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A BILL TO BE ENTITLED
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AN ACT
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relating to the Texas Military Preparedness Commission. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 436.002, Government Code, is amended to |
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read as follows: |
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Sec. 436.002. COMMISSION. The commission is within the |
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office of the governor and shall report to the governor or the |
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governor's designee [executive director of the office]. |
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SECTION 2. Subchapter A, Chapter 436, Government Code, is |
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amended by adding Section 436.003 to read as follows: |
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Sec. 436.003. SUNSET PROVISION. The commission is subject |
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to Chapter 325 (Texas Sunset Act). Unless continued in existence as |
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provided by that chapter, the commission is abolished and this |
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chapter expires September 1, 2027. |
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SECTION 3. Section 436.0561(b), Government Code, is amended |
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to read as follows: |
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(b) The training program must provide the person with |
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information regarding: |
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(1) the legislation that created the commission; |
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(2) the programs, functions, rules, and budget of the |
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commission; |
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(3) the results of the most recent formal audit of the |
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commission; |
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(4) the requirements of laws relating to open |
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meetings, public information, administrative procedure, and |
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conflicts of interest; and |
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(5) any applicable ethics policies adopted by the |
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[office, the] commission[,] or the Texas Ethics Commission. |
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SECTION 4. Section 436.057, Government Code, is amended by |
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adding Subsection (b) to read as follows: |
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(b) The director serves at the will of the commission. |
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SECTION 5. Section 436.152(d), Government Code, is amended |
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to read as follows: |
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(d) The commission shall refer the defense community to the |
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appropriate state agency that has an existing program to provide |
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financing for each project identified in the community's military |
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base or defense facility value enhancement statement that adds |
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military or defense value to a military base or defense facility. |
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If there is no existing program to finance a project, the commission |
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[office] may provide a loan of financial assistance to the defense |
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community for the project. |
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SECTION 6. Sections 436.153(a) through (g), Government |
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Code, are amended to read as follows: |
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(a) The commission [office] may provide a loan of financial |
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assistance to a defense community for a project that will enhance |
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the military or defense value of a military base or defense facility |
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located in, near, or adjacent to the defense community. The loan |
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shall be made from the Texas military value revolving loan account |
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established under Section 436.156. |
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(b) On receiving an application for a loan under this |
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section, the commission [office] shall confirm [with the
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commission] that the project adds military or defense value to the |
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military base or defense facility. |
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(c) If the commission determines that a project will enhance |
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the military or defense value of the military base or defense |
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facility, the commission [office] shall, in accordance with the |
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criteria adopted by the commission [office] under Section |
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436.154(a): |
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(1) analyze the creditworthiness of the defense |
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community to determine the defense community's ability to repay the |
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loan; and |
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(2) evaluate the feasibility of the project to be |
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financed to ensure that the defense community has pledged a source |
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of revenue or taxes sufficient to repay the loan for the project. |
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(d) If the commission determines [confirms] that the funds |
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will be used to enhance the military or defense value of the |
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military base or defense facility based on the base realignment and |
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closure criteria, to overcome an action of the United States |
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Department of Defense that will negatively impact the military base |
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or defense facility, or for the recruitment or retention of a |
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defense facility and [the office] determines that the project is |
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financially feasible, the commission [executive director of the
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office] may award a loan to the defense community for the project. |
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The commission [office] shall enter into a written agreement with a |
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defense community that is awarded a loan. The agreement must |
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contain the terms and conditions of the loan, including the loan |
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repayment requirements. |
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(e) The commission [office] shall notify the Texas Public |
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Finance Authority of the amount of the loan and of the recipient of |
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the loan and shall request the authority to issue general |
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obligation bonds in an amount necessary to fund the loan. The |
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commission [office] and the authority shall determine the amount |
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and time of a bond issue to best provide funds for one or multiple |
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loans. |
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(f) The commission [office] shall administer the loans to |
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ensure full repayment of the general obligation bonds issued to |
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finance the project. |
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(g) The commission [office] may provide a loan only for a |
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project that is included in the political subdivision's statement |
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under Section 397.002, Local Government Code, or to prepare a |
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comprehensive defense installation and community strategic impact |
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plan under Section 397.003, Local Government Code. |
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SECTION 7. Sections 436.1531(a), (c), (d), (e), and (f), |
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Government Code, are amended to read as follows: |
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(a) The commission [office] may provide a loan of financial |
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assistance to a defense community for an economic development |
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project that minimizes the negative effects of a defense base |
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reduction on the defense community as a result of a United States |
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Department of Defense base realignment process that occurs during |
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2005 or later. The loan shall be made from the Texas military value |
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revolving loan account established under Section 436.156. |
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(c) If the commission determines that a project will reduce |
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the negative effects of a defense base reduction on the defense |
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community, the commission [office] shall: |
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(1) analyze the creditworthiness of the defense |
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community to determine the defense community's ability to repay the |
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loan; and |
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(2) evaluate the feasibility of the project to be |
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financed to ensure that the defense community has pledged a source |
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of revenue or taxes sufficient to repay the loan for the project. |
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(d) If the commission [office] determines that the funds |
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will be used to finance an economic development project that will |
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reduce the negative effects of a defense base reduction on the |
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defense community and determines that the project is financially |
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feasible, the commission [office] may award a loan to the defense |
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community for the project. The commission [office] shall enter |
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into a written agreement with a defense community that is awarded a |
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loan. The agreement must contain the terms and conditions of the |
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loan, including the loan repayment requirements. |
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(e) The commission [office] shall notify the Texas Public |
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Finance Authority of the amount of the loan and of the recipient of |
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the loan and request the authority to issue general obligation |
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bonds in an amount necessary to fund the loan. The commission |
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[office] and the authority shall determine the amount and time of a |
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bond issue to best provide funds for one or multiple loans. |
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(f) The commission [office] shall administer the loans to |
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ensure full repayment of the general obligation bonds issued to |
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finance the project. |
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SECTION 8. Sections 436.1532(a), (c), (d), (e), and (f), |
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Government Code, are amended to read as follows: |
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(a) The commission [office] may provide a loan of financial |
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assistance to a defense community for an infrastructure project to |
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accommodate new or expanded military missions assigned to a |
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military base or defense facility located in, near, or adjacent to |
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the defense community as a result of a United States Department of |
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Defense base realignment process that occurs during 2005 or later. |
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The loan shall be made from the Texas military value revolving loan |
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account established under Section 436.156. |
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(c) If the commission determines that the project will |
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assist the defense community in accommodating the new or expanded |
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military missions that are assigned to the military facility, the |
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commission [office] shall: |
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(1) analyze the creditworthiness of the defense |
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community to determine the defense community's ability to repay the |
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loan; and |
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(2) evaluate the feasibility of the project to be |
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financed to ensure that the defense community has pledged a source |
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of revenue or taxes sufficient to repay the loan for the project. |
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(d) If the commission determines that the funds will be used |
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to finance an infrastructure project to accommodate new or expanded |
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military missions assigned to the military facility located in, |
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near, or adjacent to the defense community and [the office] |
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determines that the project is financially feasible, the commission |
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[office] may award a loan to the defense community for the project. |
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The commission [office] shall enter into a written agreement with a |
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defense community that is awarded a loan. The agreement must |
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contain the terms and conditions of the loan, including the loan |
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repayment requirements. |
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(e) The commission [office] shall notify the Texas Public |
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Finance Authority of the amount of the loan and of the recipient of |
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the loan and request the authority to issue general obligation |
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bonds in an amount necessary to fund the loan. The commission |
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[office] and the authority shall determine the amount and time of a |
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bond issue to best provide funds for one or multiple loans. |
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(f) The commission [office] shall administer the loans to |
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ensure full repayment of the general obligation bonds issued to |
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finance the project. |
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SECTION 9. Section 436.154, Government Code, is amended to |
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read as follows: |
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Sec. 436.154. LOAN PROCESS. (a) The commission [office] |
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shall adopt rules, in consultation with the Texas Public Finance |
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Authority, that contain the criteria for evaluating the credit of a |
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loan applicant and the financial feasibility of a project. The |
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commission [office] shall also adopt a loan application form. The |
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application form may include: |
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(1) the name of the defense community and its |
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principal officers; |
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(2) the total cost of the project; |
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(3) the amount of state financial assistance |
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requested; |
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(4) the plan for repaying the loan; and |
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(5) any other information the commission [office] |
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requires to perform its duties and to protect the public interest. |
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(b) The commission [office] may not accept an application |
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for a loan from the Texas military value revolving loan account |
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unless the application is submitted in affidavit form by the |
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officials of the defense community. The commission [office] shall |
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prescribe the affidavit form. |
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SECTION 10. Section 436.156(c), Government Code, is amended |
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to read as follows: |
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(c) The commission [office] shall deposit to the credit of |
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the account all loan payments made by a political subdivision for a |
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loan under Section 436.153, 436.1531, or 436.1532. The loan |
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payments shall be used to reimburse the general revenue fund for |
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money appropriated to pay the principal, premium if any, and |
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interest on the bonds issued under Section 436.158. If loan |
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payments exceed the amounts required for reimbursement, the excess |
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shall first be applied to reimburse the expenses of administering |
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the program and secondly deposited to the credit of the Texas |
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military value revolving loan account to fund subsequent loans. |
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SECTION 11. Section 436.204(b), Government Code, is amended |
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to read as follows: |
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(b) The commission [office] may assist a local governmental |
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entity in applying for a grant under this chapter. |
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SECTION 12. Subchapter DD, Chapter 481, Government Code, is |
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transferred to Chapter 436, Government Code, redesignated as |
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Subchapter F, Chapter 436, Government Code, and amended to read as |
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follows: |
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SUBCHAPTER F [DD]. DEFENSE COMMUNITY ASSISTANCE |
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Sec. 436.251. DEFINITION [481.501. DEFINITIONS]. In this |
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subchapter, "defense[:
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[(1) "Defense] base" means a federally owned or |
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operated military installation, facility, or mission that is |
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functioning on June 1, 2003. |
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[(2)
"Defense community" means a political
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subdivision, including a municipality, county, defense base
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development authority, or special district, that is adjacent to, is
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near, or encompasses any part of a defense base.] |
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Sec. 436.252 [481.502]. FINANCIAL ASSISTANCE. (a) The |
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commission [office] shall assist defense communities in obtaining |
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financing for economic development projects that seek to address |
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future realignment or closure of a defense base that is in, adjacent |
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to, or near the defense community. The commission [office] shall |
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refer the defense community to: |
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(1) a local economic development corporation created |
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under the Development Corporation Act (Subtitle C1, Title 12, Local |
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Government Code) for possible financing; or |
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(2) an appropriate state agency that has an existing |
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program to provide financing for the project, including: |
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(A) the Texas Water Development Board; or |
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(B) the Texas Department of Transportation. |
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(b) A state agency making a loan to a defense community |
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under this section shall evaluate the project and determine whether |
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the project may be financed through the agency's program. The state |
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agency has sole discretion on whether to finance the project. |
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Sec. 436.253 [481.503]. MEMORANDUM OF UNDERSTANDING. The |
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commission [office] shall enter into a memorandum of understanding |
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with each state agency that has a program to fund economic |
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development projects for defense communities. The memorandum of |
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understanding shall include each agency's responsibilities in |
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granting and administering a loan to a defense community. |
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Sec. 436.254 [481.504]. SECURITY FOR LOANS. In addition to |
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any other security provided by law, if a defense community defaults |
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on a loan, a state agency making a loan to the defense community for |
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a project described by Section 436.252(a) [481.502(a)] may |
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foreclose under a loan agreement in the manner provided by law for |
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foreclosure and liquidate any collateral provided under the loan |
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agreement to recover any outstanding debt. |
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SECTION 13. Section 436.001(5), Government Code, is |
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repealed. |
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SECTION 14. A rule, policy, procedure, or decision of the |
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Texas Economic Development and Tourism Office with respect to |
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functions that are transferred by this Act to the Texas Military |
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Preparedness Commission continues in effect as a rule, policy, |
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procedure, or decision of the Texas Military Preparedness |
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Commission until superseded by an act of that commission. |
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SECTION 15. This Act takes effect September 1, 2015. |