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.