SRC-AMY C.S.S.B. 1295 78(R)    BILL ANALYSIS


Senate Research CenterC.S.S.B. 1295
By: Van de Putte
Subcommittee on Base Realignment and Closure
4/25/2003
Committee Report (Substituted)

DIGEST AND PURPOSE 

The military represents a significant part of the Texas economy,
accounting for more than $49 billion in economic impact.  The Office of
Defense Affairs (ODA) is responsible for assisting defense communities to
develop infrastructure to minimize the possibility of, or the negative
effects of, a base closure.  C.S.S.B. 1295 requires ODA, in coordination
with the Texas Strategic Military Planning Commission, to assist defense
communities in obtaining financing for economic development projects that
will improve the function of a defense base that is in, adjacent to, or
near the defense community.  This bill also establishes the framework in
which defense communities receive assistance from a state agency. 

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to
a state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Chapter 481, Government Code, by adding Subchapter DD,
as follows: 

SUBCHAPTER DD.  DEFENSE COMMUNITY ASSISTANCE

Sec. 480.501.  DEFINITIONS.  Defines "defense base," "defense community,"
and "office." 

Sec. 481.502.  FINANCIAL ASSISTANCE.  (a) Requires the Office of Defense
Affairs (ODA), in coordination with the Texas Strategic Military Planning
Commission (commission), to assist defense communities in obtaining
financing for economic development projects that will improve the function
of a defense base that is in, adjacent to, or near the defense community.
Requires the ODA and the commission to refer the defense community to
certain entities. 

(b) Requires a state agency making a loan to a defense community under
this section to evaluate the project and determine whether the project may
be financed through the agency's program.  Provides that the state agency
has sole discretion on whether to finance the project. 

(c) Requires state agencies, in reviewing applications for financing from
defense communities, to consider the ODA's priority for the project.
Requires ODA to maintain a record of each loan granted to a defense
community that includes the amount of the loan, the agency making the
loan, and a description of the project. Requires ODA to submit to the
state agencies a priority list of economic development projects under this
subsection that totals up to $150 million. Provides that this subsection
expires September 1, 2007. 

Sec. 481.503.  MEMORANDUM OF UNDERSTANDING.  (a) Requires ODA to enter
into a memorandum of understanding with each state agency that has a
program to fund economic development projects for defense communities.
Requires the memorandum of understanding to include each agencies
responsibilities in granting and administering a loan to a defense
community. 
 
SEC. 481.504.  SECURITY FOR LOANS.  Authorizes a state agency making a
loan to the defense community for a project described in Section
481.502(a), in addition to any other security provided by law if a defense
community defaults on a loan, to 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. 

Sec. 481.505.  GIFTS AND GRANTS.  Authorizes ODA to accept gifts and
grants from any source for the purposes of this subchapter. 

SECTION 2.  Effective date:  upon passage or September 1, 2003.