79(R) SB 1481 - House Committee Report version


                                                                                
79R16739 MCK-D


By:  Shapleigh                                                    S.B. No. 1481

Substitute the following for S.B. No. 1481:                                   

By:  Corte                                                    C.S.S.B. No. 1481



A BILL TO BE ENTITLED

AN ACT

relating to powers and duties of the Texas Military Preparedness 
Commission.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 436.101, Government Code, is amended to 
read as follows: 
	Sec. 436.101.  POWERS AND DUTIES OF COMMISSION.  The 
commission shall:       
		(1)  advise the governor and the legislature on 
military issues and economic and industrial development related to 
military issues;
		(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; and
			(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;
		(4) [(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;
		(5) [(6)]  provide assistance to communities that have 
experienced a defense-related closure or realignment;
		(6) [(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;
		(7) [(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
		(8) [(10)]  encourage economic development in this 
state by fostering the development of industries related to defense 
affairs.
	SECTION 2.  Sections 436.103(b) and (d), Government Code, 
are amended to read as follows:
	(b)  Not later than July 1 of each even-numbered 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 commission may update the report in 
an odd-numbered year.  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.
	(d)  The commission shall periodically meet [coordinate 
annual meetings] with [the head of] each state agency that has 
defense-related programs or is engaged in a project in a 
defense-dependent community and with each [or] member of the 
legislature whose district contains an active, closed, or realigned 
military installation to discuss defense-related issues and the 
implementation of the recommendations outlined in the report 
required under Subsection (b).
	SECTION 3.  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 as a result of a 
United States Department of Defense base realignment process that 
occurs during 2005 or later.  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 accomodate new or expanded military 
missions assigned to a military facility located in, near, or 
adjacent to the defense community as a result of a United States 
Department of Defense base realignment process that occurs during 
2005 or later.  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 4.  Section 397.001(1), Local Government Code, is 
amended to read as follows:
		(1)  "Defense base" means a federally owned or operated 
military installation or facility that is presently functioning or 
was closed as a result of the United States Department of Defense 
base realignment process.
	SECTION 5.  Section 397.002(a), Local Government Code, is 
amended to read as follows:
	(a)  A defense community that applies for financial 
assistance from the Texas military value revolving loan account 
under Section 436.153, Government Code, 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 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;
		(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;
		(7)  a description of any known negative factors 
arising from the project that will affect the community or the 
military installation;  and
		(8)  a description of how the project will address 
future base realignment or closure.
	SECTION 6.  Chapter 397, Local Government Code, is amended 
by adding Section 397.0021 to read as follows:
	Sec. 397.0021.  DEFENSE COMMUNITY ECONOMIC REDEVELOPMENT 
VALUE STATEMENT.  (a)  A defense community that is adjacent to a 
closed military installation and applies for financial assistance 
from the Texas military value revolving loan account shall prepare 
an economic redevelopment value statement that illustrates 
specific ways the funds will be used to promote economic 
development in the community and 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 promote 
economic development in the community;
		(4)  whether any portion of the project is to occur on a 
closed military installation;
		(5)  whether any approval has been obtained from those 
authorities retaining or receiving title to that portion of the 
closed installation to be affected by the project;
		(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 defense community.
	(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 economic redevelopment value statement 
shall be distributed to the Texas Military Preparedness Commission 
and any defense community which may be affected by the resulting 
project.
	(e)  This section does not prohibit a defense community that 
is not applying for financial assistance from preparing an economic 
redevelopment value statement under this section.
	SECTION 7.  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.