81R1849 MCK-D
By: Hinojosa S.B. No. 1014
A BILL TO BE ENTITLED
AN ACT
relating to the continuation and functions of the Texas Military
Preparedness Commission.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 436.001, Government Code, is amended to
read as follows:
Sec. 436.001. DEFINITIONS [DEFINITION]. In this chapter:
(1) "Commission"[, "commission"] means the Texas
Military Preparedness Commission.
(2) "Office" means the Texas Economic Development and
Tourism Office in the office of the governor.
SECTION 2. Section 436.002, Government Code, is amended to
read as follows:
Sec. 436.002. COMMISSION. The commission is within the
office [of the governor] and shall report to the executive director
of the office [governor or the governor's designee].
SECTION 3. Section 436.051, Government Code, is amended by
adding Subsection (d) to read as follows:
(d) A person may not be a public member of the commission if
the person or the person's spouse:
(1) is employed by or participates in the management
of a business entity or other organization regulated by or
receiving money from the commission;
(2) owns or controls, directly or indirectly, more
than a 10 percent interest in a business entity or other
organization regulated by or receiving money from the commission;
or
(3) uses or receives a substantial amount of tangible
goods, services, or money from the commission other than
compensation or reimbursement authorized by law for commission
membership, attendance, or expenses.
SECTION 4. Section 436.056(a), Government Code, is amended
to read as follows:
(a) It is a ground for removal from the commission that a
public member:
(1) does not have at the time of taking office the
qualifications required by Section 436.051(b);
(2) does not maintain during service on the commission
the qualifications required by Section 436.051(b);
(3) is ineligible for membership under Section
436.051(d) or 436.055;
(4) cannot, because of illness or disability,
discharge the member's duties for a substantial part of the member's
term; or
(5) is absent from more than half of the regularly
scheduled commission meetings that the member is eligible to attend
during a calendar year without an excuse approved by a majority vote
of the commission.
SECTION 5. Subchapter B, Chapter 436, Government Code, is
amended by adding Section 436.0561 to read as follows:
Sec. 436.0561. TRAINING. (a) A person who is appointed to
and qualifies for office as a member of the commission may not vote,
deliberate, or be counted as a member in attendance at a meeting of
the commission until the person completes a training program that
complies with this section.
(b) The training program must provide the person with
information regarding:
(1) the legislation that created the commission;
(2) the programs, functions, rules, and budget of the
commission;
(3) the results of the most recent formal audit of the
commission;
(4) the requirements of laws relating to open
meetings, public information, administrative procedure, and
conflicts of interest; and
(5) any applicable ethics policies adopted by the
office, the commission, or the Texas Ethics Commission.
(c) A person appointed to the commission is entitled to
reimbursement, as provided by the General Appropriations Act, for
the travel expenses incurred in attending the training program
regardless of whether the attendance at the program occurs before
or after the person qualifies for office.
SECTION 6. The heading to Section 436.057, Government Code,
is amended to read as follows:
Sec. 436.057. DIRECTOR; STAFF.
SECTION 7. Section 436.057(c), Government Code, is amended
to read as follows:
(c) The governor shall determine the [director may hire]
staff for [within guidelines established by] the commission.
