HBA-JLV S.B. 1214 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1214 By: Madla Transportation 5/17/2001 Engrossed BACKGROUND AND PURPOSE Currently, a nonprofit defense base development authority, such as the Greater Kelly Development Authority, is authorized to issue revenue bonds for certain purposes. However, the process of issuing bonds is complicated by the fact that such authorities are allowed only to issue traditional revenue bonds with a fixed interest rate. Senate Bill 1214 establishes a more flexible credit agreement and bond authority by making a defense base development authority's bond authority and credit agreement authority similar to the bond and credit agreement authority of certain cities, city agencies, and school districts. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS Senate Bill 1214 amends the Local Government Code to authorize a defense base development authority (authority) to exercise additional power necessary or convenient to carry out certain provisions. The authority may authorize by resolution the incorporation of a nonprofit airport facility financing corporation to provide financing to pay the costs, including interest, and reserves for the costs of an airport facility and for other purposes set forth in the articles of incorporation. The bill also authorizes the authority to exercise the powers granted to a local government for the financing of facilities to be located on airport property. The bill authorizes an authority issuing bonds to exercise the powers granted to the governing body of an issuer with regard to the issuance of obligations and the execution of credit agreements for obligations for certain public improvements. The bill amends the Transportation Code to provide that the competitive bidding requirements of municipalities, counties, and certain other local governments do not apply to an exchange, sale, lease, or other disposition of land or other real property interest by a municipality if the land or other property interest is part of an air navigation facility that is a former military installation, and the disposition is part of a plan to redevelop the facility as an airport-related industrial park or community, and promotes the best interest of the municipality. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001.