Honorable Frank Corte Jr., Chair, House Committee on Defense & Veterans' Affairs
FROM:
John S. O'Brien, Director, Legislative Budget Board
IN RE:
HB2252 by Hunter (relating to grants for local areas adversely affected by a reduction in defense-related activity.), Committee Report 1st House, Substituted
No significant fiscal implication to the State is anticipated.
The bill would require the Texas Military Preparedness Commission to give preference to defense communitys with a population of less than 2,000 when awarding grants. The bill would also allow grants to be used to offset tax or utility revenue losses.
Local Government Impact
The bill would permit the Texas Military Preparedness Commission to give preference for awarding grants to defense communities with a population of less than 20,000 that are adversely affected by a reduction in defense related activity. A local governmental entity awarded a grant would be permitted to match the money or investment requirement to respond to or recover from a base closure or alignment, match the contribution for purposes defined by Section 486.005, Government Code, plan or construct infrastructure, or offset tax or utility revenue lost from a base closure or realignment.
The bill could result in a significant positive fiscal impact to a local governmental entity that is awarded an assistance grant to recover from the losses resulting from a base closure or realignment.