AN ACT
1-1 relating to the creation of a defense base development authority;
1-2 validating certain acts of a defense base development corporation;
1-3 granting the right to issue bonds.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle A, Title 12, Local Government Code, is
1-6 amended by adding Chapter 378 to read as follows:
1-7 CHAPTER 378. DEFENSE BASE DEVELOPMENT AUTHORITIES
1-8 Sec. 378.001. DEFINITIONS. In this chapter:
1-9 (1) "Authority" means a defense base development
1-10 authority established under this chapter.
1-11 (2) "Base property" means land inside the boundaries
1-12 of the defense base for which the authority is established and
1-13 improvements and personal property on that land.
1-14 (3) "Board" means the board of directors of the
1-15 authority.
1-16 (4) "Bond" means an interest-bearing obligation issued
1-17 by an authority under this chapter, including a bond, certificate,
1-18 note, or other evidence of indebtedness.
1-19 (5) "Defense base" means a military installation or
1-20 facility closed or realigned under the Defense Base Closure and
1-21 Realignment Act of 1990 (10 U.S.C. Section 2687 note) and its
1-22 subsequent amendments.
1-23 Sec. 378.002. ESTABLISHMENT; SUCCESSOR. (a) A municipality
1-24 by resolution may establish an authority. The resolution must
2-1 include a legal description of the base property. On adoption of
2-2 the resolution, the authority is established as a special district
2-3 and political subdivision of this state, with a boundary
2-4 coterminous with the base property described in the resolution.
2-5 (b) When establishing an authority, the municipality may
2-6 designate the authority in the municipality's resolution to be the
2-7 successor in interest to a nonprofit corporation organized under
2-8 the Development Corporation Act of 1979 (Article 5190.6, Vernon's
2-9 Texas Civil Statutes). On adoption of the resolution, the
2-10 corporation is dissolved and the authority succeeds to all rights
2-11 and liabilities of that corporation.
2-12 Sec. 378.003. PURPOSE AND NATURE OF AUTHORITY. (a) An
2-13 authority is created to:
2-14 (1) accept title to or operate under a lease from the
2-15 United States or any other person all or a part of the base
2-16 property and areas around the base property; and
2-17 (2) engage in the economic development of the base
2-18 property and areas around the base property.
2-19 (b) An authority exercises public and essential governmental
2-20 functions.
2-21 Sec. 378.004. POWERS AND DUTIES OF AUTHORITY. (a) An
2-22 authority may exercise power necessary or convenient to carry out a
2-23 purpose of this chapter, including the power to:
2-24 (1) adopt an official seal, or alter it;
2-25 (2) adopt rules;
2-26 (3) enter into a contract or incur a liability;
3-1 (4) acquire and dispose of money;
3-2 (5) select a depository;
3-3 (6) establish a system of accounts for the authority;
3-4 (7) invest funds in accordance with Chapter 2256,
3-5 Government Code;
3-6 (8) set the fiscal year for the authority;
3-7 (9) adopt an annual operating budget for major
3-8 expenditures before the beginning of the fiscal year;
3-9 (10) borrow money or issue a bond in an amount that
3-10 does not exceed the maximum amount set by the governing body of the
3-11 municipality;
3-12 (11) loan money;
3-13 (12) acquire, lease, lease-purchase, convey, grant a
3-14 mortgage on, or otherwise dispose of a property right, including a
3-15 right regarding base property;
3-16 (13) lease property located on the base property to a
3-17 person to effect the purposes of this chapter;
3-18 (14) request and accept a donation, grant, guaranty,
3-19 or loan from any source permitted by law;
3-20 (15) operate and maintain an office;
3-21 (16) charge for a facility or service; and
3-22 (17) exercise a power granted to a municipality by
3-23 Chapter 380.
3-24 (b) An authority shall establish and maintain an office and
3-25 agent registered with the secretary of state.
3-26 (c) An authority shall endeavor to raise revenue sufficient
4-1 to pay its debts.
4-2 Sec. 378.005. SUITS; INDEMNITY. (a) An authority may sue
4-3 and be sued.
4-4 (b) In a suit against an authority, process may be served on
4-5 the president, vice president, or registered agent.
4-6 (c) An authority may not be required to give a bond on an
4-7 appeal or writ of error taken in a civil case that the authority is
4-8 prosecuting or defending.
4-9 (d) An authority may indemnify an authority employee or
4-10 board member or a former authority employee or board member for
4-11 necessary expenses and costs, including attorney's fees, incurred
4-12 by that person in connection with a claim asserted against that
4-13 person if:
4-14 (1) the claim relates to an act or omission of the
4-15 person when acting in the scope of the person's board membership or
4-16 authority employment; and
4-17 (2) the person has not been found liable or guilty on
4-18 the claim.
4-19 Sec. 378.006. UTILITIES. (a) An authority may accept an
4-20 electric, gas, potable water, or sanitary sewage utility conveyed
4-21 by the United States but may not operate it.
4-22 (b) An authority shall convey a utility received under
4-23 Subsection (a) to the municipality that established the authority.
4-24 The municipality shall pay the authority fair market value for the
4-25 utility.
4-26 (c) If state or federal law prohibits the operation or
5-1 ownership of the utility by the municipality, the municipality
5-2 shall convey the utility to an entity that may operate it. The
5-3 municipality may charge fair market value for the conveyance.
5-4 Sec. 378.007. BOARD OF DIRECTORS. (a) The board consists
5-5 of 11 members and is responsible for the management, operation, and
5-6 control of the authority.
5-7 (b) The governing body of the municipality that established
5-8 the authority shall appoint each board member to a term not
5-9 exceeding two years. A vacancy on the board is filled in the same
5-10 manner as the original appointment.
5-11 (c) The municipality may remove a board member by adopting a
5-12 resolution.
5-13 (d) The members of the board shall elect from its membership
5-14 a president, vice president, secretary, and treasurer. The board
5-15 by rule may provide for the election of other officers.
5-16 (e) A board member serves without compensation but may be
5-17 reimbursed for a reasonable and necessary expense incurred in the
5-18 performance of an official duty.
5-19 (f) The board shall adopt rules for its proceedings and may
5-20 employ and compensate persons to carry out the powers and duties of
5-21 the authority.
5-22 Sec. 378.008. POWERS AND DUTIES OF BOARD. (a) The board
5-23 shall:
5-24 (1) monitor the proposed closing of the defense base;
5-25 (2) manage and operate the defense base transition and
5-26 development on behalf of the municipality that established the
6-1 authority;
6-2 (3) review options related to the most appropriate use
6-3 of the defense base;
6-4 (4) conduct a study on issues related to the closure,
6-5 conversion, redevelopment, and future use of the defense base;
6-6 (5) formulate, adopt, and implement a plan to convert
6-7 and redevelop the defense base; and
6-8 (6) submit the plan to an appropriate agency or
6-9 agencies of the federal government.
6-10 (b) For the base property and areas adjacent to the base
6-11 property the board shall:
6-12 (1) promote economic development;
6-13 (2) attempt to reduce unemployment;
6-14 (3) encourage the development of new industry by
6-15 private businesses; and
6-16 (4) encourage financing of projects designated under
6-17 Section 378.009.
6-18 Sec. 378.009. REDEVELOPMENT PROJECTS. (a) The board may
6-19 designate as a redevelopment project a project that relates to:
6-20 (1) the development of base property and the
6-21 surrounding areas; or
6-22 (2) the development of a defense base in the territory
6-23 of the municipality that established the authority and areas
6-24 surrounding that base.
6-25 (b) A project designated under Subsection (a) is for a
6-26 public purpose.
7-1 Sec. 378.010. BONDS. (a) An authority may issue bonds only
7-2 if the municipality that established the authority authorizes the
7-3 issuance by resolution.
