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AN ACT
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relating to the continuation and functions of the Texas Military |
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Preparedness Commission. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 436.001, Government Code, is amended to |
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read as follows: |
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Sec. 436.001. DEFINITIONS [DEFINITION]. In this chapter: |
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(1) "Commission"[, "commission"] means the Texas |
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Military Preparedness Commission. |
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(2) "Office" means the Texas Economic Development and |
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Tourism Office in the office of the governor. |
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SECTION 2. Section 436.002, Government Code, is amended to |
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read as follows: |
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Sec. 436.002. COMMISSION. The commission is within the |
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office [of the governor] and shall report to the executive director |
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of the office [governor or the governor's designee]. |
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SECTION 3. Section 436.051, Government Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) A person may not be a public member of the commission if |
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the person or the person's spouse: |
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(1) is employed by or participates in the management |
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of a business entity or other organization regulated by or |
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receiving money from the commission; |
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(2) owns or controls, directly or indirectly, more |
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than a 10 percent interest in a business entity or other |
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organization regulated by or receiving money from the commission; |
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or |
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(3) uses or receives a substantial amount of tangible |
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goods, services, or money from the commission other than |
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compensation or reimbursement authorized by law for commission |
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membership, attendance, or expenses. |
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SECTION 4. Section 436.056(a), Government Code, is amended |
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to read as follows: |
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(a) It is a ground for removal from the commission that a |
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public member: |
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(1) does not have at the time of taking office the |
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qualifications required by Section 436.051(b); |
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(2) does not maintain during service on the commission |
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the qualifications required by Section 436.051(b); |
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(3) is ineligible for membership under Section |
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436.051(d) or 436.055; |
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(4) cannot, because of illness or disability, |
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discharge the member's duties for a substantial part of the member's |
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term; or |
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(5) is absent from more than half of the regularly |
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scheduled commission meetings that the member is eligible to attend |
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during a calendar year without an excuse approved by a majority vote |
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of the commission. |
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SECTION 5. Subchapter B, Chapter 436, Government Code, is |
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amended by adding Section 436.0561 to read as follows: |
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Sec. 436.0561. TRAINING. (a) A person who is appointed to |
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and qualifies for office as a member of the commission may not vote, |
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deliberate, or be counted as a member in attendance at a meeting of |
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the commission until the person completes a training program that |
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complies with this section. |
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(b) The training program must provide the person with |
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information regarding: |
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(1) the legislation that created the commission; |
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(2) the programs, functions, rules, and budget of the |
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commission; |
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(3) the results of the most recent formal audit of the |
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commission; |
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(4) the requirements of laws relating to open |
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meetings, public information, administrative procedure, and |
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conflicts of interest; and |
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(5) any applicable ethics policies adopted by the |
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office, the commission, or the Texas Ethics Commission. |
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(c) A person appointed to the commission is entitled to |
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reimbursement, as provided by the General Appropriations Act, for |
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the travel expenses incurred in attending the training program |
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regardless of whether the attendance at the program occurs before |
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or after the person qualifies for office. |
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SECTION 6. The heading to Section 436.057, Government Code, |
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is amended to read as follows: |
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Sec. 436.057. DIRECTOR; STAFF. |
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SECTION 7. Section 436.057(c), Government Code, is amended |
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to read as follows: |
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(c) The governor shall determine the [director may hire] |
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staff for [within guidelines established by] the commission. |
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SECTION 8. Section 436.101, Government Code, is amended to |
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read as follows: |
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Sec. 436.101. POWERS AND DUTIES OF COMMISSION. The |
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commission shall: |
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(1) advise the governor and the legislature on |
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military issues and economic and industrial development related to |
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military issues; |
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(2) make recommendations regarding: |
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(A) the development of policies and plans to |
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support the long-term viability and prosperity of the military, |
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active and civilian, in this state, including promoting strategic |
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regional alliances that may extend over state lines; and |
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(B) the development of methods to assist |
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defense-dependent communities in the design and execution of |
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programs that enhance a community's relationship with military |
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installations and defense-related businesses; |
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(3) provide information to communities, the |
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legislature, the state's congressional delegation, and state |
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agencies regarding federal actions affecting military |
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installations and missions; |
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(4) serve as a clearinghouse for: |
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(A) defense economic adjustment and transition |
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information and activities along with the Texas Business and |
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Community Economic Development Clearinghouse; and |
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(B) information about: |
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(i) issues related to the operating costs, |
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missions, and strategic value of federal military installations |
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located in the state; |
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(ii) employment issues for communities that |
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depend on defense bases and in defense-related businesses; and |
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(iii) defense strategies and incentive |
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programs that other states are using to maintain, expand, and |
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attract new defense contractors; |
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(5) provide assistance to communities that have |
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experienced a defense-related closure or realignment; |
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(6) assist communities in the design and execution of |
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programs that enhance a community's relationship with military |
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installations and defense-related businesses, including regional |
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alliances that may extend over state lines; |
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(7) assist communities in the retention and recruiting |
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of defense-related businesses, including fostering strategic |
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regional alliances that may extend over state lines; [and] |
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(8) encourage economic development in this state by |
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fostering the development of industries related to defense affairs; |
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and |
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(9) advocate for the preservation and expansion of |
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missions of reservists at military installations in the state. |
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SECTION 9. Section 436.152(d), Government Code, is amended |
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to read as follows: |
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(d) The commission shall refer the defense community to the |
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appropriate state agency that has an existing program to provide |
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financing for each project identified in the community's military |
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value enhancement statement that adds military value to a military |
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facility. If there is no existing program to finance a project, the |
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office [commission] may provide a loan of financial assistance to |
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the defense community for the project. |
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SECTION 10. Sections 436.153(a) through (g), Government |
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Code, are amended to read as follows: |
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(a) The office [commission] may provide a loan of financial |
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assistance to a defense community for a project that will enhance |
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the military value of a military facility located in, near, or |
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adjacent to the defense community. The loan shall be made from the |
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Texas military value revolving loan account established under |
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Section 436.156. |
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(b) On receiving an application for a loan under this |
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section, the office [commission] shall confirm with the commission |
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that the project adds military value to the military facility. |
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(c) If the commission determines that a project will enhance |
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the military value of the military facility, the office |
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[commission] shall, in accordance with the criteria adopted by the |
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office [commission] under Section 436.154(a): |
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(1) analyze the creditworthiness of the defense |
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community to determine the defense community's ability to repay the |
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loan; and |
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(2) evaluate the feasibility of the project to be |
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financed to ensure that the defense community has pledged a source |
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of revenue or taxes sufficient to repay the loan for the project. |
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(d) If the commission confirms [determines] that the funds |
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will be used to enhance the military value of the military facility |
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based on the base realignment and closure criteria and the office |
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determines that the project is financially feasible, the executive |
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director of the office [commission] may award a loan to the defense |
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community for the project. The office [commission] shall enter |
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into a written agreement with a defense community that is awarded a |
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loan. The agreement must contain the terms and conditions of the |
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loan, including the loan repayment requirements. |
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(e) The office [commission] shall notify the Texas Public |
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Finance Authority of the amount of the loan and the recipient of the |
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loan and request the authority to issue general obligation bonds in |
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an amount necessary to fund the loan. The office [commission] and |
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the authority shall determine the amount and time of a bond issue to |
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best provide funds for one or multiple loans. |
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(f) The office [commission] shall administer the loans to |
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ensure full repayment of the general obligation bonds issued to |
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finance the project. |
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(g) The office [commission] may provide a loan only for a |
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project that is included in the political subdivision's statement |
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under Section 397.002, Local Government Code, or to prepare a |
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comprehensive defense installation and community strategic impact |
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plan under Section 397.003, Local Government Code. |
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SECTION 11. Sections 436.1531(a), (c), (d), (e), and (f), |
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Government Code, as added by Chapter 396 (S.B. 1481), Acts of the |
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79th Legislature, Regular Session, 2005, are amended to read as |
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follows: |
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(a) The office [commission] may provide a loan of financial |
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assistance to a defense community for an economic development |
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project that minimizes the negative effects of a defense base |
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reduction on the defense community as a result of a United States |
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Department of Defense base realignment process that occurs during |
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2005 or later. The loan shall be made from the Texas military value |
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revolving loan account established under Section 436.156. |
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(c) If the commission determines that a project will reduce |
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the negative effects of a defense base reduction on the defense |
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community, the office [commission] shall: |
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(1) analyze the creditworthiness of the defense |
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community to determine the defense community's ability to repay the |
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loan; and |
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(2) evaluate the feasibility of the project to be |
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financed to ensure that the defense community has pledged a source |
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of revenue or taxes sufficient to repay the loan for the project. |
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(d) If the office [commission] determines that the funds |
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will be used to finance an economic development project that will |
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reduce the negative effects of a defense base reduction on the |
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defense community and that the project is financially feasible, the |
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office [commission] may award a loan to the defense community for |
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the project. The office [commission] shall enter into a written |
