BILL ANALYSIS

C.S.H.B. 4130

By: Corte

Defense & Veterans' Affairs

Committee Report (Substituted)

BACKGROUND AND PURPOSE

There are many military bases in Texas, critical to our national safety and security, that provide tremendous economic benefits to the state and the counties and cities in which they are located. Protecting them is of great importance to the state's continued economic stability. The billions of dollars in payroll and federal investment related to these bases is in danger of being lost due to continued encroachment by development around the military installations and the lack of a clear ability for municipal and county governments to protect the installations from this encroachment. Current law does not provide a method for municipalities or counties to issue bonds or notes to raise the revenue needed to acquire buffer areas or open spaces adjacent to military installations that prevent development encroachment, or to fund the construction of roadways, utilities, or other infrastructure that protect and promote the mission of the military installations.

C.S.H.B. 4130 authorizes a municipality or county to issue bonds or notes to finance the acquisition of buffer areas or open space adjacent to a military installation to prevent encroachment and to fund the construction of roadways, utilities, or other infrastructure to protect and promote the military installations. 

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

C.S.H.B. 4130 amends the Local Government Code to authorize a municipality or county to issue bonds or notes, including tax increment bonds or notes authorized under the Tax Increment Financing Act, to finance the acquisition of buffer areas or open spaces adjacent to a military installation for the prevention of encroachment or for the construction of roadways, utilities, or other infrastructure to protect or promote the mission of the military installation.

EFFECTIVE DATE

December 1, 2009, if the constitutional amendment authorizing the financing, including through tax increment financing, of the acquisition by municipalities and counties of buffer areas or open spaces adjacent to a military installation for the prevention of encroachment or for the construction of roadways, utilities, or other infrastructure to protect or promote the mission of the military installation is approved by the voters.

COMPARISON OF ORIGINAL AND SUBSTITUTE

C.S.H.B. 4130 differs from the original by specifying that the bonds or notes a municipality or county is authorized to issue to finance the acquisition of a buffer area or open spaces adjacent to a military installation include tax increment bonds or notes authorized under the Tax Increment Financing Act. The substitute clarifies that such acquisition is for the prevention of encroachment or for the construction of utilities, in addition to roadways or infrastructure as in the original, to protect and promote the mission of the military installation.