Texas 2009 - 81st Regular

Texas Senate Bill SB1014 Compare Versions

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11 81R1849 MCK-D
22 By: Hinojosa S.B. No. 1014
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55 A BILL TO BE ENTITLED
66 AN ACT
77 relating to the continuation and functions of the Texas Military
88 Preparedness Commission.
99 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1010 SECTION 1. Section 436.001, Government Code, is amended to
1111 read as follows:
1212 Sec. 436.001. DEFINITIONS [DEFINITION]. In this chapter:
1313 (1) "Commission"[, "commission"] means the Texas
1414 Military Preparedness Commission.
1515 (2) "Office" means the Texas Economic Development and
1616 Tourism Office in the office of the governor.
1717 SECTION 2. Section 436.002, Government Code, is amended to
1818 read as follows:
1919 Sec. 436.002. COMMISSION. The commission is within the
2020 office [of the governor] and shall report to the executive director
2121 of the office [governor or the governor's designee].
2222 SECTION 3. Section 436.051, Government Code, is amended by
2323 adding Subsection (d) to read as follows:
2424 (d) A person may not be a public member of the commission if
2525 the person or the person's spouse:
2626 (1) is employed by or participates in the management
2727 of a business entity or other organization regulated by or
2828 receiving money from the commission;
2929 (2) owns or controls, directly or indirectly, more
3030 than a 10 percent interest in a business entity or other
3131 organization regulated by or receiving money from the commission;
3232 or
3333 (3) uses or receives a substantial amount of tangible
3434 goods, services, or money from the commission other than
3535 compensation or reimbursement authorized by law for commission
3636 membership, attendance, or expenses.
3737 SECTION 4. Section 436.056(a), Government Code, is amended
3838 to read as follows:
3939 (a) It is a ground for removal from the commission that a
4040 public member:
4141 (1) does not have at the time of taking office the
4242 qualifications required by Section 436.051(b);
4343 (2) does not maintain during service on the commission
4444 the qualifications required by Section 436.051(b);
4545 (3) is ineligible for membership under Section
4646 436.051(d) or 436.055;
4747 (4) cannot, because of illness or disability,
4848 discharge the member's duties for a substantial part of the member's
4949 term; or
5050 (5) is absent from more than half of the regularly
5151 scheduled commission meetings that the member is eligible to attend
5252 during a calendar year without an excuse approved by a majority vote
5353 of the commission.
5454 SECTION 5. Subchapter B, Chapter 436, Government Code, is
5555 amended by adding Section 436.0561 to read as follows:
5656 Sec. 436.0561. TRAINING. (a) A person who is appointed to
5757 and qualifies for office as a member of the commission may not vote,
5858 deliberate, or be counted as a member in attendance at a meeting of
5959 the commission until the person completes a training program that
6060 complies with this section.
6161 (b) The training program must provide the person with
6262 information regarding:
6363 (1) the legislation that created the commission;
6464 (2) the programs, functions, rules, and budget of the
6565 commission;
6666 (3) the results of the most recent formal audit of the
6767 commission;
6868 (4) the requirements of laws relating to open
6969 meetings, public information, administrative procedure, and
7070 conflicts of interest; and
7171 (5) any applicable ethics policies adopted by the
7272 office, the commission, or the Texas Ethics Commission.
7373 (c) A person appointed to the commission is entitled to
7474 reimbursement, as provided by the General Appropriations Act, for
7575 the travel expenses incurred in attending the training program
7676 regardless of whether the attendance at the program occurs before
7777 or after the person qualifies for office.
7878 SECTION 6. The heading to Section 436.057, Government Code,
7979 is amended to read as follows:
8080 Sec. 436.057. DIRECTOR; STAFF.
8181 SECTION 7. Section 436.057(c), Government Code, is amended
8282 to read as follows:
8383 (c) The governor shall determine the [director may hire]
8484 staff for [within guidelines established by] the commission.
8585 SECTION 8. Section 436.101, Government Code, is amended to
8686 read as follows:
8787 Sec. 436.101. POWERS AND DUTIES OF COMMISSION. The
8888 commission shall:
8989 (1) advise the governor and the legislature on
9090 military issues and economic and industrial development related to
9191 military issues;
9292 (2) make recommendations regarding:
9393 (A) the development of policies and plans to
9494 support the long-term viability and prosperity of the military,
9595 active and civilian, in this state, including promoting strategic
9696 regional alliances that may extend over state lines; and
9797 (B) the development of methods to assist
9898 defense-dependent communities in the design and execution of
9999 programs that enhance a community's relationship with military
100100 installations and defense-related businesses;
101101 (3) provide information to communities, the
102102 legislature, the state's congressional delegation, and state
103103 agencies regarding federal actions affecting military
104104 installations and missions;
105105 (4) serve as a clearinghouse for:
106106 (A) defense economic adjustment and transition
107107 information and activities along with the Texas Business and
108108 Community Economic Development Clearinghouse; and
109109 (B) information about:
110110 (i) issues related to the operating costs,
111111 missions, and strategic value of federal military installations
112112 located in the state;
113113 (ii) employment issues for communities that
114114 depend on defense bases and in defense-related businesses; and
115115 (iii) defense strategies and incentive
116116 programs that other states are using to maintain, expand, and
117117 attract new defense contractors;
118118 (5) provide assistance to communities that have
119119 experienced a defense-related closure or realignment;
120120 (6) assist communities in the design and execution of
121121 programs that enhance a community's relationship with military
122122 installations and defense-related businesses, including regional
123123 alliances that may extend over state lines;
124124 (7) assist communities in the retention and recruiting
125125 of defense-related businesses, including fostering strategic
126126 regional alliances that may extend over state lines; [and]
127127 (8) encourage economic development in this state by
128128 fostering the development of industries related to defense affairs;
129129 and
130130 (9) advocate for the preservation and expansion of
131131 missions of reservists at military installations in the state.
132132 SECTION 9. Section 436.152(d), Government Code, is amended
133133 to read as follows:
134134 (d) The commission shall refer the defense community to the
135135 appropriate state agency that has an existing program to provide
136136 financing for each project identified in the community's military
137137 value enhancement statement that adds military value to a military
138138 facility. If there is no existing program to finance a project, the
139139 office [commission] may provide a loan of financial assistance to
140140 the defense community for the project.
141141 SECTION 10. Sections 436.153(a) through (g), Government
142142 Code, are amended to read as follows:
143143 (a) The office [commission] may provide a loan of financial
144144 assistance to a defense community for a project that will enhance
145145 the military value of a military facility located in, near, or
146146 adjacent to the defense community. The loan shall be made from the
147147 Texas military value revolving loan account established under
148148 Section 436.156.
149149 (b) On receiving an application for a loan under this
150150 section, the office [commission] shall confirm with the commission
151151 that the project adds military value to the military facility.
152152 (c) If the commission determines that a project will enhance
153153 the military value of the military facility, the office
154154 [commission] shall, in accordance with the criteria adopted by the
155155 office [commission] under Section 436.154(a):
156156 (1) analyze the creditworthiness of the defense
157157 community to determine the defense community's ability to repay the
158158 loan; and
159159 (2) evaluate the feasibility of the project to be
160160 financed to ensure that the defense community has pledged a source
161161 of revenue or taxes sufficient to repay the loan for the project.
162162 (d) If the commission confirms [determines] that the funds
163163 will be used to enhance the military value of the military facility
164164 based on the base realignment and closure criteria and the office
165165 determines that the project is financially feasible, the executive
166166 director of the office [commission] may award a loan to the defense
167167 community for the project. The office [commission] shall enter
168168 into a written agreement with a defense community that is awarded a
169169 loan. The agreement must contain the terms and conditions of the
170170 loan, including the loan repayment requirements.
171171 (e) The office [commission] shall notify the Texas Public
172172 Finance Authority of the amount of the loan and the recipient of the
173173 loan and request the authority to issue general obligation bonds in
174174 an amount necessary to fund the loan. The office [commission] and
175175 the authority shall determine the amount and time of a bond issue to
176176 best provide funds for one or multiple loans.
177177 (f) The office [commission] shall administer the loans to
178178 ensure full repayment of the general obligation bonds issued to
179179 finance the project.
180180 (g) The office [commission] may provide a loan only for a
181181 project that is included in the political subdivision's statement
182182 under Section 397.002, Local Government Code, or to prepare a
183183 comprehensive defense installation and community strategic impact
184184 plan under Section 397.003, Local Government Code.
185185 SECTION 11. Sections 436.1531(a), (c), (d), (e), and (f),
186186 Government Code, as added by Chapter 396 (S.B. 1481), Acts of the
187187 79th Legislature, Regular Session, 2005, are amended to read as
188188 follows:
189189 (a) The office [commission] may provide a loan of financial
190190 assistance to a defense community for an economic development
191191 project that minimizes the negative effects of a defense base
192192 reduction on the defense community as a result of a United States
193193 Department of Defense base realignment process that occurs during
194194 2005 or later. The loan shall be made from the Texas military value
195195 revolving loan account established under Section 436.156.
196196 (c) If the commission determines that a project will reduce
197197 the negative effects of a defense base reduction on the defense
198198 community, the office [commission] shall:
199199 (1) analyze the creditworthiness of the defense
200200 community to determine the defense community's ability to repay the
201201 loan; and
202202 (2) evaluate the feasibility of the project to be
203203 financed to ensure that the defense community has pledged a source
204204 of revenue or taxes sufficient to repay the loan for the project.
205205 (d) If the office [commission] determines that the funds
206206 will be used to finance an economic development project that will
207207 reduce the negative effects of a defense base reduction on the
208208 defense community and that the project is financially feasible, the
209209 office [commission] may award a loan to the defense community for
210210 the project. The office [commission] shall enter into a written
211211 agreement with a defense community that is awarded a loan. The
212212 agreement must contain the terms and conditions of the loan,
213213 including the loan repayment requirements.
214214 (e) The office [commission] shall notify the Texas Public
215215 Finance Authority of the amount of the loan and the recipient of the
216216 loan and request the authority to issue general obligation bonds in
217217 an amount necessary to fund the loan. The office [commission] and
218218 the authority shall determine the amount and time of a bond issue to
219219 best provide funds for one or multiple loans.
220220 (f) The office [commission] shall administer the loans to
221221 ensure full repayment of the general obligation bonds issued to
222222 finance the project.
223223 SECTION 12. Sections 436.1532(a), (c), (d), (e), and (f),
224224 Government Code, as added by Chapter 396 (S.B. 1481), Acts of the
225225 79th Legislature, Regular Session, 2005, are amended to read as
226226 follows:
227227 (a) The office [commission] may provide a loan of financial
228228 assistance to a defense community for an infrastructure project to
229229 accomodate new or expanded military missions assigned to a military
230230 facility located in, near, or adjacent to the defense community as a
231231 result of a United States Department of Defense base realignment
232232 process that occurs during 2005 or later. The loan shall be made
233233 from the Texas military value revolving loan account established
234234 under Section 436.156.
235235 (c) If the commission determines that the project will
236236 assist the defense community in accommodating the new or expanded
237237 military missions that are assigned to the military facility, the
238238 office [commission] shall:
239239 (1) analyze the creditworthiness of the defense
240240 community to determine the defense community's ability to repay the
241241 loan; and
242242 (2) evaluate the feasibility of the project to be
243243 financed to ensure that the defense community has pledged a source
244244 of revenue or taxes sufficient to repay the loan for the project.
245245 (d) If the commission determines that the funds will be used
246246 to finance an infrastructure project to accommodate new or expanded
247247 military missions assigned to the military facility located in,
248248 near, or adjacent to the defense community and the office
249249 determines that the project is financially feasible, the office
250250 [commission] may award a loan to the defense community for the
251251 project. The office [commission] shall enter into a written
252252 agreement with a defense community that is awarded a loan. The
253253 agreement must contain the terms and conditions of the loan,
254254 including the loan repayment requirements.
255255 (e) The office [commission] shall notify the Texas Public
256256 Finance Authority of the amount of the loan and the recipient of the
257257 loan and request the authority to issue general obligation bonds in
258258 an amount necessary to fund the loan. The office [commission] and
259259 the authority shall determine the amount and time of a bond issue to
260260 best provide funds for one or multiple loans.
261261 (f) The office [commission] shall administer the loans to
262262 ensure full repayment of the general obligation bonds issued to
263263 finance the project.
264264 SECTION 13. Section 436.154, Government Code, is amended to
265265 read as follows:
266266 Sec. 436.154. LOAN PROCESS. (a) The office [commission]
267267 shall adopt rules, in consultation with the Texas Public Finance
268268 Authority, that contain the criteria for evaluating the credit of a
269269 loan applicant and the financial feasibility of a project. The
270270 office [commission] shall also adopt a loan application form. The
271271 application form may include:
272272 (1) the name of the defense community and its
273273 principal officers;
274274 (2) the total cost of the project;
275275 (3) the amount of state financial assistance
276276 requested;
277277 (4) the plan for repaying the loan; and
278278 (5) any other information the office [commission]
279279 requires to perform its duties and to protect the public interest.
280280 (b) The office [commission] may not accept an application
281281 for a loan from the Texas military value revolving loan account
282282 unless the application is submitted in affidavit form by the
283283 officials of the defense community. The office [board] shall
284284 prescribe the affidavit form.
285285 SECTION 14. Section 436.156(c), Government Code, is amended
286286 to read as follows:
287287 (c) The office [commission] shall deposit to the credit of
288288 the account all loan payments made by a political subdivision for a
289289 loan under Section 436.153, 436.1531, or 436.1532. The loan
290290 payments shall be used to reimburse the general revenue fund for
291291 money appropriated to pay the principal, premium if any, and
292292 interest on the bonds issued under Section 436.158. If loan
293293 payments exceed the amounts required for reimbursement, the excess
294294 shall first be applied to reimburse the expenses of administering
295295 the program and secondly deposited to the credit of the Texas
296296 military value revolving loan account to fund subsequent loans.
