Texas 2015 - 84th Regular

Texas House Bill HB787 Compare Versions

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1	1	By: Miller of Fort Bend (Senate Sponsor - Campbell) H.B. No. 787
2	2	(In the Senate - Received from the House May 5, 2015;
3	3	May 6, 2015, read first time and referred to Committee on Veteran
4	4	Affairs and Military Installations; May 22, 2015, reported
5	5	adversely, with favorable Committee Substitute by the following
6	6	vote: Yeas 5, Nays 0; May 22, 2015, sent to printer.)
7	7	Click here to see the committee vote
8	8	COMMITTEE SUBSTITUTE FOR H.B. No. 787 By: Campbell
9	9
10	10
11	11	A BILL TO BE ENTITLED
12	12	AN ACT
13	13	relating to the Texas Military Preparedness Commission and
14	14	strategic planning regarding military bases and defense
15	15	installations.
16	16	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
17	17	SECTION 1. Section 436.002, Government Code, is amended to
18	18	read as follows:
19	19	Sec. 436.002. COMMISSION. The commission is attached for
20	20	administrative purposes to [within] the office of the governor [and
21	21	shall report to the executive director of the office].
22	22	SECTION 2. Section 436.0561(b), Government Code, is amended
23	23	to read as follows:
24	24	(b) The training program must provide the person with
25	25	information regarding:
26	26	(1) the legislation that created the commission;
27	27	(2) the programs, functions, rules, and budget of the
28	28	commission;
29	29	(3) the results of the most recent formal audit of the
30	30	commission;
31	31	(4) the requirements of laws relating to open
32	32	meetings, public information, administrative procedure, and
33	33	conflicts of interest; and
34	34	(5) any applicable ethics policies adopted by [the
35	35	office,] the commission[,] or the Texas Ethics Commission.
36	36	SECTION 3. Section 436.057, Government Code, is amended by
37	37	adding Subsection (b) and amending Subsection (c) to read as
38	38	follows:
39	39	(b) The director shall hire at least one full-time employee
40	40	who is knowledgeable about or has experience with military
41	41	installations.
42	42	(c) The director may hire other [governor shall determine
43	43	the] staff within the guidelines established by [for] the
44	44	commission.
45	45	SECTION 4. The heading to Section 436.105, Government Code,
46	46	is amended to read as follows:
47	47	Sec. 436.105. MILITARY BASE REALIGNMENT AND CLOSURE TASK
48	48	FORCE; EXPIRATION DATE.
49	49	SECTION 5. Section 436.105, Government Code, is amended by
50	50	adding Subsections (b-1) and (d) to read as follows:
51	51	(b-1) A member of the task force is entitled to
52	52	reimbursement for travel expenses.
53	53	(d) The task force is abolished and this section expires
54	54	September 1, 2019.
55	55	SECTION 6. Section 436.152(d), Government Code, is amended
56	56	to read as follows:
57	57	(d) The commission shall refer the defense community to the
58	58	appropriate state agency that has an existing program to provide
59	59	financing for each project identified in the community's military
60	60	base or defense facility value enhancement statement that adds
61	61	military or defense value to a military base or defense facility.
62	62	If there is no existing program to finance a project, the commission
63	63	[office] may provide a loan of financial assistance to the defense
64	64	community for the project.
65	65	SECTION 7. Sections 436.153(a) through (g), Government
66	66	Code, are amended to read as follows:
67	67	(a) The commission [office] may provide a loan of financial
68	68	assistance to a defense community for a project that will enhance
69	69	the military or defense value of a military base or defense facility
70	70	located in, near, or adjacent to the defense community. The loan
71	71	shall be made from the Texas military value revolving loan account
72	72	established under Section 436.156.
73	73	(b) On receiving an application for a loan under this
74	74	section, the commission [office] shall confirm [with the
75	75	commission] that the project adds military or defense value to the
76	76	military base or defense facility.
77	77	(c) If the commission determines that a project will enhance
78	78	the military or defense value of the military base or defense
79	79	facility, the commission [office] shall, in accordance with the
80	80	criteria adopted by the commission [office] under Section
81	81	436.154(a):
82	82	(1) analyze the creditworthiness of the defense
83	83	community to determine the defense community's ability to repay the
84	84	loan; and
85	85	(2) evaluate the feasibility of the project to be
86	86	financed to ensure that the defense community has pledged a source
87	87	of revenue or taxes sufficient to repay the loan for the project.
88	88	(d) If the commission confirms that the funds will be used
89	89	to enhance the military or defense value of the military base or
90	90	defense facility based on the base realignment and closure
91	91	criteria, to overcome an action of the United States Department of
92	92	Defense that will negatively impact the military base or defense
93	93	facility, or for the recruitment or retention of a defense facility
94	94	and the commission [office] determines that the project is
95	95	financially feasible, the commission [executive director of the
96	96	office] may award a loan to the defense community for the project.
