By: Miller of Fort Bend (Senate Sponsor - Campbell) H.B. No. 787
(In the Senate - Received from the House May 5, 2015;
May 6, 2015, read first time and referred to Committee on Veteran
Affairs and Military Installations; May 22, 2015, reported
adversely, with favorable Committee Substitute by the following
vote: Yeas 5, Nays 0; May 22, 2015, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 787 By: Campbell
A BILL TO BE ENTITLED
AN ACT
relating to the Texas Military Preparedness Commission and
strategic planning regarding military bases and defense
installations.
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 attached for
administrative purposes to [within] the office of the governor [and
shall report to the executive director of the office].
SECTION 2. 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 3. Section 436.057, Government Code, is amended by
adding Subsection (b) and amending Subsection (c) to read as
follows:
(b) The director shall hire at least one full-time employee
who is knowledgeable about or has experience with military
installations.
(c) The director may hire other [governor shall determine
the] staff within the guidelines established by [for] the
commission.
SECTION 4. The heading to Section 436.105, Government Code,
is amended to read as follows:
Sec. 436.105. MILITARY BASE REALIGNMENT AND CLOSURE TASK
FORCE; EXPIRATION DATE.
SECTION 5. Section 436.105, Government Code, is amended by
adding Subsections (b-1) and (d) to read as follows:
(b-1) A member of the task force is entitled to
reimbursement for travel expenses.
(d) The task force is abolished and this section expires
September 1, 2019.
SECTION 6. 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 7. 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 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 commission [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 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.
(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 8. 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 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 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. 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 commission
[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 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 10. 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 11. 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 12. Sections 436.202(b) and (c), Government Code,
are amended to read as follows:
(b) The commission may not make a grant for an amount less
than $50,000 or an amount more than the lesser of:
(1) 50 percent of the amount of matching money or
investment that the local governmental entity is required to
provide, subject to Subsection (c);
(2) 50 percent of the local governmental entity's
investment for purposes described by Section 436.203 if federal
assistance is unavailable; or
(3) $5 [$2] million.
(c) If the local governmental entity demonstrates to the
commission that, because of a limited budget, the entity lacks the
resources necessary to provide 50 percent of the amount of matching
money or investment that the entity is required to provide, the
commission may make a grant in an amount of not more than 80 percent
of the amount of that matching money or investment requirement but
may not make a grant in an amount that exceeds $5 [$2] million.
SECTION 13. 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 14. Section 481.502(a), Government Code, is amended
to read as follows:
(a) The office and the Texas Military Preparedness
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 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 15. Section 436.001(5), Government Code, is
repealed.
SECTION 16. A rule, policy, procedure, or decision of the
Texas Economic Development and Tourism Office with respect to
functions that are transferred under 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 17. This Act takes effect September 1, 2015.
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