SCT S.B. 1127 75(R)    BILL ANALYSIS


STATE FEDERAL & INTERNATIONAL RELATIONS
S.B. 1127
By: Madla (Longoria)
5-8-97
Committee Report (Unamended)


BACKGROUND 

Currently, the city of San Antonio is faced with the closure of Kelly Air
Force Base, its largest military installation in terms of mission and
civilian employment. The city council determined that a community-wide
strategy could convert and privatize the industrial uses on the base,
create new jobs, and maintain current employment. To accomplish this
process the Greater Kelly Development Corporation was chartered by the
city council as a nonprofit development corporation under the Development
Corporation Act of 1979, Article 5190.6, V.T.C.S., as amended. The Act has
never been utilized as the vehicle for performing all the functions
required to close a military installation. The need to issue bonds, charge
user fees and finance the project requires that the statute be clarified
to more specifically authorize such activities, only in cases in which a
"project" involves a military installation or facility closed or realigned
pursuant to the Defense Base and Realignment Act of 1990 (10 U.S.C.
Section 2687) as amended. S.B. 1127 would outline provisions regarding the
operation of certain military installations as businesses by development
corporations. 

PURPOSE
As proposed, C.S.S.B. 1127 outlines provisions regarding the operation of
certain military installations as businesses by development corporations. 

RULEMAKING AUTHORITY
This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Section 2(10), Article 5190.6, V.T.C.S. (Development
Corporation Act of 1979), to redefine "project" as, among others, the
land, buildings, equipment, facilities, and improvements found by the
board of directors of any corporation organized pursuant to the provisions
of the Development Corporation Act to be required or suitable for the
promotion of development or redevelopment and expansion, of a military
base closed or realigned pursuant to recommendation of the Defense Closure
and Realignment Commission pursuant to the Defense Base Closure and
Realignment Act of 1990. 
SECTION 2. Amends Section 23(b), Article 5190.6, V.T.C.S., to require any
industrial  development corporation organized pursuant to the provisions
of this Act to have all powers necessary to own and operate a project as a
business if the project is a military installation or facility closed or
realigned pursuant to the Defense Base Closure and Realignment Act of 1990
(10 U.S.C. Section 2687 note) as amended. 
SECTION 3. Effective date: September 1, 1997.
SECTION 4. Emergency clause.