By:  Madla                                            S.B. No. 1214
         2001S0684/1                            
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to authorizing defense base development authorities to
 1-3     enter into credit agreements and to create nonprofit airport
 1-4     facility financing corporations.
 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-6           SECTION 1.  Subsection (a), Section 378.004, Local Government
 1-7     Code, as added by Chapter 1221, Acts of the 76th Legislature,
 1-8     Regular Session, 1999, is amended to read as follows:
 1-9           (a)  An authority may exercise power necessary or convenient
1-10     to carry out a purpose of this chapter, including the power to:
1-11                 (1)  adopt an official seal, or alter it;
1-12                 (2)  adopt rules;
1-13                 (3)  enter into a contract or incur a liability;
1-14                 (4)  acquire and dispose of money;
1-15                 (5)  select a depository;
1-16                 (6)  establish a system of accounts for the authority;
1-17                 (7)  invest funds in accordance with Chapter 2256,
1-18     Government Code;
1-19                 (8)  set the fiscal year for the authority;
1-20                 (9)  adopt an annual operating budget for major
1-21     expenditures before the beginning of the fiscal year;
1-22                 (10)  borrow money or issue a bond in an amount that
1-23     does not exceed the maximum amount set by the governing body of the
1-24     municipality;
1-25                 (11)  loan money;
 2-1                 (12)  acquire, lease, lease-purchase, convey, grant a
 2-2     mortgage on, or otherwise dispose of a property right, including a
 2-3     right regarding base property;
 2-4                 (13)  lease property located on the base property to a
 2-5     person to effect the purposes of this chapter;
 2-6                 (14)  request and accept a donation, grant, guaranty,
 2-7     or loan from any source permitted by law;
 2-8                 (15)  operate and maintain an office;
 2-9                 (16)  charge for a facility or service; [and]
2-10                 (17)  exercise a power granted to a municipality by
2-11     Chapter 380;
2-12                 (18)  authorize by resolution the incorporation of a
2-13     nonprofit airport facility financing corporation as provided and
2-14     authorized by Subchapter E, Chapter 22, Transportation Code, to
2-15     provide financing to pay the costs, including interest, and
2-16     reserves for the costs of an airport facility authorized by that
2-17     said chapter and for other purposes set forth in the articles of
2-18     incorporation; and
2-19                 (19)  exercise the powers granted to a local government
2-20     for the financing of facilities to be located on airport property,
2-21     including those set out in Chapter 22, Transportation Code,
2-22     consistent with the requirements and the purposes of Section 52-a,
2-23     Article III, Texas Constitution.
2-24           SECTION 2.  Section 378.010, Local Government Code, is
2-25     amended by adding Subsection (c) to read as follows:
2-26           (c)  An authority issuing bonds under this section may
 3-1     exercise the powers granted to the governing body of an issuer with
 3-2     regard to the issuance of obligations and the execution of credit
 3-3     agreements under Chapter 1371, Government Code.
 3-4           SECTION 3.  This Act takes effect immediately if it receives
 3-5     a vote of two-thirds of all the members elected to each house, as
 3-6     provided by Section 39, Article III, Texas Constitution.  If this
 3-7     Act does not receive the vote necessary for immediate effect, this
 3-8     Act takes effect September 1, 2001.