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agreement with a defense community that is awarded a loan. The |
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agreement must contain the terms and conditions of the loan, |
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including the loan repayment requirements. |
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(e) The office [commission] shall notify the Texas Public |
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Finance Authority of the amount of the loan and the recipient of the |
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loan and request the authority to issue general obligation bonds in |
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an amount necessary to fund the loan. The office [commission] and |
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the authority shall determine the amount and time of a bond issue to |
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best provide funds for one or multiple loans. |
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(f) The office [commission] shall administer the loans to |
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ensure full repayment of the general obligation bonds issued to |
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finance the project. |
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SECTION 12. Sections 436.1532(a), (c), (d), (e), and (f), |
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Government Code, as added by Chapter 396 (S.B. 1481), Acts of the |
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79th Legislature, Regular Session, 2005, are amended to read as |
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follows: |
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(a) The office [commission] may provide a loan of financial |
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assistance to a defense community for an infrastructure project to |
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accomodate new or expanded military missions assigned to a military |
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facility located in, near, or adjacent to the defense community as a |
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result of a United States Department of Defense base realignment |
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process that occurs during 2005 or later. The loan shall be made |
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from the Texas military value revolving loan account established |
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under Section 436.156. |
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(c) If the commission determines that the project will |
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assist the defense community in accommodating the new or expanded |
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military missions that are assigned to the military facility, the |
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office [commission] shall: |
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(1) analyze the creditworthiness of the defense |
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community to determine the defense community's ability to repay the |
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loan; and |
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(2) evaluate the feasibility of the project to be |
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financed to ensure that the defense community has pledged a source |
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of revenue or taxes sufficient to repay the loan for the project. |
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(d) If the commission determines that the funds will be used |
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to finance an infrastructure project to accommodate new or expanded |
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military missions assigned to the military facility located in, |
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near, or adjacent to the defense community and the office |
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determines that the project is financially feasible, the office |
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[commission] may award a loan to the defense community for the |
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project. The office [commission] shall enter into a written |
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agreement with a defense community that is awarded a loan. The |
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agreement must contain the terms and conditions of the loan, |
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including the loan repayment requirements. |
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(e) The office [commission] shall notify the Texas Public |
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Finance Authority of the amount of the loan and the recipient of the |
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loan and request the authority to issue general obligation bonds in |
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an amount necessary to fund the loan. The office [commission] and |
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the authority shall determine the amount and time of a bond issue to |
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best provide funds for one or multiple loans. |
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(f) The office [commission] shall administer the loans to |
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ensure full repayment of the general obligation bonds issued to |
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finance the project. |
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SECTION 13. Section 436.154, Government Code, is amended to |
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read as follows: |
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Sec. 436.154. LOAN PROCESS. (a) The office [commission] |
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shall adopt rules, in consultation with the Texas Public Finance |
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Authority, that contain the criteria for evaluating the credit of a |
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loan applicant and the financial feasibility of a project. The |
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office [commission] shall also adopt a loan application form. The |
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application form may include: |
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(1) the name of the defense community and its |
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principal officers; |
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(2) the total cost of the project; |
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(3) the amount of state financial assistance |
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requested; |
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(4) the plan for repaying the loan; and |
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(5) any other information the office [commission] |
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requires to perform its duties and to protect the public interest. |
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(b) The office [commission] may not accept an application |
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for a loan from the Texas military value revolving loan account |
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unless the application is submitted in affidavit form by the |
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officials of the defense community. The office [board] shall |
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prescribe the affidavit form. |
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SECTION 14. Section 436.156(c), Government Code, is amended |
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to read as follows: |
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(c) The office [commission] shall deposit to the credit of |
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the account all loan payments made by a political subdivision for a |
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loan under Section 436.153, 436.1531, or 436.1532. The loan |
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payments shall be used to reimburse the general revenue fund for |
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money appropriated to pay the principal, premium if any, and |
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interest on the bonds issued under Section 436.158. If loan |
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payments exceed the amounts required for reimbursement, the excess |
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shall first be applied to reimburse the expenses of administering |
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the program and secondly deposited to the credit of the Texas |
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military value revolving loan account to fund subsequent loans. |
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SECTION 15. Section 436.158(b), Government Code, is amended |
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to read as follows: |
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(b) The proceeds of the bonds and notes shall be deposited |
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into the Texas military value revolving loan account or into other |
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separate funds as may be required to provide for payment of issuance |
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and administrative costs and may be used as authorized by Section |
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49-n, Article III, Texas Constitution, including: |
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(1) to fund loans approved [by the commission] under |
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Section 436.153, 436.1531, or 436.1532; |
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(2) to pay the costs of issuing and selling bonds and |
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notes; and |
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(3) to pay the costs of administering the bonds and |
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notes and the loan program, including the payment of fees and |
