S.B. No. 1358
 
 
 
 
AN ACT
  relating to the Texas Military Preparedness Commission and
  strategic planning regarding military bases and defense
  installations.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 436.002, Government Code, is amended to
  read as follows:
         Sec. 436.002.  COMMISSION. The commission is attached for
  administrative purposes to [within] the office of the governor [and
  shall report to the executive director of the office].
         SECTION 2.  Section 436.0561(b), Government Code, is amended
  to read as follows:
         (b)  The training program must provide the person with
  information regarding:
               (1)  the legislation that created the commission;
               (2)  the programs, functions, rules, and budget of the
  commission;
               (3)  the results of the most recent formal audit of the
  commission;
               (4)  the requirements of laws relating to open
  meetings, public information, administrative procedure, and
  conflicts of interest; and
               (5)  any applicable ethics policies adopted by [the
  office,] the commission[,] or the Texas Ethics Commission.
         SECTION 3.  Section 436.057, Government Code, is amended by
  adding Subsection (b) and amending Subsection (c) to read as
  follows:
         (b)  The director shall hire at least one full-time employee
  who is knowledgeable about or has experience with military
  installations.
         (c)  The director may hire other [governor shall determine
  the] staff within the guidelines established by [for] the
  commission.
         SECTION 4.  The heading to Section 436.105, Government Code,
  is amended to read as follows:
         Sec. 436.105.  MILITARY BASE REALIGNMENT AND CLOSURE TASK
  FORCE; EXPIRATION DATE.
         SECTION 5.  Section 436.105, Government Code, is amended by
  adding Subsections (b-1) and (d) to read as follows:
         (b-1)  A member of the task force is entitled to
  reimbursement for travel expenses.
         (d)  The task force is abolished and this section expires
  September 1, 2019.
         SECTION 6.  Section 436.152(d), Government Code, is amended
  to read as follows:
         (d)  The commission shall refer the defense community to the
  appropriate state agency that has an existing program to provide
  financing for each project identified in the community's military
  base or defense facility value enhancement statement that adds
  military or defense value to a military base or defense facility.
  If there is no existing program to finance a project, the commission
  [office] may provide a loan of financial assistance to the defense
  community for the project.
         SECTION 7.  Sections 436.153(a) through (g), Government
  Code, are amended to read as follows:
         (a)  The commission [office] may provide a loan of financial
  assistance to a defense community for a project that will enhance
  the military or defense value of a military base or defense facility
  located in, near, or adjacent to 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 [office] shall confirm [with the
  commission] that the project adds military or defense value to the
  military base or defense facility.
         (c)  If the commission determines that a project will enhance
  the military or defense value of the military base or defense
  facility, the commission [office] shall, in accordance with the
  criteria adopted by the commission [office] under Section
  436.154(a):
               (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 confirms that the funds will be used
  to enhance the military or defense value of the military base or
  defense facility based on the base realignment and closure
  criteria, to overcome an action of the United States Department of
  Defense that will negatively impact the military base or defense
  facility, or for the recruitment or retention of a defense facility
  and the commission [office] determines that the project is
  financially feasible, the commission [executive director of the
  office] may award a loan to the defense community for the project.  
  The commission [office] 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 [office] 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 [office] 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 [office] shall administer the loans to
  ensure full repayment of the general obligation bonds issued to
  finance the project.
         (g)  The commission [office] may provide a loan only for a
  project that is included in the political subdivision's statement
  under Section 397.002, Local Government Code, or to prepare a
  comprehensive defense installation and community strategic impact
  plan under Section 397.003, Local Government Code.
         SECTION 8.  Sections 436.1531(a), (c), (d), (e), and (f),
  Government Code, are amended to read as follows:
         (a)  The commission [office] 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 as a result of a United States
  Department of Defense base realignment process that occurs during
  2005 or later.  The loan shall be made from the Texas military value
  revolving loan account established under Section 436.156.
         (c)  If the commission determines that a project will reduce
  the negative effects of a defense base reduction on the defense
  community, the commission [office] 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 [office] 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 [office] may award a loan to the defense community for
  the project.  The commission [office] 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 [office] 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 [office] 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 [office] shall administer the loans to
  ensure full repayment of the general obligation bonds issued to
  finance the project.
