By Oliveira                                           H.B. No. 3035
         76R3043 MXM-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the establishment of a spaceport authority; granting
 1-3     the power of eminent domain and the right to issue bonds.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subtitle G, Title 10, Government Code, is amended
 1-6     by adding Chapter 2312, to read as follows:
 1-7                          CHAPTER 2312.  SPACEPORTS
 1-8                      SUBCHAPTER A.  GENERAL PROVISIONS
 1-9           Sec. 2312.001.  DEFINITIONS.  In this chapter:
1-10                 (1)  "Authority" means a spaceport authority
1-11     established under this chapter.
1-12                 (2)  "Board" means a board of spaceport commissioners.
1-13                 (3)  "Bond" means an obligation issued by an authority
1-14     under this chapter, including a bond, certificate, note, or other
1-15     evidence of indebtedness.
1-16                 (4)  "Commissioner" means a member of a board.
1-17                 (5)  "Spacecraft" includes a satellite.
1-18                 (6)  "Spaceport" includes:
1-19                       (A)  an area intended to be used to launch or
1-20     land a spacecraft;
1-21                       (B)  a spaceport building or facility located on
1-22     an area appurtenant to a launching or landing area;
1-23                       (C)  an area appurtenant to a launching or
1-24     landing area that is intended for use for a spaceport building or
 2-1     facility; and
 2-2                       (D)  a right-of-way related to a launching or
 2-3     landing area, building, facility, or other area that is appurtenant
 2-4     to a launching or landing area.
 2-5           Sec. 2312.002.  EXPIRATION.  If the comptroller has not
 2-6     registered an authority before that date, this chapter expires
 2-7     September 1, 2003.
 2-8             (Sections 2312.003-2312.020 reserved for expansion
 2-9        SUBCHAPTER B.  ESTABLISHMENT OF AUTHORITY; POWERS AND DUTIES 
2-10           Sec. 2312.021.  ESTABLISHMENT.  (a)  A county may establish
2-11     an authority by:
2-12                 (1)  adopting  a resolution authorizing the authority's
2-13     establishment; and
2-14                 (2)  appointing members to the board as provided by
2-15     Section 2312.051.
2-16           (b)  A county and any combination of municipalities or
2-17     counties may establish an authority by:
2-18                 (1)  adopting  substantially identical resolutions that
2-19     authorize the establishment of the authority; and
2-20                 (2)  appointing members to the board as provided by
2-21     Section 2312.051.
2-22           (c)  An authority established under this section is a:
2-23                 (1)  political subdivision of the state; and
2-24                 (2)  special district.
2-25           Sec. 2312.022.  REGISTRATION.  An authority shall register
2-26     with the comptroller immediately after it is established.
2-27           Sec. 2312.023.  GENERAL POWERS AND DUTIES.  An authority has
 3-1     the powers and duties prescribed by this chapter and may perform
 3-2     other acts necessary to carry out the purposes of this chapter.
 3-3           Sec. 2312.024.  ECONOMIC DEVELOPMENT.  An authority shall
 3-4     encourage the economic development of the area in which it is
 3-5     located by fostering the development of a spaceport and related
 3-6     services and industries and educational programs.
 3-7           Sec. 2312.025.  SPACEPORT DEVELOPMENT.  As soon as possible
 3-8     after an authority is created, the authority shall design,
 3-9     construct, and operate a spaceport through private enterprise under
3-10     the authority's supervision.
3-11           Sec. 2312.026.  SPACEPORT SITE.  An authority may not issue a
3-12     bond or acquire property unless a site in the territory of a county
3-13     that established the authority has been designated as the site for
3-14     a spaceport.
3-15           Sec. 2312.027.  ACQUISITION OF PROPERTY; EMINENT DOMAIN.  (a)
3-16     An authority may:
3-17                 (1)  acquire, convey, mortgage, or otherwise dispose of
3-18     property; and
3-19                 (2)  exercise the power of eminent domain to acquire
3-20     property for a spaceport, including the power to:
3-21                       (A)  acquire fee title in land condemned;
3-22                       (B)  relocate or modify a railroad, utility line,
3-23     pipeline, or other facility that may interfere with a spaceport; or
3-24                       (C)  impose a reasonable restriction on using the
3-25     surface of the property for mineral development if the authority
3-26     does not own the mineral rights.
3-27           (b)  Before exercising the power of eminent domain under this
 4-1     section, an authority must obtain a resolution approving the
 4-2     proposed condemnation from the governing body of a county or
 4-3     municipality in which the property is located.  For purposes of
 4-4     this section, territory in the extraterritorial jurisdiction of a
 4-5     municipality is considered to be in the jurisdiction of the
 4-6     municipality.
 4-7           (c)  The exercise of the power of eminent domain by the
 4-8     authority is governed by Chapter 21, Property Code.
 4-9           Sec. 2312.028.  AGREEMENTS; DONATIONS; ENVIRONMENTAL
4-10     LIABILITY.  (a)  An authority may make an agreement with or accept
4-11     a donation, grant, or loan from any person.
4-12           (b)  An authority may enter into an interlocal contract under
4-13     Chapter 791.
4-14           (c)  An authority may not contract to operate a spaceport
4-15     unless the agreement provides that the person contracting with the
4-16     authority must assume the authority's liability for a cause of
4-17     action arising from environmental damage.
4-18           Sec. 2312.029.  AUTHORITY TO BRING SUIT.  An authority may
4-19     sue and be sued.
4-20             (Sections 2312.030-2312.050 reserved for expansion
4-21                      SUBCHAPTER C.  BOARD ORGANIZATION
4-22           Sec. 2312.051.  BOARD OF COMMISSIONERS.  (a)  An authority is
4-23     governed by a board of seven commissioners.  For an authority
4-24     established by a single county, the commissioners court of the
4-25     county shall appoint the members.  If more than one public entity
4-26     creates the authority, the board must be appointed by written
4-27     agreement between the governing bodies of those entities.
 5-1           (b)  Each commissioner serves a two-year term that expires
 5-2     June 1 of each odd-numbered year, except that the terms of three or
 5-3     four of the initial commissioners may be for a one-year term so
 5-4     that the terms can be staggered for future two-year terms.
 5-5           (c)  A board shall elect a presiding officer from among its
 5-6     members.
 5-7           (d)  A board by rule may provide for the election of other
 5-8     officers.
 5-9           (e)  An employee, officer, or member of the governing body of
5-10     an entity that established the authority may serve as a
5-11     commissioner.
5-12           Sec. 2312.052.  BOARD MEETINGS.  The board shall meet at
5-13     least once every three months and at the call of the presiding
5-14     officer or a majority of the commissioners.
5-15             (Sections 2312.053-2312.060 reserved for expansion
5-16                   SUBCHAPTER D.  BOARD POWERS AND DUTIES
5-17           Sec. 2312.061.  GENERAL POWERS AND DUTIES OF THE BOARD;
5-18     RULEMAKING AUTHORITY.  A board is responsible for the management,
5-19     operation, and control of an authority and shall exercise the
5-20     powers and duties of the authority.  A board by rule shall
5-21     formulate general policy and procedures to govern the authority and
5-22     its activities.
5-23           Sec. 2312.062.  COMPENSATION AND EXPENSES.  A commissioner
5-24     serves without compensation but may be reimbursed for a reasonable
5-25     and necessary expense incurred in performing an official duty.
5-26           Sec. 2312.063.  EXECUTIVE DIRECTOR.  A board may employ:
5-27                 (1)  an executive director to manage an authority's
 6-1     day-to-day operations; and
 6-2                 (2)  other persons necessary to carry out the
 6-3     authority's duties.
