1-1 By: Brown, Truan S.B. No. 1092 1-2 (In the Senate - Filed March 9, 1999; March 11, 1999, read 1-3 first time and referred to Committee on State Affairs; May 3, 1999, 1-4 reported adversely, with favorable Committee Substitute by the 1-5 following vote: Yeas 8, Nays 0; May 3, 1999, sent to printer.) 1-6 COMMITTEE SUBSTITUTE FOR S.B. No. 1092 By: Brown 1-7 A BILL TO BE ENTITLED 1-8 AN ACT 1-9 relating to the creation of a development corporation for spaceport 1-10 facilities; granting the power of eminent domain and the right to 1-11 issue bonds. 1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-13 SECTION 1. The Development Corporation Act of 1979 (Article 1-14 5190.6, Vernon's Texas Civil Statutes) is amended by adding Section 1-15 4D to read as follows: 1-16 Sec. 4D. DEVELOPMENT CORPORATION FOR SPACEPORT FACILITIES. 1-17 (a) In this section: 1-18 (1) "Eligible entity" means a county or combination of 1-19 municipalities and counties. 1-20 (2) "Project" means land, buildings, equipment, 1-21 facilities, and improvements included in the definition of that 1-22 term under Section 2 of this Act, including land, buildings, 1-23 equipment, facilities, and improvements found by the board of 1-24 directors to: 1-25 (A) be required or suitable for use for the 1-26 promotion or development of a spaceport, related area 1-27 transportation facilities, automobile parking facilities, and 1-28 related roads, streets, and water and sewer facilities, and other 1-29 related improvements that enhance any of those items; 1-30 (B) promote or develop new or expanded business 1-31 enterprises relating to a spaceport; 1-32 (C) promote or develop educational programs and 1-33 job training relating to a spaceport; or 1-34 (D) be required or suitable for the promotion of 1-35 development and expansion of affordable housing, as defined by 42 1-36 U.S.C. Section 12745, relating to a spaceport. 1-37 (3) "Spacecraft" includes a satellite. 1-38 (4) "Spaceport" includes: 1-39 (A) an area intended to be used to launch or 1-40 land a spacecraft; 1-41 (B) a spaceport building or facility located on 1-42 an area appurtenant to a launching or landing area; 1-43 (C) an area appurtenant to a launching or 1-44 landing area that is intended for use for a spaceport building or 1-45 facility; and 1-46 (D) a right-of-way related to a launching or 1-47 landing area, building, facility, or other area that is appurtenant 1-48 to a launching or landing area. 1-49 (b) To the extent of a conflict between this section and 1-50 another provision of this Act, this section prevails. 1-51 (c) An eligible entity may create a corporation under this 1-52 Act governed by this section. The corporation has the powers 1-53 granted by this section and by other sections of this Act and is 1-54 subject to the limitations of a corporation created under other 1-55 provisions of this Act. The articles of incorporation of a 1-56 corporation under this section must state that the corporation is 1-57 governed by this section and may include within its name any words 1-58 and phrases specified by the eligible entity. 1-59 (d) A corporation is governed by a board of seven directors. 1-60 For a corporation created by a single county, the commissioners 1-61 court of the county shall appoint the directors. If more than one 1-62 political subdivision creates the corporation the board must be 1-63 appointed by written agreement between the governing bodies of 1-64 those political subdivisions. Each director serves a two-year term 2-1 that expires June 1 of each odd-numbered year except that the terms 2-2 of three or four of the initial directors may be for a one-year 2-3 term so that the terms may be staggered for future two-year terms. 2-4 A board shall elect a presiding officer from among its members. A 2-5 board by rule may provide for the election of other officers. The 2-6 board shall meet at least once every three months and at the call 2-7 of the presiding officer or a majority of the directors. 2-8 (e) A corporation may: 2-9 (1) acquire, convey, mortgage, or otherwise dispose of 2-10 property; and 2-11 (2) exercise the power of eminent domain to acquire 2-12 property for a spaceport, including the power to: 2-13 (A) acquire fee title in land condemned; 2-14 (B) relocate or modify a railroad, utility line, 2-15 pipeline, or other facility that may interfere with a spaceport; or 2-16 (C) impose a reasonable restriction on using the 2-17 surface of the property for mineral development if the corporation 2-18 does not own the mineral rights. 2-19 (f) A corporation may not acquire property or issue a bond 2-20 unless a site in the territory of the eligible entity that created 2-21 the corporation has been designated as the site for a spaceport. 2-22 (g) Before exercising the power of eminent domain under this 2-23 section, a corporation must obtain a resolution approving the 2-24 proposed condemnation from the governing body of a county or 2-25 municipality in which the property is located. For purposes of 2-26 this section, territory in the extraterritorial jurisdiction of a 2-27 municipality is considered to be in the jurisdiction of the 2-28 municipality. The exercise of the power of eminent domain by the 2-29 corporation is governed by Chapter 21, Property Code. 2-30 (h) A corporation may make an agreement with or accept a 2-31 donation, grant, or loan from any person. A corporation may enter 2-32 into an interlocal contract under Chapter 791, Government Code. A 2-33 corporation may not contract to operate a spaceport unless the 2-34 agreement provides that the person contracting with the corporation 2-35 assumes the corporation's liability for a cause of action arising 2-36 from environmental damage. 2-37 (i) A corporation may sue and be sued. 2-38 (j) A board of directors by rule may develop a plan for 2-39 higher education courses and degree programs to be offered at or 2-40 near a spaceport. Those courses and degree programs must be 2-41 related to the purposes of this section. The Texas Aerospace 2-42 Commission and the Texas Higher Education Coordinating Board shall 2-43 cooperate with and advise a board of directors in carrying out this 2-44 subsection. 2-45 (k) A corporation may: 2-46 (1) impose a charge for using a spaceport or a service 2-47 the corporation provides; 2-48 (2) issue a bond as provided by this section; 2-49 (3) borrow money; 2-50 (4) loan money to fund a spaceport; and 2-51 (5) invest money under its control in an investment 2-52 permitted by Chapter 2256, Government Code. 2-53 (l) A corporation's property, income, and operations are 2-54 exempt from taxes imposed by the state or a political subdivision 2-55 of the state. In lieu of taxes, a corporation shall make a payment 2-56 to each political subdivision of the state in which land owned by 2-57 the corporation is located in an amount equal to the ad valorem 2-58 taxes that would be paid on that land if the land were privately 2-59 owned. Tangible personal property, such as a spacecraft or other 2-60 property necessary to launch the spacecraft, is not taxable under 2-61 Section 11.01, Tax Code, if the property is located in the 2-62 spaceport. Chapter 151, Tax Code, does not apply to tangible 2-63 personal property purchased by a person for use in a spaceport. 2-64 (m) A corporation may issue bonds. The bonds are not an 2-65 obligation or a pledge of the faith and credit of the state, an 2-66 eligible entity, or any other political subdivision of the state. 2-67 A bond issued under this section must: 2-68 (1) be payable solely from the revenue of a spaceport 2-69 developed by the corporation issuing the bond; 3-1 (2) mature not later than 50 years after its date of 3-2 issuance; 3-3 (3) state on its face that the bond is not an 3-4 obligation of the State of Texas or a political subdivision of the 3-5 state; and 3-6 (4) be approved by the governing body of each entity 3-7 that created the corporation. 3-8 (n) Section 24 of this Act does not apply to a corporation 3-9 created under this section. 3-10 (o) This section expires on September 1, 2003, unless the 3-11 secretary of state has received articles of incorporation from a 3-12 corporation created under this section before that date. 3-13 SECTION 2. The importance of this legislation and the 3-14 crowded condition of the calendars in both houses create an 3-15 emergency and an imperative public necessity that the 3-16 constitutional rule requiring bills to be read on three several 3-17 days in each house be suspended, and this rule is hereby suspended, 3-18 and that this Act take effect and be in force from and after its 3-19 passage, and it is so enacted. 3-20 * * * * *