Part 1.
OFFICE OF THE GOVERNOR
Chapter 4.
TEXAS MILITARY PREPAREDNESS COMMISSION
Subchapter A. TEXAS MILITARY VALUE REVOLVING LOAN FUND PROGRAM
1 TAC §§4.1, 4.3, 4.5, 4.7, 4.9, 4.11, 4.13, 4.15, 4.17, 4.19
The Office of the Governor adopts new Chapter 4, Subchapter
A, §§4.1, 4.3, 4.5, 4.7, 4.9, 4.11, 4.13, 4.15, 4.17, and 4.19,
relating to the Texas Military Value Revolving Loan Fund Program. Sections
4.1, 4.7, 4.9, 4.11, and 4.13 are adopted with changes to the proposed text
as published in the April 16, 2004, issue of the
Texas Register
(29 TexReg 3729). Sections 4.3, 4.5, 4.15, 4.17, and
4.19 are adopted without changes to the proposed text and will not be republished.
The new sections are being adopted to implement the new program and disseminate
program practices to potential users. The program is authorized by Texas Government
Code, Chapter 436, Subchapter D, Fiscal Provisions.
The adopted new §4.1 provides the introduction and purpose of the
program by providing a background, goal, and definitions applicable to the
loan fund.
The adopted new §4.3 states the period of time in which loan funds
must be expended.
The adopted new §4.5 provides eligibility requirements communities
must meet to apply for loan funds.
The adopted new §4.7 provides the maximum and minimum loan amounts
that may be awarded, the percentage amount of the cost of the project that
may be provided in the loan, and a certification requirement demonstrating
local efforts to obtain funding from other sources.
The adopted new §4.9 provides application procedures and guidelines
for loan funds and sets out the documentation that will be required from loan
fund applicants, including the general, legal, and financial information requirements
to be in the application package. The financial information is divided into
requirements for debt to be secured by ad valorem taxes and other generally
accepted fees and for debt to be secured by enterprise or fee or service revenues.
The adopted new §4.11 provides the processing and review criteria
that will be used to determine the creditworthiness of the loan fund applicant
in the areas of general obligation debt, revenue debt, sales tax bonds, and
special assessment bonds. The section details the actions that will be taken
by the office of the TMPC and the Commission in evaluating the applications.
The adopted new §4.13 provides availability of funds commitment procedures
if the project has been approved by the Commission.
The adopted new §4.15 provides awardees responsibilities that must
be met in order to receive disbursement of loan funds that have been encumbered
to them.
The adopted new §4.17 provides Commission responsibilities that will
be performed by the Commission in carrying out its duties and responsibilities
under the Act.
The adopted new §4.19 requires awardees to provide written reports
on the status of projects and expenditures related to the loan will be as
determined by the Commission.
Comments on the proposed new sections were received from McCall, Parkhurst &
Horton, L.L.P., and the Texas Public Finance Authority. The agency also made
changes to correct grammatical and typographical errors within this chapter.
The comments are summarized as follows:
Comment: It is unclear whether only Defense Dependent Communities or any
local governmental entity may submit an application.
Response: The agency changed references to "local governmental entities"
and "local governing entities" throughout to "Defense Dependent Communities"
to clarify that Defense Dependent Communities, as that term is defined in §4.1(c)(1),
are eligible to submit applications under the program.
Comment: Change §4.7(c) to allow either the Chief Executive Officer
or the Chief Financial Officer to provide the certification, because in many
communities, there is no Chief Financial Officer.
Response: The agency changed the proposed text for §4.7(c) to provide
that either the Chief Executive Officer or the Chief Financial Officer may
provide the certification.
Comment: Correct grammatical and typographical errors in §4.9(b) and
(d).
Response: The agency corrected grammatical and typographical errors in §4.9.
Comment: Clarify the legal citation in §4.9(b)(4).
Response: The agency rewrote §4.9(b)(4) to clarify the legal citation
by deleting references to the bill number and legislative session.
Comment: In §4.9(b)(12), clarify that the required plan is the plan
for the Defense Dependent Community.
Response: The agency added language to §4.9(b)(12) to clarify that
the required plan is the plan for the Defense Dependent Community.
Comment: Change §4.9(b)(14) to require the applicant to disclose not
all issues that may affect the ability to repay debt, which is overly broad,
but only issues that the applicant believes are issues material to the process.
That way, the Commission and its staff can focus questions on those issues.
Response: The agency changed the proposed text for §4.9.(b)(14) by
adding the word "materially" to require disclosure of all issues that may
materially affect the applicant's ability to repay the debt.
Comment: In §4.9(c)(1)(C), clarify that the board of the political
subdivision is the body of the applicant.
Response: The agency changed the proposed text for §4.9(c)(1)(C) for
clarity as suggested.
Comment: The application should require the applicant to state what the
legal authority is for the applicant to finance the project for which financial
assistance is sought. For example, some of the projects that may be proposed
may require an election.
Response: The agency added new paragraph (3) to §4.9(c), requiring
the applicant to state the legal authority to finance the project for which
the funds are requested.
Comment: Change §4.9(d)(1)(I) to clarify that the financial information
requested includes the description of any credit agreements with financial
institutions and bond insurers.
Response: The agency changed the proposed text of §4.9(d)(1)(I) for
clarity as suggested.
Comment: In §4.9(d)(2)(N), require the submission of material limitations
or issues, rather than all potential issues, related to continuing to provide
services for debt secured by enterprise or fee or service revenues, and correct
a typographical error.
Response: The agency changed the proposed text for §4.9(d)(2)(N) by
adding the word "material" and deleting the word "potential."
Comment: In §4.9(d)(2)(P), require the submission of a list of the
ten largest customers of the systems from which the revenues securing the
loan are generated, rather than the electrical, water and wastewater systems.
Response: The agency rewrote §4.9(d)(2)(P) by replacing the text electrical,
water and wastewater systems" with "systems from which the revenues securing
the loan are generated," as suggested.
Comment: The financial information requested to be submitted as part of
the application process is quite detailed, and there is inconsistency and
a lack of clarity regarding some of the information requested. It would seem
to be appropriate to provide an applicant the ability to provide such financial
information as is filed by political subdivisions in connection with continuing
disclosure undertakings incurred in the issuance of debt under Rule 15c2-12,
promulgated by the U.S. Securities and Exchange Commission, which is information
of a financial and statistical nature. Some of the other information, such
as housing starts and office space occupancy could be misleading. Two communities
could have office space occupancy of 75%, but what does that mean if one applicant
is a community of 5,000 and the other a community of 500,000? Also, one must
take into consideration the administrative burden of determining some of the
information requested. A large urban area applicant could readily submit information
such as a consumer price index, but a rural applicant may not have such information
readily available. Perhaps the items to be submitted could be fine-tuned to
reflect information regarding the project, and information regarding the financial
ability of the applicant to repay the loan made to finance the project.
Response: The agency added new §4.9(e) to this chapter relating to
alternative financial information, to address some of the commenter's concerns.
The agency does not plan to request information based on community population.
Comment: It is unclear how the criteria in §4.11, in the discussion
of Creditworthiness Criteria, are to be applied. For example, would an unfunded
city pension liability of $1 billion adversely affect the review of an application,
to the detriment of funding a loan that may be needed to retain a major military
installation? The rules should not be so specific on the criteria of making
loans. The agency will receive and review applications, and make judgments
more on the project as opposed to what an unfunded pension liability would
be or whether an entity is GASB compliant.
Response: The agency is requesting detailed information in the rules so
that it may make a comprehensive assessment of the applicant's ability to
repay the loan, whether or not the base remains open or is closed under BRAC.
This evaluation must take into consideration the applicant's overall financial
position as well as the specific impact of the project itself. Because of
the diverse nature of the projects that can be financed and financial situations
of the applicants, the agency is requesting a comprehensive set of information
to ensure that it will have the necessary data to make a thorough evaluation
of each application.
Comment: Clarify the application due date.
Response: The agency added an application due date in §4.11(a).
Comment: Requiring the review panel to consider whether all parties involved
in a project are acceptable to the Commission is too subjective and open to
interpretation.
Response: The requirement has been deleted from §4.11(d)(5)(B)(ix).
Comment: General law governing the Commission does not require a supermajority
to decide matters. A majority of a quorum should be adequate to make decisions
on loan applicants.
Response: The agency changed the proposed text for §4.11(e) to allow
a simple majority of the commission to approve loan awards.
Comment: It is not clear whether the term "bonds" in §4.13(b) means
the general obligation bonds issued by the state, or the bonds issued by the
local governmental entity.
Response: The agency added the phrase "state-issued" in §4.13(b) to
clarify that the reference means the bonds issued by the state.
The new sections are adopted pursuant to the Texas Government
Code §436.154(a) which directs the commission to adopt rules for administration
of the loan program and Texas Government Code, Chapter 2001, Subchapter B,
which prescribes the standards for rulemaking by state agencies.
Texas Government Code, Chapter 436, Subchapter D, is affected by the new
sections.
§4.1.Introduction and Purpose.
(a)
Background. The Texas Military Value Revolving Loan Fund
was authorized by Senate Bill 652 of the 78th Legislature adding Texas Government
Code, Chapter 436, Subchapter D. The purpose of the fund is to assist defense
communities in enhancing the military value of the military facility in their
area. Constitutional amendment Proposition 20 passed on September 13, 2003
authorized the issuance of general obligation bonds or notes not to exceed
$250 million payable from the general revenues of the state to provide loans,
which must be repaid, to defense communities for projects that enhance the
military value of military installations.
(b)
The primary goal of the program is to enhance the military
value of the military facility to make it operate as efficiently as possible.
(c)
Definitions. The following words and terms, when used in
this section, shall have the following meanings, unless the context clearly
indicates otherwise:
(1)
A Defense Dependent Community--A defense dependent community
in Texas that is a political subdivision, including a municipality, county,
or special district, that is adjacent to, is near, or encompasses any part
of a defense base, and that has a currently operating defense facility employing
2,500 or more workers in an urban area or 1,000 workers outside an urban area;
(2)
Agency--The Office of the Governor;
(3)
Awardee--The Defense Dependent Community whose loan application
is approved by the Commission;
(4)
Commission--The Texas Military Preparedness Commission;
(5)
Commissioners--Members of the Texas Military Preparedness
Commission;
(6)
Defense worker--
(A)
An employee of the United States Department of Defense
(DoD), including a member of the armed forces or a federal civilian worker;
or
(B)
An employee of a government agency or private business,
or entity providing a Department of Defense related function, who is employed
on a defense facility;
(7)
Defense worker job--
(A)
A DoD authorized permanent position, such as a position
contained on the appropriate unit manning documents; or
(B)
A position held or occupied by one or more defense workers
for more than 12 months;
(8)
Executive director--The executive director of the Texas
Military Preparedness Commission;
(9)
Financial partners--Federal and state agencies, private
and public non-profit foundations, local taxing authorities, and private investors
who agree to provide money for projects eligible for funding under this program;
(10)
Fund--The Texas Military Value Revolving Loan Fund; and
(11)
Panel--The Revolving Loan Fund Review Panel, made up of
Commissioners who will evaluate loan applications and make loan recommendations
to the Commission.
§4.7.Maximum and Minimum Awards.
(a)
Amount. The minimum amount of a loan will be $500,000 while
the maximum amount of a loan will be determined by the availability of funds
and the creditworthiness of the applicant.
(b)
Percentage. The state may provide up to 100% of the cost
of the described project, dependent upon the creditworthiness of the applicant.
(c)
Certification. Defense Dependent Communities are encouraged
to acquire financial assistance for eligible development projects from a variety
of sources, including federal, state, local and private/public foundations.
The Chief Executive Officer or the Chief Financial Officer of the Defense
Dependent Community making application shall provide certification demonstrating
reasonable local community efforts to acquire funding from other sources when
the state is the only other financial partner.
§4.9.Application for Funds.
(a)
Introduction:
(1)
The Commission will develop a formal application form to
be included in the process to assist in the evaluation of the loan request.
The application may require certain attachments and certifications. A complete
application consists of the
Military Value Enhancement
Statement
and the general, legal, and fiscal information as outlined
below.
(2)
Ten (10) copies and two (2) unbound, double sided copies
of an application containing the following general, legal, and fiscal materials
should be submitted to the Texas Military Preparedness Commission.
(b)
General Information:
(1)
Full legal name and description of requesting loan "applicant"
and each participating political subdivision under which debt is being issued.
(2)
Description of the governing body and contact information
for person authorized to represent the political subdivision ("applicant contact").
Include name, title, address, phone, fax number, and e-mail address.
(3)
Name, address, phone, fax number, e-mail address, and contact
person for legal counsel, financial advisor, contract administrator, project
engineer, and any other consultant representing the applicant before the Commission.
(4)
A
Military Value Enhancement Statement
containing the information described in §397.002 of the Local
Government Code.
(5)
Description of the project, including a description of
the use of the project by general public, private business, etc.
(6)
A summary overview of the use of the funds including the
total amount of loan required and partners involved in financing the project,
including their shares.
(7)
Applicant shall submit an engineering feasibility report
signed and sealed by a professional engineer registered in the State of Texas.
The report shall provide: description and purpose of the project; entities
to be served; current and future population of the entity or project; the
cost of the project; a description of innovative technology considered and
reasons for the selection of the project proposed; sufficient information
to evaluate the engineering feasibility; and maps and drawings as necessary
to locate and describe the project area. The Commission may request additional
information or data as necessary to evaluate the project.
(8)
The total number of jobs to be created or retained as a
result of the project.
(9)
Project timeline, including description of when loan proceeds
will be needed. If possible, include an anticipated draw or expenditure schedule
of loan proceeds on a monthly or quarterly basis.
(10)
For each participating political subdivision and federal
and state agency, provide a breakdown of ownership interest in the project
and an allocation of project costs including financing sources and current
project status.
(11)
Project budget, including most current itemized project
cost estimates (include all costs, specifically construction, engineering
services, legal, and fiscal costs, and funding sources and percentage contribution
in a Sources and Uses Statement format). Identify source of these estimates,
i.e., engineer, finance director, financial advisor, etc.
(12)
A current Capital Improvement Plan, for the Defense Dependent
Community, which addresses at least five (5) years of the applicant's future
infrastructure construction needs.
(13)
Three (3) years of audited financial statements of the
applicant and current unaudited year to date information.
(14)
Disclose all issues (i.e., lawsuits, injunctions, etc.)
that may materially affect the applicant's ability to repay debt.
(15)
Other uses for the project in the event of base closure
or realignment.
(16)
General economic and demographic information for the area
being served. Provide five (5) years of history for such items as:
(A)
Population; and
(B)
Economic statistics such as:
(i)
Consumer price indexes;
(ii)
Non-agricultural employment broken down by sector;
(iii)
Unemployment rate;
(iv)
Housing starts;
(v)
Apartment occupancy rates;
(vi)
Non-residential building permits;
(vii)
Office space occupancy; and
(viii)
Top ten employers.
(c)
Legal Information:
(1)
One (1) certified original of:
(A)
A resolution/ordinance requesting financial assistance
from the Commission, authorizing the submission of the application and designating
the official representative(s) for submitting the application, executing any
necessary documents and appearing before the Commission.
(B)
An affidavit executed by the official representative stating
that the facts contained in the application are true and correct to the best
of their knowledge and belief.
(C)
An affidavit executed by the official representative stating
that the application was approved by the governing body of the applicant in
an open meeting.
(D)
A certificate of compliance executed by an official representative
which warrants compliance by the participating political subdivision with
all representations in the application, all federal (where applicable), state,
and local laws, and all rules/published policies of the Commission.
(E)
A statement of pending claims or litigation against the
applicant that might affect the ability of the applicant to issue debt or
that could affect the Commission's ability to recover its investment.
(2)
One (1) copy of the following executed documents:
(A)
Any option, sales, or lease agreement(s) necessary for
the project.
(B)
Any actual or proposed service contracts for electrical,
water supply, or sewer service indicating adequate supply or capacity for
the life of the proposed loan.
(C)
Any actual or proposed contracts between the applicant
and any other entity which will generate revenues pledged to the repayment
of the proposed debt.
(D)
All executed contracts for consultant services included
in the total project cost.
(3)
Describe the legal authority for the applicant to finance
the project through the proposed debt.
(d)
Financial Information: The financial information being
requested is broken down into two categories, ad valorem tax supported debt
and debt supported by a specific revenue stream. Please fill out the basic
information regarding the nature of the entity and then the information for
the relevant revenue stream pledge.
(1)
Financial Information for debt secured by ad valorem taxes
and other generally applicable fees:
(A)
Description of the legal authorization for levying a tax.
(i.e. Bond Authorization, or Certificates of Obligation).
(B)
Description of taxing procedures and property exempt from
taxation.
(C)
Current credit rating(s), if any, and copies of most recent
rating reports from major rating agencies.
(D)
Description of pledged revenues (i.e. ad valorem tax, sales
and use tax, franchise charges and fees).
(E)
Disclosure of any tax rate limitations.
(F)
Total outstanding debt of the political subdivision. Segregate
by type (G.O. or Revenue) and present a consolidated schedule for each, showing
total annual debt service requirements.
(G)
Schedule of authorized, but unissued debt, and schedule
of projected issuance dates.
(H)
Amount of variable rate debt outstanding, if any and description
of interest rate mode and liquidity facilities for each program.
(I)
Description of any credit agreements with financial institutions
and bond insurers.
(J)
Description of any leases over $1 million that are paid
from the general fund.
(K)
Current adopted budget and capital improvement program,
if any.
(L)
Direct and overlapping tax rate table.
(M)
Overlapping debt table.
(N)
Full description of any derivatives products outstanding,
such as interest rate swaps.
(O)
Description of any defaults and circumstances surrounding
the default.
(P)
Historical information for the last five (5) years for:
(i)
Tax rolls or other taxes;
(ii)
Top ten taxpayers;
(iii)
Tax rate and collection history;
(iv)
Debt issuance including issuance of tax and revenue anticipation
notes;
(v)
Description of transfers into the general fund from other
funds;
(vi)
General Fund Undesignated Fund Balance; and
(vii)
Rating reports, if any.
(Q)
Pro forma debt service schedule, with tax rate impact.
Describe assumptions related to growth and tax collection rates.
(2)
Financial Information for debt secured by enterprise or
fee or service revenues:
(A)
Description of the authorization to charge or collect fees
(i.e. water and sewer charges, developer impact fees, hotel occupancy tax).
Full legal name and a description of the
security
for the proposed debt.
(B)
Description of revenue collection process and ability to
change rates.
(C)
Current credit rating(s), if any, and copies of most recent
rating reports from major rating agencies.
(D)
Current adopted budget of the enterprise system, and capital
improvement program, if separately prepared.
(E)
Description of future additional bonds contemplated to
be issued and secured by the revenue stream.
(F)
Description of existing debt secured by revenue stream
including rate covenants.
(G)
Description of the proposed flow of funds.
(H)
Description of debt service reserve funds and their investments.
(I)
Description of additional bonds tests.
(J)
Amount of variable rate debt outstanding, if any and description
of interest rate mode and liquidity facilities for each program.
(K)
Full description of any derivatives products outstanding,
such as interest rate swaps.
(L)
Historical information for the last five (5) years for:
(i)
Consumption data related to volume of services or product
provided (e.g. how much water provided to customers);
(ii)
Description of the top ten customers;
(iii)
Rate history related to revenue stream being pledged
(e.g. water rates on a water system);
(iv)
Revenues collected;
(v)
Collection rates;
(vi)
Capital expenditure;
(vii)
Capital reserves;
(viii)
Undesignated Fund Balance; and
(ix)
Rating reports, if any.
(M)
Description of the facilities of the system used to generate
revenues and their physical condition (age, etc.).
(N)
Any material limitation or issues related to continuing
to provide service.
(O)
Pro forma financials: detailing projected gross revenues,
operating and maintenance expenditures, net revenues available for debt service
showing coverage of current and proposed debt paid from revenues, as well
as on a net basis taking into consideration expenses and required contributions
to capital reserves.
(P)
List of ten (10) largest customers of the systems from
which the revenues securing the loan are generated.
(Q)
Five-year comparative utility system operating statement,
including audited prior years and un-audited year-to-date, with number of
customers for each year.
(R)
State whether applicant is a
4A
or
4B
community for economic development
tax purposes.
(e)
If the applicant has bonds or other long term debt obligations
outstanding, secured by the same revenue pledge as the requested loan, and
such bonds carry an investment grade rating from a major rating agency, the
applicant may submit the Final Official Statement from such bonds and all
information filed with the Nationally Recognized Municipal Securities Information
Repositories pursuant to SEC Rule 15c2-12 in the past 12 months in lieu of
the information required in subsection (d) of this section.
§4.11.Processing and Review of Applications.
(a)
The Defense Dependent Community will submit applications
for the program to the Executive Director of the Commission. To be considered
for the award of a loan in calendar year 2004, applications must be received
by August 31, 2004. The Commission further reserves the right to establish
quarterly periods of application due dates for subsequent years.
(b)
The Commission may request any additional information needed
to evaluate the application, and may return any incomplete applications.
(c)
Creditworthiness Criteria: The following criteria will
be used to determine the creditworthiness of an application:
(1)
General Obligation Debt
(A)
Economic Base:
(i)
Demographics.
(ii)
Tax Base.
(iii)
Employment Base:
(I)
The industry mix and employment by sector to identify diversification
trends or structural changes in the economy over time. Specifically, contributions
from manufacturing, services, trade, construction, government, and agriculture
sectors and how these have changed over time relative to national and state
trends.
(II)
Concentration in major employers or reliance on particular
industries.
(III)
Employer commitment to the community importance of local
facilities and employees to the overall strategy of local employers, business
development plans, age of plant, and industry prospects.
(IV)
Unemployment rates over the last decade and labor force
growth. The match between jobs and the skill level of the labor force.
(V)
The regional patterns of employment and growth.
(VI)
The level of retail sales as well as growth trends over
time.
(B)
Financial Indicators:
(i)
Accounting and financial reporting methods (GAAP, GASB
compliant, etc).
(ii)
Annual operating and budgetary performance.
(iii)
Financial leverage and equity position.
(iv)
Budget and financial planning practices.
(v)
Revenue and expenditure structure and patterns:
(I)
The composition of the municipalities' revenue stream over
a three- to five-year period and the stability of major revenues, such as:
property, sales, and income taxes; user charges; intergovernmental aid; and
investment income.
(II)
The composition and stability of expenditures; the nature
and impact of large expenditure items; and the existence of extraordinary
or nonrecurring expenditures.
(III)
The existence and effect of any revenue transfers among
other governmental and capital funds. The level of general fund and/or debt
service fund support from interfund transfers; policy guidelines and historical
transfer practices.
(vi)
Balance sheet position--liquidity, fund balance position,
and the composition of assets and liabilities, including: the volatility and
patterns of the tax revenue stream, the predictability of government spending,
the availability of unencumbered reserves or contingency funds, and the ability
of public officials to sustain a strong financial position.
(vii)
Use of cash flow borrowing or other short-term financing.
(viii)
Pensions and other long-term liabilities.
(C)
Existing Debt Burden:
(i)
Amount and type of existing debt.
(ii)
Nature of security pledge.
(iii)
Repayment structure.
(iv)
Current debt service burden as a percentage of current
expenditures.
(v)
Future capital needs.
(D)
Management and Administration:
(i)
Financial management.
(ii)
Annual budget process.
(iii)
Long-term capital program.
(iv)
Property tax administration.
(v)
Labor settlements and litigation.
(vi)
Investment guidelines.
(2)
Revenue Debt
(A)
Engineer's report, feasibility study, rate study.
(B)
Regulatory approvals (local, state, federal).
(C)
Amount of existing debt and legal provisions/restrictions
of existing loan covenants tied to the revenue stream.
(D)
Population trends.
(E)
Income trends.
(F)
Composition of employment by sector.
(G)
Unemployment rates.
(H)
Largest employers in the service area.
(I)
Tax base trend (property, sales).
(J)
Building permit activity.
(K)
System connections.
(3)
Sales Tax Bonds
(A)
Size and Diversity of Tax base.
(B)
History of Sales tax collections.
(C)
Ten largest retail sales generators.
(D)
Amount of debt already supported by the sales tax, if any.
(4)
Special Assessment Bonds
(A)
Make-up and economic base of the assessment district.
(B)
Assessment basis.
(C)
Collection methods.
(D)
Loan-to-value ratios.
(E)
Lien position.
(F)
Security interest in the property.
(G)
Foreclosure/bankruptcy provisions.
(d)
The Commission will:
(1)
Publicize the program to potential applicants and provide
loan solicitation information.
(2)
Evaluate each application for completeness. The Office
will work closely with the applicant to ensure all relevant information is
included in the application.
(3)
Evaluate the creditworthiness of the Defense Dependent
Community or revenue stream pledged to repay the loan, as appropriate, based
on the above criteria and application procedures.
(4)
Appoint a review panel consisting of five members to evaluate
applications and appoint a review panel chairman.
(5)
The review panel will:
(A)
Review applications and make recommendations to the Commission.
(B)
Provide evaluations and recommendations for all loan applications
received based on the following criteria:
(i)
Did the community complete a
Military Value Enhancement Statement
?
(ii)
Will the project enhance the
military value
of the installation?
(iii)
What is the anticipated value (in terms of use) of the
project if the installation is closed or realigned?
(iv)
Is this a joint use (community and military installation)
project?
(v)
What is the overall benefit of the project to:
(I)
State;
(II)
Community; and
(III)
Military installation.
(vi)
What percentage of the total project cost is the community
requesting in funding from the Fund? Are there federal funds involved? Other
state funds?
(vii)
What is the timeline or schedule for completion of this
project?
(viii)
Are there any environmental concerns? Any negative factors
that will affect the community or military installation?
(ix)
Based on the value of the project and creditworthiness
of the applicant, what is the likelihood that the loan will be repaid on schedule
and be sufficient to pay the debt service on the bonds?
(e)
The Commission will approve or disapprove the award of
the loan by a vote of a simple majority of the commission.
§4.13.Availability of Funds.
(a)
Funds commitment. If the project has been approved by the
Commission, funds become committed to the awardee subject to the sale of the
general obligation bonds by the state.
(b)
Upon sale of state-issued bonds, funds will be disbursed
to the awardee by the Office of the Comptroller.
This agency hereby certifies that the adoption has been reviewed
by legal counsel and found to be a valid exercise of the agency's legal authority.
Filed with the Office of
the Secretary of State on June 2, 2004.
TRD-200403676
Robin Abbott
Assistant General Counsel
Office of the Governor
Effective date: June 22, 2004
Proposal publication date: April 16, 2004
For further information, please call: (512) 936-0517
Chapter 55.
CHILD SUPPORT ENFORCEMENT
Subchapter G. AUTHORIZED COSTS AND FEES IN IV-D CASES
Part 3.
OFFICE OF THE ATTORNEY GENERAL