         SECTION 9.  Sections 436.1532(a), (c), (d), (e), and (f),
  Government Code, are amended to read as follows:
         (a)  The commission [office] may provide a loan of financial
  assistance to a defense community for an infrastructure project to
  accommodate new or expanded military missions assigned to a
  military base or defense facility located in, near, or adjacent to
  the defense community as a result of a United States Department of
  Defense base realignment process that occurs during 2005 or later.  
  The loan shall be made from the Texas military value revolving loan
  account established under Section 436.156.
         (c)  If the commission determines that the project will
  assist the defense community in accommodating the new or expanded
  military missions that are assigned to the military facility, the
  commission [office] 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 infrastructure project to accommodate new or expanded
  military missions assigned to the military facility located in,
  near, or adjacent to the defense community and the commission
  [office] determines that the project is financially feasible, the
  commission [office] may award a loan to the defense community for
  the project.  The commission [office] 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 [office] 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 [office] 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 [office] shall administer the loans to
  ensure full repayment of the general obligation bonds issued to
  finance the project.
         SECTION 10.  Section 436.154, Government Code, is amended to
  read as follows:
         Sec. 436.154.  LOAN PROCESS. (a)  The commission [office]
  shall adopt rules, in consultation with the Texas Public Finance
  Authority, that contain the criteria for evaluating the credit of a
  loan applicant and the financial feasibility of a project.  The
  commission [office] shall also adopt a loan application form.  The
  application form may include:
               (1)  the name of the defense community and its
  principal officers;
               (2)  the total cost of the project;
               (3)  the amount of state financial assistance
  requested;
               (4)  the plan for repaying the loan; and
               (5)  any other information the commission [office]
  requires to perform its duties and to protect the public interest.
         (b)  The commission [office] may not accept an application
  for a loan from the Texas military value revolving loan account
  unless the application is submitted in affidavit form by the
  officials of the defense community.  The commission [office] shall
  prescribe the affidavit form.
         SECTION 11.  Section 436.156(c), Government Code, is amended
  to read as follows:
         (c)  The commission [office] shall deposit to the credit of
  the account all loan payments made by a political subdivision for a
  loan under Section 436.153, 436.1531, or 436.1532. The loan
  payments shall be used to reimburse the general revenue fund for
  money appropriated to pay the principal, premium if any, and
  interest on the bonds issued under Section 436.158. If loan
  payments exceed the amounts required for reimbursement, the excess
  shall first be applied to reimburse the expenses of administering
  the program and secondly deposited to the credit of the Texas
  military value revolving loan account to fund subsequent loans.
         SECTION 12.  Sections 436.202(b) and (c), Government Code,
  are amended to read as follows:
         (b)  The commission may not make a grant for an amount less
  than $50,000 or an amount more than the lesser of:
               (1)  50 percent of the amount of matching money or
  investment that the local governmental entity is required to
  provide, subject to Subsection (c);
               (2)  50 percent of the local governmental entity's
  investment for purposes described by Section 436.203 if federal
  assistance is unavailable; or
               (3)  $5 [$2] million.
         (c)  If the local governmental entity demonstrates to the
  commission that, because of a limited budget, the entity lacks the
  resources necessary to provide 50 percent of the amount of matching
  money or investment that the entity is required to provide, the
  commission may make a grant in an amount of not more than 80 percent
  of the amount of that matching money or investment requirement but
  may not make a grant in an amount that exceeds $5 [$2] million.
         SECTION 13.  Section 436.204(b), Government Code, is amended
  to read as follows:
         (b)  The commission [office] may assist a local governmental
  entity in applying for a grant under this chapter.
         SECTION 14.  Section 481.502(a), Government Code, is amended
  to read as follows:
         (a)  The office and the Texas Military Preparedness
  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 shall refer the defense
  community to:
               (1)  a local economic development corporation created
  under the Development Corporation Act (Subtitle C1, Title 12, Local
  Government Code) 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.
         SECTION 15.  Section 436.001(5), Government Code, is
  repealed.
         SECTION 16.  A rule, policy, procedure, or decision of the
  Texas Economic Development and Tourism Office with respect to
  functions that are transferred under this Act to the Texas Military
  Preparedness Commission continues in effect as a rule, policy,
  procedure, or decision of the Texas Military Preparedness
  Commission until superseded by an act of that commission.
         SECTION 17.  This Act takes effect September 1, 2015.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1358 passed the Senate on
  April 30, 2015, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1358 passed the House on
  May 22, 2015, by the following vote:  Yeas 139, Nays 1, two
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor