By Hawley H.B. No. 2040
77R522 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) Except as provided by
2-12 Section 378.0075, the [The] board consists of 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) The board consists of nine members. Each board member
3-14 serves a two-year term and is appointed as follows:
3-15 (1) the county shall appoint three members;
3-16 (2) junior colleges located in whole or in part in the
3-17 county, if any, jointly shall appoint three members; and
3-18 (3) the municipality that established the authority
3-19 shall appoint:
3-20 (A) three members, if the county in which the
3-21 authority is located contains a junior college; or
3-22 (B) six members, if the county in which the
3-23 authority is located does not contain a junior college.
3-24 (d) The entity that appoints a board member may remove a
3-25 board member by adopting a resolution or order, as appropriate.
3-26 (e) Sections 378.007(a), (c), and (e) do not apply to an
3-27 authority to which this section applies.
4-1 SECTION 5. Section 378.010, Local Government Code, as added
4-2 by Chapter 1221, Acts of the 76th Legislature, Regular Session,
4-3 1999, is amended to read as follows:
4-4 Sec. 378.010. BONDS; CERTIFICATES OF OBLIGATION. (a) An
4-5 authority may issue bonds only if the municipality that established
4-6 the authority:
4-7 (1) has a population of 50,000 or more; and
4-8 (2) authorizes the issuance by resolution.
4-9 (b) A bond issued under this chapter must:
4-10 (1) be payable solely from authority revenue;
4-11 (2) mature not later than 40 years after its date of
4-12 issuance; and
4-13 (3) state on its face that it is not an obligation of
4-14 this state or the municipality.
4-15 (c) An authority may issue a certificate of obligation.
4-16 SECTION 6. (a) For purposes of this section, a "defense
4-17 base development corporation" means a corporation established under
4-18 the Development Corporation Act of 1979 (Article 5190.6, Vernon's
4-19 Texas Civil Statutes) for the purpose of promoting projects
4-20 regarding a military base closure or realignment under the Defense
4-21 Base Closure and Realignment Act of 1990 (10 U.S.C. Section 2687
4-22 note) and its subsequent amendments.
4-23 (b) Each of the following acts of a defense base development
4-24 corporation is validated and confirmed as of the date it occurred:
4-25 (1) each act or proceeding of the corporation taken
4-26 before March 1, 2001;
4-27 (2) the election or appointment and each act of a
5-1 director or other official of the corporation who took office
5-2 before the effective date of this Act;
5-3 (3) each act or proceeding relating to a bond or other
5-4 obligation of the corporation authorized before the effective date
5-5 of this Act;
5-6 (4) the sale or transfer of real property; and
5-7 (5) each act or proceeding relating to the entity's
5-8 incorporation under the Development Corporation Act of 1979
5-9 (Article 5190.6, Vernon's Texas Civil Statutes).
5-10 (c) This section does not apply to:
5-11 (1) an act, proceeding, bond, or obligation the
5-12 validity of which is the subject of litigation that is pending on
5-13 the effective date of this Act;
5-14 (2) an election or appointment of a director or
5-15 official the validity of which is the subject of litigation that is
5-16 pending on the effective date of this Act;
5-17 (3) an act or proceeding that was void or that, under
5-18 a statute of this state at the time the action or proceeding
5-19 occurred, was a misdemeanor or felony; or
5-20 (4) an act or proceeding that has been held invalid by
5-21 a final judgment of a court.
5-22 SECTION 7. This Act takes effect immediately if it receives
5-23 a vote of two-thirds of all the members elected to each house, as
5-24 provided by Section 39, Article III, Texas Constitution. If this
5-25 Act does not receive the vote necessary for immediate effect, this
5-26 Act takes effect September 1, 2001.