governor. To be eligible for appointment, a person must have demonstrated experience in military issues, commercial aviation, national defense, space research or operations, economic development in the private sector, marketing, banking, or research and development in science or engineering[: [(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 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) 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 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, aerospace, or aviation affairs; or (2) the person's spouse is an officer, manager, or paid consultant of a Texas trade association in the field of military, aerospace, or aviation affairs. (c) A person may not be a 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. TRAINING PROGRAM. (a) A person who is appointed to and qualifies for office as a member of the commission may not vote, deliberate, or be counted as a member in attendance at a meeting of the commission until the person completes a training program that complies with this section. (b) The training program must provide the person with information regarding: (1) the legislation that created the commission; (2) the programs operated by the commission; (3) the role and functions of the commission; (4) the rules of the commission, with an emphasis on the rules that relate to disciplinary and investigatory authority; (5) the current budget for the commission; (6) the results of the most recent formal audit of the commission; (7) the requirements of: (A) the open meetings law, Chapter 551; (B) the public information law, Chapter 552; (C) the administrative procedure law, Chapter 2001; and (D) other laws relating to public officials, including conflict-of-interest laws; and (8) any applicable ethics policies adopted by the commission or the Texas Ethics Commission. (c) A person appointed to the commission is entitled to reimbursement, as provided by the General Appropriations Act, for the travel expenses incurred in attending the training program regardless of whether the attendance at the program occurs before or after the person qualifies for office. Sec. 436.057. REMOVAL. (a) It is a ground for removal from the commission that a member: (1) does not have at the time of taking office the qualifications required by Section 436.051(a); (2) does not maintain during service on the commission the qualifications required by Section 436.051(a); (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 executive director has knowledge that a potential ground for removal exists, the executive 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 executive 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. 436.058. EXECUTIVE DIRECTOR. (a) The commission shall hire an executive director to serve as the chief executive officer of the commission and to perform the administrative duties of the commission. (b) The executive director serves at the will of the commission. (c) The executive director may hire staff within guidelines established by the commission. Sec. 436.059. 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. 436.060. EQUAL EMPLOYMENT OPPORTUNITY. (a) The executive director or the executive 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. 436.061. QUALIFICATIONS AND STANDARDS OF CONDUCT. The executive director or the executive 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. 436.062. STATE EMPLOYEE INCENTIVE PROGRAM. The executive director or the executive 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. 436.063. 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. 436.064. 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 department. Sec. 436.065. TECHNOLOGY POLICY. The commission shall develop and implement a policy requiring the executive 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 436.066-436.100 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, homeland security, commercial and private aviation, space-related research and operations, and economic and industrial development related to or impacted by these areas of concern [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, and aviation and space operations in this state; (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 and strategic value of federal military installations located in the state; and (ii) the loss of jobs in communities that depend on defense bases and in defense-related businesses; (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; (8) assist communities in the retention and recruiting of defense-related businesses; (9) prepare a strategic plan that: (A) fosters the enhancement of military value of the contributions of Texas military installations to national defense strategies; and (B) considers the current and future base realignment and closure criteria; and (10) encourage economic development in this state by fostering the development of industries related to the commercialization of space [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. SPACE RESEARCH AND OPERATIONS. The commission shall analyze space-related research and operations currently conducted in this state and may conduct activities designed to further those activities in this state. Sec. 436.104. 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 an annual meeting 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. 436.105. AVIATION AND SPACE; REPORT TO LEGISLATURE. Not later than the 30th day of each regular session of the legislature, the commission shall report to the legislature regarding its aviation and space activities under this chapter. Sec. 436.106. 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 436.107-436.150 reserved for expansion]
SUBCHAPTER D. FISCAL PROVISIONS
