1-1 By: Madla S.B. No. 1127 1-2 (In the Senate - Filed March 11, 1997; March 13, 1997, read 1-3 first time and referred to Committee on Veteran Affairs and 1-4 Military Installations; April 9, 1997, reported adversely, with 1-5 favorable Committee Substitute by the following vote: Yeas 4, Nays 1-6 0; April 9, 1997, sent to printer.) 1-7 COMMITTEE SUBSTITUTE FOR S.B. No. 1127 By: Shapleigh 1-8 A BILL TO BE ENTITLED 1-9 AN ACT 1-10 relating to the operation of certain military installations as 1-11 businesses by development corporations. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. Subdivision (10), Section 2, Development 1-14 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil 1-15 Statutes), is amended to read as follows: 1-16 (10) "Project" shall mean the land, buildings, 1-17 equipment, facilities, and improvements (one or more) found by the 1-18 board of directors to be required or suitable for the promotion of 1-19 development and expansion of manufacturing and industrial 1-20 facilities, transportation facilities (including but not limited to 1-21 airports, ports, mass commuting facilities, and parking 1-22 facilities), sewage or solid waste disposal facilities, recycling 1-23 facilities, air or water pollution control facilities, facilities 1-24 for the furnishing of water to the general public, distribution 1-25 centers, and small warehouse facilities capable of serving as 1-26 decentralized storage and distribution centers, and for the 1-27 promotion of development or redevelopment and expansion, including 1-28 costs of administration and operation, of a military base closed or 1-29 realigned pursuant to recommendation of the Defense Closure and 1-30 Realignment Commission pursuant to the Defense Base Closure and 1-31 Realignment Act of 1990 (10 U.S.C. Section 2687 note) as amended, 1-32 and of facilities which are related to any of the foregoing, and in 1-33 furtherance of the public purposes of this Act, all as defined in 1-34 the rules of the department, irrespective of whether in existence 1-35 or required to be identified, acquired, or constructed thereafter. 1-36 As used in this Act, the term "development areas" shall mean any 1-37 area or areas of a city that the city finds and determines, after a 1-38 public hearing, should be developed in order to meet the 1-39 development objectives of the city. In addition, in blighted or 1-40 economically depressed areas, development areas, federally 1-41 designated empowerment zones and enterprise communities designated 1-42 under Section 1391, Internal Revenue Code of 1986, or federally 1-43 assisted new communities located within a home-rule city or a 1-44 federally designated economically depressed county of less than 1-45 50,000 persons according to the last federal decennial census, a 1-46 project may include the land, buildings, equipment, facilities, and 1-47 improvements (one or more) found by the board of directors to be 1-48 required or suitable for the promotion of commercial development 1-49 and expansion and in furtherance of the public purposes of this 1-50 Act, or for use by commercial enterprises, all as defined in the 1-51 rules of the department, irrespective of whether in existence or 1-52 required to be acquired or constructed thereafter. As used in this 1-53 Act, the term blighted or economically depressed areas shall mean 1-54 those areas and areas immediately adjacent thereto within a city 1-55 which by reason of the presence of a substantial number of 1-56 substandard, slum, deteriorated, or deteriorating structures, or 1-57 which suffer from a high relative rate of unemployment, or which 1-58 have been designated and included in a tax incremental district 1-59 created under Chapter 695, Acts of the 66th Legislature, Regular 1-60 Session, 1979 (Article 1066d, Vernon's Texas Civil Statutes), or 1-61 any combination of the foregoing, the city finds and determines, 1-62 after a hearing, substantially impair or arrest the sound growth of 1-63 the city, or constitute an economic or social liability and are a 1-64 menace to the public health, safety, or welfare in their present 2-1 condition and use. The department shall adopt guidelines that 2-2 describe the kinds of areas that may be considered to be blighted 2-3 or economically depressed. The city shall consider these 2-4 guidelines in making its findings and determinations. Notice of 2-5 the hearing at which the city considers establishment of a 2-6 development area or an economically depressed or blighted area 2-7 shall be posted at the city hall before the hearing. 2-8 "Federally assisted new communities" shall mean those 2-9 federally assisted areas which have received or will receive 2-10 assistance in the form of loan guarantees under Title X of the 2-11 National Housing Act and a portion of the federally assisted area 2-12 has received grants under Section 107(a)(1) of the Housing and 2-13 Community Development Act of 1974, as amended. 2-14 SECTION 2. Subsection (b), Section 23, Development 2-15 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil 2-16 Statutes), is amended to read as follows: 2-17 (b) The corporation shall not have the power to own or 2-18 operate any project as a business other than as lessor, seller, or 2-19 lender or pursuant to the requirements of any trust agreement 2-20 securing the credit transaction. Accordingly, the user pursuant to 2-21 any lease, sale, or loan agreement relating to a project shall be 2-22 considered to be the owner of the project for the purposes of the 2-23 application of any ad valorem, sales, and use taxes or any other 2-24 taxes levied or imposed by this state or any political subdivision 2-25 of this state. The purchase and holding of mortgages, deeds of 2-26 trust, or other security interests and contracting for any 2-27 servicing thereof shall not be deemed the operation of a project. 2-28 The corporation shall, however, have all powers necessary to own 2-29 and operate a project as a business if the project is a military 2-30 installation or facility closed or realigned pursuant to the 2-31 Defense Base Closure and Realignment Act of 1990 (10 U.S.C. Section 2-32 2687 note) as amended. 2-33 SECTION 3. This Act takes effect September 1, 1997. 2-34 SECTION 4. The importance of this legislation and the 2-35 crowded condition of the calendars in both houses create an 2-36 emergency and an imperative public necessity that the 2-37 constitutional rule requiring bills to be read on three several 2-38 days in each house be suspended, and this rule is hereby suspended. 2-39 * * * * *