S.B. No. 1724
 
 
 
 
AN ACT
  relating to abolishing the Texas Military Facilities Commission and
  transferring its functions to the adjutant general.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 431.018, Government Code, is amended to
  read as follows:
         Sec. 431.018.  MILITARY FACILITIES PROJECTS: MATCHING
  FEDERAL FUNDS.  If the governor, after consulting with the adjutant
  general [and the executive director of the Texas Military
  Facilities Commission], finds that the state is eligible for
  federal matching funds for projects at military facilities in this
  state, the governor may direct that money appropriated for the
  purpose be used to obtain the federal matching funds.
         SECTION 2.   Section 431.021, Government Code, is amended to
  read as follows:
         Sec. 431.021.  DEFINITIONS [DEFINITION].  In this
  subchapter:
               (1)  "Bond" includes a debenture or other evidence of
  indebtedness.
               (2)  "Department"[, "department"] means the adjutant
  general's department.
         SECTION 3.  Section 431.023, Government Code, is amended to
  read as follows:
         Sec. 431.023.  SUNSET PROVISION.  The adjutant general's
  department is subject to Chapter 325 (Texas Sunset Act).  Unless
  continued in existence as provided by that chapter, the department
  is abolished and this subchapter expires September 1, 2015 [2009].
         SECTION 4.  Section 431.030, Government Code, is amended to
  read as follows:
         Sec. 431.030.  REPORT OF MILITARY USE OF PROPERTY.  
  (a)  [Except as provided by Subsection (b), the adjutant general,
  for and on behalf of the state, may lease from the Texas Military
  Facilities Commission a building, its site, and the equipment in
  it, as provided by Section 435.023, for use as an armory or for
  another proper purpose. The adjutant general may renew the lease.
         [(b)     If adequate facilities for armory purposes are
  available for rental from the Texas Military Facilities Commission
  in or about a municipality, the adjutant general may not lease
  property in or about the municipality for those purposes from a
  person other than the commission.
         [(c)     If all or part of a state-owned Texas National Guard
  camp and the land, improvements, buildings, facilities,
  installations, and personal property connected with the camp are
  designated by the adjutant general as surplus or are in excess of
  the needs of the Texas National Guard or its successors or
  components, the adjutant general, for and on behalf of the state,
  may transfer the property to the Texas Military Facilities
  Commission for administration, sale, or other proper disposal.
  Before declaring property as surplus and transferring it to the
  commission, the adjutant general may remove, sever, dismantle, or
  exchange all or part of the property for the use and benefit of the
  Texas National Guard or its successors.
         [(d)     For the purposes of this section, "lease" includes
  "sublease."
         [(e)]  If the adjutant general receives notice from the asset
  management division of the General Land Office as provided by
  Section 31.156, Natural Resources Code, the adjutant general shall
  produce a report evaluating the military use of any real property
  under the management and control of the department [or the Texas
  National Guard Armory Board]. The adjutant general shall evaluate
  the use of the property as required by this subsection according to
  military criteria for use of real property.
         (b) [(f)]  Not later than August 1 of the year in which the
  Commissioner of the General Land Office submits a report as
  provided by Section 31.157, Natural Resources Code, the adjutant
  general shall submit a preliminary report of the report required
  under Subsection (a) [(e)] to the Commissioner of the General Land
  Office identifying the real property used for military purposes.
  Not later than September 1 of the year in which the Commissioner of
  the General Land Office submits a report as provided by Section
  31.157, Natural Resources Code, the adjutant general shall submit
  the report as required by Subsection (a) [(e)] to:
               (1)  the governor;
               (2)  the presiding officer of each house of the
  legislature;
               (3)  the Legislative Budget Board; and
               (4)  the governor's budget office.
         SECTION 5.   Subsection (c), Section 431.045, Government
  Code, is amended to read as follows:
         (c)  The governing body of a county or municipality, on
  behalf of the county or municipality, may donate to the adjutant
  general [Texas Military Facilities Commission], or to a unit for
  transfer to the adjutant general [that commission], land for use as
  a state military forces facility [site for an armory or other
  building suitable for use by a unit]. The donation may be in fee
  simple or otherwise.
