CHAPTER 436. TEXAS MILITARY PREPAREDNESS COMMISSION
GOVERNMENT CODE
TITLE 4. EXECUTIVE BRANCH
SUBTITLE C. STATE MILITARY FORCES AND VETERANS
CHAPTER 436. TEXAS MILITARY PREPAREDNESS COMMISSION
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 436.001. DEFINITIONS. In this chapter:
(1) "Commission" means the Texas Military Preparedness
Commission.
(2) "Office" means the Texas Economic Development and Tourism
Office in the office of the governor.
Amended by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
43, Sec. 1, eff. September 1, 2009.
Sec. 436.002. COMMISSION. The commission is within the office
and shall report to the executive director of the office.
Amended by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
43, Sec. 2, eff. September 1, 2009.
SUBCHAPTER B. ORGANIZATION AND ADMINISTRATION
Sec. 436.051. COMPOSITION; ELIGIBILITY. (a) The commission is
composed of:
(1) 13 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.
(d) A person may not be a public member of the commission if the
person or the person's spouse:
(1) is employed by or participates in the management of a
business entity or other organization regulated by or receiving
money from the commission;
(2) owns or controls, directly or indirectly, more than a 10
percent interest in a business entity or other organization
regulated by or receiving money from the commission; or
(3) uses or receives a substantial amount of tangible goods,
services, or money from the commission other than compensation or
reimbursement authorized by law for commission membership,
attendance, or expenses.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Reenacted and amended by Acts 2005, 79th Leg., Ch.
655, Sec. 1, eff. September 1, 2005.
Reenacted and amended by Acts 2005, 79th Leg., Ch.
1160, Sec. 1, eff. September 1, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
43, Sec. 3, eff. September 1, 2009.
Sec. 436.052. TERMS AND OFFICERS. (a) The 13 public members of
the commission serve staggered terms of six years with the terms
of four or five 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.
(b) The governor shall designate a member of the commission as
the presiding officer of the commission to serve in that capacity
at the pleasure of the governor.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Amended by:
Acts 2005, 79th Leg., Ch.
655, Sec. 2, eff. September 1, 2005.
Acts 2005, 79th Leg., Ch.
1160, Sec. 2, eff. September 1, 2005.
Sec. 436.053. COMPENSATION AND EXPENSES. A public member of the
commission is not entitled to compensation but is entitled to
reimbursement, from commission funds, for the travel expenses
incurred by the member while conducting the business of the
commission, as provided by the General Appropriations Act. The
entitlement of a legislative member to compensation or
reimbursement for travel expenses is governed by the law applying
to the member's service in that underlying position, and any
payments to the member shall be made from the appropriate funds
of the applicable house of the legislature.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Sec. 436.054. MEETINGS. (a) The commission shall meet at least
quarterly. The commission may meet at other times at the call of
the presiding officer or as provided by the rules of the
commission.
(b) The commission is a governmental body for purposes of the
open meetings law, Chapter 551.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Sec. 436.055. CONFLICT OF INTEREST. (a) In this section,
"Texas trade association" means a cooperative and voluntarily
joined statewide association of business or professional
competitors in this state designed to assist its members and its
industry or profession in dealing with mutual business or
professional problems and in promoting their common interest.
(b) A person may not be a public member of the commission and
may not be a commission employee employed in a "bona fide
executive, administrative, or professional capacity," as that
phrase is used for purposes of establishing an exemption to the
overtime provisions of the federal Fair Labor Standards Act of
1938 (29 U.S.C. Section 201 et seq.), and its subsequent
amendments, if:
(1) the person is an officer, employee, or paid consultant of a
Texas trade association in the field of military affairs; or
(2) the person's spouse is an officer, manager, or paid
consultant of a Texas trade association in the field of military
affairs.
(c) A person may not be a public member of the commission or act
as the general counsel to the commission if the person is
required to register as a lobbyist under Chapter 305 because of
the person's activities for compensation on behalf of a
profession related to the operation of the commission.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Sec. 436.056. REMOVAL. (a) It is a ground for removal from the
commission that a public member:
(1) does not have at the time of taking office the
qualifications required by Section 436.051(b);
(2) does not maintain during service on the commission the
qualifications required by Section 436.051(b);
(3) is ineligible for membership under Section 436.051(d) or
436.055;
(4) cannot, because of illness or disability, discharge the
member's duties for a substantial part of the member's term; or
(5) is absent from more than half of the regularly scheduled
commission meetings that the member is eligible to attend during
a calendar year without an excuse approved by a majority vote of
the commission.
(b) The validity of an action of the commission is not affected
by the fact that it is taken when a ground for removal of a
commission member exists.