97	97	The commission [office] shall enter into a written agreement with a
98	98	defense community that is awarded a loan. The agreement must
99	99	contain the terms and conditions of the loan, including the loan
100	100	repayment requirements.
101	101	(e) The commission [office] shall notify the Texas Public
102	102	Finance Authority of the amount of the loan and the recipient of the
103	103	loan and request the authority to issue general obligation bonds in
104	104	an amount necessary to fund the loan. The commission [office] and
105	105	the authority shall determine the amount and time of a bond issue to
106	106	best provide funds for one or multiple loans.
107	107	(f) The commission [office] shall administer the loans to
108	108	ensure full repayment of the general obligation bonds issued to
109	109	finance the project.
110	110	(g) The commission [office] may provide a loan only for a
111	111	project that is included in the political subdivision's statement
112	112	under Section 397.002, Local Government Code, or to prepare a
113	113	comprehensive defense installation and community strategic impact
114	114	plan under Section 397.003, Local Government Code.
115	115	SECTION 8. Sections 436.1531(a), (c), (d), (e), and (f),
116	116	Government Code, are amended to read as follows:
117	117	(a) The commission [office] may provide a loan of financial
118	118	assistance to a defense community for an economic development
119	119	project that minimizes the negative effects of a defense base
120	120	reduction on the defense community as a result of a United States
121	121	Department of Defense base realignment process that occurs during
122	122	2005 or later. The loan shall be made from the Texas military value
123	123	revolving loan account established under Section 436.156.
124	124	(c) If the commission determines that a project will reduce
125	125	the negative effects of a defense base reduction on the defense
126	126	community, the commission [office] shall:
127	127	(1) analyze the creditworthiness of the defense
128	128	community to determine the defense community's ability to repay the
129	129	loan; and
130	130	(2) evaluate the feasibility of the project to be
131	131	financed to ensure that the defense community has pledged a source
132	132	of revenue or taxes sufficient to repay the loan for the project.
133	133	(d) If the commission [office] determines that the funds
134	134	will be used to finance an economic development project that will
135	135	reduce the negative effects of a defense base reduction on the
136	136	defense community and that the project is financially feasible, the
137	137	commission [office] may award a loan to the defense community for
138	138	the project. The commission [office] shall enter into a written
139	139	agreement with a defense community that is awarded a loan. The
140	140	agreement must contain the terms and conditions of the loan,
141	141	including the loan repayment requirements.
142	142	(e) The commission [office] shall notify the Texas Public
143	143	Finance Authority of the amount of the loan and the recipient of the
144	144	loan and request the authority to issue general obligation bonds in
145	145	an amount necessary to fund the loan. The commission [office] and
146	146	the authority shall determine the amount and time of a bond issue to
147	147	best provide funds for one or multiple loans.
148	148	(f) The commission [office] shall administer the loans to
149	149	ensure full repayment of the general obligation bonds issued to
150	150	finance the project.
151	151	SECTION 9. Sections 436.1532(a), (c), (d), (e), and (f),
152	152	Government Code, are amended to read as follows:
153	153	(a) The commission [office] may provide a loan of financial
154	154	assistance to a defense community for an infrastructure project to
155	155	accommodate new or expanded military missions assigned to a
156	156	military base or defense facility located in, near, or adjacent to
157	157	the defense community as a result of a United States Department of
158	158	Defense base realignment process that occurs during 2005 or later.
159	159	The loan shall be made from the Texas military value revolving loan
160	160	account established under Section 436.156.
161	161	(c) If the commission determines that the project will
162	162	assist the defense community in accommodating the new or expanded
163	163	military missions that are assigned to the military facility, the
164	164	commission [office] shall:
165	165	(1) analyze the creditworthiness of the defense
166	166	community to determine the defense community's ability to repay the
167	167	loan; and
168	168	(2) evaluate the feasibility of the project to be
169	169	financed to ensure that the defense community has pledged a source
170	170	of revenue or taxes sufficient to repay the loan for the project.
171	171	(d) If the commission determines that the funds will be used
172	172	to finance an infrastructure project to accommodate new or expanded
173	173	military missions assigned to the military facility located in,
174	174	near, or adjacent to the defense community and the commission
175	175	[office] determines that the project is financially feasible, the
176	176	commission [office] may award a loan to the defense community for
177	177	the project. The commission [office] shall enter into a written
178	178	agreement with a defense community that is awarded a loan. The
179	179	agreement must contain the terms and conditions of the loan,
180	180	including the loan repayment requirements.