         SECTION 6.   Sections 435.013, 435.014, 435.021, 435.022,
  435.023, 435.024, 435.025, 435.026, and 435.027, Government Code,
  are transferred to Subchapter B, Chapter 431, Government Code,
  redesignated respectively as Sections 431.0291, 431.0293,
  431.0301, 431.0302, 431.0303, 431.0304, 431.0305, 431.0306, and
  431.0361, Government Code, and amended to read as follows:
         Sec. 431.0291 [435.013].  GENERAL POWERS.  (a)  The
  adjutant general [commission] is the exclusive authority for the
  construction, repair, and maintenance of state military forces 
  [National Guard] armories, facilities, and improvements owned by
  the state located on department [commission] property. The
  adjutant general in this capacity [commission] is a public
  authority and a body politic and corporate and has all powers
  necessary for the acquisition, construction, rental, control,
  maintenance, operation, and disposition of state military forces 
  [Texas National Guard or Texas State Guard] facilities and real
  property, including all property and equipment necessary or useful
  in connection with the facilities.
         (b)  The adjutant general in this capacity [commission] may:
               (1)  sue and be sued;
               (2)  enter into contracts in connection with any matter
  within the adjutant general's [its] purposes or duties in this
  capacity; and
               (3)  have and use a corporate seal.
         Sec. 431.0293 [435.014].  PUBLIC COMMENT [HEARINGS].  The
  adjutant general [commission] shall develop and implement policies
  that provide the public with a reasonable opportunity to appear
  before the department [commission] and to speak on any issue
  related to the construction, repair, and maintenance of state
  military forces armories, facilities, and improvements under the
  jurisdiction of the adjutant general [commission].
         Sec. 431.0301 [435.021].  ACQUISITION; MANAGEMENT; PLEDGE
  OF RENTS, ISSUES, AND PROFITS.  (a)  The adjutant general
  [commission] by gift, lease, or purchase may acquire real and
  personal property, including leasehold estates in real property,
  for use for any purpose the adjutant general [commission] considers
  necessary in connection with the state military forces [Texas
  National Guard] or for the use of units of the state military forces 
  [Texas National Guard].
         (b)  The adjutant general [commission] by gift, purchase, or
  construction may acquire furniture and equipment suitable for
  facility purposes.
         (c)  The adjutant general [commission] may hold, manage,
  maintain, lease, or sell the [its] property and may pledge all or
  part of the rents, issues, and profits of the property.
         Sec. 431.0302 [435.022].  CONSTRUCTION; FURNISHING AND
  EQUIPMENT.  (a)  The adjutant general [commission] may construct
  buildings on department [its] real property, whether held in fee
  simple or otherwise. The adjutant general [commission] may furnish
  and equip the buildings.
         (b)  The adjutant general [commission] may construct a
  building on land comprising a state camp only on a site selected and
  described by a board of officers. The adjutant general shall select
  the officers from time to time for that purpose. The officers shall
  select and describe the site promptly after request by the
  [commission to the] adjutant general. [The site may not exceed
  200,000 square feet.] The officers shall certify the description
  [to the commission] and furnish a copy of it to the adjutant
  general, who shall preserve it in the adjutant general's office. If
  the adjutant general [commission] constructs a building on the site
  selected and described, the site becomes the property of the
  adjutant general [commission] for all purposes of this chapter as
  if the site had been acquired by gift to or purchase by the adjutant
  general [commission].
         (c)  If the construction is going to be financed by the
  issuance of revenue bonds, the adjutant general shall request the
  Texas Public Finance Authority to issue revenue bonds to pay for the
  construction.
         Sec. 431.0303 [435.023].  LEASE OF PROPERTY.  (a)  [The
  commission may execute and deliver a lease that leases to the state
  a building, its site, and the equipment in it. The adjutant general
  shall execute the lease for the state as provided by Section
  431.030. The commission shall determine a lawful term of the lease
  and may renew the lease from time to time.
         [(b)     The commission may make the annual rent charged the
  state under the lease payable in installments. The amount of the
  rent must be sufficient to:
               [(1)     provide for the operation and maintenance of the
  property;
               [(2)     pay the interest on, provide for the retirement
  of, and pay the expenses related to the issuance of, any bonds
  issued to acquire, construct, or equip the property; and
               [(3)     pay the commission's necessary expenses not
  otherwise provided for.