 6-4           Sec. 2312.064.  EDUCATION; ADVISORY AGENCIES.  A board by
 6-5     rule shall develop a plan for higher education courses and degree
 6-6     programs to be offered at or near a spaceport.  These planned
 6-7     courses and degree programs must be related to the purposes of this
 6-8     chapter. The Texas Aerospace Commission and the Texas Higher
 6-9     Education Coordinating Board shall cooperate with and advise a
6-10     board in carrying out this section.
6-11             (Sections 2312.065-2312.100 reserved for expansion
6-12                    SUBCHAPTER E.  FINANCES; TAXES; BONDS
6-13           Sec. 2312.101.  MISCELLANEOUS FINANCIAL POWERS.  An authority
6-14     may:
6-15                 (1)  impose a charge for using a spaceport or a service
6-16     the authority provides;
6-17                 (2)  issue a bond as provided by this subchapter;
6-18                 (3)  borrow money;
6-19                 (4)  loan money to fund a spaceport; and
6-20                 (5)  invest money under its control in an investment
6-21     permitted by Chapter 2256, Government Code.
6-22           Sec. 2312.102.  TAX EXEMPTION.  (a)  An authority's property,
6-23     income, and operations are exempt from taxes imposed by the state
6-24     or a political subdivision of the state.  In lieu of taxes, an
6-25     authority shall make a payment to each political subdivision of the
6-26     state in an amount equal to the ad valorem taxes that would be paid
6-27     on the land of the authority if the land were privately owned.
 7-1           (b)  Tangible personal property such as a spacecraft or other
 7-2     property necessary to launch the spacecraft is not taxable under
 7-3     Section 11.01, Tax Code, if it is located in the spaceport for a
 7-4     temporary period of 175 days or less.
 7-5           (c)  Chapter 151, Tax Code, does not apply to tangible
 7-6     personal property purchased by a person for use in a spaceport.
 7-7           Sec. 2312.103.  BONDS.  (a)  An authority may issue bonds.
 7-8           (b)  A bond issued under this subchapter must:
 7-9                 (1)  be payable solely from the revenue of a spaceport
7-10     developed by the authority issuing the bond;
7-11                 (2)  mature not later than 50 years after its date of
7-12     issuance; and
7-13                 (3)  state on its face that the bond is not an
7-14     obligation of the State of Texas.
7-15           Sec. 2312.104.  TEXAS SPACEPORT FUND.  (a)  In this section,
7-16     "commission" means the Texas Aerospace Commission.
7-17           (b)  The Texas spaceport fund is created as a separate
7-18     account in the general revenue fund.
7-19           (c)  The commission may use money appropriated to the
7-20     commission from the fund to provide a grant to an eligible
7-21     authority.  The commission by rule may provide procedures necessary
7-22     to administer the fund and the grant program provided by this
7-23     section, including procedures for an authority to apply for and
7-24     receive a grant.
7-25           (d)  An authority is eligible to receive a grant for a
7-26     spaceport that is or is planned to be:
7-27                 (1)  on a site not smaller than 1,000 acres; and
 8-1                 (2)  budgeted to cost $100 million or more.
 8-2           (e)  In determining whether to grant money to an eligible
 8-3     authority, the commission shall consider:
 8-4                 (1)  the size of the proposed spaceport;
 8-5                 (2)  the cost of the proposed spaceport; and
 8-6                 (3)  other factors the commission provides by rule.
 8-7           (f)  The commission may not grant money to an authority
 8-8     unless the commission has received the written approval of the
 8-9     governor, lieutenant governor, and speaker of the house for that
8-10     grant.
8-11           SECTION 2.  This Act takes effect September 1, 1999.
8-12           SECTION 3.  The importance of this legislation and the
8-13     crowded condition of the calendars in both houses create an
8-14     emergency and an imperative public necessity that the
8-15     constitutional rule requiring bills to be read on three several
8-16     days in each house be suspended, and this rule is hereby suspended.