CHAPTER 379B. DEFENSE BASE DEVELOPMENT AUTHORITIES
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.