By: Brown, Truan S.B. No. 1092 A BILL TO BE ENTITLED AN ACT 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. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 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: 1-8 Sec. 4D. DEVELOPMENT CORPORATION FOR SPACEPORT FACILITIES. 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.