(c) If the director has knowledge that a potential ground for
removal exists, the director shall notify the presiding officer
of the commission of the potential ground. The presiding officer
shall then notify the governor and the attorney general that a
potential ground for removal exists. If the potential ground for
removal involves the presiding officer, the director shall notify
the next highest ranking officer of the commission, who shall
then notify the governor and the attorney general that a
potential ground for removal exists.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
43, Sec. 4, eff. September 1, 2009.
Sec. 436.0561. TRAINING. (a) A person who is appointed to and
qualifies for office as a member of the commission may not vote,
deliberate, or be counted as a member in attendance at a meeting
of the commission until the person completes a training program
that complies with this section.
(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.
(c) A person appointed to the commission is entitled to
reimbursement, as provided by the General Appropriations Act, for
the travel expenses incurred in attending the training program
regardless of whether the attendance at the program occurs before
or after the person qualifies for office.
Added by Acts 2009, 81st Leg., R.S., Ch.
43, Sec. 5, eff. September 1, 2009.
Sec. 436.057. DIRECTOR; STAFF. (a) The commission shall,
subject to approval of the governor, hire a director to serve as
the chief executive officer of the commission and to perform the
administrative duties of the commission.
(b) Repealed by Acts 2009, 81st Leg., R.S., Ch. 43, Sec. 22(2),
eff. September 1, 2009.
(c) The governor shall determine the staff for the commission.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
43, Sec. 6, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch.
43, Sec. 7, eff. September 1, 2009.
Acts 2009, 81st Leg., R.S., Ch.
43, Sec. 22(2), eff. September 1, 2009.
Sec. 436.058. PUBLIC ACCESS. The commission shall develop and
implement policies that provide the public with a reasonable
opportunity to appear before the commission and to speak on any
issue under the jurisdiction of the commission.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Sec. 436.059. EQUAL EMPLOYMENT OPPORTUNITY. (a) The director
or the director's designee shall prepare and maintain a written
policy statement that implements a program of equal employment
opportunity to ensure that all personnel decisions are made
without regard to race, color, disability, sex, religion, age, or
national origin.
(b) The policy statement must include:
(1) personnel policies, including policies relating to
recruitment, evaluation, selection, training, and promotion of
personnel, that show the intent of the commission to avoid the
unlawful employment practices described by Chapter 21, Labor
Code; and
(2) an analysis of the extent to which the composition of the
commission's personnel is in accordance with state and federal
law and a description of reasonable methods to achieve compliance
with state and federal law.
(c) The policy statement must:
(1) be updated annually;
(2) be reviewed by the state Commission on Human Rights for
compliance with Subsection (b)(1); and
(3) be filed with the governor's office.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Sec. 436.060. QUALIFICATIONS AND STANDARDS OF CONDUCT. The
director or the director's designee shall provide to members of
the commission and to commission employees, as often as
necessary, information regarding the requirements for office or
employment under this chapter, including information regarding a
person's responsibilities under applicable laws relating to
standards of conduct for state officers or employees.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Sec. 436.062. COMPLAINTS. (a) The commission shall maintain a
file on each written complaint filed with the commission. The
file must include:
(1) the name of the person who filed the complaint;
(2) the date the complaint is received by the commission;
(3) the subject matter of the complaint;
(4) the name of each person contacted in relation to the
complaint;
(5) a summary of the results of the review or investigation of
the complaint; and
(6) an explanation of the reason the file was closed, if the
commission closed the file without taking action other than to
investigate the complaint.
(b) The commission shall provide to the person filing the
complaint and to each person who is a subject of the complaint a
copy of the commission's policies and procedures relating to
complaint investigation and resolution.
(c) The commission, at least quarterly until final disposition
of the complaint, shall notify the person filing the complaint
and each person who is a subject of the complaint of the status
of the investigation unless the notice would jeopardize an
undercover investigation.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Sec. 436.063. USE OF ALTERNATIVE PROCEDURES. (a) The
commission shall develop and implement a policy to encourage the
use of:
(1) negotiated rulemaking procedures under Chapter 2008 for the
adoption of commission rules; and
(2) appropriate alternative dispute resolution procedures under
Chapter 2009 to assist in the resolution of internal and external
disputes under the commission's jurisdiction.
(b) The commission's procedures relating to alternative dispute
resolution must conform, to the extent possible, to any model
guidelines issued by the State Office of Administrative Hearings
for the use of alternative dispute resolution by state agencies.