         [(c)]  The adjutant general [commission] may lease [the]
  property to any person under terms the adjutant general
  [commission] determines [if the state fails or refuses to:
               [(1)  lease the property;
               [(2)     renew an existing lease at the rent provided to be
  paid; or
               [(3)  pay the rent required in the lease].
         (b) [(d)]  The law requiring notice and competitive bids
  does not apply to a lease under this section.
         (c) [(e)]  For the purposes of this section the term "lease"
  includes "sublease."
         Sec. 431.0304 [435.024].  TRANSFER TO STATE.  When property
  that the Texas Public Finance Authority [commission] owns in
  accordance with Section 431.0307 is fully paid for and free of
  liens, and all obligations incurred in connection with the
  acquisition and construction of the property have been fully paid,
  the Texas Public Finance Authority [commission] may donate and
  transfer the property to the state by appropriate instruments of
  transfer. The instruments of transfer shall be kept in the custody
  of the adjutant general's department.
         Sec. 431.0305 [435.025].  DISPOSAL OF CERTAIN SURPLUS
  [COMMISSION] PROPERTY.  (a)  When property that the adjutant
  general [commission] owns or that is transferred to the state under
  Section 431.0304 is fully paid for and free of liens, and all
  obligations incurred in connection with the acquisition and
  construction of the property have been fully paid, the adjutant
  general [commission] may properly dispose of the property if:
               (1)  the property is designated by [the commission and]
  the adjutant general as surplus; and
               (2)  the disposal is in the best interests of the
  adjutant general [commission] and the state military forces [Texas
  National Guard] and its components or successors.
         (b)  [The commission may receive from the adjutant general a
  state-owned national guard camp and all the land, improvements, and
  personal property connected with it. The commission may:
               [(1)     administer the property with its other property;
  or
               [(2)  properly dispose of the property if:
                     [(A)     the property is designated by the commission
  and adjutant general as surplus; and
                     [(B)     the disposal is in the best interests of the
  Texas National Guard and its components or successors.
         [(c)]  To accomplish the purposes of Subsection (a)
  [Subsections (a) and (b)], the adjutant general [commission] may
  remove, dismantle, or sever any of the property or authorize its
  removal, dismantling, or severance.
         (c) [(d)]  If property under this section is designated for
  sale, the adjutant general [commission] shall sell it to the
  highest bidder for cash. The adjutant general [commission] may
  reject any or all bids.
         (d) [(e)]  If property under this section is designated for
  exchange, the adjutant general [commission] may exchange the
  property for one or more parcels of land equal to or exceeding the
  value of the [commission-owned] property to be exchanged by the
  adjutant general.
         (e)  A [(f)  Except as provided by Subsection (g)(1), a]
  sale, deed, or exchange made under this section must reserve to the
  state a one-sixteenth mineral interest free of cost of production.
         (f) [(g)]  The adjutant general [commission] may:
               (1)  reconvey to the original grantor or donor all
  rights, title, and interests, including mineral interests, to all
  or part of the land conveyed by that person; and
               (2)  convey to the original grantor or donor, on a
  negotiated basis at fair market value, improvements constructed on
  the land reconveyed.
         (g) [(h)]  The adjutant general [commission] shall deposit
  proceeds of sales under this section in the state treasury to the
  credit of the adjutant general [commission] for the use and benefit
  of the state military forces [Texas National Guard or its
  components or successors].
         Sec. 431.0306 [435.026].  TAX STATUS OF PROPERTY.  Property
  held by the adjutant general [commission] and rents, issues, and
  profits of the property are exempt from taxation by the state, a
  municipality, a county or other political subdivision, or a taxing
  district of the state.
         Sec. 431.0361 [435.027].  GRONER A. PITTS NATIONAL GUARD
  ARMORY.  The Texas National Guard armory located in Brownwood,
  Texas, is named the Groner A. Pitts National Guard Armory in honor
  of Groner A. Pitts.