7-4 (b) A bond issued under this chapter must:
7-5 (1) be payable solely from authority revenue;
7-6 (2) mature not later than 40 years after its date of
7-7 issuance; and
7-8 (3) state on its face that it is not an obligation of
7-9 this state or the municipality.
7-10 Sec. 378.011. TAX EXEMPTIONS. (a) An authority's property,
7-11 income, and operations are exempt from taxes imposed by the state
7-12 or a political subdivision of the state.
7-13 (b) Section 25.07(a), Tax Code, applies to a leasehold or
7-14 other possessory interest in real property granted by an authority
7-15 for a project designated under Section 378.009(a) in the same
7-16 manner as it applies to a leasehold or other possessory interest in
7-17 real property constituting a project described by Section 4B(k),
7-18 Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
7-19 Civil Statutes).
7-20 Sec. 378.012. DISSOLUTION. The governing body of a
7-21 municipality that established the authority by resolution may
7-22 dissolve the authority after all debts or obligations of the
7-23 authority have been satisfied. Property of the authority that
7-24 remains after dissolution is conveyed to the municipality.
7-25 SECTION 2. (a) For purposes of this section, a "defense
7-26 base development corporation" means a corporation established under
8-1 the Development Corporation Act of 1979 (Article 5190.6, Vernon's
8-2 Texas Civil Statutes) for the purpose of promoting projects
8-3 regarding a military base closure or realignment under the Defense
8-4 Base Closure and Realignment Act of 1990 (10 U.S.C. Section 2687
8-5 note) and its subsequent amendments.
8-6 (b) Each of the following acts of a defense base development
8-7 corporation is validated and confirmed as of the date it occurred:
8-8 (1) each act or proceeding of the corporation taken
8-9 before March 1, 1999;
8-10 (2) the election or appointment and each act of a
8-11 director or other official of the corporation who took office
8-12 before the effective date of this Act;
8-13 (3) each act or proceeding relating to a bond or other
8-14 obligation of the corporation authorized before the effective date
8-15 of this Act; and
8-16 (4) each act or proceeding relating to the entity's
8-17 incorporation under the Development Corporation Act of 1979
8-18 (Article 5190.6, Vernon's Texas Civil Statutes).
8-19 (c) This section does not apply to:
8-20 (1) an act, proceeding, bond, or obligation the
8-21 validity of which is the subject of litigation that is pending on
8-22 the effective date of this Act;
8-23 (2) an election or appointment of a director or
8-24 official the validity of which is the subject of litigation that is
8-25 pending on the effective date of this Act;
8-26 (3) an act or proceeding that was void or that, under
9-1 a statute of this state at the time the action or proceeding
9-2 occurred, was a misdemeanor or felony; or
9-3 (4) an act or proceeding that has been held invalid by
9-4 a final judgment of a court.
9-5 SECTION 3. The importance of this legislation and the
9-6 crowded condition of the calendars in both houses create an
9-7 emergency and an imperative public necessity that the
9-8 constitutional rule requiring bills to be read on three several
9-9 days in each house be suspended, and this rule is hereby suspended,
9-10 and that this Act take effect and be in force from and after its
9-11 passage, and it is so enacted.
S.B. No. 655
________________________________ ________________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 655 passed the Senate on
April 29, 1999, by the following vote: Yeas 29, Nays 0;
May 28, 1999, Senate refused to concur in House amendment and
requested appointment of Conference Committee; May 28, 1999, House
granted request of the Senate; May 30, 1999, Senate adopted
Conference Committee Report by the following vote: Yeas 30,
Nays 0.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 655 passed the House, with
amendment, on May 25, 1999, by the following vote: Yeas 145,
Nays 0, two present not voting; May 28, 1999, House granted request
of the Senate for appointment of Conference Committee;
May 30, 1999, House adopted Conference Committee Report by a
non-record vote.
_______________________________
Chief Clerk of the House
Approved:
________________________________
Date
________________________________
Governor