By: Corte (Senate Sponsor - Shapleigh) H.B. No. 2340
(In the Senate - Received from the House April 29, 2005;
May 2, 2005, read first time and referred to Subcommittee on Base
Realignment and Closure; May 5, 2005, reported favorably to
Committee on Veteran Affairs and Military Installations;
May 9, 2005, reported favorably from Committee on Veteran Affairs
and Military Installations by the following vote: Yeas 5, Nays 0;
May 9, 2005, sent to printer.)
A BILL TO BE ENTITLED
AN ACT
relating to grants and loans for certain economic development
projects to assist defense communities affected by the federal
military base realignment and closure process.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 436, Government Code, is
amended by adding Sections 436.1531 and 436.1532 to read as
follows:
Sec. 436.1531. LOANS FOR COMMUNITIES ADVERSELY AFFECTED BY
DEFENSE BASE REDUCTION. (a) The commission may provide a loan of
financial assistance to a defense community for an economic
development project that minimizes the negative effects of a
defense base reduction on the defense community. The loan shall be
made from the Texas military value revolving loan account
established under Section 436.156.
(b) On receiving an application for a loan under this
section, the commission shall evaluate the economic development
project to determine how the project will minimize the negative
effects of a defense base reduction on the defense community,
including the number of jobs that the project will create and the
economic impact the project will have on the community.
(c) If the commission determines that a project will reduce
the negative effects of a defense base reduction on the defense
community, the commission shall:
(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 loan for the project.
(d) If the commission determines that the funds will be used
to finance an economic development project that will reduce the
negative effects of a defense base reduction on the defense
community and that the project is financially feasible, the
commission may award a loan to the defense community for the
project. The commission shall enter into a written agreement with a
defense community that is awarded a loan. The agreement must
contain the terms and conditions of the loan, including the loan
repayment requirements.
(e) The commission shall notify the Texas Public Finance
Authority of the amount of the loan and the recipient of the loan
and request the authority to issue general obligation bonds in an
amount necessary to fund the loan. The commission and the authority
shall determine the amount and time of a bond issue to best provide
funds for one or multiple loans.
(f) The commission shall administer the loans to ensure full
repayment of the general obligation bonds issued to finance the
project.
(g) 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.
(h) The amount of a loan under this section may not exceed
the total cost of the project.
Sec. 436.1532. LOANS FOR COMMUNITIES POSITIVELY AFFECTED BY
DEFENSE BASE RESTRUCTURING. (a) The commission may provide a
loan of financial assistance to a defense community for an
infrastructure project to accommodate new or expanded military
missions assigned to a military facility located in, near, or
adjacent to the defense community as a result of the United States
Department of Defense base realignment process. The loan shall be
made from the Texas military value revolving loan account
established under Section 436.156.
(b) On receiving an application for a loan under this
section, the commission shall evaluate the infrastructure project
to determine how the project will assist the defense community in
accommodating the new or expanded military missions that are
assigned to the military facility.
(c) If the commission determines that the project will
assist the defense community in accommodating the new or expanded
military missions that are assigned to the military facility, the
commission shall:
(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 loan for the project.
(d) If the commission determines that the funds will be used
to finance an infrastructure project to accommodate new or expanded
military missions assigned to the military facility located in,
near, or adjacent to the defense community and that the project is
financially feasible, the commission may award a loan to the
defense community for the project. The commission shall enter into
a written agreement with a defense community that is awarded a loan.
The agreement must contain the terms and conditions of the loan,
including the loan repayment requirements.
(e) The commission shall notify the Texas Public Finance
Authority of the amount of the loan and the recipient of the loan
and request the authority to issue general obligation bonds in an
amount necessary to fund the loan. The commission and the authority
shall determine the amount and time of a bond issue to best provide
funds for one or multiple loans.
(f) The commission shall administer the loans to ensure full
repayment of the general obligation bonds issued to finance the
project.
(g) 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.
(h) The amount of a loan under this section may not exceed
the total cost of the project.
SECTION 2. The heading to Chapter 486, Government Code, is
amended to read as follows:
CHAPTER 486. ASSISTANCE FOR LOCAL AREA AFFECTED BY DEFENSE
RESTRUCTURING [REDUCTION]
SECTION 3. The heading to Subchapter A, Chapter 486,
Government Code, is amended to read as follows:
SUBCHAPTER A. GRANTS TO LOCAL AREAS AFFECTED BY DEFENSE BASE
RESTRUCTURING [REDUCTION]
SECTION 4. Section 486.002(b), Government Code, is amended
to read as follows:
(b) The department shall establish criteria and procedures
for evaluations and awarding grants. The department shall award
grants equitably based on evaluations so as to not
disproportionally favor one [adversely affected] defense-dependent
community over another. In awarding grants under this chapter, the
department shall give a preference to adversely affected
defense-dependent communities over positively affected
defense-dependent communities.
SECTION 5. Section 486.003, Government Code, is amended by
amending Subsection (a) and adding Subsection (c) to read as
follows:
(a) A local governmental entity is eligible for a grant
under this chapter if it is:
(1) a municipality or county that is a [an adversely
affected] defense-dependent community;
(2) a regional planning commission that has a [an
adversely affected] defense-dependent community within its
boundaries;
(3) a public junior college district all or part of
which is located in a [an adversely affected] defense-dependent
community; [or]
(4) a campus or extension center for education
purposes of the Texas State Technical College System located in a
[an adversely affected] defense-dependent community; or
(5) a defense base development authority created under
Chapter 379B, Local Government Code.
(c) A municipality or county is a positively affected
defense-dependent community if the department determines that a
military facility located in or near the local governmental entity
receives new or expanded military missions as a result of the United
States Department of Defense base realignment process.
SECTION 6. Section 486.004(a), Government Code, is amended
to read as follows:
(a) From money appropriated for this purpose, the
department may make a grant to an eligible local governmental
entity to:
(1) allow the entity to meet a matching money or
investment requirement in order to receive from the United States
assistance that is provided to allow the local governmental entity
to respond to or recover from an event described by Section
486.003(b)(1);
(2) [. In addition, a grant may be made to an eligible
local governmental entity to] match the entity's contribution for a
purpose described in Section 486.005 on a closed or realigned
defense facility; or
(3) construct infrastructure and other projects
necessary to accommodate the new or expanded military missions at a
military facility located in or near the local governmental entity.
SECTION 7. Subchapter A, Chapter 486, Government Code, is
amended by adding Section 486.010 to read as follows:
Sec. 486.010. DEFENSE-DEPENDENT COMMUNITY WITH MORE THAN
ONE MILITARY FACILITY. For purposes of the preference for
adversely affected defense-dependent communities under Section
486.002(b), a defense-dependent community that contains or is near
more than one military facility is considered an adversely affected
defense-dependent community if the local governmental entity is
applying for a grant under this subchapter for a project relating to
the military facility that is closed or whose operations are
significantly reduced.
SECTION 8. Section 2.03, Chapter 1134, Acts of the 77th
Legislature, Regular Session, 2001, is repealed.
SECTION 9. 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, 2005.
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