1-1                                   AN ACT
 1-2     relating to the financing and disposition of certain airport and
 1-3     air navigation facilities.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subsection (a), Section 378.004, Local Government
 1-6     Code, as added by Chapter 1221, Acts of the 76th Legislature,
 1-7     Regular Session, 1999, is amended to read as follows:
 1-8           (a)  An authority may exercise power necessary or convenient
 1-9     to carry out a purpose of this chapter, including the power to:
1-10                 (1)  adopt an official seal, or alter it;
1-11                 (2)  adopt rules;
1-12                 (3)  enter into a contract or incur a liability;
1-13                 (4)  acquire and dispose of money;
1-14                 (5)  select a depository;
1-15                 (6)  establish a system of accounts for the authority;
1-16                 (7)  invest funds in accordance with Chapter 2256,
1-17     Government Code;
1-18                 (8)  set the fiscal year for the authority;
1-19                 (9)  adopt an annual operating budget for major
1-20     expenditures before the beginning of the fiscal year;
1-21                 (10)  borrow money or issue a bond in an amount that
1-22     does not exceed the maximum amount set by the governing body of the
1-23     municipality;
1-24                 (11)  loan money;
1-25                 (12)  acquire, lease, lease-purchase, convey, grant a
 2-1     mortgage on, or otherwise dispose of a property right, including a
 2-2     right regarding base property;
 2-3                 (13)  lease property located on the base property to a
 2-4     person to effect the purposes of this chapter;
 2-5                 (14)  request and accept a donation, grant, guaranty,
 2-6     or loan from any source permitted by law;
 2-7                 (15)  operate and maintain an office;
 2-8                 (16)  charge for a facility or service; [and]
 2-9                 (17)  exercise a power granted to a municipality by
2-10     Chapter 380;
2-11                 (18)  authorize by resolution the incorporation of a
2-12     nonprofit airport facility financing corporation as provided and
2-13     authorized by Subchapter E, Chapter 22, Transportation Code, to
2-14     provide financing to pay the costs, including interest, and
2-15     reserves for the costs of an airport facility authorized by that
2-16     chapter and for other purposes set forth in the articles of
2-17     incorporation; and
2-18                 (19)  exercise the powers granted to a local government
2-19     for the financing of facilities to be located on airport property,
2-20     including those set out in Chapter 22, Transportation Code,
2-21     consistent with the requirements and the purposes of Section 52-a,
2-22     Article III, Texas Constitution.
2-23           SECTION 2.  Section 378.010, Local Government Code, is
2-24     amended by adding Subsection (c) to read as follows:
2-25           (c)  An authority issuing bonds under this section may
2-26     exercise the powers granted to the governing body of an issuer with
 3-1     regard to the issuance of obligations and the execution of credit
 3-2     agreements under Chapter 1371, Government Code.
 3-3           SECTION 3.  Section 22.024, Transportation Code, is amended
 3-4     by adding Subsection (d) to read as follows:
 3-5           (d)  Notwithstanding Subsection (a), the competitive bidding
 3-6     requirements of Chapters 252 and 272, Local Government Code, do not
 3-7     apply to an exchange, sale, lease, or other disposition of land or
 3-8     other real property interest by a municipality if:
 3-9                 (1)  the land or other property interest is part of an
3-10     air navigation facility that is a former military installation; and
3-11                 (2)  the disposition:
3-12                       (A)  is part of a plan to redevelop the facility
3-13     as an airport-related industrial park or community; and
3-14                       (B)  promotes the best interest of the
3-15     municipality.
3-16           SECTION 4.  This Act takes effect immediately if it receives
3-17     a vote of two-thirds of all the members elected to each house, as
3-18     provided by Section 39, Article III, Texas Constitution.  If this
3-19     Act does not receive the vote necessary for immediate effect, this
3-20     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 1214 passed the Senate on
         May 8, 2001, by the following vote:  Yeas 28, Nays 0, one present,
         not voting.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 1214 passed the House on
         May 23, 2001, by the following vote:  Yeas 145, Nays 0, two
         present, not voting.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor