CHAPTER 379B. DEFENSE BASE DEVELOPMENT AUTHORITIES

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LOCAL GOVERNMENT CODE

TITLE 12. PLANNING AND DEVELOPMENT

SUBTITLE A. MUNICIPAL PLANNING AND DEVELOPMENT

CHAPTER 379B. DEFENSE BASE DEVELOPMENT AUTHORITIES

Sec. 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, Sec. 1, eff. Aug. 30,

1999. Amended by Acts 2001, 77th Leg., ch. 257, Sec. 1, eff.

Sept. 1, 2001. Renumbered from Local Government Code Sec. 378.001

by Acts 2003, 78th Leg., ch. 1275, Sec. 2(108), eff. Sept. 1,

2003.

Sec. 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 (Subtitle C1, Title 12).

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, Sec. 1, eff. Aug. 30,

1999. Renumbered from Local Government Code Sec. 378.002 by Acts

2003, 78th Leg., ch. 1275, Sec. 2(108), eff. Sept. 1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 3.24, eff. April 1, 2009.

Sec. 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.

functions.

Added by Acts 1999, 76th Leg., ch. 1221, Sec. 1, eff. Aug. 30,

1999. Amended by Acts 2001, 77th Leg., ch. 257, Sec. 2, eff.

Sept. 1, 2001. Renumbered from Local Government Code Sec. 378.003

by Acts 2003, 78th Leg., ch. 1275, Sec. 2(108), eff. Sept. 1,

2003.

Sec. 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.

pay its debts.

Added by Acts 1999, 76th Leg., ch. 1221, Sec. 1, eff. Aug. 30,

1999. Amended by Acts 2001, 77th Leg., ch. 1516, Sec. 1, eff.

June 17, 2001. Renumbered from Local Government Code Sec. 378.004

by Acts 2003, 78th Leg., ch. 1275, Sec. 2(108), eff. Sept. 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

873, Sec. 1, eff. September 1, 2005.

Sec. 379B.0041. INLAND PORT AND TRADE POWERS. (a) The

authority may establish and operate an inland port and related

port facilities to engage in world trade.

(b) The authority may participate in national and international

agreements advancing world trade at the port.

Added by Acts 2007, 80th Leg., R.S., Ch.

1120, Sec. 1, eff. September 1, 2007.

Added by Acts 2007, 80th Leg., R.S., Ch.

1382, Sec. 1, eff. September 1, 2007.

Sec. 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 the base property or in an area surrounding

the base 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 the base property or in an area surrounding the base

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 379B.009; and

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, Sec. 1, eff. June 20,

2003.

Renumbered from Local Government Code, Section 378.0045 by Acts

2005, 79th Leg., Ch.

728, Sec. 23.001(67), eff. September 1, 2005.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1120, Sec. 2, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

1382, Sec. 2, eff. September 1, 2007.

Sec. 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.

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, Sec. 1, eff. Aug. 30,

1999. Renumbered from Local Government Code Sec. 378.005 by Acts

2003, 78th Leg., ch. 1275, Sec. 2(108), eff. Sept. 1, 2003.

Sec. 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.

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, Sec. 1, eff. Aug. 30,

1999. Amended by Acts 2001, 77th Leg., ch. 1069, Sec. 1, eff.

Sept. 1, 2001. Renumbered from Local Government Code Sec. 378.006

by Acts 2003, 78th Leg., ch. 1275, Sec. 2(108), eff. Sept. 1,

2003.

Sec. 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, Sec. 2, eff. Sept. 1,

2001. Renumbered from Local Government Code Sec. 378.0065 by Acts

2003, 78th Leg., ch. 1275, Sec. 2(108), eff. Sept. 1, 2003.

Sec. 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.

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:

(1) a president and vice president or a chairperson and vice

chairperson; and

(2) a secretary and a treasurer.

(f-1) 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, Sec. 1, eff. Aug. 30,

1999. Amended by Acts 2001, 77th Leg., ch. 1069, Sec. 3, eff.

Sept. 1, 2001. Renumbered from Local Government Code Sec. 378.007

by Acts 2003, 78th Leg., ch. 1275, Sec. 2(108), eff. Sept. 1,

2003.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

367, Sec. 1, eff. September 1, 2009.

Sec. 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.

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, Sec. 4, eff. Sept. 1,

2001. Renumbered from Local Government Code Sec. 378.0075 by Acts

2003, 78th Leg., ch. 1275, Sec. 2(108), eff. Sept. 1, 2003.

Sec. 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, Sec. 1, eff. Aug. 30,

1999. Amended by Acts 2001, 77th Leg., ch. 257, Sec. 3, eff.

Sept. 1, 2001. Renumbered from Local Government Code Sec. 378.008

and amended by Acts 2003, 78th Leg., ch. 1275, Sec. 2(108),

3(34), eff. Sept. 1, 2003.

Sec. 379B.0085. HEARINGS BY TELEPHONE OR SIMILAR MEANS. (a) As

an exception to Chapter 551, Government Code, and other law, if

the chairperson, president, vice chairperson, or vice president

of a board, or chairperson or vice chairperson of a board

committee, is physically present at a meeting of the board or

committee, any number of the other members of the board or

committee may attend the meeting by use of telephone conference

call, video conference call, or other similar telecommunication

device. This subsection applies for purposes of constituting a

quorum, for purposes of voting, and for any other purpose

allowing a board or committee member to otherwise fully

participate in any board or committee meeting. This subsection

applies without exception with regard to the subject of the

meeting or topics considered by the members.

(b) A meeting held by use of telephone conference call, video

conference call, or other similar telecommunication device:

(1) is subject to the notice requirements applicable to other

meetings;

(2) must specify in the notice of the meeting the location of

the meeting at which the president, vice president, chairperson,

or vice chairperson will be physically present;

(3) must be open to the public and audible to the public at the

location specified in the notice of the meeting as the location

of the meeting at which the president, vice president,

chairperson, or vice chairperson will be physically present; and

(4) must provide two-way audio communication between all board

or committee members attending the meeting during the entire

meeting, and if the two-way audio communication link with any

member attending the meeting is disrupted at any time, the

meeting may not continue until the two-way audio communication

link is reestablished.

Added by Acts 2007, 80th Leg., R.S., Ch.

1120, Sec. 3, eff. September 1, 2007.

Added by Acts 2007, 80th Leg., R.S., Ch.

1382, Sec. 3, eff. September 1, 2007.

Amended by:

Acts 2009, 81st Leg., R.S., Ch.

367, Sec. 2, eff. September 1, 2009.

Sec. 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;

(2) the development of property directly related to the purposes

or goals of the authority.

(b) A project designated under Subsection (a) is for a public

purpose.

Added by Acts 1999, 76th Leg., ch. 1221, Sec. 1, eff. Aug. 30,

1999. Renumbered from Local Government Code Sec. 378.009 by Acts

2003, 78th Leg., ch. 1275, Sec. 2(108), eff. Sept. 1, 2003.

Amended by:

Acts 2007, 80th Leg., R.S., Ch.

1120, Sec. 4, eff. September 1, 2007.

Acts 2007, 80th Leg., R.S., Ch.

1382, Sec. 4, eff. September 1, 2007.

Sec. 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.

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, Sec. 1, eff. Aug. 30,

1999. Amended by Acts 2001, 77th Leg., ch. 1516, Sec. 2, eff.

June 17, 2001. Renumbered from Local Government Code Sec. 378.010

by Acts 2003, 78th Leg., ch. 1275, Sec. 2(108), eff. Sept. 1,

2003.

Amended by:

Acts 2005, 79th Leg., Ch.

873, Sec. 2, eff. September 1, 2005.

Sec. 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 505.161,

except for the requirement in Section 505.161 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, Sec. 1, eff. Aug. 30,

1999. Renumbered from Local Government Code Sec. 378.011 and

amended by Acts 2003, 78th Leg., ch. 1275, Sec. 2(108), 3(35),

eff. Sept. 1, 2003.

Amended by:

Acts 2005, 79th Leg., Ch.

873, Sec. 3, eff. September 1, 2005.

Acts 2007, 80th Leg., R.S., Ch.

885, Sec. 3.25, eff. April 1, 2009.

Sec. 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.

conveyed to the municipality.

Added by Acts 1999, 76th Leg., ch. 1221, Sec. 1, eff. Aug. 30,

1999. Amended by Acts 2001, 77th Leg., ch. 1069, Sec. 5, eff.

Sept. 1, 2001. Renumbered from Local Government Code Sec. 378.012

by Acts 2003, 78th Leg., ch. 1275, Sec. 2(108), eff. Sept. 1,

2003.

Sec. 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.

(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

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, Sec. 6, eff. Sept. 1,

2001. Renumbered from Local Government Code Sec. 378.013 by Acts

2003, 78th Leg., ch. 1275, Sec. 2(108), eff. Sept. 1, 2003.

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