BILL ANALYSIS

S.B. 503

By: Perry

Defense & Veterans' Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

Certain assistance programs in Texas help local governmental entities and defense communities address the effects of military base realignments and closures. Funds from the Texas military value revolving loan fund and grants from the defense economic adjustment assistance grant program are used in these efforts. Interested parties note that this type of assistance has been shown to expand new development opportunities, and the parties assert that many defense communities across Texas have already seen success because of this assistance. S.B. 503 seeks to assist more local governmental entities and defense communities affected by such realignments and closures.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

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

S.B. 503 amends the Government Code, for purposes of a provision authorizing the Texas Economic Development and Tourism Office (TEDTO) to provide a loan of financial assistance to a defense community for an economic development project that minimizes the negative effects of a base reduction on a defense community as a result of a U.S. Department of Defense base realignment process that occurs during a specified period, to change that specified period from 2005 or later to 1995 or later. The bill, for purposes of a provision authorizing TEDTO to provide a loan of financial assistance to a defense community for an infrastructure project to accommodate new or expanded military missions assigned to a military base or defense facility located in, near, or adjacent to the defense community as a result of a base realignment process that occurs during a specified period, changes that specified period from 2005 or later to 1995 or later.

S.B. 503 includes the construction of infrastructure and other projects necessary to prevent the reduction or closing of a defense facility among the purposes for which a grant may be awarded by the Texas Military Preparedness Commission to certain eligible local governmental entities that may be affected by an anticipated, planned, announced, or implemented action of the U.S. Department of Defense to realign defense worker jobs or facilities. The bill raises from
$2 million to $5 million an alternative cap amount for the grant. The bill includes a defense base development authority among the entities authorized to use the proceeds from such a grant to purchase or lease equipment to train defense workers whose jobs have been threatened or lost as a result of such an anticipated, planned, announced, or implemented action and adds the training of workers to support military installations or defense facilities to the authorized uses of proceeds from such grants.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2015.