80R4657 BEF-F
 
  By: Ogden S.B. No. 1724
 
 
 
   
 
 
A BILL TO BE ENTITLED
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.   Section 431.045(c), 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, 431.0292,
431.0301, 431.0302, 431.0303, 431.0304, 431.0305, 431.0306, and
431.0361, 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. 431.0292 [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 adjutant general [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.  Subchapter B, Chapter 431, Government Code, is
amended by adding Section 431.0293 to read as follows:
       Sec. 431.0293.  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 8.  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, including a building site or
building, that was acquired, constructed, remodeled, or repaired
using money from revenue bonds issued by the Texas Public Finance
Authority, or by the Texas Military Facilities Commission or its
predecessor in function, 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.
       SECTION 9.  Sections 109.47(a) and (c), 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 10.  Section 31.156(e), 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 11.  Section 31.157(d), 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 12.  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 the
[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 13.  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 431.0302(c),
the board shall promptly issue and sell bonds in the name of the
authority under this chapter to finance the acquisition or
construction of a building that has been authorized in accordance
with this chapter.
       (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 14.  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,
and 435.017, Government Code, are repealed.
       SECTION 15.  Subchapter C, Chapter 435, Government Code, is
repealed.
       SECTION 16.  (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 17.   This Act takes effect September 1, 2007.