SRC-TNM S.B. 1127 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 1127
By: Madla
 Veterans Affairs
4-3-97
As Filed


DIGEST 

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, 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, military
installations closed or realigned pursuant to recommendations of the
Defense Base CLosure and Realignment Commission. 

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 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.