297297 SECTION 15. Section 436.158(b), Government Code, is amended
298298 to read as follows:
299299 (b) The proceeds of the bonds and notes shall be deposited
300300 into the Texas military value revolving loan account or into other
301301 separate funds as may be required to provide for payment of issuance
302302 and administrative costs and may be used as authorized by Section
303303 49-n, Article III, Texas Constitution, including:
304304 (1) to fund loans approved [by the commission] under
305305 Section 436.153, 436.1531, or 436.1532;
306306 (2) to pay the costs of issuing and selling bonds and
307307 notes; and
308308 (3) to pay the costs of administering the bonds and
309309 notes and the loan program, including the payment of fees and
310310 expenses of advisors.
311311 SECTION 16. Section 481.502(a), Government Code, is amended
312312 to read as follows:
313313 (a) The office[, in coordination with the Texas Strategic
314314 Military Planning Commission,] shall assist defense communities in
315315 obtaining financing for economic development projects that seek to
316316 address future realignment or closure of a defense base that is in,
317317 adjacent to, or near the defense community. The office [and the
318318 commission] shall refer the defense community to:
319319 (1) a local economic development corporation created
320320 under the Development Corporation Act (Subtitle C1, Title 12, Local
321321 Government Code) for possible financing; or
322322 (2) an appropriate state agency that has an existing
323323 program to provide financing for the project, including:
324324 (A) the Texas Water Development Board; or
325325 (B) the Texas Department of Transportation.
326326 SECTION 17. Section 486.001, Government Code, is amended by
327327 adding Subdivision (3-a) to read as follows:
328328 (3-a) "Office" means the Texas Economic Development
329329 and Tourism Office in the office of the governor.
330330 SECTION 18. Section 486.002(a), Government Code, is amended
331331 to read as follows:
332332 (a) The commission shall administer this chapter, and the
333333 office shall monitor the implementation of this chapter.
334334 SECTION 19. Section 486.007, Government Code, is amended to
335335 read as follows:
336336 Sec. 486.007. APPLICATION FOR GRANT. (a) A local
337337 governmental entity may apply for a grant under this chapter to the
338338 commission on a form prescribed by the commission. The commission
339339 shall establish periodic application cycles to enable the panel and
340340 commission to evaluate groups of applicants in relation to each
341341 other.
342342 (b) The office may assist a local governmental entity in
343343 applying for a grant under this chapter.
344344 SECTION 20. Section 486.008, Government Code, is amended to
345345 read as follows:
346346 Sec. 486.008. EVALUATION OF APPLICATION. The panel shall
347347 evaluate each application and assign the applicant a score based
348348 on:
349349 (1) the significance of the adverse or positive effect
350350 within the local governmental entity, including the number of jobs
351351 lost or gained in relation to the workforce in the local
352352 governmental entity's jurisdiction and the effect on the area's
353353 economy and tax revenue;
354354 (2) the extent to which the local governmental entity
355355 has used its existing resources to promote local economic
356356 development;
357357 (3) the amount of any grant that the local
358358 governmental entity has previously received under this chapter;
359359 (4) the anticipated number of jobs to be created or
360360 retained in relation to the amount of the grant sought; and
361361 (5) the extent to which the grant will affect the
362362 region in which the local governmental entity is located.
363363 SECTION 21. The following laws are repealed:
364364 (1) Section 436.003, Government Code;
365365 (2) Section 436.057(b), Government Code;
366366 (3) Section 436.1531, Government Code, as added by
367367 Chapter 1160 (H.B. 3302), Acts of the 79th Legislature, Regular
368368 Session, 2005;
369369 (4) Section 436.1531, Government Code, as added by
370370 Chapter 1280 (H.B. 2340), Acts of the 79th Legislature, Regular
371371 Session, 2005;
372372 (5) Section 436.1532, Government Code, as added by
373373 Chapter 1280 (H.B. 2340), Acts of the 79th Legislature, Regular
374374 Session, 2005; and
375375 (6) Section 481.501(3), Government Code.
376376 SECTION 22. Sections 436.051(d) and 436.0561, Government
377377 Code, as added by this Act, and the change in law made by this Act to
378378 Section 436.056(a)(3), Government Code, apply only to a person
379379 appointed or reappointed to the Texas Military Preparedness
380380 Commission on or after the effective date of this Act.
381381 SECTION 23. A rule, policy, procedure, or decision of the
382382 Texas Military Preparedness Commission with respect to functions
383383 that are transferred to the Texas Economic Development and Tourism
384384 Office continues in effect as a rule, policy, procedure, or
385385 decision of the Texas Economic Development and Tourism Office until
386386 superseded by an act of that office.
387387 SECTION 24. This Act takes effect September 1, 2009.