AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
In 1997, the legislature created the Texas Military Value Revolving Loan Fund (TMVRL) and the Defense Economic Adjustment Assistance Grant Program (DEAAG) for efforts that may include job creation and investments in infrastructure projects. These programs are available in order to minimize the negative effects of base realignment or offer assistance for positive realignment changes.
Interested parties believe these funds and programs are needed because communities can be significantly affected by the base realignment and closure (BRAC) process. These programs help expand new development opportunities and many communities around Texas have already seen success by gaining access to funding through the DEAAG and the TMVRL programs.
S.B. 503 rolls back the 2005 loan cutoff date to 1995 to allow more communities affected by base closures to have access to TMVRL funds. The bill also raises the maximum grant from $2 million to $5 million to help fund appropriate projects and strikes language related to matching requirements.
As proposed, S.B. 503 amends current law relating to financial assistance to local governmental entities affected by the realignment of defense jobs or facilities.
RULEMAKING AUTHORITY
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 436.1531(a), Government Code, as follows:
(a) Authorizes the Texas Economic Development and Tourism Office in the office of the governor to 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 as a result of a United States Department of Defense base realignment process that occurs during 1995 or later, rather than 2005 or later. Requires that the loan be made from the Texas military value revolving loan account established under Section 436.156 (Texas Military Value Revolving Loan Account).
SECTION 2. Amends Section 436.202(b), Government Code, as follows:
(b) Prohibits the Texas Military Preparedness Commission (TMPC) from making a grant for an amount less than $50,000 or an amount more than $5 million. Deletes existing text prohibiting TMPC from making a grant for an amount more than the lesser of 50 percent of the amount of matching money or investment that the local government entity is required to provide, subject to Subsection (c) (relating to a limitation on TMPC’s grant amount to a governmental entity that lacks certain resources), 50 percent of the local governmental entity’s investment for purposes described by Section 436.203 (Use of Proceeds) if the federal assistance is unavailable, or $2 million. Makes nonsubstantive changes.
SECTION 3. Repealer: Section 436.202(c) (relating to a limitation on TMPC’s grant amount to a governmental entity that lacks certain resources), Government Code.
SECTION 4. Effective date: upon passage or September 1, 2015.