Sec. 436.151. LOANS. (a) The commission may provide a loan of financial assistance to a political subdivision, including a municipality, county, or special district, for a project that will enhance the military value of a military facility located in or adjacent to the political subdivision. (b) On receiving an application for a loan under this section, the commission shall analyze the project using the criteria the United States Department of Defense uses for evaluating military facilities in the department's base realignment and closure process. If the commission determines that the project will enhance the military value of the military facility based on the base realignment and closure criteria, the commission may award a loan to the political subdivision for the project. (c) The commission may provide a loan only for a project that is included in the political subdivision's statement under Section 393.022, Local Government Code, or to prepare a comprehensive defense installation and community strategic impact plan under Section 393.023, Local Government Code. (d) 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. (e) The amount of a loan under this section may not exceed one-half of the total cost of the project. Sec. 436.152. TEXAS MILITARY PREPAREDNESS REVOLVING LOAN ACCOUNT. (a) The Texas military preparedness 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 office shall deposit to the credit of the account all loan payments made by a political subdivision for a loan under Section 436.151. Sec. 436.153. 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. 436.154. ISSUANCE OF GENERAL OBLIGATION BONDS FOR MILITARY PREPAREDNESS ACCOUNT. (a) The Texas Public Finance Authority 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 preparedness revolving loan account. The authority 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 preparedness revolving loan account. (c) The bonds issued by the Texas Public Finance Authority must mature not later than the 25th anniversary of the date the bonds are issued. SECTION 4. Section 482.001, Government Code, is amended by amending Subsections (a) and (b) and adding Subsection (i) to read as follows: (a) The Texas Aerospace Commission is an advisory committee to the governor [agency of the state]. (b) The commission is composed of nine members appointed by the governor [with the advice and consent of the senate]. To be eligible for appointment, a person must have demonstrated experience in space research, economic development in the private sector, marketing, banking, or research and development in science or engineering. (i) The Texas Aerospace Commission shall advise the governor on issues relating to aviation and space. SECTION 5. Section 486.051(3), Government Code, is amended to read as follows: (3) "Office" means the Texas Defense, Aviation, and Space Commission [Office of Defense Affairs]. SECTION 6. 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, 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 7. Section 4D(j), Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes), as added by Chapter 1537, Acts of the 76th Legislature, Regular Session, 1999, is amended to read as follows: (j) A board of directors by rule may develop a plan for higher education courses and degree programs to be offered at or near a spaceport. Those courses and degree programs must be related to the purposes of this section. The Texas Defense, Aviation, and Space [Aerospace] Commission and the Texas Higher Education Coordinating Board shall cooperate with and advise a board of directors in carrying out this subsection. SECTION 8. Section 4E(h), Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to read as follows: (h) A board by rule may develop a plan for higher education courses and degree programs to be offered at or near a spaceport. These planned courses and degree programs must be related to the purposes of this chapter. The Texas Defense, Aviation, and Space [Aerospace] Commission and the Texas Higher Education Coordinating Board shall cooperate with and advise a board in carrying out this section. SECTION 9. Section 2056.002(b), Government Code, is amended to read as follows: (b) The Legislative Budget Board and the Governor's Office of Budget 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 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; (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) [(10)] other information that may be required. SECTION 10. 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 Defense, Aviation, and Space 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 11. 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 12. Chapter 380, Local Government Code, is amended by adding Section 380.004 to read as follows: Sec. 380.004. REVIEW OF BUILDINGS ON MILITARY FACILITY. (a) The largest municipality that is contiguous to a federally owned or operated military installation or facility in this state shall review the buildings at the military installation or facility to determine whether the buildings comply with the municipality's building code, plumbing code, mechanical code, or other related municipal code. If a federally owned or operated military installation or facility in this state is not contiguous to a municipality, the largest municipality that is located within 25 miles of the boundaries of the military installation or facility shall perform the review. (b) The municipality shall appoint a liaison to coordinate the review with the Texas Defense, Aviation, and Space Commission. The Texas Defense, Aviation, and Space Commission shall: (1) establish the parameters of the review; and (2) obtain the approval of appropriate federal authorities for each review. (c) The municipality shall report the results of the review to the Texas Defense, Aviation, and Space Commission not later than February 1, 2004. The report must describe each code violation that exists at the military installation or facility, the methods to correct the violation, and the estimated cost to correct the violation. (d) The municipality may contract with a private entity to perform the review required by this section. (e) This section does not affect whether municipal codes are considered to apply to a military building. (f) This section expires September 1, 2005. SECTION 13. The heading of Chapter 393, Local Government Code, is amended to read as follows:
CHAPTER 393. HOUSING AND PLANNING COOPERATION AMONG MUNICIPALITIES, COUNTIES, AND CERTAIN OTHER LOCAL GOVERNMENTS
SECTION 14. Chapter 393, Local Government Code, is amended by designating Sections 393.001-393.010 as Subchapter A and adding a heading for Subchapter A to read as follows:
SUBCHAPTER A. HOUSING
SECTION 15. Section 393.001, Local Government Code, is amended to read as follows: Sec. 393.001. SHORT TITLE. This subchapter [chapter] may be cited as the Housing Cooperation Law. SECTION 16. Section 393.002(b), Local Government Code, is amended to read as follows: (b) The legislature finds and declares that: (1) the assistance provided under this subchapter [chapter] to remedy the conditions described in the Housing Authorities Law constitutes a public purpose and an essential governmental function for which public money may be spent and other aid given; (2) it is a proper public purpose for a public body to aid a housing authority that operates within the boundaries or jurisdiction of the public body or to aid a housing project within its boundaries or jurisdiction because the public body derives immediate benefits and advantages from the authority or project; and (3) this subchapter [chapter] is necessary in the public interest. SECTION 17. Section 393.004, Local Government Code, is amended to read as follows: Sec. 393.004. POWERS OF PUBLIC BODY RELATING TO HOUSING PROJECTS. To aid and cooperate in the planning, undertaking, construction, or operation of a housing project located within its jurisdiction, a public body may, on terms established by the public body: (1) dedicate, sell, convey, or lease any of its property to a housing authority or to the federal government; (2) provide that parks, playgrounds, other recreational facilities, community facilities, educational facilities, water facilities, sewer facilities, or drainage facilities, or other works that it has the power to undertake, be furnished adjacent to or in connection with a housing project; (3) furnish, dedicate, close, pave, install, grade, or plan streets, roads, alleys, sidewalks, or other places that it has the power to undertake; (4) plan or zone any part of the public body and, in the case of a municipality, change its map; (5) make exceptions to building regulations or ordinances; (6) enter agreements for any period with a housing authority or the federal government relating to action to be taken by the public body under the powers granted by this subchapter [chapter]; (7) enter agreements relating to the exercise of power by the public body relating to the repair, elimination, or closing of unsafe, unsanitary, or unfit dwellings; (8) provide for the furnishing of services to a housing authority of the type the public body has power to furnish; (9) purchase or invest in bonds issued by a housing authority; (10) exercise the rights of a bondholder in relation to any bonds purchased under Subdivision (9); or (11) take other action necessary or convenient to aid and cooperate in the planning, undertaking, construction, or operation of a housing project. SECTION 18. Section 393.006(a), Local Government Code, is amended to read as follows: (a) A public body may incur the entire expense of any public improvement made by the public body in exercising powers under this subchapter [chapter]. SECTION 19. Section 393.009(a), Local Government Code, is amended to read as follows: (a) The exercise by a public body of the powers granted under this subchapter [chapter] may be authorized by a resolution of its governing body adopted by a majority of the members of the governing body who are present at a meeting. The resolution may be adopted at the meeting at which it is introduced, and the resolution takes effect immediately. However, the exercise of the powers is subject to the conditions prescribed by Section 393.010. SECTION 20. Section 393.010(a), Local Government Code, is amended to read as follows: (a) An action authorized by this subchapter [chapter] may not be consummated until the governing body of the public body gives notice of its intention to enter into a cooperation agreement with a housing authority. A copy of the notice must be published at least twice in the officially designated newspaper, if any, of the public body. The notice must state that at the expiration of 60 days the governing body will consider the question of whether to enter into a cooperation agreement. SECTION 21. Chapter 393, Local Government Code, is amended by adding Subchapter B to read as follows:
SUBCHAPTER B. STRATEGIC PLANNING RELATING TO MILITARY INSTALLATIONS
Sec. 393.021. DEFINITIONS. In this subchapter: (1) "Defense base" means a federally owned or operated military installation or facility that is presently functioning or has been closed or realigned under the Defense Base Closure and Realignment Act of 1990 (10 U.S.C. Section 2687 note) and its subsequent amendments. (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. 393.022. DEFENSE BASE MILITARY VALUE ENHANCEMENT STATEMENT. (a) A defense community that applies for financial assistance from the Texas military preparedness 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 must include the following information for each project: (1) the purpose for which military preparedness loan funds are 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; (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 commission may require a defense community to provide any additional information the commission requires to evaluate the community's request for funds under this section. (c) Two or more defense communities near the same defense base that apply for financial assistance under the Texas military preparedness 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 Defense, Aviation, and Space 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. 393.023. COMPREHENSIVE DEFENSE INSTALLATION AND COMMUNITY STRATEGIC IMPACT PLAN. (a) A defense community may request financial assistance from the Texas military preparedness 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 (3) identifying which, if any, property and services 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 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. 393.024. PLANNING MANUAL. A defense community that has prepared a comprehensive defense installation and community strategic impact plan described by Section 393.023 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 393.022. 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. 393.025. 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 22. Subchapter F, Chapter 161, Natural Resources Code, is amended by adding Sections 161.2311 and 161.2312 to read as follows: Sec. 161.2311. AGREEMENT TO DEVELOP LAND ACQUIRED FROM FORMER MILITARY FACILITY. (a) A municipality or county that acquires land as a result of a military installation or facility closing or being realigned under the United States Department of Defense base realignment or closure process or a base efficiency project may enter into an agreement with the board to develop all or a part of the land. (b) The agreement shall: (1) transfer the land to the board; and (2) set out the terms for the development, including specific improvements to be completed by the board, the municipality, or the county. (c) Section 161.281 does not apply to the sale or development of land under this section. Sec. 161.2312. DEVELOPMENT OF SUBDIVISION ON FORMER MILITARY FACILITY LAND. (a) The board may contract with one or more private persons to build single-family houses for veterans who purchase land in the subdivision from the board. The agreement may provide: (1) the type, style, and number of houses to be built in the subdivision; (2) the specifications and standards required by the board for houses built in the subdivision; and (3) any other term that the board determines appropriate. (b) The builder shall market the subdivision to veterans in the same manner in which private housing development projects are marketed to the general public. (c) Section 161.281 does not apply to the sale or development of land under this section. SECTION 23. Section 35.101(2), 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 24. Section 35.102, Utilities Code, is amended to read as follows: Sec. 35.102. STATE AUTHORITY TO SELL OR CONVEY POWER. (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 25. 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 rates that would otherwise be paid under the applicable tariffed rate. (c) An electric utility, a municipally owned utility, or an electric cooperative is not required to comply with this section if 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. (d) An electric utility, a municipally owned utility, or an electric cooperative may recover from retail and wholesale customers any assigned and allocated costs of serving a military base that receives a discount under Subsection (a). (e) Each electric utility shall file a tariff with the commission reflecting the discount required by Subsection (a) and may file a tariff proposing a cost recovery mechanism provided for by Subsection (d). An initial tariff filed under this subsection is not a rate change for purposes of Subchapter C. SECTION 26. 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 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 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. (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 27. 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 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 may 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 28. (a) Not later than December 1, 2003, the Texas Education Agency shall develop and implement a comprehensive plan that addresses the educational needs of the dependents of military personnel who are required to transfer into, out of, or between public schools in this state as a result of military relocation. The plan must address: (1) procedures for transferring student records; (2) procedures for awarding credit for completed course work; (3) procedures for modifying any requirement generally applicable to a student in a reasonable manner to reflect the circumstances of a particular student; (4) any other relevant issue identified by the agency in consultation with the agencies and persons described by Subsection (b) of this section; and (5) any requirements resulting from a reciprocity agreement executed by the agency in accordance with Section 25.005, Education Code. (b) A modification under Subsection (a)(3) may include allowing a student who is a dependent of military personnel transferring into a public school in this state from out of state to postpone taking a high stakes or exit examination until the next administration of the examination. The parents or legal guardian of the student must request the postponement. A high stakes or exit examination may not be postponed if the student transfers during the last 30 days of a semester. (c) In developing and implementing the plan, the Texas Education Agency is encouraged to consult with state agencies and individuals with relevant knowledge related to military relocation. (d) The commissioner of education may adopt rules as necessary to implement the plan. (e) Not later than December 1, 2004, the Texas Education Agency shall prepare and submit a report to the legislature describing the plan developed and implemented in accordance with this section. The report must also: (1) identify any statutory changes considered necessary by the agency to permit the agency to further meet the educational needs of students required to transfer as a result of military relocation; and (2) describe each reciprocity agreement executed by the state in accordance with Section 25.005, Education Code, as well as the agency's efforts to enter into reciprocity agreements with additional states. SECTION 29. Sections 481.0065, 482.002, 482.003, and 482.004, Government Code, and Section 502.271, Transportation Code, are repealed. SECTION 30. (a) Not later than November 1, 2003, the governor shall appoint the initial members of the Texas Defense, Aviation, and Space 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 members have taken office. (b) Not later than December 1, 2003, the Texas Defense, Aviation, and Space Commission shall employ an executive director in accordance with Chapter 436, Government Code, as amended by this Act. (c) Not later than the 60th day after the date of the first meeting of the Texas Defense, Aviation, and Space Commission, the governor shall select a presiding officer. SECTION 31. (a) On the date by which a majority of the members of the Texas Defense, Aviation, and Space 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 Defense, Aviation, and Space 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 Defense, Aviation, and Space Commission until superseded by a rule or other appropriate action of the Texas Defense, Aviation, and Space Commission. (d) Any action or proceeding before the Office of Defense Affairs is transferred without change in status to the Texas Defense, Aviation, and Space Commission, and the Texas Defense, Aviation, and Space 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 Defense, Aviation, and Space 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 Defense, Aviation, and Space 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 32. (a) On the date by which a majority of the members of the Texas Defense, Aviation, and Space 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 Defense, Aviation, and Space 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 Defense, Aviation, and Space Commission until superseded by a rule or other appropriate action of the Texas Defense, Aviation, and Space Commission. (d) Any action or proceeding before the Texas Strategic Military Planning Commission is transferred without change in status to the Texas Defense, Aviation, and Space Commission, and the Texas Defense, Aviation, and Space 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 Defense, Aviation, and Space 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 Defense, Aviation, and Space 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 33. (a) On the date by which a majority of the members of the Texas Defense, Aviation, and Space Commission have taken office, all powers, duties, obligations, rights, contracts, leases, records, personnel, property, and unspent and unobligated appropriations and other funds of the Texas Aerospace Commission are transferred to the Texas Defense, Aviation, and Space Commission. (b) The transfer of the powers and duties of the Texas Aerospace 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 Aerospace Commission. (c) All rules, policies, procedures, and decisions of the Texas Aerospace Commission are continued in effect as rules, policies, procedures, and decisions of the Texas Defense, Aviation, and Space Commission until superseded by a rule or other appropriate action of the Texas Defense, Aviation, and Space Commission. (d) Any action or proceeding before the Texas Aerospace Commission is transferred without change in status to the Texas Defense, Aviation, and Space Commission, and the Texas Defense, Aviation, and Space Commission assumes, without a change in status, the position of the Texas Aerospace Commission in any action or proceeding to which the Texas Aerospace Commission is a party. (e) The Texas Defense, Aviation, and Space Commission is authorized to employ the same number of full-time equivalent employees as the Texas Aerospace Commission to exercise the powers and perform the duties transferred under this section. (f) A fund, foundation, or account administered by the Texas Aerospace Commission is not considered to be abolished and re-created by this Act but is considered to be transferred to the Texas Defense, Aviation, and Space Commission. (g) Until the date the Texas Aerospace Commission is transferred as provided by Subsection (a) of this section, the Texas Aerospace Commission shall continue to exercise the powers and perform duties assigned to the Texas Aerospace 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 34. The executive director of the Texas Defense, Aviation, and Space Commission may change the duties of any employee who is transferred to the Texas Defense, Aviation, and Space Commission. SECTION 35. The Legislative Budget Board 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 Defense, Aviation, and Space Commission. SECTION 36. Section 393.025, 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 37. 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 Section 486.053(b), Government Code. SECTION 38. (a) Except as provided by Subsection (b), 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. (b) Section 436.056, Government Code, as added by this Act, takes effect September 1, 2004.