SECTION 8. Section 436.101, Government Code, is amended to
read as follows:
Sec. 436.101. POWERS AND DUTIES OF COMMISSION. The
commission shall:
(1) advise the governor and the legislature on
military issues and economic and industrial development related to
military issues;
(2) make recommendations regarding:
(A) the development of policies and plans to
support the long-term viability and prosperity of the military,
active and civilian, in this state, including promoting strategic
regional alliances that may extend over state lines; and
(B) the development of methods to assist
defense-dependent communities in the design and execution of
programs that enhance a community's relationship with military
installations and defense-related businesses;
(3) provide information to communities, the
legislature, the state's congressional delegation, and state
agencies regarding federal actions affecting military
installations and missions;
(4) serve as a clearinghouse for:
(A) defense economic adjustment and transition
information and activities along with the Texas Business and
Community Economic Development Clearinghouse; and
(B) information about:
(i) issues related to the operating costs,
missions, and strategic value of federal military installations
located in the state;
(ii) employment issues for communities that
depend on defense bases and in defense-related businesses; and
(iii) defense strategies and incentive
programs that other states are using to maintain, expand, and
attract new defense contractors;
(5) provide assistance to communities that have
experienced a defense-related closure or realignment;
(6) assist communities in the design and execution of
programs that enhance a community's relationship with military
installations and defense-related businesses, including regional
alliances that may extend over state lines;
(7) assist communities in the retention and recruiting
of defense-related businesses, including fostering strategic
regional alliances that may extend over state lines; [and]
(8) encourage economic development in this state by
fostering the development of industries related to defense affairs;
and
(9) advocate for the preservation and expansion of
missions of reservists at military installations in the state.
SECTION 9. Section 436.152(d), Government Code, is amended
to read as follows:
(d) The commission shall refer the defense community to the
appropriate state agency that has an existing program to provide
financing for each project identified in the community's military
value enhancement statement that adds military value to a military
facility. If there is no existing program to finance a project, the
office [commission] may provide a loan of financial assistance to
the defense community for the project.
SECTION 10. Sections 436.153(a) through (g), Government
Code, are amended to read as follows:
(a) The office [commission] may provide a loan of financial
assistance to a defense community for a project that will enhance
the military value of a military facility located in, near, or
adjacent to the defense community. The loan shall be made from the
Texas military value revolving loan account established under
Section 436.156.
(b) On receiving an application for a loan under this
section, the office [commission] shall confirm with the commission
that the project adds military value to the military facility.
(c) If the commission determines that a project will enhance
the military value of the military facility, the office
[commission] shall, in accordance with the criteria adopted by the
office [commission] under Section 436.154(a):
(1) analyze the creditworthiness of the defense
community to determine the defense community's ability to repay the
loan; and
(2) evaluate the feasibility of the project to be
financed to ensure that the defense community has pledged a source
of revenue or taxes sufficient to repay the loan for the project.
(d) If the commission confirms [determines] that the funds
will be used to enhance the military value of the military facility
based on the base realignment and closure criteria and the office
determines that the project is financially feasible, the executive
director of the office [commission] may award a loan to the defense
community for the project. The office [commission] shall enter
into a written agreement with a defense community that is awarded a
loan. The agreement must contain the terms and conditions of the
loan, including the loan repayment requirements.
(e) The office [commission] shall notify the Texas Public
Finance Authority of the amount of the loan and the recipient of the
loan and request the authority to issue general obligation bonds in
an amount necessary to fund the loan. The office [commission] and
the authority shall determine the amount and time of a bond issue to
best provide funds for one or multiple loans.
(f) The office [commission] shall administer the loans to
ensure full repayment of the general obligation bonds issued to
finance the project.
(g) The office [commission] may provide a loan only for a
project that is included in the political subdivision's statement
under Section 397.002, Local Government Code, or to prepare a
comprehensive defense installation and community strategic impact
plan under Section 397.003, Local Government Code.
SECTION 11. Sections 436.1531(a), (c), (d), (e), and (f),
Government Code, as added by Chapter 396 (S.B. 1481), Acts of the
79th Legislature, Regular Session, 2005, are amended to read as
follows:
(a) The office [commission] 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
2005 or later. The loan shall be made from the Texas military value
revolving loan account established under Section 436.156.
(c) If the commission determines that a project will reduce
the negative effects of a defense base reduction on the defense
community, the office [commission] shall:
(1) analyze the creditworthiness of the defense
community to determine the defense community's ability to repay the
loan; and
(2) evaluate the feasibility of the project to be
financed to ensure that the defense community has pledged a source
of revenue or taxes sufficient to repay the loan for the project.
(d) If the office [commission] determines that the funds
will be used to finance an economic development project that will
reduce the negative effects of a defense base reduction on the
defense community and that the project is financially feasible, the
office [commission] may award a loan to the defense community for
the project. The office [commission] shall enter into a written
agreement with a defense community that is awarded a loan. The
agreement must contain the terms and conditions of the loan,
including the loan repayment requirements.
(e) The office [commission] shall notify the Texas Public
Finance Authority of the amount of the loan and the recipient of the
loan and request the authority to issue general obligation bonds in
an amount necessary to fund the loan. The office [commission] and
the authority shall determine the amount and time of a bond issue to
best provide funds for one or multiple loans.
(f) The office [commission] shall administer the loans to
ensure full repayment of the general obligation bonds issued to
finance the project.
SECTION 12. Sections 436.1532(a), (c), (d), (e), and (f),
Government Code, as added by Chapter 396 (S.B. 1481), Acts of the
79th Legislature, Regular Session, 2005, are amended to read as
follows:
(a) The office [commission] may provide a loan of financial
assistance to a defense community for an infrastructure project to
accomodate new or expanded military missions assigned to a military
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 2005 or later. The loan shall be made
from the Texas military value revolving loan account established
under Section 436.156.
(c) If the commission determines that the project will
assist the defense community in accommodating the new or expanded
military missions that are assigned to the military facility, the
office [commission] shall:
(1) analyze the creditworthiness of the defense
community to determine the defense community's ability to repay the
loan; and
(2) evaluate the feasibility of the project to be
financed to ensure that the defense community has pledged a source
of revenue or taxes sufficient to repay the loan for the project.
(d) If the commission determines that the funds will be used
to finance an infrastructure project to accommodate new or expanded
military missions assigned to the military facility located in,
near, or adjacent to the defense community and the office
determines that the project is financially feasible, the office
[commission] may award a loan to the defense community for the
project. The office [commission] shall enter into a written
agreement with a defense community that is awarded a loan. The
agreement must contain the terms and conditions of the loan,
including the loan repayment requirements.
(e) The office [commission] shall notify the Texas Public
Finance Authority of the amount of the loan and the recipient of the
loan and request the authority to issue general obligation bonds in
an amount necessary to fund the loan. The office [commission] and
the authority shall determine the amount and time of a bond issue to
best provide funds for one or multiple loans.
(f) The office [commission] shall administer the loans to
ensure full repayment of the general obligation bonds issued to
finance the project.
SECTION 13. Section 436.154, Government Code, is amended to
read as follows:
Sec. 436.154. LOAN PROCESS. (a) The office [commission]
shall adopt rules, in consultation with the Texas Public Finance
Authority, that contain the criteria for evaluating the credit of a
loan applicant and the financial feasibility of a project. The
office [commission] shall also adopt a loan application form. The
application form may include:
(1) the name of the defense community and its
principal officers;
(2) the total cost of the project;
(3) the amount of state financial assistance
requested;
(4) the plan for repaying the loan; and
(5) any other information the office [commission]
requires to perform its duties and to protect the public interest.
(b) The office [commission] may not accept an application
for a loan from the Texas military value revolving loan account
unless the application is submitted in affidavit form by the
officials of the defense community. The office [board] shall
prescribe the affidavit form.
SECTION 14. Section 436.156(c), Government Code, is amended
to read as follows:
(c) The office [commission] shall deposit to the credit of
the account all loan payments made by a political subdivision for a
loan under Section 436.153, 436.1531, or 436.1532. The loan
payments shall be used to reimburse the general revenue fund for
money appropriated to pay the principal, premium if any, and
interest on the bonds issued under Section 436.158. If loan
payments exceed the amounts required for reimbursement, the excess
shall first be applied to reimburse the expenses of administering
the program and secondly deposited to the credit of the Texas
military value revolving loan account to fund subsequent loans.
SECTION 15. Section 436.158(b), Government Code, is amended
to read as follows:
(b) The proceeds of the bonds and notes shall be deposited
into the Texas military value revolving loan account or into other
separate funds as may be required to provide for payment of issuance
and administrative costs and may be used as authorized by Section
49-n, Article III, Texas Constitution, including:
(1) to fund loans approved [by the commission] under
Section 436.153, 436.1531, or 436.1532;
(2) to pay the costs of issuing and selling bonds and
notes; and
(3) to pay the costs of administering the bonds and
notes and the loan program, including the payment of fees and
expenses of advisors.
SECTION 16. Section 481.502(a), Government Code, is amended
to read as follows:
(a) The office[, in coordination with the Texas Strategic
Military Planning Commission,] shall assist defense communities in
obtaining financing for economic development projects that seek to
address future realignment or closure of a defense base that is in,
adjacent to, or near the defense community. The office [and the
commission] shall refer the defense community to:
(1) a local economic development corporation created
under the Development Corporation Act (Subtitle C1, Title 12, Local
Government Code) for possible financing; or
(2) an appropriate state agency that has an existing
program to provide financing for the project, including:
(A) the Texas Water Development Board; or
(B) the Texas Department of Transportation.
SECTION 17. Section 486.001, Government Code, is amended by
adding Subdivision (3-a) to read as follows:
(3-a) "Office" means the Texas Economic Development
and Tourism Office in the office of the governor.
SECTION 18. Section 486.002(a), Government Code, is amended
to read as follows:
(a) The commission shall administer this chapter, and the
office shall monitor the implementation of this chapter.
SECTION 19. Section 486.007, Government Code, is amended to
read as follows:
Sec. 486.007. APPLICATION FOR GRANT. (a) A local
governmental entity may apply for a grant under this chapter to the
commission on a form prescribed by the commission. The commission
shall establish periodic application cycles to enable the panel and
commission to evaluate groups of applicants in relation to each
other.
(b) The office may assist a local governmental entity in
applying for a grant under this chapter.
SECTION 20. Section 486.008, Government Code, is amended to
read as follows:
Sec. 486.008. EVALUATION OF APPLICATION. The panel shall
evaluate each application and assign the applicant a score based
on:
(1) the significance of the adverse or positive effect
within the local governmental entity, including the number of jobs
lost or gained in relation to the workforce in the local
governmental entity's jurisdiction and the effect on the area's
economy and tax revenue;
(2) the extent to which the local governmental entity
has used its existing resources to promote local economic
development;
(3) the amount of any grant that the local
governmental entity has previously received under this chapter;
(4) the anticipated number of jobs to be created or
retained in relation to the amount of the grant sought; and
(5) the extent to which the grant will affect the
region in which the local governmental entity is located.
SECTION 21. The following laws are repealed:
(1) Section 436.003, Government Code;
(2) Section 436.057(b), Government Code;
(3) Section 436.1531, Government Code, as added by
Chapter 1160 (H.B. 3302), Acts of the 79th Legislature, Regular
Session, 2005;
(4) Section 436.1531, Government Code, as added by
Chapter 1280 (H.B. 2340), Acts of the 79th Legislature, Regular
Session, 2005;
(5) Section 436.1532, Government Code, as added by
Chapter 1280 (H.B. 2340), Acts of the 79th Legislature, Regular
Session, 2005; and
(6) Section 481.501(3), Government Code.
SECTION 22. Sections 436.051(d) and 436.0561, Government
Code, as added by this Act, and the change in law made by this Act to
Section 436.056(a)(3), Government Code, apply only to a person
appointed or reappointed to the Texas Military Preparedness
Commission on or after the effective date of this Act.
SECTION 23. A rule, policy, procedure, or decision of the
Texas Military Preparedness Commission with respect to functions
that are transferred to the Texas Economic Development and Tourism
Office continues in effect as a rule, policy, procedure, or
decision of the Texas Economic Development and Tourism Office until
superseded by an act of that office.
SECTION 24. This Act takes effect September 1, 2009.