78R8170 MCK-D
By: Van de Putte S.B. No. 1295
A BILL TO BE ENTITLED
AN ACT
relating to providing financial assistance to defense communities;
granting of authority to issue bonds.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subtitle F, Title 4, Government Code, is amended
by adding Chapter 489 to read as follows:
CHAPTER 489. DEFENSE COMMUNITY ASSISTANCE LOANS
Sec. 489.001. DEFINITIONS. In this chapter:
(1) "Defense base" means a federally owned or operated
military installation or facility that is presently functioning or
that has been closed or realigned under the federal defense base
closure and realignment process.
(2) "Defense community" means a political
subdivision, including a municipality, county, 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. 489.002. LOAN PROGRAM. (a) The office shall
administer a revolving loan program to assist defense communities
in developing economic development projects to maintain military
bases located in the community and to minimize the possibility of or
the negative effects of defense base reduction on the community.
The office may provide a loan of financial assistance to a defense
community for economic development projects that:
(1) relate to defense bases in the state;
(2) enhance the military value of active defense bases
in the state; or
(3) mitigate the economic impact of a defense base in
this state being closed or realigned.
(b) The office by rule shall establish criteria and
procedures for evaluating applications for loans under the program.
(c) The office by rule shall establish categories of
economic development projects for which a defense community may
apply for a loan.
Sec. 489.003. REVOLVING LOAN ACCOUNT. (a) The defense
community assistance revolving loan account is an account in the
general revenue fund.
(b) The account may be used only for loans made under this
chapter.
Sec. 489.004. GIFTS AND GRANTS. The office may accept gifts
or grants from any source for the purposes of this chapter. The
office shall deposit gifts or grants to the credit of the defense
community assistance revolving loan account.
Sec. 489.005. ISSUANCE OF GENERAL OBLIGATION BONDS FOR
DEFENSE COMMUNITY ASSISTANCE REVOLVING LOAN ACCOUNT. (a) The
Texas Public Finance Authority shall issue and sell general
obligation bonds of the state as authorized by the Texas
Constitution for the purpose of providing money to establish the
defense community assistance revolving loan account. The authority
may issue the bonds in one or several installments.
(b) Proceeds of the bonds issued under this section shall be
deposited in the defense community assistance revolving loan
account.
SECTION 2. This Act takes effect only if the constitutional
amendment proposed by the 78th Texas Legislature, Regular Session,
2003, authorizing the issuance of general obligation bonds for
economic development projects that benefit defense communities is
approved by the voters. If that amendment is not approved by the
voters, this Act has no effect.