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.
1-13           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:
1-17     (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.
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