1-1 By: Hawley (Senate Sponsor - Zaffirini) H.B. No. 2040
1-2 (In the Senate - Received from the House April 30, 2001;
1-3 May 1, 2001, read first time and referred to Committee on Veteran
1-4 Affairs and Military Installations; May 10, 2001, reported
1-5 favorably by the following vote: Yeas 4, Nays 0; May 10, 2001,
1-6 sent to printer.)
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to defense base development authorities created by certain
1-10 municipalities.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 378.006, Local Government Code, as added
1-13 by Chapter 1221, Acts of the 76th Legislature, Regular Session,
1-14 1999, is amended to read as follows:
1-15 Sec. 378.006. UTILITIES FOR AUTHORITIES CREATED IN POPULOUS
1-16 MUNICIPALITY. (a) This section applies only to an authority
1-17 created by a municipality with a population of 50,000 or more.
1-18 (b) An authority may accept an electric, gas, potable water,
1-19 or sanitary sewage utility conveyed by the United States but may
1-20 not operate it.
1-21 (c) [(b)] An authority shall convey a utility received under
1-22 Subsection (a) to the municipality that established the authority.
1-23 The municipality shall pay the authority fair market value for the
1-24 utility.
1-25 (d) [(c)] If state or federal law prohibits the operation or
1-26 ownership of the utility by the municipality, the municipality
1-27 shall convey the utility to an entity that may operate it. The
1-28 municipality may charge fair market value for the conveyance.
1-29 SECTION 2. Chapter 378, Local Government Code, as added by
1-30 Chapter 1221, Acts of the 76th Legislature, Regular Session, 1999,
1-31 is amended by adding Section 378.0065 to read as follows:
1-32 Sec. 378.0065. UTILITIES FOR AUTHORITIES CREATED IN LESS
1-33 POPULOUS MUNICIPALITY. (a) This section applies only to an
1-34 authority created by a municipality with a population of less than
1-35 50,000.
1-36 (b) An authority may own an electric, sewer service, or
1-37 water supply utility and may sell those utility services to a
1-38 person who leases real property from the authority.
1-39 SECTION 3. Section 378.007, Local Government Code, as added
1-40 by Chapter 1221, Acts of the 76th Legislature, Regular Session,
1-41 1999, is amended to read as follows:
1-42 Sec. 378.007. BOARD OF DIRECTORS. (a) The board consists of
1-43 11 members.
1-44 (b) The board [and] is responsible for the management,
1-45 operation, and control of the authority.
1-46 (c) [(b)] The governing body of the municipality that
1-47 established the authority shall appoint each board member to a term
1-48 not exceeding two years.
1-49 (d) A vacancy on the board is filled in the same manner as
1-50 the original appointment.
1-51 (e) [(c)] The municipality may remove a board member by
1-52 adopting a resolution.
1-53 (f) [(d)] The members of the board shall elect from its
1-54 membership a president, vice president, secretary, and treasurer.
1-55 The board by rule may provide for the election of other officers.
1-56 (g) [(e)] A board member serves without compensation but may
1-57 be reimbursed for a reasonable and necessary expense incurred in
1-58 the performance of an official duty.
1-59 (h) [(f)] The board shall adopt rules for its proceedings
1-60 and may employ and compensate persons to carry out the powers and
1-61 duties of the authority.
1-62 SECTION 4. Chapter 378, Local Government Code, as added by
1-63 Chapter 1221, Acts of the 76th Legislature, Regular Session, 1999,
1-64 is amended by adding Section 378.0075 to read as follows:
2-1 Sec. 378.0075. ADDITIONAL REQUIREMENTS FOR BOARD OF
2-2 DIRECTORS CREATED IN LESS POPULOUS MUNICIPALITY. (a) In this
2-3 section, "county" means the county in which the majority of the
2-4 municipality that created the authority is located.
2-5 (b) This section applies only to an authority created by a
2-6 municipality with a population of less than 50,000.
2-7 (c) Each board member serves a two-year term and is
2-8 appointed as follows:
2-9 (1) the county shall appoint four members, including a
2-10 member of the county's governing body;
2-11 (2) junior colleges located in whole or in part in the
2-12 county, if any, jointly shall appoint three members; and
2-13 (3) the municipality that established the authority
2-14 shall appoint:
2-15 (A) four members, including a member of the
2-16 municipality's governing body, if the county in which the authority
2-17 is located contains a junior college; or
2-18 (B) seven members, including a member of the
2-19 municipality's governing body, if the county in which the authority
2-20 is located does not contain a junior college.
2-21 (d) The entity that appoints a board member may remove a
2-22 board member by adopting a resolution or order, as appropriate.
2-23 (e) Sections 378.007(c) and (e) do not apply to an authority
2-24 to which this section applies.
2-25 SECTION 5. Section 378.012, Local Government Code, as added
2-26 by Chapter 1221, Acts of the 76th Legislature, Regular Session,
2-27 1999, is amended to read as follows:
2-28 Sec. 378.012. DISSOLUTION FOR AUTHORITIES CREATED IN
2-29 POPULOUS MUNICIPALITY. (a) This section applies only to an
2-30 authority created by a municipality with a population of 50,000 or
2-31 more.
2-32 (b) The governing body of a municipality that established
2-33 the authority by resolution may dissolve the authority after all
2-34 debts or obligations of the authority have been satisfied.
2-35 (c) Property of the authority that remains after dissolution
2-36 is conveyed to the municipality.
2-37 SECTION 6. Chapter 378, Local Government Code, as added by
2-38 Chapter 1221, Acts of the 76th Legislature, Regular Session, 1999,
2-39 is amended by adding Section 378.013 to read as follows:
2-40 Sec. 378.013. DISSOLUTION FOR AUTHORITIES CREATED IN LESS
2-41 POPULOUS MUNICIPALITY. (a) In this section, "county" means the
2-42 county in which the majority of the municipality that created the
2-43 authority is located.
2-44 (b) This section applies only to an authority created by a
2-45 municipality with a population of less than 50,000.
2-46 (c) The authority may be dissolved if:
2-47 (1) all debts or obligations of the authority have
2-48 been satisfied; and
2-49 (2) the dissolution is authorized by order or
2-50 resolution of:
2-51 (A) the governing body of the municipality that
2-52 established the authority;
2-53 (B) the county; and
2-54 (C) each junior college in the county, if the
2-55 county in which the authority is located contains a junior college.
2-56 (d) Property of the authority that remains after dissolution
2-57 is conveyed to the municipality.
2-58 SECTION 7. (a) For purposes of this section, a "defense
2-59 base development corporation" means a corporation established under
2-60 the Development Corporation Act of 1979 (Article 5190.6, Vernon's
2-61 Texas Civil Statutes) for the purpose of promoting projects
2-62 regarding a military base closure or realignment under the Defense
2-63 Base Closure and Realignment Act of 1990 (10 U.S.C. Section 2687
2-64 note) and its subsequent amendments.
2-65 (b) Each of the following acts of a defense base development
2-66 corporation is validated and confirmed as of the date it occurred:
2-67 (1) each act or proceeding of the corporation taken
2-68 before March 1, 2001;
2-69 (2) the election or appointment and each act of a
3-1 director or other official of the corporation who took office
3-2 before the effective date of this Act;
3-3 (3) each act or proceeding relating to a bond or other
3-4 obligation of the corporation authorized before the effective date
3-5 of this Act;
3-6 (4) the sale or transfer of real property; and
3-7 (5) each act or proceeding relating to the entity's
3-8 incorporation under the Development Corporation Act of 1979
3-9 (Article 5190.6, Vernon's Texas Civil Statutes).
3-10 (c) This section does not apply to:
3-11 (1) an act, proceeding, bond, or obligation the
3-12 validity of which is the subject of litigation that is pending on
3-13 the effective date of this Act;
3-14 (2) an election or appointment of a director or
3-15 official the validity of which is the subject of litigation that is
3-16 pending on the effective date of this Act;
3-17 (3) an act or proceeding that was void or that, under
3-18 a statute of this state at the time the action or proceeding
3-19 occurred, was a misdemeanor or felony; or
3-20 (4) an act or proceeding that has been held invalid by
3-21 a final judgment of a court.
3-22 SECTION 8. This Act takes effect immediately if it receives
3-23 a vote of two-thirds of all the members elected to each house, as
3-24 provided by Section 39, Article III, Texas Constitution. If this
3-25 Act does not receive the vote necessary for immediate effect, this
3-26 Act takes effect September 1, 2001.
3-27 * * * * *