2005 Texas Local Government Code CHAPTER 379B. DEFENSE BASE DEVELOPMENT AUTHORITIES

LOCAL GOVERNMENT CODE

CHAPTER 379B. DEFENSE BASE DEVELOPMENT AUTHORITIES


	§ 379B.001. DEFINITIONS.  In this chapter:                                  
		(1)  "Authority" means a defense base development 
authority established under this chapter.
		(2)  "Base efficiency project" means a demonstration 
project between a municipality and the United States Department of 
Defense to evaluate and demonstrate methods for more efficient 
operation of military installations through improved capital asset 
management and greater reliance on the public or private sector for 
less costly base support services and to improve mission 
effectiveness and reduce the cost of providing quality installation 
support at military facilities under Pub. L. No. 106-246 or other 
applicable federal laws.
		(3)  "Base property" means land inside the boundaries 
of the defense base for which the authority is established and 
improvements and personal property on that land.
		(4)  "Board" means the board of directors of the 
authority.                 
		(5)  "Bond" means an interest-bearing obligation 
issued by an authority under this chapter, including a bond, 
certificate, note, or other evidence of indebtedness.
		(6)  "Defense base" means a military installation or 
facility that is:      
			(A)  closed or realigned under the Defense Base 
Closure and Realignment Act of 1990 (10 U.S.C. Section 2687 note) 
and its subsequent amendments;  or
			(B)  the subject of a base efficiency project.                               

Added by Acts 1999, 76th Leg., ch. 1221, § 1, eff. Aug. 30, 1999.  
Amended by Acts 2001, 77th Leg., ch. 257, § 1, eff. Sept. 1, 
2001.  Renumbered from V.T.C.A., Local Government Code § 378.001 
by Acts 2003, 78th Leg., ch. 1275, § 2(108), eff. Sept. 1, 2003.


	§ 379B.002. ESTABLISHMENT;  SUCCESSOR.  (a) A 
municipality by resolution may establish an authority.  The 
resolution must include a legal description of the base property.  
On adoption of the resolution, the authority is established as a 
special district and political subdivision of this state, with a 
boundary coterminous with the base property described in the 
resolution.
	(b)  When establishing an authority, the municipality may 
designate the authority in the municipality's resolution to be the 
successor in interest to a nonprofit corporation organized under 
the Development Corporation Act of 1979 (Article 5190.6, Vernon's 
Texas Civil Statutes). On adoption of the resolution, the 
corporation is dissolved and the authority succeeds to all rights 
and liabilities of that corporation.

Added by Acts 1999, 76th Leg., ch. 1221, § 1, eff. Aug. 30, 1999.  
Renumbered from V.T.C.A., Local Government Code § 378.002 by 
Acts 2003, 78th Leg., ch. 1275, § 2(108), eff. Sept. 1, 2003.


	§ 379B.003. PURPOSE AND NATURE OF AUTHORITY.  (a) An 
authority is created to:
		(1)  accept title to or operate under a lease from the 
United States or any other person all or a part of the base property 
and areas around the base property and engage in the economic 
development of the base property and areas around the base 
property;  or
		(2)  carry out a base efficiency project.                                     
	(b)  An authority created under Subsection (a)(2) may not 
operate a defense base that has been closed or realigned under the 
Defense Base Closure and Realignment Act of 1990 (10 U.S.C. Section 
2687 note) and its subsequent amendments.
	(c)  An authority exercises public and essential 
governmental functions.     

Added by Acts 1999, 76th Leg., ch. 1221, § 1, eff. Aug. 30, 1999.  
Amended by Acts 2001, 77th Leg., ch. 257, § 2, eff. Sept. 1, 
2001.  Renumbered from V.T.C.A., Local Government Code § 378.003 
by Acts 2003, 78th Leg., ch. 1275, § 2(108), eff. Sept. 1, 2003.


	§ 379B.004. POWERS AND DUTIES OF AUTHORITY.  (a) An 
authority may exercise power necessary or convenient to carry out a 
purpose of this chapter, including the power to:
		(1)  adopt an official seal, or alter it;                                     
		(2)  adopt rules;                                                             
		(3)  enter into a contract or incur a liability;                              
		(4)  acquire and dispose of money;                                            
		(5)  select a depository;                                                     
		(6)  establish a system of accounts for the authority;                        
		(7)  invest funds in accordance with Chapter 2256, 
Government Code;         
		(8)  set the fiscal year for the authority;                                   
		(9)  adopt an annual operating budget for major 
expenditures before the beginning of the fiscal year;
		(10)  borrow money or issue a bond in an amount that 
does not exceed the maximum amount set by the board;
		(11)  loan money;                                                             
		(12)  acquire, lease, lease-purchase, convey, grant a 
mortgage on, or otherwise dispose of a property right, including a 
right regarding base property;
		(13)  lease property located on the base property to a 
person to effect the purposes of this chapter;
		(14)  request and accept a donation, grant, guaranty, 
or loan from any source permitted by law;
		(15)  operate and maintain an office;                                         
		(16)  charge for a facility or service;                                       
		(17)  exercise a power granted to a municipality by 
Chapter 380;            
		(18)  authorize by resolution the incorporation of a 
nonprofit airport facility financing corporation as provided and 
authorized by Subchapter E, Chapter 22, Transportation Code,  to 
provide financing to pay the costs, including interest, and 
reserves for the costs of an airport facility authorized by that 
chapter and for other purposes set forth in the articles of 
incorporation;
		(19)  exercise the powers granted to a local government 
for the financing of facilities to be located on airport property, 
including those set out in Chapter 22, Transportation Code, 
consistent with the requirements and the purposes of Section 52-a, 
Article III, Texas Constitution;
		(20)  lease, own, and operate an airport and exercise 
the powers granted to municipalities and counties by Chapter 22, 
Transportation Code;
		(21)  lease, own, and operate port facilities for air, 
trucking, and rail transportation;
		(22)  provide security for port functions, facilities, 
and operations;  and 
		(23)  cooperate with and participate in programs and 
security efforts of this state and the federal Department of 
Homeland Security.
	(b)  An authority shall establish and maintain an office and 
agent registered with the secretary of state.
	(c)  An authority shall endeavor to raise revenue sufficient 
to pay its debts.

Added by Acts 1999, 76th Leg., ch. 1221, § 1, eff. Aug. 30, 1999.  
Amended by Acts 2001, 77th Leg., ch. 1516, § 1, eff. June 17, 
2001.  Renumbered from V.T.C.A., Local Government Code § 378.004 
by Acts 2003, 78th Leg., ch. 1275, § 2(108), eff. Sept. 1, 2003;  
Acts 2005, 79th Leg., ch. 873, § 1, eff. Sept. 1, 2005.


	§ 379B.0045. EMINENT DOMAIN.  (a) An authority or an 
authority whose subject property is within the territorial limits 
of a municipality may exercise the power of eminent domain to 
acquire property in or adjacent to the base property only in the 
manner provided by Chapter 21, Property Code.
	(b)  Before the authority initiates an eminent domain 
proceeding to acquire property, the board must:
		(1)  adopt a master development and redevelopment plan 
for the property in or adjacent to the base property and incorporate 
and approve the plan as part of the master plan of the municipality 
in which the base property is located;  and
		(2)  find, after conducting a public hearing, that:                           
			(A)  notice of the hearing was published in a 
newspaper of general circulation in the municipality in which the 
base property is located not later than the 15th day before the date 
of the hearing;
			(B)  the property lies in a redevelopment project 
designated under Section 378.009, as added by Chapter 1221, Acts of 
the 76th Legislature, Regular Session, 1999;  and
			(C)  the use of eminent domain is necessary to 
acquire the property to carry out the essential objectives of the 
master development and redevelopment plan as approved by the 
municipality.

Added by Acts 2003, 78th Leg., ch. 1116, § 1, eff. June 20, 2003.  
Renumbered from V.T.C.A., Local Government Code § 378.0045 by 
Acts 2005, 79th Leg., ch. 728, § 23.001(67), eff. Sept. 1, 2005.


	§ 379B.005. SUITS;  INDEMNITY.  (a) An authority may sue 
and be sued.     
	(b)  In a suit against an authority, process may be served on 
the president, vice president, or registered agent.
	(c)  An authority may not be required to give a bond on an 
appeal or writ of error taken in a civil case that the authority is 
prosecuting or defending.
	(d)  An authority may indemnify an authority employee or 
board member or a former authority employee or board member for 
necessary expenses and costs, including attorney's fees, incurred 
by that person in connection with a claim asserted against that 
person if:
		(1)  the claim relates to an act or omission of the 
person when acting in the scope of the person's board membership or 
authority employment;  and
		(2)  the person has not been found liable or guilty on 
the claim.           

Added by Acts 1999, 76th Leg., ch. 1221, § 1, eff. Aug. 30, 1999.  
Renumbered from V.T.C.A., Local Government Code § 378.005 by 
Acts 2003, 78th Leg., ch. 1275, § 2(108), eff. Sept. 1, 2003.


	§ 379B.006. UTILITIES FOR AUTHORITIES CREATED IN POPULOUS 
MUNICIPALITY.  (a) This section applies only to an authority 
created by a municipality with a population of 50,000 or more.
	(b)  An authority may accept an electric, gas, potable water, 
or sanitary sewage utility conveyed by the United States but may not 
operate it. 
	(c)  An authority shall convey a utility received under 
Subsection (b) to the municipality that established the authority.  
The municipality shall pay the authority fair market value for the 
utility.
	(d)  If state or federal law prohibits the operation or 
ownership of the utility by the municipality, the municipality 
shall convey the utility to an entity that may operate it.  The 
municipality may charge fair market value for the conveyance.

Added by Acts 1999, 76th Leg., ch. 1221, § 1, eff. Aug. 30, 1999.  
Amended by Acts 2001, 77th Leg., ch. 1069, § 1, eff. Sept. 1, 
2001.  Renumbered from V.T.C.A., Local Government Code § 378.006 
by Acts 2003, 78th Leg., ch. 1275, § 2(108), eff. Sept. 1, 2003.


	§ 379B.0065. UTILITIES FOR AUTHORITIES CREATED IN LESS 
POPULOUS MUNICIPALITY.  (a) This section applies only to an 
authority created by a municipality with a population of less than 
50,000.
	(b)  An authority may own an electric, sewer service, or 
water supply utility and may sell those utility services to a person 
who leases real property from the authority.

Added by Acts 2001, 77th Leg., ch. 1069, § 2, eff. Sept. 1, 2001.  
Renumbered from V.T.C.A., Local Government Code § 378.0065 by 
Acts 2003, 78th Leg., ch. 1275, § 2(108), eff. Sept. 1, 2003.


	§ 379B.007. BOARD OF DIRECTORS.  (a) The board consists 
of 11 members.    
	(b)  The board is responsible for the management, operation, 
and control of the authority.
	(c)  The governing body of the municipality that established 
the authority shall appoint each board member to a term not 
exceeding two years.
	(d)  A vacancy on the board is filled in the same manner as 
the original appointment.
	(e)  The municipality may remove a board member by adopting a 
resolution.    
	(f)  The members of the board shall elect from its membership 
a president, vice president, secretary, and treasurer.  The board 
by rule may provide for the election of other officers.
	(g)  A board member serves without compensation but may be 
reimbursed for a reasonable and necessary expense incurred in the 
performance of an official duty.
	(h)  The board shall adopt rules for its proceedings and may 
employ and compensate persons to carry out the powers and duties of 
the authority.

Added by Acts 1999, 76th Leg., ch. 1221, § 1, eff. Aug. 30, 1999.  
Amended by Acts 2001, 77th Leg., ch. 1069, § 3, eff. Sept. 1, 
2001.  Renumbered from V.T.C.A., Local Government Code § 378.007 
by Acts 2003, 78th Leg., ch. 1275, § 2(108), eff. Sept. 1, 2003.


	§ 379B.0075. ADDITIONAL REQUIREMENTS FOR BOARD OF 
DIRECTORS CREATED IN LESS POPULOUS MUNICIPALITY.  (a) In this 
section, "county" means the county in which the majority of the 
municipality that created the authority is located.
	(b)  This section applies only to an authority created by a 
municipality with a population of less than 50,000.
	(c)  Each board member serves a two-year term and is 
appointed as follows:   
		(1)  the county shall appoint four members, including a 
member of the county's governing body;
		(2)  junior colleges located in whole or in part in the 
county, if any, jointly shall appoint three members;  and
		(3)  the municipality that established the authority 
shall appoint:         
			(A)  four members, including a member of the 
municipality's governing body, if the county in which the authority 
is located contains a junior college;  or
			(B)  seven members, including a member of the 
municipality's governing body, if the county in which the authority 
is located does not contain a junior college.
	(d)  The entity that appoints a board member may remove a 
board member by adopting a resolution or order, as appropriate.
	(e)  Sections 378.007(c) and (e) do not apply to an authority 
to which this section applies.

Added by Acts 2001, 77th Leg., ch. 1069, § 4, eff. Sept. 1, 2001.  
Renumbered from V.T.C.A., Local Government Code § 378.0075 by 
Acts 2003, 78th Leg., ch. 1275, § 2(108), eff. Sept. 1, 2003.


	§ 379B.008. POWERS AND DUTIES OF BOARD.  (a) The board of 
an authority shall, if consistent with the purposes for which the 
authority was created under Section 378.003:
		(1)  monitor the proposed closing of the defense base;                        
		(2)  manage and operate the defense base transition and 
development on behalf of the municipality that established the 
authority;
		(3)  review options related to the most appropriate use 
of the defense base;
		(4)  conduct a study on issues related to the closure, 
conversion, redevelopment, and future use of the defense base;
		(5)  formulate, adopt, and implement a plan to convert 
and redevelop the defense base;
		(6)  submit the plan to an appropriate agency or 
agencies of the federal government;  and
		(7)  manage the property used for a base efficiency 
project.                
	(b)  For the base property and areas adjacent to the base 
property the board shall:
		(1)  promote economic development;                                            
		(2)  attempt to reduce unemployment;                                          
		(3)  encourage the development of new industry by 
private businesses;  and  
		(4)  encourage financing of projects designated under 
Section 379B.009.     

Added by Acts 1999, 76th Leg., ch. 1221, § 1, eff. Aug. 30, 1999.  
Amended by Acts 2001, 77th Leg., ch. 257, § 3, eff. Sept. 1, 
2001.  Renumbered from V.T.C.A., Local Government Code § 378.008 
and amended by Acts 2003, 78th Leg., ch. 1275, § 2(108), 3(34), 
eff. Sept. 1, 2003.


	§ 379B.009. REDEVELOPMENT PROJECTS.  (a) The board may 
designate as a redevelopment project a project that relates to:
		(1)  the development of base property and the 
surrounding areas;  or        
		(2)  the development of a defense base in the territory 
of the municipality that established the authority and areas 
surrounding that base.
	(b)  A project designated under Subsection (a) is for a 
public purpose.      

Added by Acts 1999, 76th Leg., ch. 1221, § 1, eff. Aug. 30, 1999.  
Renumbered from V.T.C.A., Local Government Code § 378.009 by 
Acts 2003, 78th Leg., ch. 1275, § 2(108), eff. Sept. 1, 2003.


	§ 379B.010. BONDS.  (a) An authority may issue bonds if 
authorized by board resolution.
	(b)  A bond issued under this chapter must:                                    
		(1)  be payable solely from authority revenue;                                
		(2)  mature not later than 40 years after its date of 
issuance;  and        
		(3)  state on its face that it is not an obligation of 
this state or the municipality.
	(c)  An authority issuing bonds under this section may 
exercise the powers granted to the governing body of an issuer with 
regard to the issuance of obligations and the execution of credit 
agreements under Chapter 1371, Government Code.

Added by Acts 1999, 76th Leg., ch. 1221, § 1, eff. Aug. 30, 1999.  
Amended by Acts 2001, 77th Leg., ch. 1516, § 2, eff. June 17, 
2001.  Renumbered from V.T.C.A., Local Government Code § 378.010 
by Acts 2003, 78th Leg., ch. 1275, § 2(108), eff. Sept. 1, 2003;  
Acts 2005, 79th Leg., ch. 873, § 2, eff. Sept. 1, 2005.


	§ 379B.011. TAX EXEMPTIONS.  (a) An authority's property, 
income, and operations are exempt from taxes imposed by the state or 
a political subdivision of the state.
	(b)  Section 25.07(a), Tax Code, applies to a leasehold or 
other possessory interest in real property granted by an authority 
for a project designated under Section 379B.009(a) in the same 
manner as it applies to a leasehold or other possessory interest in 
real property constituting a project described by Section 4B(k), 
Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas 
Civil Statutes), except for the requirement in Section 4B(k) that 
the voters of the municipality that created the authority have 
authorized the levy of a sales and use tax for the benefit of the 
authority.

Added by Acts 1999, 76th Leg., ch. 1221, § 1, eff. Aug. 30, 1999.  
Renumbered from V.T.C.A., Local Government Code § 378.011 and 
amended by Acts 2003, 78th Leg., ch. 1275, § 2(108), 3(35), eff. 
Sept. 1, 2003;  Acts 2005, 79th Leg., ch. 873, § 3, eff. Sept. 1, 
2005.


	§ 379B.012. DISSOLUTION FOR AUTHORITIES CREATED IN 
POPULOUS MUNICIPALITY.  (a) This section applies only to an 
authority created by a municipality with a population of 50,000 or 
more.
	(b)  The governing body of a municipality that established 
the authority by resolution may dissolve the authority after all 
debts or obligations of the authority have been satisfied.
	(c)  Property of the authority that remains after 
dissolution is conveyed to the municipality.

Added by Acts 1999, 76th Leg., ch. 1221, § 1, eff. Aug. 30, 1999.  
Amended by Acts 2001, 77th Leg., ch. 1069, § 5, eff. Sept. 1, 
2001.  Renumbered from V.T.C.A., Local Government Code § 378.012 
by Acts 2003, 78th Leg., ch. 1275, § 2(108), eff. Sept. 1, 2003.


	§ 379B.013. DISSOLUTION FOR AUTHORITIES CREATED IN LESS 
POPULOUS MUNICIPALITY.  (a) In this section, "county" means the 
county in which the majority of the municipality that created the 
authority is located.
	(b)  This section applies only to an authority created by a 
municipality with a population of less than 50,000.
	(c)  The authority may be dissolved if:                                        
		(1)  all debts or obligations of the authority have 
been satisfied;  and    
		(2)  the dissolution is authorized by order or 
resolution of:               
			(A)  the governing body of the municipality that 
established the authority;
			(B)  the county;  and                                                        
			(C)  each junior college in the county, if the 
county in which the authority is located contains a junior college.
	(d)  Property of the authority that remains after 
dissolution is conveyed to the municipality.

Added by Acts 2001, 77th Leg., ch. 1069, § 6, eff. Sept. 1, 2001.  
Renumbered from V.T.C.A., Local Government Code § 378.013 by 
Acts 2003, 78th Leg., ch. 1275, § 2(108), eff. Sept. 1, 2003.