By Hawley H.B. No. 2040
77R4526 MXM-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to defense base development authorities created by certain
1-3 municipalities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 378.006, Local Government Code, as added
1-6 by Chapter 1221, Acts of the 76th Legislature, Regular Session,
1-7 1999, is amended to read as follows:
1-8 Sec. 378.006. UTILITIES FOR AUTHORITIES CREATED IN POPULOUS
1-9 MUNICIPALITY. (a) This section applies only to an authority
1-10 created by a municipality with a population of 50,000 or more.
1-11 (b) An authority may accept an electric, gas, potable water,
1-12 or sanitary sewage utility conveyed by the United States but may
1-13 not operate it.
1-14 (c) [(b)] An authority shall convey a utility received under
1-15 Subsection (a) to the municipality that established the authority.
1-16 The municipality shall pay the authority fair market value for the
1-17 utility.
1-18 (d) [(c)] If state or federal law prohibits the operation or
1-19 ownership of the utility by the municipality, the municipality
1-20 shall convey the utility to an entity that may operate it. The
1-21 municipality may charge fair market value for the conveyance.
1-22 SECTION 2. Chapter 378, Local Government Code, as added by
1-23 Chapter 1221, Acts of the 76th Legislature, Regular Session, 1999,
1-24 is amended by adding Section 378.0065 to read as follows:
2-1 Sec. 378.0065. UTILITIES FOR AUTHORITIES CREATED IN LESS
2-2 POPULOUS MUNICIPALITY. (a) This section applies only to an
2-3 authority created by a municipality with a population of less than
2-4 50,000.
2-5 (b) An authority may own an electric, sewer service, or
2-6 water supply utility and may sell those utility services to a
2-7 person who leases real property from the authority.
2-8 SECTION 3. Section 378.007, Local Government Code, as added
2-9 by Chapter 1221, Acts of the 76th Legislature, Regular Session,
2-10 1999, is amended to read as follows:
2-11 Sec. 378.007. BOARD OF DIRECTORS. (a) The board consists of
2-12 11 members.
2-13 (b) The board [and] is responsible for the management,
2-14 operation, and control of the authority.
2-15 (c) [(b)] The governing body of the municipality that
2-16 established the authority shall appoint each board member to a term
2-17 not exceeding two years.
2-18 (d) A vacancy on the board is filled in the same manner as
2-19 the original appointment.
2-20 (e) [(c)] The municipality may remove a board member by
2-21 adopting a resolution.
2-22 (f) [(d)] The members of the board shall elect from its
2-23 membership a president, vice president, secretary, and treasurer.
2-24 The board by rule may provide for the election of other officers.
2-25 (g) [(e)] A board member serves without compensation but may
2-26 be reimbursed for a reasonable and necessary expense incurred in
2-27 the performance of an official duty.
3-1 (h) [(f)] The board shall adopt rules for its proceedings
3-2 and may employ and compensate persons to carry out the powers and
3-3 duties of the authority.
3-4 SECTION 4. Chapter 378, Local Government Code, as added by
3-5 Chapter 1221, Acts of the 76th Legislature, Regular Session, 1999,
3-6 is amended by adding Section 378.0075 to read as follows:
3-7 Sec. 378.0075. ADDITIONAL REQUIREMENTS FOR BOARD OF
3-8 DIRECTORS CREATED IN LESS POPULOUS MUNICIPALITY. (a) In this
3-9 section, "county" means the county in which the majority of the
3-10 municipality that created the authority is located.
3-11 (b) This section applies only to an authority created by a
3-12 municipality with a population of less than 50,000.
3-13 (c) Each board member serves a two-year term and is
3-14 appointed as follows:
3-15 (1) the county shall appoint four members, including a
3-16 member of the county's governing body;
3-17 (2) junior colleges located in whole or in part in the
3-18 county, if any, jointly shall appoint three members; and
3-19 (3) the municipality that established the authority
3-20 shall appoint:
3-21 (A) four members, including a member of the
3-22 municipality's governing body, if the county in which the authority
3-23 is located contains a junior college; or
3-24 (B) seven members, including a member of the
3-25 municipality's governing body, if the county in which the authority
3-26 is located does not contain a junior college.
3-27 (d) The entity that appoints a board member may remove a
4-1 board member by adopting a resolution or order, as appropriate.
4-2 (e) Sections 378.007(c) and (e) do not apply to an authority
4-3 to which this section applies.
4-4 SECTION 5. Section 378.012, Local Government Code, as added
4-5 by Chapter 1221, Acts of the 76th Legislature, Regular Session,
4-6 1999, is amended to read as follows:
4-7 Sec. 378.012. DISSOLUTION FOR AUTHORITIES CREATED IN
4-8 POPULOUS MUNICIPALITY. (a) This section applies only to an
4-9 authority created by a municipality with a population of 50,000 or
4-10 more.
4-11 (b) The governing body of a municipality that established
4-12 the authority by resolution may dissolve the authority after all
4-13 debts or obligations of the authority have been satisfied.
4-14 (c) Property of the authority that remains after dissolution
4-15 is conveyed to the municipality.
4-16 SECTION 6. Chapter 378, Local Government Code, as added by
4-17 Chapter 1221, Acts of the 76th Legislature, Regular Session, 1999,
4-18 is amended by adding Section 378.013 to read as follows:
4-19 Sec. 378.013. DISSOLUTION FOR AUTHORITIES CREATED IN LESS
4-20 POPULOUS MUNICIPALITY. (a) In this section, "county" means the
4-21 county in which the majority of the municipality that created the
4-22 authority is located.
4-23 (b) This section applies only to an authority created by a
4-24 municipality with a population of less than 50,000.
4-25 (c) The authority may be dissolved if:
4-26 (1) all debts or obligations of the authority have
4-27 been satisfied; and
5-1 (2) the dissolution is authorized by order or
5-2 resolution of:
5-3 (A) the governing body of the municipality that
5-4 established the authority;
5-5 (B) the county; and
5-6 (C) each junior college in the county, if the
5-7 county in which the authority is located contains a junior college.
5-8 (d) Property of the authority that remains after dissolution
5-9 is conveyed to the municipality.
5-10 SECTION 7. (a) For purposes of this section, a "defense
5-11 base development corporation" means a corporation established under
5-12 the Development Corporation Act of 1979 (Article 5190.6, Vernon's
5-13 Texas Civil Statutes) for the purpose of promoting projects
5-14 regarding a military base closure or realignment under the Defense
5-15 Base Closure and Realignment Act of 1990 (10 U.S.C. Section 2687
5-16 note) and its subsequent amendments.
5-17 (b) Each of the following acts of a defense base development
5-18 corporation is validated and confirmed as of the date it occurred:
5-19 (1) each act or proceeding of the corporation taken
5-20 before March 1, 2001;
5-21 (2) the election or appointment and each act of a
5-22 director or other official of the corporation who took office
5-23 before the effective date of this Act;
5-24 (3) each act or proceeding relating to a bond or other
5-25 obligation of the corporation authorized before the effective date
5-26 of this Act;
5-27 (4) the sale or transfer of real property; and
6-1 (5) each act or proceeding relating to the entity's
6-2 incorporation under the Development Corporation Act of 1979
6-3 (Article 5190.6, Vernon's Texas Civil Statutes).
6-4 (c) This section does not apply to:
6-5 (1) an act, proceeding, bond, or obligation the
6-6 validity of which is the subject of litigation that is pending on
6-7 the effective date of this Act;
6-8 (2) an election or appointment of a director or
6-9 official the validity of which is the subject of litigation that is
6-10 pending on the effective date of this Act;
6-11 (3) an act or proceeding that was void or that, under
6-12 a statute of this state at the time the action or proceeding
6-13 occurred, was a misdemeanor or felony; or
6-14 (4) an act or proceeding that has been held invalid by
6-15 a final judgment of a court.
6-16 SECTION 8. This Act takes effect immediately if it receives
6-17 a vote of two-thirds of all the members elected to each house, as
6-18 provided by Section 39, Article III, Texas Constitution. If this
6-19 Act does not receive the vote necessary for immediate effect, this
6-20 Act takes effect September 1, 2001.