1-1     relating to the creation of a development corporation for spaceport
 1-2     facilities; granting the power of eminent domain and the right to
 1-3     issue bonds.
 1-5           SECTION 1.  The Development Corporation Act of 1979 (Article
 1-6     5190.6, Vernon's Texas Civil Statutes) is amended by adding Section
 1-7     4D to read as follows:
 1-9     (a)  In this section:
1-10                 (1)  "Eligible entity" means a county or combination of
1-11     municipalities and counties.
1-12                 (2)  "Project" means land, buildings, equipment,
1-13     facilities, and improvements included in the definition of that
1-14     term under Section 2 of this Act, including land, buildings,
1-15     equipment, facilities, and improvements found by the board of
1-16     directors to:
1-17                       (A)  be required or suitable for use for the
1-18     promotion or development of a spaceport, related area
1-19     transportation facilities, automobile parking facilities, and
1-20     related roads, streets, and water and sewer facilities, and other
1-21     related improvements that enhance any of those items;
1-22                       (B)  promote or develop new or expanded business
1-23     enterprises relating to a spaceport;
1-24                       (C)  promote or develop educational programs and
 2-1     job training relating to a spaceport; or
 2-2                       (D)  be required or suitable for the promotion of
 2-3     development and expansion of affordable housing, as defined by 42
 2-4     U.S.C. Section 12745, relating to a spaceport.
 2-5                 (3)  "Spacecraft" includes a satellite.
 2-6                 (4)  "Spaceport" includes:
 2-7                       (A)  an area intended to be used to launch or
 2-8     land a spacecraft;
 2-9                       (B)  a spaceport building or facility located on
2-10     an area appurtenant to a launching or landing area;
2-11                       (C)  an area appurtenant to a launching or
2-12     landing area that is intended for use for a spaceport building or
2-13     facility; and
2-14                       (D)  a right-of-way related to a launching or
2-15     landing area, building, facility, or other area that is appurtenant
2-16     to a launching or landing area.
2-17           (b)  To the extent of a conflict between this section and
2-18     another provision of this Act, this section prevails.
2-19           (c)  An eligible entity may create a corporation under this
2-20     Act governed by this section.  The corporation has the powers
2-21     granted by this section and by other sections of this Act and is
2-22     subject to the limitations of a corporation created under other
2-23     provisions of this Act.  The articles of incorporation of a
2-24     corporation under this section must state that the corporation is
2-25     governed by this section and may include within its name any words
2-26     and phrases specified by the eligible entity.
 3-1           (d)  A corporation is governed by a board of seven directors.
 3-2     For a corporation created by a single county, the commissioners
 3-3     court of the county shall appoint the directors.  If more than one
 3-4     political subdivision creates the corporation the board must be
 3-5     appointed by written agreement between the governing bodies of
 3-6     those political subdivisions.  Each director serves a two-year term
 3-7     that expires June 1 of each odd-numbered year except that the terms
 3-8     of three or four of the initial directors may be for a one-year
 3-9     term so that the terms may be staggered for future two-year terms.
3-10     A board shall elect a presiding officer from among its members.  A
3-11     board by rule may provide for the election of other officers.  The
3-12     board shall meet at least once every three months and at the call
3-13     of the presiding officer or a majority of the directors.
3-14           (e)  A corporation may:
3-15                 (1)  acquire, convey, mortgage, or otherwise dispose of
3-16     property; and
3-17                 (2)  exercise the power of eminent domain to acquire
3-18     property for a spaceport, including the power to:
3-19                       (A)  acquire fee title in land condemned;
3-20                       (B)  relocate or modify a railroad, utility line,
3-21     pipeline, or other facility that may interfere with a spaceport; or
3-22                       (C)  impose a reasonable restriction on using the
3-23     surface of the property for mineral development if the corporation
3-24     does not own the mineral rights.
3-25           (f)  A corporation may not acquire property or issue a bond
3-26     unless a site in the territory of the eligible entity that created
 4-1     the corporation has been designated as the site for a spaceport.
 4-2           (g)  Before exercising the power of eminent domain under this
 4-3     section, a corporation must obtain a resolution approving the
 4-4     proposed condemnation from the governing body of a county or
 4-5     municipality in which the property is located.  For purposes of
 4-6     this section, territory in the extraterritorial jurisdiction of a
 4-7     municipality is considered to be in the jurisdiction of the
 4-8     municipality.  The exercise of the power of eminent domain by the
 4-9     corporation is governed by Chapter 21, Property Code.
4-10           (h)  A corporation may make an agreement with or accept a
4-11     donation, grant, or loan from any person.  A corporation may enter
4-12     into an interlocal contract under Chapter 791, Government Code.  A
4-13     corporation may not contract to operate a spaceport unless the
4-14     agreement provides that the person contracting with the corporation
4-15     assumes the corporation's liability for a cause of action arising
4-16     from environmental damage.
4-17           (i)  A corporation may sue and be sued.
4-18           (j)  A board of directors by rule may develop a plan for
4-19     higher education courses and degree programs to be offered at or
4-20     near a spaceport.  Those courses and degree programs must be
4-21     related to the purposes of this section.  The Texas Aerospace
4-22     Commission and the Texas Higher Education Coordinating Board shall
4-23     cooperate with and advise a board of directors in carrying out this
4-24     subsection.
4-25           (k)  A corporation may:
4-26                 (1)  impose a charge for using a spaceport or a service
 5-1     the corporation provides;
 5-2                 (2)  issue a bond as provided by this section;
 5-3                 (3)  borrow money;
 5-4                 (4)  loan money to fund a spaceport; and
 5-5                 (5)  invest money under its control in an investment
 5-6     permitted by Chapter 2256, Government Code.
 5-7           (l)  A corporation's property, income, and operations are
 5-8     exempt from taxes imposed by the state or a political subdivision
 5-9     of the state.  In lieu of taxes, a corporation shall make a payment
5-10     to each political subdivision of the state in which land owned by
5-11     the corporation is located in an amount equal to the ad valorem
5-12     taxes that would be paid on that land if the land were privately
5-13     owned.  Tangible personal property, such as a spacecraft or other
5-14     property necessary to launch the spacecraft, is not taxable under
5-15     Section 11.01, Tax Code, if the property is located in the
5-16     spaceport.  Chapter 151, Tax Code, does not apply to tangible
5-17     personal property purchased by a person for use in a spaceport.
5-18           (m)  A corporation may issue bonds.  The bonds are not an
5-19     obligation or a pledge of the faith and credit of the state, an
5-20     eligible entity, or any other political subdivision of the state.
5-21     A bond issued under this section must:
5-22                 (1)  be payable solely from the revenue of a spaceport
5-23     developed by the corporation issuing the bond;
5-24                 (2)  mature not later than 50 years after its date of
5-25     issuance;
5-26                 (3)  state on its face that the bond is not an
 6-1     obligation of the State of Texas or a political subdivision of the
 6-2     state; and
 6-3                 (4)  be approved by the governing body of each entity
 6-4     that created the corporation.
 6-5           (n)  Section 24 of this Act does not apply to a corporation
 6-6     created under this section.
 6-7           (o)  This section expires on September 1, 2003, unless the
 6-8     secretary of state has received articles of incorporation from a
 6-9     corporation created under this section before that date.
6-10           SECTION 2.  The importance of this legislation and the
6-11     crowded condition of the calendars in both houses create an
6-12     emergency and an imperative public necessity that the
6-13     constitutional rule requiring bills to be read on three several
6-14     days in each house be suspended, and this rule is hereby suspended,
6-15     and that this Act take effect and be in force from and after its
6-16     passage, and it is so enacted.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 1092 passed the Senate on
         May 13, 1999, by the following vote:  Yeas 30, Nays 0.
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 1092 passed the House on
         May 25, 1999, by the following vote:  Yeas 145, Nays 0, two present
         not voting.
                                                 Chief Clerk of the House