84R4409 AAF-D
By: Miller of Fort Bend H.B. No. 787
A BILL TO BE ENTITLED
AN ACT
relating to the Texas Military Preparedness Commission.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. 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 governor or the
governor's designee [executive director of the office].
SECTION 2. Subchapter A, Chapter 436, Government Code, is
amended by adding Section 436.003 to read as follows:
Sec. 436.003. SUNSET PROVISION. The commission is subject
to Chapter 325 (Texas Sunset Act). Unless continued in existence as
provided by that chapter, the commission is abolished and this
chapter expires September 1, 2027.
SECTION 3. Section 436.0561(b), Government Code, is amended
to read as follows:
(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.
SECTION 4. Section 436.057, Government Code, is amended by
adding Subsection (b) to read as follows:
(b) The director serves at the will of the commission.
SECTION 5. 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
base or defense facility value enhancement statement that adds
military or defense value to a military base or defense facility.
If there is no existing program to finance a project, the commission
[office] may provide a loan of financial assistance to the defense
community for the project.
SECTION 6. Sections 436.153(a) through (g), Government
Code, are amended to read as follows:
(a) The commission [office] may provide a loan of financial
assistance to a defense community for a project that will enhance
the military or defense value of a military base or defense 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 commission [office] shall confirm [with the
commission] that the project adds military or defense value to the
military base or defense facility.
(c) If the commission determines that a project will enhance
the military or defense value of the military base or defense
facility, the commission [office] shall, in accordance with the
criteria adopted by the commission [office] 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 determines [confirms] that the funds
will be used to enhance the military or defense value of the
military base or defense facility based on the base realignment and
closure criteria, to overcome an action of the United States
Department of Defense that will negatively impact the military base
or defense facility, or for the recruitment or retention of a
defense facility and [the office] determines that the project is
financially feasible, the commission [executive director of the
office] may award a loan to the defense community for the project.
The commission [office] 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 commission [office] shall notify the Texas Public
Finance Authority of the amount of the loan and of the recipient of
the loan and shall request the authority to issue general
obligation bonds in an amount necessary to fund the loan. The
commission [office] and the authority shall determine the amount
and time of a bond issue to best provide funds for one or multiple
loans.
(f) The commission [office] shall administer the loans to
ensure full repayment of the general obligation bonds issued to
finance the project.
(g) The commission [office] 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 7. Sections 436.1531(a), (c), (d), (e), and (f),
Government Code, are amended to read as follows:
(a) The commission [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
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 commission [office] 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 [office] 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 determines that the project is financially
feasible, the commission [office] may award a loan to the defense
community for the project. The commission [office] 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 commission [office] shall notify the Texas Public
Finance Authority of the amount of the loan and of the recipient of
the loan and request the authority to issue general obligation
bonds in an amount necessary to fund the loan. The commission
[office] and the authority shall determine the amount and time of a
bond issue to best provide funds for one or multiple loans.
(f) The commission [office] shall administer the loans to
ensure full repayment of the general obligation bonds issued to
finance the project.
SECTION 8. Sections 436.1532(a), (c), (d), (e), and (f),
Government Code, are amended to read as follows:
(a) The commission [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 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
commission [office] 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 commission
[office] may award a loan to the defense community for the project.
The commission [office] 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 commission [office] shall notify the Texas Public
Finance Authority of the amount of the loan and of the recipient of
the loan and request the authority to issue general obligation
bonds in an amount necessary to fund the loan. The commission
[office] and the authority shall determine the amount and time of a
bond issue to best provide funds for one or multiple loans.
(f) The commission [office] shall administer the loans to
ensure full repayment of the general obligation bonds issued to
finance the project.
SECTION 9. Section 436.154, Government Code, is amended to
read as follows:
Sec. 436.154. LOAN PROCESS. (a) The commission [office]
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
commission [office] 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 commission [office]
requires to perform its duties and to protect the public interest.
(b) The commission [office] 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 commission [office] shall
prescribe the affidavit form.
SECTION 10. Section 436.156(c), Government Code, is amended
to read as follows:
(c) The commission [office] 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 11. Section 436.204(b), Government Code, is amended
to read as follows:
(b) The commission [office] may assist a local governmental
entity in applying for a grant under this chapter.
SECTION 12. Subchapter DD, Chapter 481, Government Code, is
transferred to Chapter 436, Government Code, redesignated as
Subchapter F, Chapter 436, Government Code, and amended to read as
follows:
SUBCHAPTER F [DD]. DEFENSE COMMUNITY ASSISTANCE
Sec. 436.251. DEFINITION [481.501. DEFINITIONS]. In this
subchapter, "defense[:
[(1) "Defense] base" means a federally owned or
operated military installation, facility, or mission that is
functioning on June 1, 2003.
[(2) "Defense community" means a political
subdivision, including a municipality, county, defense base
development authority, or special district, that is adjacent to, is
near, or encompasses any part of a defense base.]
Sec. 436.252 [481.502]. FINANCIAL ASSISTANCE. (a) The
commission [office] 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 commission [office] 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.
(b) A state agency making a loan to a defense community
under this section shall evaluate the project and determine whether
the project may be financed through the agency's program. The state
agency has sole discretion on whether to finance the project.
Sec. 436.253 [481.503]. MEMORANDUM OF UNDERSTANDING. The
commission [office] shall enter into a memorandum of understanding
with each state agency that has a program to fund economic
development projects for defense communities. The memorandum of
understanding shall include each agency's responsibilities in
granting and administering a loan to a defense community.
Sec. 436.254 [481.504]. SECURITY FOR LOANS. In addition to
any other security provided by law, if a defense community defaults
on a loan, a state agency making a loan to the defense community for
a project described by Section 436.252(a) [481.502(a)] may
foreclose under a loan agreement in the manner provided by law for
foreclosure and liquidate any collateral provided under the loan
agreement to recover any outstanding debt.
SECTION 13. Section 436.001(5), Government Code, is
repealed.
SECTION 14. A rule, policy, procedure, or decision of the
Texas Economic Development and Tourism Office with respect to
functions that are transferred by this Act to the Texas Military
Preparedness Commission continues in effect as a rule, policy,
procedure, or decision of the Texas Military Preparedness
Commission until superseded by an act of that commission.
SECTION 15. This Act takes effect September 1, 2015.