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CHAPTER 379B. DEFENSE BASE DEVELOPMENT AUTHORITIES

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LOCAL GOVERNMENT CODETITLE 12. PLANNING AND DEVELOPMENTSUBTITLE A. MUNICIPAL PLANNING AND DEVELOPMENTCHAPTER 379B. DEFENSE BASE DEVELOPMENT AUTHORITIESSec. 379B.001.DEFINITIONS.In this chapter:(1)"Authority" means a defense base development authorityestablished under this chapter.(2)"Base efficiency project" means a demonstration projectbetween a municipality and the United States Department ofDefense to evaluate and demonstrate methods for more efficientoperation of military installations through improved capitalasset management and greater reliance on the public or privatesector for less costly base support services and to improvemission effectiveness and reduce the cost of providing qualityinstallation support at military facilities under Pub. L. No.106-246 or other applicable federal laws.(3)"Base property" means land inside the boundaries of thedefense base for which the authority is established andimprovements 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 anauthority under this chapter, including a bond, certificate,note, or other evidence of indebtedness.(6)"Defense base" means a military installation or facilitythat is:(A)closed or realigned under the Defense Base Closure andRealignment Act of 1990 (10 U.S.C. Section 2687 note) and itssubsequent 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. 378.001by Acts 2003, 78th Leg., ch. 1275, Sec. 2(108), eff. Sept. 1,2003.Sec. 379B.002.ESTABLISHMENT; SUCCESSOR.(a)A municipality byresolution may establish an authority. The resolution mustinclude a legal description of the base property. On adoption ofthe resolution, the authority is established as a specialdistrict and political subdivision of this state, with a boundarycoterminous with the base property described in the resolution.(b)When establishing an authority, the municipality maydesignate the authority in the municipality's resolution to bethe successor in interest to a nonprofit corporation organizedunder the Development Corporation Act (Subtitle C1, Title 12).On adoption of the resolution, the corporation is dissolved andthe authority succeeds to all rights and liabilities of thatcorporation.Added by Acts 1999, 76th Leg., ch. 1221, Sec. 1, eff. Aug. 30,1999. Renumbered from Local Government Code Sec. 378.002 by Acts2003, 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)Anauthority is created to:(1)accept title to or operate under a lease from the UnitedStates or any other person all or a part of the base property andareas around the base property and engage in the economicdevelopment of the base property and areas around the baseproperty; or(2)carry out a base efficiency project.(b)An authority created under Subsection (a)(2) may not operatea defense base that has been closed or realigned under theDefense 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 governmentalfunctions.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. 378.003by Acts 2003, 78th Leg., ch. 1275, Sec. 2(108), eff. Sept. 1,2003.Sec. 379B.004.POWERS AND DUTIES OF AUTHORITY.(a)Anauthority may exercise power necessary or convenient to carry outa 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, GovernmentCode;(8)set the fiscal year for the authority;(9)adopt an annual operating budget for major expendituresbefore the beginning of the fiscal year;(10)borrow money or issue a bond in an amount that does notexceed the maximum amount set by the board;(11)loan money;(12)acquire, lease, lease-purchase, convey, grant a mortgageon, or otherwise dispose of a property right, including a rightregarding base property;(13)lease property located on the base property to a person toeffect the purposes of this chapter;(14)request and accept a donation, grant, guaranty, or loanfrom 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 nonprofitairport facility financing corporation as provided and authorizedby Subchapter E, Chapter 22, Transportation Code, to providefinancing to pay the costs, including interest, and reserves forthe costs of an airport facility authorized by that chapter andfor other purposes set forth in the articles of incorporation;(19)exercise the powers granted to a local government for thefinancing 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 Section52-a, Article III, Texas Constitution;(20)lease, own, and operate an airport and exercise the powersgranted 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, andoperations; and(23)cooperate with and participate in programs and securityefforts of this state and the federal Department of HomelandSecurity.(b)An authority shall establish and maintain an office andagent registered with the secretary of state.(c)An authority shall endeavor to raise revenue sufficient topay 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. 378.004by 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)Theauthority may establish and operate an inland port and relatedport facilities to engage in world trade.(b)The authority may participate in national and internationalagreements 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 anauthority whose subject property is within the territorial limitsof a municipality may exercise the power of eminent domain toacquire property in the base property or in an area surroundingthe base only in the manner provided by Chapter 21, PropertyCode.(b)Before the authority initiates an eminent domain proceedingto acquire property, the board must:(1)adopt a master development and redevelopment plan for theproperty in the base property or in an area surrounding the baseand incorporate and approve the plan as part of the master planof 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 ofgeneral circulation in the municipality in which the baseproperty is located not later than the 15th day before the dateof the hearing;(B)the property lies in a redevelopment project designatedunder Section 379B.009; and(C)the use of eminent domain is necessary to acquire theproperty to carry out the essential objectives of the masterdevelopment and redevelopment plan as approved by themunicipality.Added by Acts 2003, 78th Leg., ch. 1116, Sec. 1, eff. June 20,2003.Renumbered from Local Government Code, Section 378.0045 by Acts2005, 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 andbe sued.(b)In a suit against an authority, process may be served on thepresident, vice president, or registered agent.(c)An authority may not be required to give a bond on an appealor writ of error taken in a civil case that the authority isprosecuting or defending.(d)An authority may indemnify an authority employee or boardmember or a former authority employee or board member fornecessary expenses and costs, including attorney's fees, incurredby that person in connection with a claim asserted against thatperson if:(1)the claim relates to an act or omission of the person whenacting in the scope of the person's board membership or authorityemployment; 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 Acts2003, 78th Leg., ch. 1275, Sec. 2(108), eff. Sept. 1, 2003.Sec. 379B.006.UTILITIES FOR AUTHORITIES CREATED IN POPULOUSMUNICIPALITY.(a)This section applies only to an authoritycreated by a municipality with a population of 50,000 or more.(b)An authority may accept an electric, gas, potable water, orsanitary sewage utility conveyed by the United States but may notoperate it.(c)An authority shall convey a utility received underSubsection (b) to the municipality that established theauthority. The municipality shall pay the authority fair marketvalue for the utility.(d)If state or federal law prohibits the operation or ownershipof the utility by the municipality, the municipality shall conveythe utility to an entity that may operate it. The municipalitymay 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. 378.006by Acts 2003, 78th Leg., ch. 1275, Sec. 2(108), eff. Sept. 1,2003.Sec. 379B.0065.UTILITIES FOR AUTHORITIES CREATED IN LESSPOPULOUS MUNICIPALITY.(a)This section applies only to anauthority created by a municipality with a population of lessthan 50,000.(b)An authority may own an electric, sewer service, or watersupply utility and may sell those utility services to a personwho 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 Acts2003, 78th Leg., ch. 1275, Sec. 2(108), eff. Sept. 1, 2003.Sec. 379B.007.BOARD OF DIRECTORS.(a)The board consists of11 members.(b)The board is responsible for the management, operation, andcontrol of the authority.(c)The governing body of the municipality that established theauthority shall appoint each board member to a term not exceedingtwo years.(d)A vacancy on the board is filled in the same manner as theoriginal appointment.(e)The municipality may remove a board member by adopting aresolution.(f)The members of the board shall elect from its membership:(1)a president and vice president or a chairperson and vicechairperson; and(2)a secretary and a treasurer.(f-1)The board by rule may provide for the election of otherofficers.(g)A board member serves without compensation but may bereimbursed for a reasonable and necessary expense incurred in theperformance of an official duty.(h)The board shall adopt rules for its proceedings and mayemploy and compensate persons to carry out the powers and dutiesof 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. 378.007by 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 DIRECTORSCREATED IN LESS POPULOUS MUNICIPALITY.(a)In this section,"county" means the county in which the majority of themunicipality that created the authority is located.(b)This section applies only to an authority created by amunicipality with a population of less than 50,000.(c)Each board member serves a two-year term and is appointed asfollows:(1)the county shall appoint four members, including a member ofthe 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 shallappoint:(A)four members, including a member of the municipality'sgoverning body, if the county in which the authority is locatedcontains a junior college; or(B)seven members, including a member of the municipality'sgoverning body, if the county in which the authority is locateddoes not contain a junior college.(d)The entity that appoints a board member may remove a boardmember by adopting a resolution or order, as appropriate.(e)Sections 378.007(c) and (e) do not apply to an authority towhich 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 Acts2003, 78th Leg., ch. 1275, Sec. 2(108), eff. Sept. 1, 2003.Sec. 379B.008.POWERS AND DUTIES OF BOARD.(a)The board of anauthority shall, if consistent with the purposes for which theauthority was created under Section 378.003:(1)monitor the proposed closing of the defense base;(2)manage and operate the defense base transition anddevelopment on behalf of the municipality that established theauthority;(3)review options related to the most appropriate use of thedefense 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 andredevelop the defense base;(6)submit the plan to an appropriate agency or agencies of thefederal government; and(7)manage the property used for a base efficiency project.(b)For the base property and areas adjacent to the baseproperty the board shall:(1)promote economic development;(2)attempt to reduce unemployment;(3)encourage the development of new industry by privatebusinesses; and(4)encourage financing of projects designated under Section379B.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. 378.008and 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)Asan exception to Chapter 551, Government Code, and other law, ifthe chairperson, president, vice chairperson, or vice presidentof a board, or chairperson or vice chairperson of a boardcommittee, is physically present at a meeting of the board orcommittee, any number of the other members of the board orcommittee may attend the meeting by use of telephone conferencecall, video conference call, or other similar telecommunicationdevice.This subsection applies for purposes of constituting aquorum, for purposes of voting, and for any other purposeallowing a board or committee member to otherwise fullyparticipate in any board or committee meeting.This subsectionapplies without exception with regard to the subject of themeeting or topics considered by the members.(b)A meeting held by use of telephone conference call, videoconference call, or other similar telecommunication device:(1)is subject to the notice requirements applicable to othermeetings;(2)must specify in the notice of the meeting the location ofthe 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 thelocation specified in the notice of the meeting as the locationof 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 boardor committee members attending the meeting during the entiremeeting, and if the two-way audio communication link with anymember attending the meeting is disrupted at any time, themeeting may not continue until the two-way audio communicationlink 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 maydesignate as a redevelopment project a project that relates to:(1)the development of base property and the surrounding areas;or(2)the development of property directly related to the purposesor goals of the authority.(b)A project designated under Subsection (a) is for a publicpurpose.Added by Acts 1999, 76th Leg., ch. 1221, Sec. 1, eff. Aug. 30,1999. Renumbered from Local Government Code Sec. 378.009 by Acts2003, 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 ifauthorized 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 stateor the municipality.(c)An authority issuing bonds under this section may exercisethe powers granted to the governing body of an issuer with regardto the issuance of obligations and the execution of creditagreements 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. 378.010by 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 stateor a political subdivision of the state.(b)Section 25.07(a), Tax Code, applies to a leasehold or otherpossessory interest in real property granted by an authority fora project designated under Section 379B.009(a) in the same manneras it applies to a leasehold or other possessory interest in realproperty constituting a project described by Section 505.161,except for the requirement in Section 505.161 that the voters ofthe municipality that created the authority have authorized thelevy 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 andamended 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 POPULOUSMUNICIPALITY.(a)This section applies only to an authoritycreated by a municipality with a population of 50,000 or more.(b)The governing body of a municipality that established theauthority by resolution may dissolve the authority after alldebts or obligations of the authority have been satisfied.(c)Property of the authority that remains after dissolution isconveyed 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. 378.012by Acts 2003, 78th Leg., ch. 1275, Sec. 2(108), eff. Sept. 1,2003.Sec. 379B.013.DISSOLUTION FOR AUTHORITIES CREATED IN LESSPOPULOUS MUNICIPALITY.(a)In this section, "county" means thecounty in which the majority of the municipality that created theauthority is located.(b)This section applies only to an authority created by amunicipality with a population of less than 50,000.(c)The authority may be dissolved if:(1)all debts or obligations of the authority have beensatisfied; and(2)the dissolution is authorized by order or resolution of:(A)the governing body of the municipality that established theauthority;(B)the county; and(C)each junior college in the county, if the county in whichthe authority is located contains a junior college.(d)Property of the authority that remains after dissolution isconveyed 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 Acts2003, 78th Leg., ch. 1275, Sec. 2(108), eff. Sept. 1, 2003.
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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.

    (c) An authority exercises public and essential governmental

    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.

    (c) An authority shall endeavor to raise revenue sufficient to

    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

    (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, 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.

    (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, 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.

    (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, 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.

    (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:

    (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.

    (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, 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;

    or

    (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.

    (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, 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.

    (c) Property of the authority that remains after dissolution is

    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.

    (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, 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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