85R12693 MCK-D
	By: Cortez	H.B. No. 3895

	A BILL TO BE ENTITLED
	AN ACT
	relating to the awarding of loans from the Texas military value
	revolving loan account.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 436.054, Government Code, is amended by
	amending Subsection (b) and adding Subsection (c) to read as
	follows:
	(b)  The commission is a governmental body for purposes of
	the open meetings law, Chapter 551. Except as otherwise provided by
	Subsection (c), Chapter 551 applies to a meeting of the commission.
	(c)  The commission may allow for members' participation in a
	meeting by telephone or other means of telecommunication or
	electronic communication to consider an application for a loan from
	the Texas military value revolving loan account. Any voting
	conducted by telephone or other means of telecommunication or
	electronic communication shall be subject to the same quorum
	requirements of meetings where members are present in person.
	SECTION 2.  Section 436.153, Government Code, is amended by
	adding Subsections (a-1), (c-1), (d-1), and (d-2) and amending
	Subsections (b), (c), (d), and (g) to read as follows:
	(a-1)  The commission may provide a loan of financial
	assistance to a defense base development authority created under
	Chapter 379B, Local Government Code, for a project without regard
	to whether the project will enhance the military or defense value of
	a military base or defense facility.
	(b)  On receiving an application for a loan under this
	section, the commission shall:
	(1)  forward a copy of the application to the Texas
	Public Finance Authority for the analysis required by Subsection
	(c); and
	(2)  confirm that a [the] project described by
	Subsection (a) adds military or defense value to the military base
	or defense facility.
	(c)  On receipt of a copy of a loan application under
	Subsection (b), the Texas Public Finance Authority [If the
	commission determines that a project will enhance the military or
	defense value of the military base or defense facility, the
	commission] shall, in accordance with the criteria adopted [by the
	commission] under Section 436.154(a):
	(1)  analyze the creditworthiness of the defense
	community or defense base development authority to determine the
	defense community's or defense base development authority's ability
	to repay the loan; [and]
	(2)  evaluate the feasibility of the project to be
	financed to ensure that the defense community or defense base
	development authority has pledged a source of revenue or taxes
	sufficient to repay the loan for the project; and
	(3)  immediately notify the commission of its findings.
	(c-1)  Not later than the 30th day after the date an
	application for a loan under this section is made, the commission
	shall make a decision on the application.
	(d)  For a project described by Subsection (a), if [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 Texas Public
	Finance Authority [commission] determines that the project is
	financially feasible, the commission may award a loan to the
	defense community for the project.
	(d-1)  For a project described by Subsection (a-1), if the
	Texas Public Finance Authority determines that the project is
	financially feasible, the commission may award a loan to the
	defense base development authority.
	(d-2)  The commission shall enter into a written agreement
	with a defense community or defense base development authority that
	is awarded a loan under this section. The agreement must contain
	the terms and conditions of the loan, including the loan repayment
	requirements.
	(g)  The commission may provide a loan:
	(1)  [only] for a project described by Subsection (a)
	only if the project [that] is included in the political
	subdivision's statement under Section 397.002, Local Government
	Code; [,] or
	(2)  to prepare a comprehensive defense installation
	and community strategic impact plan under Section 397.003, Local
	Government Code.
	SECTION 3.  Section 436.154(a), Government Code, is amended
	to read as follows:
	(a)  The [commission shall adopt rules, in consultation with
	the] Texas Public Finance Authority shall adopt rules[,] that
	contain the criteria for evaluating the credit of a loan applicant
	and the financial feasibility of a project. The Texas Public
	Finance Authority [commission] shall also adopt a loan application
	form. The application form may include:
	(1)  the name of the defense community or defense base
	development authority, as applicable, and the community's or
	authority's [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 or Texas
	Public Finance Authority requires to perform its duties and to
	protect the public interest.
	SECTION 4.  This Act takes effect September 1, 2017.