By Brown S.B. No. 1092 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.