S.B. No. 1295
AN ACT
relating to providing financial assistance to defense communities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 481, Government Code, is amended by
adding Subchapter DD to read as follows:
SUBCHAPTER DD. DEFENSE COMMUNITY ASSISTANCE
Sec. 481.501. DEFINITIONS. In this subchapter:
(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.
(3) "Office" means the Office of Defense Affairs.
Sec. 481.502. FINANCIAL ASSISTANCE. (a) The office, in
coordination with the Texas Strategic Military Planning
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 and the commission
shall refer the defense community to:
(1) a local economic development corporation created
under the Development Corporation Act of 1979 (Article 5190.6,
Vernon's Texas Civil Statutes) 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.
(c) In reviewing applications for financing from defense
communities, state agencies shall consider the office's priority
for the project. The office shall 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. The
office shall submit to the state agencies a priority list of
economic development projects under this subsection that totals not
more than $150 million. This subsection expires December 31, 2006.
Sec. 481.503. MEMORANDUM OF UNDERSTANDING. The 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. 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 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 2. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2003.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1295 passed the Senate on
May 8, 2003, by the following vote: Yeas 31, Nays 0; and that the
Senate concurred in House amendment on May 29, 2003, by the
following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1295 passed the House, with
amendment, on May 25, 2003, by the following vote: Yeas 117,
Nays 0, two present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor