BILL ANALYSIS

S.B. 1187

By: Hughes

County Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

As a result of the Third Party Logistics services that the TexAmericas Center started offering two years ago, the center has been asked to provide manufacturing services, such as punching a hole in pipe unloaded from inbound trucks and then storing and loading the pipe onto outbound trucks, but the center's governing provisions do not allow for the provision of manufacturing services for customers. Revising the center's powers and allowing for the center to create a limited liability company will allow the center to not only provide services for companies looking to expand or locate within the center's boundaries but also on a military base located in the same county as the center, such as the Red River Army Depot. S.B. 1187 seeks to address this issue by revising the center's governing provisions.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

S.B. 1187 amends the Special District Local Laws Code to replace the power of the TexAmericas Center to, for a fee, provide services or operate facilities inside or outside the center's boundaries and the state to promote, enhance, develop, or assist a person in the creation of a new business, industry, or commercial activity in the center's boundaries with the expanded power to, for a fee, provide services, provide investment capital, or operate facilities as an independent contractor inside or outside the center's boundaries and the state to promote, enhance, develop, or assist a person in the creation and operation of a new business, industry, commercial activity, or manufacturing operation, or the expansion or relocation of an existing business, industry, commercial activity, or manufacturing operation, inside the center's boundaries or on a military base located in the same county as the center.

S.B. 1187 expands the projects for which the center may authorize the creation of a nonprofit corporation to undertake on the center's behalf to more broadly include projects related to the center's purposes and expands the purpose for which such a corporation may be created to include the carrying out of any applicable center purpose on the center's behalf. The bill authorizes the center, after the creation of such a nonprofit corporation, to authorize by resolution the following:

· the creation of a limited liability company under the Business Organizations Code for applicable center purposes; and

· the designation of the nonprofit corporation to participate as a member of the company.

The bill extends provisions governing such a nonprofit corporation of the center to apply also to such a limited liability company of the center.

EFFECTIVE DATE

On passage, or, if the bill does not receive the necessary vote, September 1, 2023.