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.