85R12693 MCK-D
By: Cortez H.B. No. 3895
A BILL TO BE ENTITLED
AN ACT
relating to the awarding of loans from the Texas military value
revolving loan account.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 436.054, Government Code, is amended by
amending Subsection (b) and adding Subsection (c) to read as
follows:
(b) The commission is a governmental body for purposes of
the open meetings law, Chapter 551. Except as otherwise provided by
Subsection (c), Chapter 551 applies to a meeting of the commission.
(c) The commission may allow for members' participation in a
meeting by telephone or other means of telecommunication or
electronic communication to consider an application for a loan from
the Texas military value revolving loan account. Any voting
conducted by telephone or other means of telecommunication or
electronic communication shall be subject to the same quorum
requirements of meetings where members are present in person.
SECTION 2. Section 436.153, Government Code, is amended by
adding Subsections (a-1), (c-1), (d-1), and (d-2) and amending
Subsections (b), (c), (d), and (g) to read as follows:
(a-1) The commission may provide a loan of financial
assistance to a defense base development authority created under
Chapter 379B, Local Government Code, for a project without regard
to whether the project will enhance the military or defense value of
a military base or defense facility.
(b) On receiving an application for a loan under this
section, the commission shall:
(1) forward a copy of the application to the Texas
Public Finance Authority for the analysis required by Subsection
(c); and
(2) confirm that a [the] project described by
Subsection (a) adds military or defense value to the military base
or defense facility.
(c) On receipt of a copy of a loan application under
Subsection (b), the Texas Public Finance Authority [If the
commission determines that a project will enhance the military or
defense value of the military base or defense facility, the
commission] shall, in accordance with the criteria adopted [by the
commission] under Section 436.154(a):
(1) analyze the creditworthiness of the defense
community or defense base development authority to determine the
defense community's or defense base development authority's ability
to repay the loan; [and]
(2) evaluate the feasibility of the project to be
financed to ensure that the defense community or defense base
development authority has pledged a source of revenue or taxes
sufficient to repay the loan for the project; and
(3) immediately notify the commission of its findings.
(c-1) Not later than the 30th day after the date an
application for a loan under this section is made, the commission
shall make a decision on the application.
(d) For a project described by Subsection (a), if [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 Texas Public
Finance Authority [commission] determines that the project is
financially feasible, the commission may award a loan to the
defense community for the project.
(d-1) For a project described by Subsection (a-1), if the
Texas Public Finance Authority determines that the project is
financially feasible, the commission may award a loan to the
defense base development authority.
(d-2) The commission shall enter into a written agreement
with a defense community or defense base development authority that
is awarded a loan under this section. The agreement must contain
the terms and conditions of the loan, including the loan repayment
requirements.
(g) The commission may provide a loan:
(1) [only] for a project described by Subsection (a)
only if the project [that] is included in the political
subdivision's statement under Section 397.002, Local Government
Code; [,] or
(2) to prepare a comprehensive defense installation
and community strategic impact plan under Section 397.003, Local
Government Code.
SECTION 3. Section 436.154(a), Government Code, is amended
to read as follows:
(a) The [commission shall adopt rules, in consultation with
the] Texas Public Finance Authority shall adopt rules[,] that
contain the criteria for evaluating the credit of a loan applicant
and the financial feasibility of a project. The Texas Public
Finance Authority [commission] shall also adopt a loan application
form. The application form may include:
(1) the name of the defense community or defense base
development authority, as applicable, and the community's or
authority's [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 or Texas
Public Finance Authority requires to perform its duties and to
protect the public interest.
SECTION 4. This Act takes effect September 1, 2017.