S.B. No. 503

AN ACT

relating to financial assistance to local governmental entities affected by the realignment of defense jobs or facilities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 436.1531(a), Government Code, is amended to read as follows:

(a) The office may 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 [2005] or later. The loan shall be made from the Texas military value revolving loan account established under Section 436.156.

SECTION 2. Section 436.1532(a), Government Code, is amended to read as follows:

(a) The office may 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 United States Department of Defense base realignment process that occurs during 1995 [2005] or later. The loan shall be made from the Texas military value revolving loan account established under Section 436.156.

SECTION 3. Sections 436.202(a) and (b), Government Code, are amended to read as follows:

(a) From money appropriated for this purpose, the commission may make a grant to an eligible local governmental entity to:

(1) enable the entity to match money or meet an investment requirement necessary to receive federal assistance provided to the local governmental entity for responding to or recovering from an event described by Section 436.201(b);

(2) match the entity's contribution for a purpose described by Section 436.203 at a closed or realigned defense facility; [or]

(3) construct infrastructure and other projects necessary to accommodate a new or expanded military mission at a military base or to reduce the impact of an action of the United States Department of Defense that will negatively impact a defense facility located in or near the entity; or

(4) construct infrastructure and other projects necessary to prevent the reduction or closing of a defense facility.

(b) The commission may not make a grant for an amount less than $50,000 or an amount more than the lesser of:

(1) 50 percent of the amount of matching money or investment that the local governmental entity is required to provide, subject to Subsection (c);

(2) 50 percent of the local governmental entity's investment for purposes described by Section 436.203 if federal assistance is unavailable; or

(3) $5 [$2] million.

SECTION 4. Section 436.203(c), Government Code, is amended to read as follows:

(c) An eligible local governmental entity described by Section 436.201(a)(3), [or] (4), or (5) may use the proceeds of the grant to purchase or lease equipment to train defense workers whose jobs have been threatened or lost because of an event described by Section 436.201(b) or to train workers to support military installations or defense facilities.

SECTION 5. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2015.

______________________________ ______________________________

President of the Senate Speaker of the House

I hereby certify that S.B. No. 503 passed the Senate on April 20, 2015, by the following vote: Yeas 29, Nays 1.

______________________________ Secretary of the Senate

I hereby certify that S.B. No. 503 passed the House on May 11, 2015, by the following vote: Yeas 138, Nays 0, one present not voting.

______________________________ Chief Clerk of the House

Approved:

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Date

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Governor