79R3032 MCK-D
By: Shapleigh S.B. No. 1481
A BILL TO BE ENTITLED
AN ACT
relating to loans for economic development projects to assist
defense communities affected by military base closures.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 436, Government Code, is
amended by adding Subsection 436.1531 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.
SECTION 2. 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.