         SECTION 7.  Section 435.041, Government Code, is transferred
  to Subchapter B, Chapter 431, Government Code, redesignated as
  Section 431.0292, Government Code, and amended to read as follows:
         Sec. 431.0292 [435.041].  BORROWING MONEY; ISSUING AND
  SELLING BONDS.  (a)  The department [commission] from time to time
  may borrow money under circumstances allowed by the Texas
  Constitution and may request the Texas Public Finance Authority, on
  behalf of the department [commission], to issue and sell fully
  negotiable bonds to acquire one or more building sites or buildings
  or to construct, remodel, repair, or equip one or more buildings.
         (b)  The Texas Public Finance Authority may sell the bonds in
  any manner it determines to be in the best interest of the
  department [commission], except that it may not sell a bond that has
  not been approved by the attorney general and registered with the
  comptroller. [The Texas Public Finance Authority is subject to all
  rights, duties, and conditions set forth in this subchapter with
  respect to the issuance of bonds by the commission, including the
  issuance of refunding bonds under Section 435.048.]
         SECTION 8.  Subchapter B, Chapter 431, Government Code, is
  amended by adding Section 431.0294 to read as follows:
         Sec. 431.0294.  REAL PROPERTY ADVISORY COMMITTEE.  (a)  The
  real property advisory committee is composed of the following seven
  members:
               (1)  two assistant adjutants general; and
               (2)  five public members who are not actively serving
  in the Texas National Guard and who have experience in
  architecture, construction management, engineering, property
  management, real estate services, or real property law.
         (b)  Members of the advisory committee are appointed by and
  serve at the will of the adjutant general.
         (c)  The adjutant general shall designate one of the public
  members of the advisory committee as the presiding officer of the
  advisory committee to serve in that capacity at the pleasure of the
  adjutant general.
         (d)  The committee shall meet at least two times each fiscal
  year to advise the adjutant general on:
               (1)  the facility master plan;
               (2)  the future year defense plan;
               (3)  the long range construction plan;
               (4)  the selection of architecture and engineering
  firms;
               (5)  requests for bonding authority for state military
  facilities;
               (6)  the disposal or sale of department property;
               (7)  surface leases of department property;
               (8)  natural resources management plans; and
               (9)  environmental studies and agreements.
         (e)  Each public member of the advisory committee is entitled
  to a per diem as provided by the General Appropriations Act for each
  day that the member engages in the business of the committee.
         (f)  Each member of the advisory committee is entitled to
  reimbursement for meals, lodging, transportation, and incidental
  expenses:
               (1)  under the rules for reimbursement that apply to
  the member's office or employment, if the member is a state officer
  or employee; or
               (2)  as provided by the General Appropriations Act if
  the member is not a state officer or employee.
         (g)  The advisory committee is not subject to Chapter 2110.
         SECTION 9.  Subchapter B, Chapter 431, Government Code, is
  amended by adding Section 431.0307 to read as follows:
         Sec. 431.0307.  PROPERTY FINANCED BY REVENUE BONDS.
  Notwithstanding any other provision of this chapter, property used
  by the state for military purposes that was acquired, constructed,
  remodeled, or repaired using money from revenue bonds and that has
  not yet been transferred under Section 431.0304 is owned by the
  Texas Public Finance Authority and a reference to the adjutant
  general in this chapter in relation to that ownership means the
  Texas Public Finance Authority until the property is transferred.
         SECTION 10.  Subsections (a) and (c), Section 109.47,
  Education Code, are amended to read as follows:
         (a)  The board may select and lease a portion of the campus to
  the Texas National Guard for the purpose of erecting an armory and
  other buildings suitable for use by the Texas National Guard. The
  board may enter into a lease contract with the adjutant general
  [Texas Military Facilities Commission] on terms which are suitable
  and satisfactory to the board for a term of not more than 99 years.
         (c)  The board may permit the adjutant general [Texas
  National Guard Armory Board] and the Texas National Guard and any of
  its subdivisions ingress upon and egress from the campus for the
  purpose of going to and from the armory and other buildings and the
  drill ground.
         SECTION 11.  Subsection (e), Section 31.156, Natural
  Resources Code, is amended to read as follows:
         (e)  In any year that the division will evaluate real
  property under the management and control of the adjutant general's
  department [or the Texas Military Facilities Commission], the
  division shall notify the department [and the commission] before
  the division begins the evaluation.
