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H.B. No. 3302
AN ACT
relating to the membership and powers and duties of the Texas
Military Preparedness Commission.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 436.051, Government Code, as renumbered
from Section 436.003, Government Code, by Section 3, Chapter 149,
Acts of the 78th Legislature, Regular Session, 2003, and Section
436.003, Government Code, as amended by Section 8, Chapter 1328,
Acts of the 78th Legislature, Regular Session, 2003, are reenacted
and amended to read as follows:
Sec. 436.051. COMPOSITION; ELIGIBILITY. (a) The
commission is composed of:
(1) 13 [nine] public members, appointed by the
governor; and
(2) the following ex officio members:
(A) the chair of the committee of the Texas House
of Representatives that has primary jurisdiction of matters
concerning defense affairs and state-federal relations; and
(B) one member of the Texas Senate appointed by
the lieutenant governor.
(b) To be eligible for appointment as a public member to the
commission, a person must have demonstrated experience in economic
development, the defense industry, military installation
operation, environmental issues, finance, local government, or the
use of airspace or outer space for future military missions.
(c) Appointments to the commission shall be made without
regard to the race, color, disability, sex, religion, age, or
national origin of the appointee.
SECTION 2. Section 436.052(a), Government Code, is amended
to read as follows:
(a) The 13 [nine] public members of the commission serve
staggered terms of six years with the terms of four or five
[one-third of the] members expiring February 1 of each odd-numbered
year. A legislative member vacates the person's position on the
commission if the person ceases to be the chair of the applicable
legislative committee.
SECTION 3. Section 436.101, Government Code, is amended to
read as follows:
Sec. 436.101. POWERS AND DUTIES OF COMMISSION. The
commission shall:
(1) advise the governor and the legislature on
military issues and economic and industrial development related to
military issues;
(2) make recommendations regarding:
(A) the development of policies and plans to
support the long-term viability and prosperity of the military,
active and civilian, in this state, including promoting strategic
regional alliances that may extend over state lines; and
(B) [the development of methods to improve
private and public employment opportunities for former members of
the military residing in this state; and
[(C)] the development of methods to assist
defense-dependent communities in the design and execution of
programs that enhance a community's relationship with military
installations and defense-related businesses;
(3) [develop and maintain a database of the names and
public business information of all prime contractors and
subcontractors operating in this state who perform defense-related
work;
[(4)] provide information to communities, the
legislature, the state's congressional delegation, and state
agencies regarding federal actions affecting military
installations and missions;
(4) [(5)] serve as a clearinghouse for:
(A) defense economic adjustment and transition
information and activities along with the Texas Business and
Community Economic Development Clearinghouse; and
(B) information about:
(i) issues related to the operating costs,
missions, and strategic value of federal military installations
located in the state;
(ii) employment issues for communities that
depend on defense bases and in defense-related businesses; and
(iii) defense strategies and incentive
programs that other states are using to maintain, expand, and
attract new defense contractors;
(5) [(6)] provide assistance to communities that have
experienced a defense-related closure or realignment;
(6) [(7)] assist communities in the design and
execution of programs that enhance a community's relationship with
military installations and defense-related businesses, including
regional alliances that may extend over state lines;
(7) [(8)] assist communities in the retention and
recruiting of defense-related businesses, including fostering
strategic regional alliances that may extend over state lines;
[(9) prepare a biennial strategic plan that:
[(A) fosters the enhancement of military value of
the contributions of Texas military installations to national
defense strategies;
[(B) considers all current and anticipated base
realignment and closure criteria; and
[(C) develops strategies to protect the state's
existing military missions and positions the state to be
competitive for new and expanded military missions;] and
(8) [(10)] encourage economic development in this
state by fostering the development of industries related to defense
affairs.
SECTION 4. Sections 436.103(b) and (d), Government Code,
are amended to read as follows:
(b) Not later than July 1 of each even-numbered year, the
commission shall prepare and submit a report to the governor and the
legislature about the active military installations, communities
that depend on military installations, and defense-related
businesses in this state. The commission may update the report in
an odd-numbered year. The report must include:
(1) an economic impact statement describing in detail
the effect of the military on the economy of this state;
(2) a statewide assessment of active military
installations and current missions;
(3) a statewide strategy to attract new military
missions and defense-related business and include specific actions
that add military value to existing military installations;
(4) a list of state and federal activities that have
significant impact on active military installations and current
missions;
(5) a statement identifying:
(A) the state and federal programs and services
that assist communities impacted by military base closures or
realignments and the efforts to coordinate those programs; and
(B) the efforts to coordinate state agency
programs and services that assist communities in retaining active
military installations and current missions;
(6) an evaluation of initiatives to retain existing
defense-related businesses; and
(7) a list of agencies with regulations, policies,
programs, or services that impact the operating costs or strategic
value of federal military installations and activities in the
state.
(d) The commission shall periodically meet [coordinate
annual meetings] with [the head of] each state agency that has
defense-related programs or is engaged in a project in a
defense-dependent community and with each [or] member of the
legislature whose district contains an active, closed, or realigned
military installation to discuss defense-related issues and the
implementation of the recommendations outlined in the report
required under Subsection (b).
SECTION 5. The heading to Section 436.152, Government Code,
is amended to read as follows:
Sec. 436.152. ANALYSIS OF PROJECTS THAT ADD MILITARY VALUE;
FINANCING.
SECTION 6. Subchapter D, Chapter 436, Government Code, is
amended by adding Section 436.1531 to read as follows:
Sec. 436.1531. LOANS FOR COMMUNITIES ADVERSELY AFFECTED BY
DEFENSE BASE REDUCTION. (a) The commission may provide a loan of
financial assistance to a defense community for an economic
development project that minimizes the negative effects of a
defense base reduction on the defense community. The loan shall be
made from the Texas military value revolving loan account
established under Section 436.156.
(b) On receiving an application for a loan under this
section, the commission shall evaluate the economic development
project to determine how the project will minimize the negative
effects of a defense base reduction on the defense community,
including the number of jobs that the project will create and the
economic impact the project will have on the community.
(c) If the commission determines that a project will reduce
the negative effects of a defense base reduction on the defense
community, the commission shall:
(1) analyze the creditworthiness of the defense
community to determine the defense community's ability to repay the
loan; and
(2) evaluate the feasibility of the project to be
financed to ensure that the defense community has pledged a source
of revenue or taxes sufficient to repay the loan for the project.
(d) If the commission determines that the funds will be used
to finance an economic development project that will reduce the
negative effects of a defense base reduction on the defense
community and that the project is financially feasible, the
commission may award a loan to the defense community for the
project. The commission shall enter into a written agreement with a
defense community that is awarded a loan. The agreement must
contain the terms and conditions of the loan, including the loan
repayment requirements.
(e) The commission shall notify the Texas Public Finance
Authority of the amount of the loan and the recipient of the loan
and request the authority to issue general obligation bonds in an
amount necessary to fund the loan. The commission and the authority
shall determine the amount and time of a bond issue to best provide
funds for one or multiple loans.
(f) The commission shall administer the loans to ensure full
repayment of the general obligation bonds issued to finance the
project.
(g) A project financed with a loan under this section must
be completed on or before the fifth anniversary of the date the loan
is awarded.
(h) The amount of a loan under this section may not exceed
the total cost of the project.
SECTION 7. Section 397.001(1), Local Government Code, is
amended to read as follows:
(1) "Defense base" means a federally owned or operated
military installation or facility that is presently functioning or
was closed as a result of the United States Department of Defense
base realignment process.
SECTION 8. Section 397.002(a), Local Government Code, is
amended to read as follows:
(a) A defense community that applies for financial
assistance from the Texas military value revolving loan account
under Section 436.153, Government Code, shall prepare, in
consultation with the authorities from each defense base associated
with the community, a defense base military value enhancement
statement that illustrates specific ways the funds will enhance the
military value of the installations and must include the following
information for each project:
(1) the purpose for which financial assistance is
requested, including a description of the project;
(2) the source of other funds for the project;
(3) a statement on how the project will enhance the
military value of the installation;
(4) whether the defense community has coordinated the
project with authorities of the military installation and whether
any approval has been obtained from those authorities;
(5) whether any portion of the project is to occur on
the military installation;
(6) whether the project will have any negative impact
on the natural or cultural environment;
(7) a description of any known negative factors
arising from the project that will affect the community or the
military installation; and
(8) a description of how the project will address
future base realignment or closure.
SECTION 9. Chapter 397, Local Government Code, is amended
by adding Section 397.0021 to read as follows:
Sec. 397.0021. DEFENSE COMMUNITY ECONOMIC REDEVELOPMENT
VALUE STATEMENT. (a) A defense community that is adjacent to a
closed military installation and applies for financial assistance
from the Texas military value revolving loan account shall prepare
an economic redevelopment value statement that illustrates
specific ways the funds will be used to promote economic
development in the community and include the following information
for each project:
(1) the purpose for which financial assistance is
requested, including a description of the project;
(2) the source of other funds for the project;
(3) a statement on how the project will promote
economic development in the community;
(4) whether any portion of the project is to occur on a
closed military installation;
(5) whether any approval has been obtained from those
authorities retaining or receiving title to that portion of the
closed installation to be affected by the project;
(6) whether the project will have any negative impact
on the natural or cultural environment; and
(7) a description of any known negative factors
arising from the project that will affect the defense community.
(b) The Texas Military Preparedness Commission may require
a defense community to provide any additional information the
commission requires to evaluate the community's request for
financial assistance under this section.
(c) Two or more defense communities near the same defense
base that apply for financial assistance from the Texas military
value revolving loan account may prepare a joint statement.
(d) A copy of the economic redevelopment value statement
shall be distributed to the Texas Military Preparedness Commission
and any defense community which may be affected by the resulting
project.
(e) This section does not prohibit a defense community that
is not applying for financial assistance from preparing an economic
redevelopment value statement under this section.
SECTION 10. (a) Not later than October 1, 2005, the
governor shall appoint the four additional public members of the
Texas Military Preparedness Commission as required by Section
436.051, Government Code, as amended by this Act. The governor
shall appoint:
(1) one public member to serve a term expiring
February 1, 2007;
(2) one public member to serve a term expiring
February 1, 2009; and
(3) two public members to serve terms expiring
February 1, 2011.
(b) Until all of the members appointed under this section
have qualified for office, a quorum of the commission is a majority
of the number of members who have qualified for office.
SECTION 11. This Act takes effect September 1, 2005.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3302 was passed by the House on May
13, 2005, by a non-record vote.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3302 was passed by the Senate on May
25, 2005, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor