BILL ANALYSIS
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Senate Research Center |
S.B. 1187 |
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88R6029 JTZ-F |
By: Hughes |
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Local Government |
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4/25/2023 |
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As Filed |
AUTHOR'S / SPONSOR'S STATEMENT OF INTENT
TexAmericas Center (TAC) is a political subdivision of the State of Texas with the powers and authorities specified in Chapter 3503 of the Special District Local Laws Code of the State of Texas. TAC was created by the Texas Legislature in 1997 and currently owns over 12,000 acres of former military property. S.B. 1187 does two things:
This change occurred through the Third Party Logistics (3PL) services that TAC started offering nearly two years ago. Through those offerings, TAC has been asked to provide manufacturing services, such as punching a hole in a pipe that has been unloaded from inbound trucks, stored, and then loaded into outbound trucks. The charter does not allow TAC to provide manufacturing services for customers. Also, this language modification enables TAC to provide services not only for companies looking to expand or locate within its boundaries but also for a military base in the same county as TAC (Red River Army Depot).
This change allows TAC to create nonprofit corporations or limited liability company subsidiaries of which a nonprofit corporation is a member and undertake projects that TAC is authorized to undertake, described in Section 3503.003 of the legislative charter. The 87th Legislature provided TAC the authority to exercise the powers given to a defense base development authority created under Chapter 379B, including the ability to participate as a member or partner of a limited liability company. However, with this language, specification is necessary to undertake a project or purpose of TAC described in Section 3503.003.
As proposed, S.B. 1187 amends current law relating to the authority of the TexAmericas Center to provide services to and make investments in certain business enterprises and to create certain business organizations for purposes of the center.
RULEMAKING AUTHORITY
This bill does not expressly grant any additional rulemaking authority to a state officer, institution, or agency.
SECTION BY SECTION ANALYSIS
SECTION 1. Amends Section 3503.101(b), Special District Local Laws Code, as follows:
(b) Authorizes the TexAmericas Center (authority) to exercise any power or duty necessary or appropriate to carry out a project described by Section 3503.003(a)(3) (relating to providing that the authority is created to undertake a project the board of directors of the authority (board) considers necessary or incidental to the industrial, commercial, or business development, redevelopment, maintenance, and expansion of new or existing businesses on and for the property) and the purposes of Chapter 3503 (TexAmericas Center), including the power to:
(1)-(26) makes no changes to these subdivisions; and
(27) for a fee, provide services, provide investment capital, or operate facilities as an independent contractor inside or outside the boundaries of the authority and this state to promote, enhance, develop, or assist a person in the:
(A) creation and operation of a new business, industry, commercial activity, or manufacturing operation:
(i) inside, rather than in, the boundaries of the authority; or
(ii) on a military base located in the same county as the authority; or
(B) expansion or relocation of an existing business, industry, commercial activity, or manufacturing operation:
(i) inside the boundaries of the authority; or
(ii) on a military base located in the same county as the authority.
Makes nonsubstantive changes.
SECTION 2. Amends Section 3503.112, Special District Local Laws Code, as follows:
Sec. 3503.112. New heading: NONPROFIT CORPORATIONS AND LIMITED LIABILITY COMPANIES. (a) Authorizes the authority to authorize by resolution the creation of a nonprofit corporation under the Business Organizations Code to undertake on behalf of the authority a project described by Section 3503.003 or carry out any other purpose described by that section on the authority's behalf, rather than solely to undertake on behalf of the authority a project described by Section 3503.003(a)(3).
(a-1) Authorizes the authority, after the creation of a nonprofit corporation under Subsection (a), to authorize by resolution:
(1) the creation of a limited liability company under the Business Organizations Code for the purposes described by Subsection (a); and
(2) the designation of the nonprofit corporation described by Subsection (a) to participate as a member of the company.
(b) Requires the board to appoint the board of directors of each nonprofit corporation or limited liability company created under this section.
(c) Authorizes a board member or employee of the authority to simultaneously serve as a member of the board of directors of a nonprofit corporation or limited liability company created under this section. Authorizes a person serving as a board member of the authority and of a nonprofit corporation or limited liability company created under this section to participate in all votes relating to the business of the authority, corporation, or company. Makes a nonsubstantive change.
(d) Prohibits a nonprofit corporation or limited liability company created under this section from exercising the power of eminent domain. Makes a nonsubstantive change.
(e) Provides that a nonprofit corporation or limited liability company created under this section is subject to Chapters 551 (Open Meetings) and 552 (Public Information), Government Code.
SECTION 3. Effective date: upon passage or September 1, 2023.