181	181	(e) The commission [office] shall notify the Texas Public
182	182	Finance Authority of the amount of the loan and the recipient of the
183	183	loan and request the authority to issue general obligation bonds in
184	184	an amount necessary to fund the loan. The commission [office] and
185	185	the authority shall determine the amount and time of a bond issue to
186	186	best provide funds for one or multiple loans.
187	187	(f) The commission [office] shall administer the loans to
188	188	ensure full repayment of the general obligation bonds issued to
189	189	finance the project.
190	190	SECTION 10. Section 436.154, Government Code, is amended to
191	191	read as follows:
192	192	Sec. 436.154. LOAN PROCESS. (a) The commission [office]
193	193	shall adopt rules, in consultation with the Texas Public Finance
194	194	Authority, that contain the criteria for evaluating the credit of a
195	195	loan applicant and the financial feasibility of a project. The
196	196	commission [office] shall also adopt a loan application form. The
197	197	application form may include:
198	198	(1) the name of the defense community and its
199	199	principal officers;
200	200	(2) the total cost of the project;
201	201	(3) the amount of state financial assistance
202	202	requested;
203	203	(4) the plan for repaying the loan; and
204	204	(5) any other information the commission [office]
205	205	requires to perform its duties and to protect the public interest.
206	206	(b) The commission [office] may not accept an application
207	207	for a loan from the Texas military value revolving loan account
208	208	unless the application is submitted in affidavit form by the
209	209	officials of the defense community. The commission [office] shall
210	210	prescribe the affidavit form.
211	211	SECTION 11. Section 436.156(c), Government Code, is amended
212	212	to read as follows:
213	213	(c) The commission [office] shall deposit to the credit of
214	214	the account all loan payments made by a political subdivision for a
215	215	loan under Section 436.153, 436.1531, or 436.1532. The loan
216	216	payments shall be used to reimburse the general revenue fund for
217	217	money appropriated to pay the principal, premium if any, and
218	218	interest on the bonds issued under Section 436.158. If loan
219	219	payments exceed the amounts required for reimbursement, the excess
220	220	shall first be applied to reimburse the expenses of administering
221	221	the program and secondly deposited to the credit of the Texas
222	222	military value revolving loan account to fund subsequent loans.
223	223	SECTION 12. Sections 436.202(b) and (c), Government Code,
224	224	are amended to read as follows:
225	225	(b) The commission may not make a grant for an amount less
226	226	than $50,000 or an amount more than the lesser of:
227	227	(1) 50 percent of the amount of matching money or
228	228	investment that the local governmental entity is required to
229	229	provide, subject to Subsection (c);
230	230	(2) 50 percent of the local governmental entity's
231	231	investment for purposes described by Section 436.203 if federal
232	232	assistance is unavailable; or
233	233	(3) $5 [$2] million.
234	234	(c) If the local governmental entity demonstrates to the
235	235	commission that, because of a limited budget, the entity lacks the
236	236	resources necessary to provide 50 percent of the amount of matching
237	237	money or investment that the entity is required to provide, the
238	238	commission may make a grant in an amount of not more than 80 percent
239	239	of the amount of that matching money or investment requirement but
240	240	may not make a grant in an amount that exceeds $5 [$2] million.
241	241	SECTION 13. Section 436.204(b), Government Code, is amended
242	242	to read as follows:
243	243	(b) The commission [office] may assist a local governmental
244	244	entity in applying for a grant under this chapter.
245	245	SECTION 14. Section 481.502(a), Government Code, is amended
246	246	to read as follows:
247	247	(a) The office and the Texas Military Preparedness
248	248	Commission shall assist defense communities in obtaining financing
249	249	for economic development projects that seek to address future
250	250	realignment or closure of a defense base that is in, adjacent to, or
251	251	near the defense community. The office shall refer the defense
252	252	community to:
253	253	(1) a local economic development corporation created
254	254	under the Development Corporation Act (Subtitle C1, Title 12, Local
255	255	Government Code) for possible financing; or
256	256	(2) an appropriate state agency that has an existing
257	257	program to provide financing for the project, including:
258	258	(A) the Texas Water Development Board; or
259	259	(B) the Texas Department of Transportation.
260	260	SECTION 15. Section 436.001(5), Government Code, is
261	261	repealed.
262	262	SECTION 16. A rule, policy, procedure, or decision of the
263	263	Texas Economic Development and Tourism Office with respect to
264	264	functions that are transferred under this Act to the Texas Military
265	265	Preparedness Commission continues in effect as a rule, policy,
266	266	procedure, or decision of the Texas Military Preparedness
267	267	Commission until superseded by an act of that commission.
268	268	SECTION 17. This Act takes effect September 1, 2015.
269	269	* * * * *