79(R) SB 1481 - Senate Committee Report version


                                                                                


By:  Shapleigh                                                    S.B. No. 1481
	(In the Senate - Filed March 10, 2005; March 21, 2005, read 
first time and referred to Subcommittee on Base Realignment and 
Closure; March 30, 2005, reported favorably to Committee on Veteran 
Affairs and Military Installations; April 18, 2005, reported 
adversely, with favorable Committee Substitute from Committee on 
Veteran Affairs and Military Installations by the following vote:  
Yeas 5, Nays 0; April 18, 2005, sent to printer.)


COMMITTEE SUBSTITUTE FOR S.B. No. 1481                                   By:  Shapleigh


A BILL TO BE ENTITLED

AN ACT


relating to loans for economic development and infrastructure 
projects to assist defense communities affected by military base 
realignment.
	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 accomodate 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.  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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