HBA-CMT S.B. 1815 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1815 By: Truan State, Federal & International Relations 5/5/2001 Engrossed BACKGROUND AND PURPOSE Recent legislation was introduced in the United States Congress authorized additional rounds of federal base closures throughout the United States. Texas needs to be prepared should any military bases be closed or realigned. Senate Bill 1815 authorizes the Office of Defense Affairs to administer a revolving loan program to help eligible communities develop infrastructure to minimize the possibility of or the negative effects of a base closure on that community. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Office of Defense Affairs in SECTION 2 (Section 486.052, Government Code) and SECTION 3 of this bill. ANALYSIS Senate Bill 1815 amends the Government Code to require the Office of Defense Affairs (office) is sufficiently funded to administer a revolving loan program for assistance to an eligible community in developing infrastructure to minimize the possibility of or the negative effects of defense base reduction on the eligible community. The loans may to be granted to an eligible community before the neighboring defense base is closed. The bill requires the office by rule to establish criteria and procedures for evaluations of loan applications and to establish categories of eligible infrastructure projects for which an eligible community may apply for a loan. The bill requires the office to adopt rules and procedures so that the office may begin to offer loans on or before September 1, 2003. EFFECTIVE DATE September 1, 2001.