         SECTION 12.  Subsection (d), Section 31.157, Natural
  Resources Code, is amended to read as follows:
         (d)  If under the adjutant general's report submitted as
  provided by Section 431.030, Government Code, the adjutant general
  determines that real property under the management and control of
  the adjutant general's department [or the Texas Military Facilities
  Commission] is used for military purposes, the commissioner may not
  recommend a real estate transaction involving that real property in
  the final report submitted as provided by Subsection (e).
         SECTION 13.  Section 1232.101, Government Code, is amended
  to read as follows:
         Sec. 1232.101.  ISSUANCE OF BONDS FOR CERTAIN STATE
  AGENCIES. With respect to all bonds authorized to be issued by or
  on behalf of the adjutant general's department [Texas Military
  Facilities Commission], Texas National Research Laboratory
  Commission, Parks and Wildlife Department, Texas Low-Level
  Radioactive Waste Disposal Authority, Stephen F. Austin State
  University, Midwestern State University, and Texas Southern
  University, the authority has the exclusive authority to act on
  behalf of those entities in issuing bonds on their behalf. In
  connection with those issuances and with the issuance of refunding
  bonds on behalf of those entities, the authority is subject to all
  rights, duties, and conditions surrounding issuance previously
  applicable to the issuing entity under the statute authorizing the
  issuance. A reference in an authorizing statute to the entity on
  whose behalf the bonds are being issued applies equally to the
  authority in its capacity as issuer on behalf of the entity.
         SECTION 14.  Subchapter C, Chapter 1232, Government Code, is
  amended by adding Section 1232.1025 to read as follows:
         Sec. 1232.1025.  ISSUANCE OF BONDS FOR MILITARY FACILITIES.
  (a)  The board may issue and sell bonds in the name of the authority
  to finance the acquisition or construction of buildings to be used
  as state military forces facilities.
         (b)  After receiving a request under Section 431.0292 or
  431.0302(c), the board shall promptly issue and sell bonds in the
  name of the authority to provide the requested financing.
         (c)  The adjutant general shall accomplish its statutory
  authority as if the property or building were financed by
  legislative appropriation. The board and the adjutant general
  shall adopt a memorandum of understanding that defines the division
  of authority between the board and adjutant general.
         (d)  On completion of the acquisition or construction, the
  adjutant general shall lease the building from the authority.
         SECTION 15.  Sections 435.001, 435.002, 435.003, 435.004,
  435.0043, 435.0044, 435.0045, 435.005, 435.006, 435.007, 435.008,
  435.009, 435.0095, 435.010, 435.011, 435.012, 435.015, 435.016,
  435.017, 435.042, 435.043, 435.044, 435.045, 435.046, 435.047, and
  435.048, Government Code, are repealed.
         SECTION 16.  The headings to Subchapters A, B, and C, Chapter
  435, Government Code, are repealed.
         SECTION 17.  (a)  The Texas Military Facilities Commission
  is abolished. Subject to Section 431.0307, Government Code, as
  added by this Act, all powers, duties, obligations, rights,
  contracts, bonds, appropriations, records, real or personal
  property, and personnel of the Texas Military Facilities Commission
  are transferred to the adjutant general.
         (b)  A rule, policy, procedure, or decision of the Texas
  Military Facilities Commission continues in effect as a rule,
  policy, procedure, or decision of the adjutant general until
  superseded by an act of the adjutant general.
         (c)  A reference in another law to the Texas Military
  Facilities Commission means the adjutant general.
         (d)  The adjutant general and the Texas Public Finance
  Authority shall if necessary adopt a memorandum of understanding
  under which an item or matter transferred under Subsection (a) of
  this section is transferred to the Texas Public Finance Authority.
         SECTION 18.   This Act takes effect September 1, 2007.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1724 passed the Senate on
  April 18, 2007, by the following vote: Yeas 31, Nays 0; and that
  the Senate concurred in House amendment on May 25, 2007, by the
  following vote: Yeas 30, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1724 passed the House, with
  amendment, on May 23, 2007, by the following vote: Yeas 144,
  Nays 0, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor