Texas 2009 - 81st Regular

Texas Senate Bill SB1615 Compare Versions

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1	1	By: Wentworth S.B. No. 1615
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to the authorization of airport authorities and the
7	7	issuance of bonds and the exercise of eminent domain by the
8	8	authorities.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. LEGISLATIVE DECLARATION; PURPOSE. (a) The
11	11	economic well-being of the state and the general welfare of its
12	12	residents require adequate, safe, secure, and efficient aviation
13	13	facilities at a reasonable cost.
14	14	(b) The purpose of this Act is to authorize the creation by
15	15	the state, counties, and municipalities, through their independent
16	16	or joint action, airport authorities, corporate and politic,
17	17	constituting political subdivisions of the state, for the purpose
18	18	of:
19	19	(1) acquiring and improving airports, heliports, air
20	20	navigation facilities, and related facilities;
21	21	(2) financing the cost of the activities listed under
22	22	Subdivision (1) of this subsection by the issuance of bonds or other
23	23	obligations of an authority payable from the income of the
24	24	authority and otherwise secured to the extent permitted by law
25	25	without the incurrence of debt by the state or by another political
26	26	subdivision; and
27	27	(3) promoting and facilitating transportation by air
28	28	from or to points located within the state, to the benefit and
29	29	general welfare of the state, including its political subdivisions
30	30	and inhabitants.
31	31	SECTION 2. AIRPORT AUTHORITIES. Title 3, Transportation
32	32	Code, is amended by adding Chapter 27 to read as follows:
33	33	CHAPTER 27. AIRPORT AUTHORITIES
34	34	SUBCHAPTER A. GENERAL PROVISIONS
35	35	Sec. 27.001. DEFINITIONS. In this chapter:
36	36	(1) "Aircraft" means a contrivance invented, used, or
37	37	designed for navigation of or flight in the air, except a parachute
38	38	or other contrivance designed for use primarily as safety
39	39	equipment.
40	40	(2) "Air navigation facility" means a facility used
41	41	in, available for use in, or designed for use in aid of air
42	42	navigation, including a structure, mechanism, light, beacon,
43	43	marker, communicating system, or other instrumentality or device
44	44	used or useful as an aid or constituting an advantage or convenience
45	45	to the safe taking-off, navigation, and landing of aircraft, or the
46	46	safe and efficient operation or maintenance of an airport,
47	47	including any combination of facilities listed in this subdivision.
48	48	(3) "Airport" means an area of land or water that is
49	49	used, or intended for use, for the landing, taking-off, storage,
50	50	parking, or dispersal of aircraft, including:
51	51	(A) any appurtenant areas that are used or
52	52	intended for use for airport buildings, facilities, or
53	53	rights-of-way; and
54	54	(B) airport buildings, structures, and
55	55	facilities located on the area of land or water.
56	56	(4) "Airport facility" means a building, structure,
57	57	land, right-of-way, equipment, or instrumentality used or to be
58	58	used in connection with the construction, enlargement,
59	59	development, maintenance, or operation of an airport.
60	60	(5) "Authority" means a public corporation organized
61	61	under this chapter.
62	62	(6) "Board" means the board of directors of an
63	63	authority.
64	64	(7) "Indenture" means a mortgage, indenture of
65	65	mortgage, deed of trust, trust agreement, or trust indenture
66	66	executed by an authority as security for bonds.
67	67	Sec. 27.002. ASSISTANCE BY STATE OR LOCAL ENTITIES. (a) A
68	68	county, municipality, or other political subdivision of the state,
69	69	including a public corporation, may, with or without consideration:
70	70	(1) lend or donate money to an authority;
71	71	(2) provide that all or part of the taxes or funds
72	72	available to the subdivision or required by law to be used by the
73	73	subdivision for airport purposes shall be transferred or paid
74	74	directly to an authority;
75	75	(3) cause water, sewer, or drainage facilities or any
76	76	other facilities that the subdivision is empowered to provide to be
77	77	furnished adjacent to or in connection with an airport or air
78	78	navigation facility;
79	79	(4) donate, sell, convey, transfer, or lease to an
80	80	authority any land, property, franchise, grant, easement, license,
81	81	or lease that the subdivision owns;
82	82	(5) donate, sell, convey, or lease an airport, airport
83	83	property, or any interest in an airport or airport property owned by
84	84	the subdivision to an authority;
85	85	(6) donate, transfer, assign, sell, or convey to an
86	86	authority any right, title, or interest that the subdivision has in
87	87	a lease, contract, agreement, license, or property;
88	88	(7) furnish, dedicate, close, pave, repair, install,
89	89	grade, regrade, plan, or replan streets, roads, roadways, and
90	90	walks:
91	91	(A) from established streets or roads to an
92	92	airport or air navigation facility; or
93	93	(B) abutting or adjacent to an airport or air
94	94	navigation facility;
95	95	(8) take any other action that is necessary or
96	96	convenient to aid and cooperate with an authority in the planning,
97	97	undertaking, construction, or operation of an airport or air
98	98	navigation facility; and
99	99	(9) furnish, at the request of an authority, fire and
100	100	air crash equipment and personnel to properly operate the equipment
101	101	at an airport or aircraft landing area owned, operated, or under the
102	102	jurisdiction of an authority or train authority personnel in fire,
103	103	crash, and rescue.
104	104	(b) All transfers of land, licenses, easements, or other
105	105	property under this section are subject to the continuing right of a
106	106	utility to maintain existing facilities in those locations and to
107	107	be reimbursed for any required relocation, removal, or adjustment
108	108	of those facilities.
109	109	Sec. 27.003. NATURE OF AUTHORITY. An airport authority
110	110	created under this chapter is an airport authority under Section
111	111	12, Article IX, Texas Constitution.
112	112	[Sections 27.004-27.050 reserved for expansion]
113	113	SUBCHAPTER B. CREATION AND EXPANSION
114	114	Sec. 27.051. INCORPORATION. (a) An authority may be
115	115	organized as a public corporation under this chapter.
116	116	(b) At least three natural persons shall file with the
117	117	governing body of one or more counties or municipalities an
118	118	application in writing for permission to incorporate a public
119	119	corporation under this chapter and shall attach to the application
120	120	a proposed form of articles of incorporation for the corporation.
121	121	(c) If each governing body with which the application is
122	122	filed adopts a resolution approving the form of the articles of
123	123	incorporation and authorizing the formation of a public
124	124	corporation, the applicants under Subsection (b) become the
125	125	incorporators of and shall incorporate the authority as a public
126	126	corporation under this chapter using the form of the articles
127	127	approved.
128	128	Sec. 27.052. ADDITIONAL COUNTIES OR MUNICIPALITIES. An
129	129	additional county or municipality may become part of an authority
130	130	if each additional county or municipality and each county or
131	131	municipality in the authority adopts a resolution consenting to the
132	132	inclusion of the additional county or municipality in the
133	133	authority.
134	134	Sec. 27.053. INCLUSION IN AUTHORITY. On the inclusion of a
135	135	county or municipality in an authority, either initially or as an
136	136	additional member, all rights, contracts, obligations, and
137	137	property, both real and personal, of a municipality or county used
138	138	for or in relation to transportation by air shall vest in the
139	139	authority created under this subchapter unless otherwise specified
140	140	by the resolution including the municipality or county in the
141	141	authority.
142	142	Sec. 27.054. STATE JOINING AIRPORT AUTHORITY. The
143	143	governor, on behalf of the state, may authorize the state to join in
144	144	the creation of an authority under this subchapter or to join an
145	145	existing authority created under this subchapter.
146	146	Sec. 27.055. CONTENTS OF CERTIFICATE OF INCORPORATION. The
147	147	certificate of incorporation of an authority shall state:
148	148	(1) the name and county of residence of each person
149	149	forming the authority;
150	150	(2) the name of the authority, which must include the
151	151	words "airport authority";
152	152	(3) the duration of the authority or if the duration is
153	153	perpetual, the fact that the authority is of perpetual duration;
154	154	(4) the names of the governmental entities in the
155	155	authority and the date on which the:
156	156	(A) governing body of the county or municipality
157	157	adopted the resolution authorizing the incorporation of the
158	158	authority or consented to the inclusion of the county or
159	159	municipality in the authority; or
160	160	(B) governor authorized the state to join in the
161	161	creation of the authority or the existing authority;
162	162	(5) the proposed location in this state of the
163	163	principal office of the authority; and
164	164	(6) any other matters relating to the authority that
165	165	the incorporators choose to insert and that are not inconsistent
166	166	with this chapter or the laws of this state.
167	167	Sec. 27.056. INCORPORATION; EXECUTION AND FILING OF
168	168	ARTICLES. (a) The articles of incorporation of an authority
169	169	shall:
170	170	(1) be signed and acknowledged by the incorporators;
171	171	and
172	172	(2) have attached a certified copy of each of the
173	173	resolutions described by Section 27.051.
174	174	(b) An authority shall file its articles of incorporation
175	175	with the documents required to be attached under Subsection (a),
176	176	with the secretary of state.
177	177	(c) When a certificate of incorporation is issued by the
178	178	secretary of state after the filing of the articles and attached
179	179	documents, the authority referred to in the certificate shall:
180	180	(1) come into existence;
181	181	(2) constitute a public corporation under the name
182	182	listed in the certificate; and
183	183	(3) have all the rights and powers given to an
184	184	authority under this chapter.
185	185	(d) The articles of incorporation must include the number
186	186	and terms of board members. A term may not exceed two years.
187	187	[Sections 27.057-27.100 reserved for expansion]
188	188	SUBCHAPTER C. BOARD OF DIRECTORS; ADMINISTRATION
189	189	Sec. 27.101. COMPOSITION OF BOARD OF DIRECTORS. (a) The
190	190	governing body of an authority is a board with at least five but not
191	191	more than nine members appointed as follows:
192	192	(1) if the state alone authorizes an authority, the
193	193	members shall be elected by the governor, the lieutenant governor,
194	194	and the speaker of the house of representatives with the total
195	195	number of members set out in the articles of incorporation of the
196	196	authority;
197	197	(2) if the sole authorizing governmental entity is a
198	198	county, the commissioners court of the county shall appoint the
199	199	members with the number of members set out in the articles of
200	200	incorporation of the authority; and
201	201	(3) in all other cases:
202	202	(A) one member shall be appointed by each
203	203	governing body of an authorizing governmental entity;
204	204	(B) one member shall be appointed by the
205	205	commissioners court of the county in which the principal office of
206	206	the authority is located, if the county is not an authorizing
207	207	governmental entity; and
208	208	(C) one additional member shall be elected by the
209	209	governing bodies of each authorizing governmental entity and the
210	210	commissioners court of the county in which the principal office of
211	211	the authority is located.
212	212	(b) Each member appointed by a governing body of an
213	213	authorizing governmental entity must reside in the territorial
214	214	jurisdiction of the authorizing governmental entity. The
215	215	additional member elected under Subsection (a)(3)(C) must reside in
216	216	any county whose commissioners court elects the member.
217	217	(c) Other than the additional member elected under
218	218	Subsection (a)(3)(C), each authorizing governmental entity may
219	219	appoint the same number of members as any other authorizing
220	220	governmental entity.
221	221	(d) If the state joins in the creation of an airport
222	222	authority under this chapter or joins an existing airport authority
223	223	created under this chapter, the state is entitled to the number of
224	224	board members agreed on by the authorizing governmental entities
225	225	and the state, but is entitled to at least one board member. The
226	226	governor shall appoint each board member representing the state.
227	227	Sec. 27.102. VACANCY; REMOVAL. (a) Except as provided by
228	228	Subsection (b), if a board member resigns, dies, or becomes
229	229	incapable or ineligible to act as a board member, a successor to
230	230	serve the unexpired portion of the board member's term shall be
231	231	elected in the same manner provided by Section 27.101 as the board
232	232	member whose unexpired term the successor is filling.
233	233	(b) If a vacancy in the office of the additional member
234	234	elected under Section 27.101(a)(3)(C) continues for more than 30
235	235	days, the governor shall, on the request of any governmental entity
236	236	that elected the member, appoint a successor.
237	237	(c) A board member may be removed from office.
238	238	Sec. 27.103. ELIGIBILITY. An officer of the state, a
239	239	county, or a municipality is not eligible to serve as a board
240	240	member.
241	241	Sec. 27.104. TERMS. (a) The term of office of a board
242	242	member is as set out in the articles of incorporation of an
243	243	authority.
244	244	(b) Board members serve staggered terms so that the term of
245	245	at least one member expires each year.
246	246	Sec. 27.105. QUORUM. (a) Except as provided by Subsection
247	247	(b), a majority of the board members constitutes a quorum for the
248	248	transaction of business.
249	249	(b) A meeting of a board may be adjourned by a majority of
250	250	the board members present or may be adjourned by a single board
251	251	member if the member is the only board member present at the
252	252	meeting.
253	253	(c) A vacancy on the board does not impair the right of a
254	254	quorum to exercise all the powers and duties of an authority.
255	255	Sec. 27.106. MEETINGS. (a) A board shall hold regular
256	256	monthly meetings and any other meeting as provided for in the bylaws
257	257	of the authority.
258	258	(b) A board may hold a special meeting at the call of the
259	259	presiding officer of the authority or two board members.
260	260	(c) Any matter on which the board is authorized to act may be
261	261	acted upon at a regular or special meeting.
262	262	(d) At the request of a board member, the vote on a question
263	263	before a board shall be taken by yeas and nays and entered on the
264	264	record. All board proceedings shall be reduced to writing by the
265	265	secretary of the authority and open to board members and to the
266	266	public at all times. Copies of the proceedings, when certified by
267	267	the secretary of an authority under its seal, are admissible in a
268	268	court as evidence of the matters certified in the proceedings.
269	269	Sec. 27.107. COMPENSATION. A board member is not entitled
270	270	to receive compensation but is entitled to reimbursement for actual
271	271	and necessary expenses.
272	272	Sec. 27.108. OFFICERS. (a) The board shall elect from the
273	273	board members a presiding officer, an assistant presiding officer,
274	274	a secretary, and any other officer the board considers necessary,
275	275	for a term of one year.
276	276	(b) A treasurer or any other officer a board considers
277	277	necessary is not required to be a board member. The officer may be
278	278	appointed by the board for a term determined by the board.
279	279	(c) The offices of secretary and treasurer may be held by
280	280	the same person.
281	281	[Sections 27.109-27.150 reserved for expansion]
282	282	SUBCHAPTER D. POWERS AND DUTIES
283	283	Sec. 27.151. GENERAL POWERS. An authority may:
284	284	(1) have succession by the authority's corporate name
285	285	for the duration of time specified in the articles of
286	286	incorporation;
287	287	(2) sue and be sued in the authority's own name in
288	288	civil suits and actions, except actions in tort against the
289	289	authority;
290	290	(3) adopt and make use of a corporate seal;
291	291	(4) adopt and alter bylaws for the regulation and
292	292	conduct of the authority's affairs and business;
293	293	(5) acquire, receive, take, and hold, by purchase,
294	294	gift, lease, devise, or other means, property, regardless of
295	295	whether in one or more counties or within or outside the corporate
296	296	limits of an authorizing governmental entity, and manage the
297	297	property, including developing undeveloped property owned, leased,
298	298	or controlled by the authority;
299	299	(6) execute a contract or other instrument;
300	300	(7) enter on land, water, and premises for the
301	301	purposes of making surveys, soundings, and examinations;
302	302	(8) plan, establish, develop, acquire, construct,
303	303	enlarge, improve, maintain, equip, operate, regulate, and protect
304	304	an airport and air navigation facility, including the:
305	305	(A) acquisition, construction, installation,
306	306	equipment, maintenance, and operation at, in connection with, or in
307	307	furtherance of the use at an airport of sanitary and storm sewage
308	308	systems and water, electric, and gas systems, buildings, hangars,
309	309	and other facilities for:
310	310	(i) airlines, United States military
311	311	aircraft, and general aviation aircraft; or
312	312	(ii) the comfort, use, and accommodation of
313	313	air travelers; and
314	314	(B) purchase and sale of supplies, goods, and
315	315	commodities incident to the operation of an airport property;
316	316	(9) construct, acquire, establish, improve, extend,
317	317	enlarge, reconstruct, equip, maintain, repair, and operate a
318	318	heliport, an aerial aircraft landing, loading, or storage area, and
319	319	a transportation terminal;
320	320	(10) construct, acquire, establish, improve, extend,
321	321	enlarge, reconstruct, equip, maintain, and repair a building,
322	322	structure, or facility that is suitable for use as a manufacturing
323	323	plant, industrial plant, retail shopping area, park, or exhibit, or
324	324	for the conduct of lawful business at, on, or adjacent to an airport
325	325	or aircraft landing area owned or operated by the authority;
326	326	(11) lease a building, structure, or facility
327	327	described in Subdivision (10) to a tenant under terms approved by
328	328	the authority;
329	329	(12) for compensation, furnish or supply on an airport
330	330	or aircraft landing area owned or operated by or under the
331	331	jurisdiction of the authority, to persons and aircraft, goods,
332	332	commodities, area facilities, and services convenient or useful to
333	333	the owners, operators, and users of aircraft and to persons at the
334	334	airport or aircraft landing area, including food, lodging, shelter,
335	335	drinks, confections, reading matter, oil, gasoline, jet fuel,
336	336	motors, engines, aircraft, aircraft parts and equipment, space in
337	337	buildings, space for buildings and structures, and the services of
338	338	mechanics and instructors;
339	339	(13) confer on any person, for compensation, the
340	340	privilege or concession of supplying on an airport or aircraft
341	341	landing area owned or operated by or under the jurisdiction of the
342	342	authority all of the items to be furnished or supplied under
343	343	Subdivision (12);
344	344	(14) acquire, including by eminent domain, establish,
345	345	construct, expand, own, control, equip, improve, maintain,
346	346	operate, and regulate a satellite airport or landing field for the
347	347	use of aircraft in the state;
348	348	(15) acquire, including by purchase, gift, devise,
349	349	lease, or eminent domain proceedings, an existing airport and air
350	350	navigation facility with the consent of the county, municipality,
351	351	or other governmental entity of the state that owns or controls the
352	352	airport and air navigation facility;
353	353	(16) issue interest-bearing bonds payable from the
354	354	limited sources available under this chapter;
355	355	(17) pledge for payment of bonds any revenues and
356	356	funds from which the bonds are made payable;
357	357	(18) enter into a contract, lease, or other agreement
358	358	incidental to or necessary for the accomplishment of any purpose
359	359	for which the authority was organized;
360	360	(19) exercise the power of eminent domain with respect
361	361	to property, including airspace, air navigation easements,
362	362	structures, obstructions to flight, and property already devoted to
363	363	public use that reasonably may be necessary for the construction,
364	364	extension, maintenance, operation, protection, enlargement,
365	365	improvement, or preservation of an airport or airport facility or
366	366	sanitary or storm sewage systems or water, electric, or gas systems
367	367	on, adjacent to, or in connection with or for the furtherance of the
368	368	use of an airport, aircraft landing area, or other property owned by
369	369	or operated by the authority;
370	370	(20) appoint, employ, contract with, and compensate
371	371	officers, employees, and agents, including engineers, security
372	372	officers and guards, attorneys, consultants, fiscal advisers, and
373	373	other employees the authority may require;
374	374	(21) fix, establish, collect, and alter landing fees,
375	375	tolls, rents, and other charges for the use of an airport, landing
376	376	area, building, structure, facility, or other property owned or
377	377	controlled by the authority;
378	378	(22) adopt and enforce rules governing the use of an
379	379	airport, landing area, or airport facility owned or controlled by
380	380	the authority;
381	381	(23) provide for insurance, including use and
382	382	occupancy insurance, as determined by the board;
383	383	(24) invest funds of the authority that the board
384	384	determines are not presently needed for its corporate purposes in:
385	385	(A) a direct general obligation of the United
386	386	States;
387	387	(B) an obligation that is unconditionally
388	388	guaranteed as to both principal and interest by the United States;
389	389	or
390	390	(C) bonds of the state, a county, or a
391	391	municipality;
392	392	(25) contract with the state, a county, a
393	393	municipality, a public corporation, an agency, a department, or
394	394	another political subdivision of this state if the board determines
395	395	that the contract accomplishes the purposes for which the authority
396	396	was established;
397	397	(26) sell and convey property that is obsolete, worn
398	398	out, or no longer needed or useful;
399	399	(27) receive and accept for the construction,
400	400	extension, improvement, maintenance, or operation of an airport or
401	401	airport facility money, property, labor, or other thing of value
402	402	from any source, including grants from the United States, the
403	403	state, or any political subdivision of the state;
404	404	(28) purchase services, equipment, and supplies
405	405	necessary or convenient for the exercise of any power of the
406	406	authority;
407	407	(29) enter into a management agreement with a county
408	408	or municipality for the management by the authority of an airport,
409	409	air navigation facility, or other facility useful to the authority;
410	410	(30) require the relocation, removal, or other
411	411	adjustment of public utility facilities to accommodate a project of
412	412	the authority, only if the authority reimburses the public utility
413	413	for the cost of the relocation, removal, or other adjustment,
414	414	including the value of any easement or other associated property
415	415	right; and
416	416	(31) take any other action necessary or convenient to
417	417	carry out the purposes of this chapter or the exercise of a power
418	418	granted under this chapter.
419	419	Sec. 27.1511. ACQUISITION OR OPERATION OF CERTAIN AIRPORTS.
420	420	An authority may not acquire or operate an airport located in the
421	421	authority's jurisdiction that, as of the effective date of the Act
422	422	that enacted this chapter, has total annual commercial airline
423	423	enplanements of 300,000 passengers or more, as reported by the
424	424	United States Department of Transportation.
425	425	Sec. 27.152. ZONING. (a) An authority is exempt from
426	426	municipal or county zoning laws, ordinances, and regulations.
427	427	(b) An authority has the same zoning powers, for the zoning
428	428	of an airport in an unincorporated area owned or operated by the
429	429	authority and the zoning of the unincorporated area lying within
430	430	two miles of the boundaries of the airport, as a municipality that
431	431	owns or operates an airport.
432	432	Sec. 27.153. LIMITATION ON EMINENT DOMAIN POWER. An
433	433	authority may not acquire by eminent domain real property or
434	434	rights:
435	435	(1) owned or held by a railroad or utility; or
436	436	(2) under the management and control of the governing
437	437	body of an institution of higher education, as defined by Section
438	438	61.003, Education Code, including lands set aside and appropriated
439	439	to or acquired by the permanent university fund as provided by
440	440	Section 11, Article VII, Texas Constitution.
441	441	Sec. 27.154. MUNICIPAL VOTE REQUIRED FOR MUNICIPAL
442	442	AIRPORTS. (a) Before an authority may own, acquire, construct, or
443	443	operate an airport or an airport facility within the corporate
444	444	limits of a municipality, a majority of the governing body of the
445	445	municipality must vote in favor of the proposed airport or airport
446	446	facility.
447	447	(b) If all the constituent agencies of a joint board created
448	448	under Section 22.074 are populous home-rule municipalities, before
449	449	an authority may own or operate an existing airport operated by the
450	450	joint board, each constituent agency must vote in favor of the
451	451	authority's ownership or operation of the airport.
452	452	Sec. 27.155. PEACE OFFICERS. The authority may employ
453	453	security officers who have obtained a peace officer license issued
454	454	by the Commission on Law Enforcement Officer Standards and
455	455	Education.
456	456	[Sections 27.156-27.200 reserved for expansion]
457	457	SUBCHAPTER E. GENERAL FINANCIAL PROVISIONS; TAX EXEMPTIONS
458	458	Sec. 27.201. TAX EXEMPTION; BONDS, PROPERTY, INCOME.
459	459	(a) Bonds issued by an authority and the income on the bonds are
460	460	exempt from all state taxation.
461	461	(b) All property and income of an authority are exempt from
462	462	all state, county, municipal, and other local taxation.
463	463	(c) Subsection (b) does not exempt concessionaires,
464	464	licensees, tenants, operators, or lessees of an authority from the
465	465	payment of any taxes, including licenses or privilege taxes imposed
466	466	by the state, a county, or a municipality.
467	467	Sec. 27.202. TAX EXEMPTION; ACCESS TO AIRPORTS. A county or
468	468	municipality may not require the payment of any tax or privilege
469	469	license from a person for the reasonable use of public streets,
470	470	roads, or highways leading to or from an airport or aircraft landing
471	471	area owned or operated by or under the jurisdiction of an authority.
472	472	Sec. 27.203. FUNDING. (a) An authority is authorized to
473	473	accept, receive, disburse, and expend federal money, state money,
474	474	and any other money made available by grant or loan to accomplish an
475	475	authority purpose.
476	476	(b) Federal money accepted under this section shall be
477	477	accepted and expended by an authority on terms prescribed by the
478	478	United States that are not inconsistent with the laws of this state.
479	479	Sec. 27.204. TAX IMPLICATIONS. This subchapter does not
480	480	affect the taxability of any property that is taxable under the Tax
481	481	Code on the effective date of the Act that enacted this chapter.
482	482	[Sections 27.205-27.250 reserved for expansion]
483	483	SUBCHAPTER F. BONDS
484	484	Sec. 27.251. GENERAL PROVISIONS. (a) An authority may
485	485	issue interest-bearing revenue bonds for any of the authority's
486	486	corporate purposes.
487	487	(b) The principal of and the interest on bonds is payable
488	488	solely from and may be secured by a pledge of the revenue derived by
489	489	an authority from the operation of authority airports, facilities,
490	490	and other property.
491	491	(c) Bonds issued or contracts entered into by an authority
492	492	under this chapter do not create debt of the state, a county, or a
493	493	municipality and do not create a charge against the credit or taxing
494	494	powers of the state, a county, or a municipality.
495	495	Sec. 27.252. BONDS ISSUED. (a) Board proceedings shall
496	496	determine how bonds are issued, including the following matters:
497	497	(1) whether the bonds are issued at any time and from
498	498	time to time;
499	499	(2) bond form and denominations;
500	500	(3) bond tenor, payable in installments, and at times
501	501	not to exceed 40 years from the date of issue;
502	502	(4) place of issue; and
503	503	(5) rate of interest.
504	504	(b) A bond having a stated maturity date more than 10 years
505	505	after its date of issue is subject to redemption at the option of an
506	506	authority not later than the 10th anniversary of its date of issue
507	507	and on any interest payment date after that time at a price, after
508	508	notice, on terms, in the manner provided in the board proceeding
509	509	that authorized the bond issuance.
510	510	(c) Bonds of an authority may be sold at public or private
511	511	sale in the manner and from time to time as may be determined by the
512	512	board.
513	513	(d) An authority may pay all reasonable expenses, premiums,
514	514	fees, and commissions that the board determines are necessary or
515	515	advantageous in connection with the authorization, sale, and
516	516	issuance of bonds.
517	517	(e) Bonds must contain a recital that the bonds are issued
518	518	under this chapter.
519	519	(f) A public hearing is not required for the issuance of
520	520	bonds by an authority.
521	521	(g) Bonds issued under this chapter are negotiable
522	522	instruments within the meaning of the negotiable instruments law of
523	523	this state if the bonds otherwise possess all the characteristics
524	524	of a negotiable instrument under the law of this state.
525	525	Sec. 27.253. NOTICE; CHALLENGES. (a) On the adoption of a
526	526	resolution providing for the issuance of bonds, an authority may
527	527	publish, once a week for two consecutive weeks, in a newspaper that
528	528	is distributed in the county in which the principal office of the
529	529	authority is located, notice in substantially the following form at
530	530	the end of which shall be printed the name and title of either the
531	531	presiding officer or secretary of the authority:
532	532	"_______, a public corporation of the State of Texas, on the ____
533	533	day of _____ authorized the issuance of $______ principal amount of
534	534	revenue bonds of the corporation for purposes authorized in the Act
535	535	of the Legislature of Texas under which the corporation was
536	536	organized. Any action or proceeding questioning the validity of
537	537	the bonds, or the pledge and any instruments securing the bonds, or
538	538	the proceedings authorizing the bonds, must be commenced within 20
539	539	days after the first publication of this notice."
540	540	(b) An action or proceeding in a court to set aside or
541	541	question the proceedings for the issuance of bonds referred to in a
542	542	notice under Subsection (a) or to contest the validity of the bonds
543	543	or the validity of the pledge and any instruments made to secure the
544	544	bonds must be commenced before the 31st day after the date of first
545	545	publication of the notice.
546	546	(c) After the 30-day period described under Subsection (b)
547	547	expires:
548	548	(1) a right of action or defense questioning or
549	549	attacking the validity of the proceedings, bonds, pledge, or
550	550	instruments may not be asserted; and
551	551	(2) the validity of the proceedings, bonds, pledge, or
552	552	instruments is not open to question in a court on any ground.
553	553	Sec. 27.254. EXECUTION AND DELIVERY. (a) Bonds shall be
554	554	signed by the presiding officer or assistant presiding officer and
555	555	by the secretary or treasurer of an authority. The signature of one
556	556	of the officers whose signatures will appear on the bonds may be
557	557	imprinted or otherwise reproduced.
558	558	(b) The seal of an authority must be affixed onto the bonds
559	559	or a facsimile of the seal of an authority must be imprinted or
560	560	otherwise reproduced on the bonds.
561	561	(c) Coupons must be signed by the presiding officer or
562	562	assistant presiding officer and by the secretary or treasurer of an
563	563	authority. The signature of the secretary or treasurer may be
564	564	imprinted or otherwise reproduced.
565	565	(d) Delivery of bonds executed as provided under this
566	566	section is valid regardless of any changes in officers or in the
567	567	authority seal after the signing and sealing of the bonds.
568	568	Sec. 27.255. SECURITY. (a) At the discretion of an
569	569	authority, bonds may be issued under and secured by an indenture
570	570	between the authority and a trustee. A trustee may be a private
571	571	person or corporation, including a trust company or bank having
572	572	trust powers.
573	573	(b) In an indenture or resolution providing for the issuance
574	574	of bonds, the authority may:
575	575	(1) pledge, for payment of the principal of and the
576	576	interest on bonds, authority revenue;
577	577	(2) assign, as security for payment, a lease,
578	578	franchise, permit, or contract; and
579	579	(3) mortgage a property.
580	580	(c) A pledge of revenue is valid from the time it is made.
581	581	Pledged revenue received after the pledge by an authority
582	582	immediately becomes subject to the lien of the pledge without
583	583	physical delivery or further act. The lien of the pledge is binding
584	584	against a party having a claim of any kind against the authority,
585	585	regardless of whether the party has actual notice of the lien, from
586	586	the time a statement is filed in the office of the county clerk of:
587	587	(1) the county in which the principal office of the
588	588	authority is located; or
589	589	(2) a county in which any part of the property, the
590	590	revenue from which is pledged, is located.
591	591	(d) A statement under Subsection (c) must contain:
592	592	(1) the date on which a resolution authorizing the
593	593	issuance of bonds was adopted by a board;
594	594	(2) the principal amount of bonds issued;
595	595	(3) a brief description of the revenue pledged; and
596	596	(4) a brief description of property the revenue from
597	597	which is pledged.
598	598	(e) In an indenture or resolution pledging revenue from an
599	599	airport, building, or facility, an authority may include provisions
600	600	customarily contained in instruments securing evidence of
601	601	indebtedness, including provisions relating to:
602	602	(1) the collection, segregation, and application of
603	603	rental or other revenue due or to become due to the authority;
604	604	(2) the terms to be incorporated in a lease agreement
605	605	pertaining to authority property;
606	606	(3) the maintenance and insurance of a building or
607	607	structure owned by the authority;
608	608	(4) the creation and maintenance of special funds from
609	609	revenue of the authority;
610	610	(5) the rights and remedies available in the event of
611	611	default to the holder of the bonds or the trustee under the
612	612	indenture; and
613	613	(6) restricting the individual rights of action of the
614	614	holders of the bonds and coupons.
615	615	(f) If an authority defaults in payment of the principal of
616	616	or interest on bonds or in an agreement included in an indenture
617	617	securing the bonds, a holder of the bonds or any of the coupons, or
618	618	the trustee under an indenture if authorized in the indenture:
619	619	(1) may enforce payment of the principal or interest
620	620	by civil action, mandamus, or other proceeding;
621	621	(2) may compel performance of a duty of the board and
622	622	officers of the authority; and
623	623	(3) is as a matter of right and regardless of the
624	624	sufficiency of the security entitled to the appointment of a
625	625	receiver with all the powers of a receiver for the:
626	626	(A) operation and maintenance of the property of
627	627	the authority covered by the indenture; and
628	628	(B) collection, segregation, and application of
629	629	revenue from property of the authority covered by the indenture.
630	630	Sec. 27.256. PROCEEDS. (a) Proceeds derived from the sale
631	631	of bonds may be used only to pay the cost of acquiring,
632	632	constructing, improving, enlarging, and equipping an airport,
633	633	facility, or other property as specified in the proceedings in
634	634	which the bonds are authorized to be issued.
635	635	(b) Eligible costs under Subsection (a) include:
636	636	(1) the cost of land forming a part of an airport,
637	637	facility, or other property;
638	638	(2) the cost of labor, material, and supplies used in
639	639	the construction, improvement, or enlargement, including
640	640	architects' and engineers' fees and the cost of preparing contract
641	641	documents and advertising for bids;
642	642	(3) the purchase price of and the cost of installing
643	643	equipment for the airport, facility, or other property;
644	644	(4) the cost of landscaping the lands forming a part of
645	645	an airport, facility, or property, and of constructing roads,
646	646	sidewalks, curbs, gutters, utilities, and parking places in
647	647	connection with an airport, facility, or other property;
648	648	(5) legal, fiscal, and recording fees and expenses
649	649	incurred in connection with the authorization, sale, and issuance
650	650	of bonds issued in connection with an airport, facility, or other
651	651	property; and
652	652	(6) interest on bonds issued in connection with an
653	653	airport, facility, or other property for a reasonable period before
654	654	and during the time required for the construction and equipment not
655	655	to exceed 18 months after the date of completion of the construction
656	656	and equipment.
657	657	(c) If any proceeds derived from the sale of bonds remain
658	658	undisbursed after completion of the work described under Subsection
659	659	(a) and payment of costs under Subsection (b), the proceeds shall be
660	660	used for retirement of the principal of the bonds of the same issue.
661	661	Sec. 27.257. REFUNDING BONDS. (a) An authority may at any
662	662	time issue refunding bonds for the purpose of:
663	663	(1) refunding the principal of and interest on
664	664	outstanding bonds of the authority regardless of whether the
665	665	principal and interest have matured at the time of the refunding;
666	666	and
667	667	(2) paying the expenses incurred in connection with
668	668	the refunding and any premium necessary to be paid to redeem,
669	669	retire, or purchase for retirement the bonds to be refunded.
670	670	(b) Proceeds derived from the sale of refunding bonds may be
671	671	used only for the purposes for which the refunding bonds were
672	672	authorized to be issued.
673	673	(c) Refunding may be effected:
674	674	(1) by sale of the refunding bonds and the application
675	675	of the proceeds; or
676	676	(2) by exchange of the refunding bonds for the bonds or
677	677	interest coupons to be refunded, except that the holders of the
678	678	bonds or coupons to be refunded may not be compelled without their
679	679	consent to surrender their bonds or coupons for payment or exchange
680	680	before the date on which the bonds or coupons may be paid or
681	681	redeemed by call of the authority under the respective provisions
682	682	of the bonds or coupons.
683	683	(d) If an authority issues bonds for the purpose of
684	684	refunding the principal of and interest on any of its bonds or for
685	685	any other purpose for which it is authorized to issue bonds, this
686	686	section applies only to the portion of the combined issue
687	687	authorized for refunding purposes, and the rest of this subchapter
688	688	applies to the remaining portion of the combined issue.
689	689	Sec. 27.258. LOCAL GOVERNMENT INVESTMENT. A governing body
690	690	of a county or municipality may invest idle or surplus money held in
691	691	its treasury in authority bonds.
692	692	Sec. 27.259. LEGAL INVESTMENTS. (a) Bonds issued under
693	693	this subchapter are legal investments for executors,
694	694	administrators, trustees, and other fiduciaries, unless otherwise
695	695	directed by the court having jurisdiction of the fiduciary relation
696	696	or by the document that is the source of the fiduciary's authority.
697	697	(b) Bonds issued under this subchapter are legal
698	698	investments for savings banks and insurance companies organized
699	699	under the laws of this state.
700	700	[Sections 27.260-27.300 reserved for expansion]
701	701	SUBCHAPTER G. WITHDRAWAL OR DISSOLUTION
702	702	Sec. 27.301. WITHDRAWAL FROM AUTHORITY. (a) After the
703	703	organization of an airport authority by more than one governmental
704	704	entity, the state, a county, or a municipality in an authority may
705	705	withdraw from the authority by resolution of the governor, the
706	706	commissioners court of the county, or the governing body of the
707	707	municipality.
708	708	(b) A withdrawing entity may not claim or remove an asset of
709	709	the authority.
710	710	Sec. 27.302. DISSOLUTION. (a) If an authority does not
711	711	have outstanding bonds, the authority may be dissolved on the
712	712	filing of articles of dissolution with the secretary of state by
713	713	each member of the authority.
714	714	(b) On issue of a certificate of dissolution by the
715	715	secretary of state, an authority dissolves. On dissolution, all
716	716	rights, titles, and interests of the authority in property:
717	717	(1) vest in the authorizing governmental entities as
718	718	provided by the articles of incorporation; or
719	719	(2) if not provided for in the articles of
720	720	incorporation, vest in the authorizing governmental entities
721	721	equally.
722	722	SECTION 3. EFFECTIVE DATE. This Act takes effect
723	723	immediately if it receives a vote of two-thirds of all the members
724	724	elected to each house, as provided by Section 39, Article III, Texas
725	725	Constitution. If this Act does not receive the vote necessary for
726	726	immediate effect, this Act takes effect September 1, 2009.