(c) The commission shall designate a trained person to:
(1) coordinate the implementation of the policy adopted under
Subsection (a);
(2) serve as a resource for any training needed to implement the
procedures for negotiated rulemaking or alternative dispute
resolution; and
(3) collect data concerning the effectiveness of those
procedures, as implemented by the commission.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Sec. 436.064. TECHNOLOGY POLICY. The commission shall develop
and implement a policy requiring the director and commission
employees to research and propose appropriate technological
solutions to improve the commission's ability to perform its
functions. The technological solutions must:
(1) ensure that the public is able to easily find information
about the commission on the Internet;
(2) ensure that persons who want to use the commission's
services are able to:
(A) interact with the commission through the Internet; and
(B) access any service that can be provided effectively through
the Internet; and
(3) be cost-effective and developed through the commission's
planning processes.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
SUBCHAPTER C. POWERS AND DUTIES
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 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) provide information to communities, the legislature, the
state's congressional delegation, and state agencies regarding
federal actions affecting military installations and missions;
(4) 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) provide assistance to communities that have experienced a
defense-related closure or realignment;
(6) 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) assist communities in the retention and recruiting of
defense-related businesses, including fostering strategic
regional alliances that may extend over state lines;
(8) encourage economic development in this state by fostering
the development of industries related to defense affairs; and
(9) advocate for the preservation and expansion of missions of
reservists at military installations in the state.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Amended by:
Acts 2005, 79th Leg., Ch.
1160, Sec. 3, eff. September 1, 2005.
Acts 2009, 81st Leg., R.S., Ch.
43, Sec. 8, eff. September 1, 2009.
Sec. 436.102. CONSULTING AGREEMENTS. With prior approval of the
governor, the commission may enter into an agreement with a
consulting firm to provide information and assistance on a
pending decision of the United States Department of Defense or
other federal agency regarding the status of military
installations and defense-related businesses located in this
state.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Sec. 436.103. ANNUAL REPORT; ANNUAL MEETING. (a) In this
section, "state agency" has the meaning assigned by Section
2151.002.
(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.
(c) State agencies shall cooperate with and assist the
commission in the preparation of the report required under
Subsection (b), including providing information about
regulations, policies, programs, and services that may impact
communities dependent on military installations, defense-related
businesses, and the viability of existing Texas military
missions.
(d) The commission shall periodically meet with each state
agency that has defense-related programs or is engaged in a
project in a defense-dependent community and with each 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).
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Amended by:
Acts 2005, 79th Leg., Ch.
396, Sec. 2, eff. June 17, 2005.
Acts 2005, 79th Leg., Ch.
1160, Sec. 4, eff. September 1, 2005.
Sec. 436.104. COORDINATING ASSISTANCE FOR EVALUATION OF MILITARY
BASE. When a commander of a military installation receives a
copy of the evaluation criteria for the base under the United
States Department of Defense base realignment or closure process,
the base commander may request that the commission coordinate
assistance from other state agencies to assist the commander in
preparing the evaluation. If the commission asks a state agency
for assistance under this section, the state agency shall make
the provision of that assistance a top priority.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
SUBCHAPTER D. FISCAL PROVISIONS
Sec. 436.151. DEFINITIONS. In this subchapter, "defense
community" has the meaning assigned by Section 397.001, Local
Government Code.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Sec. 436.152. ANALYSIS OF PROJECTS THAT ADD MILITARY VALUE;
FINANCING. (a) A defense community may submit the community's
military value enhancement statement prepared under Chapter 397,
Local Government Code, to the commission.
(b) On receiving a defense community's military value
enhancement statement, the commission shall analyze the projects
included in the statement using the criteria it has developed.
The commission shall develop project analysis criteria based on
the criteria the United States Department of Defense uses for
evaluating military facilities in the department's base
realignment and closure process.
(c) The commission shall determine whether each project
identified in the defense community's military value enhancement
statement will enhance the military value of the military
facility. The commission shall assist the community in
prioritizing the projects that enhance the military value of a
military facility, giving the highest priority to projects that
add the most military value under the commission's project
analysis criteria.
(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
value enhancement statement that adds military value to a
military facility. If there is no existing program to finance a
project, the office may provide a loan of financial assistance to
the defense community for the project.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Amended by:
Acts 2005, 79th Leg., Ch.
1160, Sec. 5, eff. September 1, 2005.
Acts 2009, 81st Leg., R.S., Ch.
43, Sec. 9, eff. September 1, 2009.
Sec. 436.153. LOANS. (a) The office may provide a loan of
financial assistance to a defense community for a project that
will enhance the military value of a military 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 office shall confirm with the commission that the project
adds military value to the military facility.
(c) If the commission determines that a project will enhance the
military value of the military facility, the office shall, in
accordance with the criteria adopted by the 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 value of the military facility based on the
base realignment and closure criteria and the office determines
that the project is financially feasible, the executive director
of the office may award a loan to the defense community for the
project. The 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 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 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 office shall administer the loans to ensure full
repayment of the general obligation bonds issued to finance the
project.
(g) The 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.
(h) 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.
(i) The amount of a loan under this section may not exceed the
total cost of the project.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
43, Sec. 10, eff. September 1, 2009.
Sec. 436.1531. LOANS FOR COMMUNITIES ADVERSELY AFFECTED BY
DEFENSE BASE REDUCTION. (a) The 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.
(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 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 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
office may award a loan to the defense community for the project.
The 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 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 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 office 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.
Added by Acts 2005, 79th Leg., Ch.
396, Sec. 3, eff. June 17, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
43, Sec. 11, eff. September 1, 2009.
Sec. 436.1532. LOANS FOR COMMUNITIES POSITIVELY AFFECTED BY
DEFENSE BASE RESTRUCTURING. (a) The office may provide a loan
of financial assistance to a defense community for an
infrastructure project to accomodate new or expanded military
missions assigned to a military 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.
(b) On receiving an application for a loan under this section,
the commission shall evaluate the infrastructure project to
determine how the project will assist the defense community in
accommodating the new or expanded military missions that are
assigned to the military facility.
(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
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 office
determines that the project is financially feasible, the office
may award a loan to the defense community for the project. The
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 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 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 office 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.
Added by Acts 2005, 79th Leg., Ch.
396, Sec. 3, eff. June 17, 2005.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
43, Sec. 12, eff. September 1, 2009.
Sec. 436.154. LOAN PROCESS. (a) The 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 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 office requires to perform its
duties and to protect the public interest.
(b) The 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 office shall prescribe the affidavit
form.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
43, Sec. 13, eff. September 1, 2009.
Sec. 436.155. INCURRENCE OF DEBT BY PUBLIC ENTITY. (a) A
defense community in this state may borrow money from the state,
including by direct loan, based on the credit of the defense
community to finance a project included in the community's
military value enhancement statement.
(b) A defense community may enter into a loan agreement with the
state to provide financing for a project. The defense community
may pledge the taxes of the community or provide any other
guarantee for the loan.
(c) Money borrowed must be segregated from other funds under the
control of the defense community and may only be used for
purposes related to a specific project.
(d) The authority granted by this section does not affect the
ability of a defense community to incur debt using other
statutorily authorized methods.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Sec. 436.156. TEXAS MILITARY VALUE REVOLVING LOAN ACCOUNT. (a)
The Texas military value revolving loan account is an account in
the general revenue fund.
(b) The account may be used only for loans made under this
subchapter.
(c) The 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.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
43, Sec. 14, eff. September 1, 2009.
Sec. 436.157. GIFTS AND GRANTS. The commission may solicit and
accept gifts and grants from any source for the purposes of this
chapter. The commission shall deposit a gift or grant to the
credit of the specific account that is established for the
purpose for which the gift or grant was made. If a gift or grant
is not made for a specific purpose, the commission may deposit
the gift or grant to the credit of any of the commission's
accounts created under this chapter.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Sec. 436.158. ISSUANCE OF GENERAL OBLIGATION BONDS AND NOTES FOR
MILITARY VALUE ACCOUNT. (a) The Texas Public Finance Authority
may issue and sell general obligation bonds and notes of the
state, as authorized by Section 49-n, Article III, Texas
Constitution, for the purpose of providing money to establish the
Texas military value revolving loan account.
(b) The proceeds of the bonds and notes shall be deposited into
the Texas military value revolving loan account or into other
separate funds as may be required to provide for payment of
issuance and administrative costs and may be used as authorized
by Section 49-n, Article III, Texas Constitution, including:
(1) to fund loans approved under Section 436.153, 436.1531, or
436.1532;
(2) to pay the costs of issuing and selling bonds and notes; and
(3) to pay the costs of administering the bonds and notes and
the loan program, including the payment of fees and expenses of
advisors.
(c) The bonds and notes shall be issued in accordance with and
subject to the provisions of Chapters 1201, 1207, 1231, 1232, and
1371.
(d) In connection with bonds or notes issued under this section,
the Texas Public Finance Authority may enter into one or more
credit agreements at any time for a period and on conditions the
authority approves.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
43, Sec. 15, eff. September 1, 2009.
Sec. 436.159. APPROPRIATION REQUIRED. In accordance with
Section 49-n, Article III, Texas Constitution, general revenue is
to be appropriated to the Texas Public Finance Authority in an
amount determined by the authority to be necessary to pay the
principal, premium if any, and interest on the bonds, and that
amount shall be specified in biennial appropriations acts.
Added by Acts 2003, 78th Leg., ch. 149, Sec. 3, eff. May 27,
2003.