Office of House Bill AnalysisS.B. 1092
By: Brown
Economic Development


Currently, no state statute authorizes a county or combination of
municipalities and counties to establish a development corporation for
spaceport facilities (corporation).  A corporation designs, constructs, and
operates a commercial spaceport, and may encourage local economic
development by creating a need for related industries. 
S.B. 1092 authorizes the establishment of a corporation, sets forth the
guidelines for a board of directors of a corporation, and grants to the
corporation the power of eminent domain and the right to issue bonds.  S.B.
1092 also authorizes a board of directors to develop a plan for higher
education courses and degree programs related to the purposes of this bill
to be offered at or near a spaceport. 


It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 


SECTION 1.  Amends Article 5190.6, V.T.C.S. (Development Corporation Act of
1979), by adding Section 4D, as follows: 

"eligible entity," "project," "spacecraft," and "spaceport." 

(b)  Provides that to the extent of a conflict between this section and
another provision of this Act, this section prevails. 

(c)  Authorizes an eligible entity to create a corporation under this Act
governed by this section.  Sets forth that the corporation has the powers
granted by this section and by other sections of this Act and is subject to
the limitations of a corporation created under other provisions of this
Act.  Provides that the articles of incorporation of a corporation under
this section must state that the corporation is governed by this section
and is authorized to include within its name any words and phrases
specified by the eligible entity. 

(d)  Provides that a corporation is governed by a board of seven directors.
Requires the commissioners court of the county, for a corporation created
by a single county, to appoint the directors.  Provides that the board must
be appointed by written agreement between the governing bodies of those
political subdivisions if more than one political subdivision creates the
corporation.  Sets forth that each director serves a two-year term that
expires June 1 of each odd-numbered year except that the terms of three or
four of the initial directors are authorized to be for a one-year term so
that the terms may be staggered for future two-year terms.  Requires a
board to elect a presiding officer from among its members.  Authorizes a
board, by rule, to provide for the election of other officers. Requires the
board to meet at least once every three months and at the call of the
presiding officer or a majority of the directors. 

(e)  Authorizes a corporation to acquire, convey, mortgage, or otherwise
dispose of  property.  Authorizes a corporation to exercise the power of
eminent domain to acquire property for a spaceport, including the power to
acquire fee title in land condemned; relocate or modify a railroad, utility
line, pipeline, or other facility that may interfere with a spaceport; or
impose a reasonable restriction on using the surface of the property for
mineral development if the corporation does not own the mineral rights. 

(f)  Prohibits a corporation from acquiring property or issuing a bond
unless a site in the territory of the eligible entity that created the
corporation has been designated as the site for a spaceport. 

(g)  Provides that before exercising the power of eminent domain under this
section, a corporation must obtain a resolution approving the proposed
condemnation from the governing body of a county or municipality in which
the property is located.  Provides that for purposes of this section,
territory in the extraterritorial jurisdiction of a municipality is
considered to be in the jurisdiction of the municipality.  Sets forth that
the exercise of the power of eminent domain by the corporation is governed
by Chapter 21 (Eminent Domain), Property Code. 

(h)  Authorizes a corporation to make an agreement with or accept a
donation, grant, or loan from any person.  Authorizes a corporation to
enter into an interlocal contract under Chapter 791 (Interlocal Cooperation
Contracts), Government Code.  Prohibits a corporation from contracting to
operate a spaceport unless the agreement provides that the person
contracting with the corporation assumes the corporation's liability for a
cause of action arising from environmental damage. 

(i)  Authorizes a corporation to sue and be sued.

(j)  Authorizes a board of directors, by rule, to develop a plan for higher
education courses and degree programs to be offered at or near a spaceport.
Sets forth that those courses and degree programs must be related to the
purposes of this section.  Requires the Texas Aerospace Commission and the
Texas Higher Education Coordinating Board to cooperate with and advise a
board of directors in carrying out this subsection. 

(k)  Authorizes a corporation to impose a charge for using a spaceport or a
service the corporation provides; issue a bond as provided by this section;
borrow money; loan money to fund a spaceport; and invest money under its
control in an investment permitted by Chapter 2256 (Public Funds
Investment), Government Code. 

(l)  Sets forth that a corporation's property, income, and operations are
exempt from taxes imposed by the state or a political subdivision of the
state.  Requires a corporation, in lieu of taxes, to make a payment to each
political subdivision of the state in which land owned by the corporation
is located in an amount equal to the ad valorem taxes that would be paid on
that land if the land were privately owned.  Sets forth that tangible
personal property, such as a spacecraft or other property necessary to
launch the spacecraft, is not taxable under Section 11.01 (Real and
Tangible Personal Property), Tax Code, if the property is located in the
spaceport.  Provides that Chapter 151 (Limited Sales, Excise, and Use Tax),
Tax Code, does not apply to tangible personal property purchased by a
person for use in a spaceport. 

(m)  Authorizes a corporation to issue bonds.  Provides that the bonds are
not an obligation or a pledge of the faith and credit of the state, an
eligible entity, or any other political subdivision of the state.  Provides
that a bond issued under this section must: 

_be payable solely from the revenue of a spaceport developed by the
corporation issuing the bond; 

_mature not later than 50 years after its date of issuance;
_state on its face that the bond is not an obligation of the State of Texas
or a political subdivision of the state; and 

_be approved by the governing body of each entity that created the

(n)  Sets forth that Section 24 of this Act (Leases, Sales, and Loan
Agreements; Approval of Bonds, Leases, Sales, or Loan Agreements; Permit
for Offer and Sale of Securities; Fee Schedules and Bond Procedures; Rules
and Regulations) does not apply to a corporation created under this

(o)  Sets forth that this section expires on September 1, 2003, unless the
secretary of state has received articles of incorporation from a
corporation created under this section before that date. 

SECTION 2.  Emergency clause.
  Effective date: upon passage.