89R17736 JTZ-F

By: Tepper H.B. No. 5092

A BILL TO BE ENTITLED

AN ACT

relating to the operation and dissolution of the Lubbock Reese Redevelopment Authority and to agreements between Texas Tech University and the authority.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 3501.001, Special District Local Laws Code, is amended by adding Subdivisions (5) and (6) to read as follows:

(5) "Critical infrastructure" has the meaning assigned by Section 117.001, Business & Commerce Code.

(6) "National security-related technology" means technology that is:

(A) researched or developed in collaboration with Texas Tech University for a use related to national security by the United States Department of Defense, the United States Department of Defense's component services and agencies, the United States Department of Energy, the United States Department of Homeland Security, or another collaborating partner in the public or private sector; and

(B) used in qualified research, as defined by Section 151.3182, Tax Code.

SECTION 2. Section 3501.003(a), Special District Local Laws Code, is amended to read as follows:

(a) The purpose of the authority is to:

(1) undertake projects necessary or incidental to the industrial, commercial, or business development, redevelopment, maintenance, and expansion of new and existing businesses on the property, now or formerly known as Reese Air Force Base, described in Section 3501.002(a), and to research related to national security and critical infrastructure conducted on the property, including the acquisition, construction, operation, maintenance, enhancement, or disposal of:

(A) roads, bridges, and rights-of-way;

(B) housing;

(C) property;

(D) police, fire, medical, cultural, educational, and research services, equipment, institutions, and resources;

(E) other community support services;

(F) flood control, water, wastewater treatment, and all other utility facilities; and

(G) other infrastructure improvements;

(2) encourage the development of new industry by private businesses; [and]

(3) encourage financing of projects designated under Section 3501.1024; and

(4) facilitate the establishment of an applied research site in cooperation and collaboration with Texas Tech University.

SECTION 3. Sections 3501.004(c) and (d), Special District Local Laws Code, are amended to read as follows:

(c) Tangible personal property that is used primarily to develop national security-related technology or critical infrastructure technology, tangible personal property that is national security-related technology or critical infrastructure technology, or a [A] commercial aircraft to be used as an instrument of commerce that is under construction or development, as applicable, in the authority is presumed to be in interstate, international, or foreign commerce and not located in this state for longer than a temporary period for purposes of Sections 11.01 and 21.02, Tax Code.

(d) Tangible personal property located in the authority is presumed to be in interstate, international, or foreign commerce and not located in this state for longer than a temporary period for purposes of Sections 11.01 and 21.02, Tax Code, if the owner demonstrates to the chief appraiser for the appraisal district in which the authority is located that the owner intends to incorporate the property into or attach the property to tangible personal property described by Subsection (c) or a commercial aircraft described by Subsection (c).

SECTION 4. Section 3501.005(a), Special District Local Laws Code, is amended to read as follows:

(a) In this section, "qualifying project" means any real estate project involving the construction of:

(1) a tenant finish-out or build-to-suit facility for a tenant who, through the execution of a lease with the authority, pays for or reimburses the authority for the cost of the improvements;

(2) infrastructure improvements including roads, driveways, or utility extensions made in connection with the sale or lease of property owned by the authority and for which the proceeds of the sale or the lease are used to reimburse the authority for the infrastructure improvements; or

(3) an income-producing facility that generates revenue for the authority and is constructed by:

(A) a private developer with special expertise in development; or

(B) an entity whose purpose is to support the research and development of national security-related technology or critical infrastructure technology or services in collaboration with Texas Tech University.

SECTION 5. Section 3501.051, Special District Local Laws Code, is amended to read as follows:

Sec. 3501.051. COMPOSITION OF BOARD. (a) The board is composed of:

(1) six [five] directors appointed in the manner provided by Subsection (b) [by the governing body of the City of Lubbock from a list of persons recommended by the board under this section]; and

(2) [one director appointed by the commissioners court of Lubbock County from a list of persons recommended by the board under this section; and

[(3)] the executive director of the South Plains Association of Governments.

(b) Before the term of an appointed [a] director [appointed under Subsection (a)(1) or (a)(2)] expires, the board, in consultation with the president of Texas Tech University, or the president's designee [City of Lubbock or Lubbock County, as applicable, shall recommend to the governing body of the City of Lubbock or the commissioners court of Lubbock County, as applicable, a list of persons to serve on the succeeding board. After reviewing the list of recommendations, the governing body of the City of Lubbock or the commissioners court of Lubbock County, as applicable], shall appoint a person to serve as a successor director [the appropriate number of directors from the recommended persons, or request that the board provide additional recommendations].

(c) The [governing body of the City of Lubbock, the commissioners court of Lubbock County, or the] board [, as appropriate,] shall make [recommendations and] appointments of successor directors to the board so that places on the board are occupied by persons with experience in:

(1) real estate;

(2) finance;

(3) manufacturing;

(4) agriculture; and

(5) national security-related technology or critical infrastructure technology [general business].

SECTION 6. Section 3501.102(b), Special District Local Laws Code, is amended to read as follows:

(b) The authority may exercise[, on approval by and in coordination with the governor,] any power necessary or convenient to accomplish a purpose of this chapter, including the power to:

(1) sue and be sued, and plead and be impleaded, in its own name;

(2) adopt an official seal;

(3) adopt and enforce bylaws and rules for the conduct of its affairs;

(4) acquire, hold, own, and dispose of its revenue, income, receipts, and money from any source;

(5) select its depository;

(6) establish its fiscal year;

(7) adopt an annual operating budget for all major expenditures before the beginning of the fiscal year;

(8) establish a system of accounts for the authority;

(9) invest its money in accordance with Chapter 2256, Government Code;

(10) acquire, hold, own, use, rent, lease, or dispose of any property, including a license, patent, right, right-of-way, easement, and other interest in property, by purchase, exchange, gift, assignment, condemnation, lease, sale, or any other means, to perform a duty or to exercise a power under this chapter;

(11) manage, operate, or improve that property, to perform a duty or to exercise a power under this chapter;

(12) sell, assign, lease, encumber, mortgage, or otherwise dispose of any base property, or any interest in that property, release or relinquish any right, title, claim, lien, interest, easement, or demand, however acquired, and, notwithstanding any other law, conduct any transaction authorized by this subdivision by public or private sale;

(13) lease or rent any land, buildings, structures, or facilities located on the base property to any person to accomplish the purposes of this chapter;

(14) request and accept any appropriation, grant, allocation, subsidy, guarantee, aid, service, labor, material, gift, or money from any source, including the federal government, the state, a public agency, and a political subdivision;

(15) maintain an office;

(16) appoint and determine the duties, tenure, qualifications, compensation, and removal of officers, employees, agents, professional advisors, and counselors, including financial consultants, accountants, attorneys, architects, engineers, appraisers, and financing experts, as considered necessary or advisable by the board;

(17) borrow money as necessary to acquire, improve, or operate a facility on the base property, not to exceed the amount determined by the board;

(18) establish, impose, and collect rents, rates, fees, and charges for its facilities and services;

(19) exercise the powers Chapter 380, Local Government Code, grants to a municipality for expansion of economic development and commercial activity;

(20) lend money for a purpose authorized by Section 52-a, Article III, Texas Constitution;

(21) authorize by resolution the incorporation of a nonprofit airport facility financing corporation in the manner provided by Subchapter E, Chapter 22, Transportation Code, for the purposes provided by Section 22.152(a), Transportation Code;

(22) exercise the powers granted to a local government for the financing of facilities to be located on airport property, including powers granted by Chapter 22, Transportation Code, consistent with the requirements and the purposes of Section 52-a, Article III, Texas Constitution;

(23) lease, own, and operate an airport and exercise the powers granted to municipalities and counties by Chapter 22, Transportation Code;

(24) lease, own, and operate port facilities for air, truck, and rail transportation;

(25) provide security for port functions, facilities, and operations;

(26) cooperate with and participate in programs and critical infrastructure and national security efforts of this state and the United States Department of Defense, the component services and agencies of the United States Department of Defense, the United States Department of Energy, the United States Department of Homeland Security, or another collaborating partner in the public or private sector; [and]

(27) participate as a member or partner of a limited liability company, a limited liability partnership, or other entity organized to finance a project designated as a redevelopment project under Section 3501.1024; and

(28) enter into interagency agreements with Texas Tech University in the manner provided by Chapter 771, Government Code, as necessary to:

(A) facilitate and support Texas Tech University research and development activities on base property; or

(B) facilitate the transfer of portions of the base property to Texas Tech University to further a purpose of the authority.

SECTION 7. Subchapter D, Chapter 3501, Special District Local Laws Code, is amended to read as follows:

SUBCHAPTER D. TRANSFER OF OWNERSHIP; DISSOLUTION

Sec. 3501.151. LEGISLATIVE INTENT. (a) The legislature intends that the authority transfer ownership of portions of the base property to Texas Tech University in a manner authorized by this chapter as necessary for the purposes of an agreement described by Section 3501.102(b)(28). The agreement may provide for the continued operation of the authority after the transfer.

(b) The legislature intends that the authority be dissolved under Section 3501.152 after conveyance or transfer [and sale] of all of the base property.

Sec. 3501.152. DISSOLUTION [DUTY TO DISSOLVE]. [(a)] The authority may [shall] be dissolved only [on approval of the City of Lubbock and Lubbock County]:

(1) when the board determines that all the functions of the authority are performed and completed; [and]

(2) after all debts or obligations have been satisfied or retired with the assets of the authority; and

(3) after [.

[(b) On dissolution,] any remaining real property and other assets of the authority have been [shall be] conveyed or transferred to:

(A) Texas Tech University, if approved by the Board of Regents of the Texas Tech University System; or

(B) if Texas Tech University declines to accept any remaining real property and other assets of the authority, to the City of Lubbock [and Lubbock County in proportion to any initial contribution of money made].

SECTION 8. Subchapter C, Chapter 109, Education Code, is amended by adding Section 109.105 to read as follows:

Sec. 109.105. APPLIED RESEARCH SITE AT FORMER REESE AIR FORCE BASE. A facility transferred to Texas Tech University from the Lubbock Reese Redevelopment Authority under Chapter 3501, Special District Local Laws Code, is not required to be included in a facilities inventory audit under Subchapter C, Chapter 61, Education Code, and is not subject to the facilities inventory rules of the Texas Higher Education Coordinating Board until the facility is placed in service and assigned an educational or generation function by the university.

SECTION 9. The changes in law made by this Act to Section 3501.051, Special District Local Laws Code, do not affect the entitlement of a member serving on the board of directors of the Lubbock Reese Redevelopment Authority immediately before the effective date of this Act to continue to carry out the board's functions for the remainder of the member's term. The change in law applies only to a member appointed on or after the effective date of this Act. This Act does not prohibit a person who is a member of the board on the effective date of this Act from being reappointed to the board if the person has the qualifications required for a member under Section 3501.051(c), Special District Local Laws Code, as amended by this Act.

SECTION 10. This Act takes effect September 1, 2025.