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expenses of advisors. |
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SECTION 16. Section 481.502(a), Government Code, is amended |
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to read as follows: |
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(a) The office[, in coordination with the Texas Strategic
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Military Planning Commission,] shall assist defense communities in |
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obtaining financing for economic development projects that seek to |
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address future realignment or closure of a defense base that is in, |
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adjacent to, or near the defense community. The office [and the
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commission] shall refer the defense community to: |
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(1) a local economic development corporation created |
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under the Development Corporation Act (Subtitle C1, Title 12, Local |
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Government Code) for possible financing; or |
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(2) an appropriate state agency that has an existing |
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program to provide financing for the project, including: |
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(A) the Texas Water Development Board; or |
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(B) the Texas Department of Transportation. |
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SECTION 17. Section 486.001, Government Code, is amended by |
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adding Subdivision (3-a) to read as follows: |
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(3-a) "Office" means the Texas Economic Development |
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and Tourism Office in the office of the governor. |
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SECTION 18. Section 486.002(a), Government Code, is amended |
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to read as follows: |
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(a) The commission shall administer this chapter, and the |
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office shall monitor the implementation of this chapter. |
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SECTION 19. Section 486.003(a), Government Code, is amended |
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to read as follows: |
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(a) A local governmental entity is eligible for a grant |
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under this chapter if it is: |
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(1) a municipality or county that is a defense |
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community; |
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(2) a regional planning commission that has a defense |
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community within its boundaries; |
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(3) a public junior college district all or part of |
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which is located in a defense community; |
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(4) a campus or extension center for education |
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purposes of the Texas State Technical College System located in a |
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defense community; [or] |
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(5) a defense base development authority created under |
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Chapter 379B, Local Government Code; or |
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(6) a political subdivision having the power of a |
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defense base development authority created under Chapter 379B, |
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Local Government Code. |
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SECTION 20. Section 486.007, Government Code, is amended to |
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read as follows: |
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Sec. 486.007. APPLICATION FOR GRANT. (a) A local |
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governmental entity may apply for a grant under this chapter to the |
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commission on a form prescribed by the commission. The commission |
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shall establish periodic application cycles to enable the panel and |
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commission to evaluate groups of applicants in relation to each |
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other. |
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(b) The office may assist a local governmental entity in |
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applying for a grant under this chapter. |
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SECTION 21. Section 486.008, Government Code, is amended to |
|
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read as follows: |
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Sec. 486.008. EVALUATION OF APPLICATION. The panel shall |
|
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evaluate each application and assign the applicant a score based |
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on: |
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(1) the significance of the adverse or positive effect |
|
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within the local governmental entity, including the number of jobs |
|
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lost or gained in relation to the workforce in the local |
|
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governmental entity's jurisdiction and the effect on the area's |
|
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economy and tax revenue; |
|
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(2) the extent to which the local governmental entity |
|
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has used its existing resources to promote local economic |
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development; |
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(3) the amount of any grant that the local |
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governmental entity has previously received under this chapter; |
|
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(4) the anticipated number of jobs to be created or |
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retained in relation to the amount of the grant sought; and |
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(5) the extent to which the grant will affect the |
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region in which the local governmental entity is located. |
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SECTION 22. The following laws are repealed: |
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(1) Section 436.003, Government Code; |
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(2) Section 436.057(b), Government Code; |
|
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(3) Section 436.1531, Government Code, as added by |
|
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Chapter 1160 (H.B. 3302), Acts of the 79th Legislature, Regular |
|
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Session, 2005; |
|
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(4) Section 436.1531, Government Code, as added by |
|
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Chapter 1280 (H.B. 2340), Acts of the 79th Legislature, Regular |
|
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Session, 2005; |
|
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(5) Section 436.1532, Government Code, as added by |
|
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Chapter 1280 (H.B. 2340), Acts of the 79th Legislature, Regular |
|
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Session, 2005; and |
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(6) Section 481.501(3), Government Code. |
|
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SECTION 23. Sections 436.051(d) and 436.0561, Government |
|
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Code, as added by this Act, and the change in law made by this Act to |
|
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Section 436.056(a)(3), Government Code, apply only to a person |
|
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appointed or reappointed to the Texas Military Preparedness |
|
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Commission on or after the effective date of this Act. |
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SECTION 24. A rule, policy, procedure, or decision of the |
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Texas Military Preparedness Commission with respect to functions |
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that are transferred to the Texas Economic Development and Tourism |
|
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Office continues in effect as a rule, policy, procedure, or |
|
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decision of the Texas Economic Development and Tourism Office until |
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superseded by an act of that office. |
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SECTION 25. This Act takes effect September 1, 2009. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I certify that H.B. No. 2546 was passed by the House on April |
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22, 2009, by the following vote: Yeas 146, Nays 0, 1 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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I certify that H.B. No. 2546 was passed by the Senate on May |
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7, 2009, by the following vote: Yeas 31, Nays 0. |
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Secretary of the Senate |
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APPROVED: _____________________ |
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Date |
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Governor |