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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 and |
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strategic planning regarding military bases and defense |
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installations. |
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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 attached for |
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administrative purposes to [within] the office of the governor [and
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shall report to the executive director of the office]. |
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SECTION 2. 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 3. Section 436.057(c), Government Code, is amended |
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to read as follows: |
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(c) The director may hire [governor shall determine the] |
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staff within the guidelines established by [for] the commission. |
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SECTION 4. The heading to Section 436.105, Government Code, |
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is amended to read as follows: |
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Sec. 436.105. MILITARY BASE REALIGNMENT AND CLOSURE TASK |
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FORCE; EXPIRATION DATE. |
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SECTION 5. Section 436.105, Government Code, is amended by |
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adding Subsections (b-1) and (d) to read as follows: |
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(b-1) A member of the task force is entitled to |
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reimbursement for travel expenses. |
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(d) The task force is abolished and this section expires |
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September 1, 2019. |
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SECTION 6. 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 7. 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 confirms that the funds will be used |
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to enhance the military or defense value of the military base or |
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defense facility based on the base realignment and closure |
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criteria, to overcome an action of the United States Department of |
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Defense that will negatively impact the military base or defense |
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facility, or for the recruitment or retention of a defense facility |
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and the commission [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 the recipient of the |
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loan and request the authority to issue general obligation bonds in |
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an amount necessary to fund the loan. The commission [office] and |
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the authority shall determine the amount and time of a bond issue to |
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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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(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 |
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impact plan under Section 397.003, Local Government Code. |
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SECTION 8. 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 that the project is financially feasible, the |
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commission [office] may award a loan to the defense community for |
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the project. The commission [office] shall enter into a written |
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agreement with a defense community that is awarded a loan. The |
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agreement must contain the terms and conditions of the loan, |
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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 the recipient of the |
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loan and request the authority to issue general obligation bonds in |
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an amount necessary to fund the loan. The commission [office] and |
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the authority shall determine the amount and time of a bond issue to |
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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. 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 commission |
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[office] determines that the project is financially feasible, the |
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commission [office] may award a loan to the defense community for |
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the project. The commission [office] shall enter into a written |
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agreement with a defense community that is awarded a loan. The |
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agreement must contain the terms and conditions of the loan, |
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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 the recipient of the |
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loan and request the authority to issue general obligation bonds in |
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an amount necessary to fund the loan. The commission [office] and |
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the authority shall determine the amount and time of a bond issue to |
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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 10. 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 11. 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 12. Section 436.202, Government Code, is amended by |
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amending Subsections (a), (b), and (c) and adding Subsection (e) to |
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read as follows: |
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(a) From money appropriated for this purpose, the |
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commission may make a grant to an eligible local governmental |
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entity to: |
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(1) enable the entity to match money or meet an |
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investment requirement necessary to receive federal assistance |
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provided to the local governmental entity for responding to or |
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recovering from an event described by Section 436.201(b); |
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(2) match the entity's contribution for a purpose |
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described by Section 436.203 at a closed or realigned defense |
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facility; [or] |
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(3) construct infrastructure and other projects |
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necessary to accommodate a new or expanded military mission at a |
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military base or to reduce the impact of an action of the United |
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States Department of Defense that will negatively impact a defense |
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facility located in or near the entity; or |
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(4) construct affordable single family, multifamily, |
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and veteran's supportive housing financed under the low income |
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housing tax credit program under Subchapter DD, Chapter 2306. |
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(b) The commission may not make a grant for an amount less |
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than $50,000 or an amount more than the lesser of: |
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(1) 50 percent of the amount of matching money or |
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investment that the local governmental entity is required to |
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provide, subject to Subsection (c); |
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(2) 50 percent of the local governmental entity's |
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investment for purposes described by Section 436.203 if federal |
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assistance is unavailable; or |
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(3) $5 [$2] million. |
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(c) If the local governmental entity demonstrates to the |
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commission that, because of a limited budget, the entity lacks the |
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resources necessary to provide 50 percent of the amount of matching |
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money or investment that the entity is required to provide, the |
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commission may make a grant in an amount of not more than 80 percent |
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of the amount of that matching money or investment requirement but |
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may not make a grant in an amount that exceeds $5 [$2] million. |
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(e) The commission may make a grant to an eligible local |
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governmental entity for a project described by Subsection (a)(4) in |
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an amount that does not exceed the lesser of 10 percent of the total |
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construction cost of the project or $5 million. |
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SECTION 13. 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 14. Section 481.502(a), Government Code, is amended |
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to read as follows: |
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(a) The office and the Texas Military Preparedness |
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Commission shall assist defense communities in obtaining financing |
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for economic development projects that seek to address future |
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realignment or closure of a defense base that is in, adjacent to, or |
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near the defense community. The office shall refer the defense |
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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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SECTION 15. Section 436.001(5), Government Code, is |
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repealed. |
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SECTION 16. 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 under 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 17. This Act takes effect September 1, 2015. |