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        |  | AN ACT | 
      
        |  | relating to the directors of a defense base management authority | 
      
        |  | and to a study on the effectiveness of the authority. | 
      
        |  | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | 
      
        |  | SECTION 1.  Subsections (a), (b), (c), and (h), Section | 
      
        |  | 375.306, Local Government Code, are amended to read as follows: | 
      
        |  | (a)  The board consists of 11 [ 15] directors. | 
      
        |  | (b)  The municipality shall appoint four [ six] members of the | 
      
        |  | board. | 
      
        |  | (c)  The county in which the municipality is primarily | 
      
        |  | located shall appoint four [ six] members of the board. | 
      
        |  | (h)  Sections 375.061, 375.063, 375.066, and 375.068 and the | 
      
        |  | limitations of Section 375.072(c) do not apply to this subchapter. | 
      
        |  | SECTION 2.  Section 375.307, Local Government Code, is | 
      
        |  | amended by amending Subsection (a) and adding Subsection (c) to | 
      
        |  | read as follows: | 
      
        |  | (a)  At least three directors appointed by the municipality | 
      
        |  | and at least three directors appointed by the county must: | 
      
        |  | (1)  reside in the authority; or | 
      
        |  | (2)  own property in the authority [ Except as provided  | 
      
        |  | by Subsection (b), a majority of the directors of an authority must  | 
      
        |  | meet the qualifications of Section 375.063]. | 
      
        |  | (c)  To be qualified to serve as a director appointed by the | 
      
        |  | municipality or the county, a person who does not meet the | 
      
        |  | qualifications of Subsection (a) must be: | 
      
        |  | (1)  an owner of stock, whether beneficial or | 
      
        |  | otherwise, of a corporate owner of property in the authority; | 
      
        |  | (2)  an owner of a beneficial interest in a trust that | 
      
        |  | owns property in the authority; or | 
      
        |  | (3)  an agent, employee, or tenant of a person who: | 
      
        |  | (A)  owns property in the authority; or | 
      
        |  | (B)  is covered by Subdivision (1) or (2). | 
      
        |  | SECTION 3.  Subchapter O, Chapter 375, Local Government | 
      
        |  | Code, is amended by adding Section 375.315 to read as follows: | 
      
        |  | Sec. 375.315.  EFFECTIVENESS STUDY; REPORT.  (a)  The board | 
      
        |  | of an authority shall study the effectiveness of the authority. | 
      
        |  | (b)  Not later than December 31 of each even-numbered year, | 
      
        |  | the board of an authority shall report to the legislature on the | 
      
        |  | effectiveness of the authority.  The report must: | 
      
        |  | (1)  compare utility and infrastructure development | 
      
        |  | in: | 
      
        |  | (A)  the authority since the authority's | 
      
        |  | creation; and | 
      
        |  | (B)  areas in the municipality that created the | 
      
        |  | authority that are not in the authority; | 
      
        |  | (2)  identify methods for improving residential, | 
      
        |  | commercial, and industrial development in the authority; | 
      
        |  | (3)  identify limitations and impediments to | 
      
        |  | development in the authority; | 
      
        |  | (4)  identify methods to improve the authority's | 
      
        |  | accountability to property owners in the authority; and | 
      
        |  | (5)  identify any competitive advantage opportunities | 
      
        |  | of the authority. | 
      
        |  | SECTION 4.  (a)  The change in law made by this Act applies | 
      
        |  | only to a director appointed on or after the effective date of this | 
      
        |  | Act.  A director appointed before the effective date of this Act is | 
      
        |  | governed by the law in effect on the date the director was | 
      
        |  | appointed, and the former law is continued in effect for that | 
      
        |  | purpose. | 
      
        |  | (b)  A director appointed by a municipality or county under | 
      
        |  | Section 375.306, Local Government Code, as it existed immediately | 
      
        |  | before the effective date of this Act, continues to serve until the | 
      
        |  | director's term expires.  Until the number of directors appointed | 
      
        |  | by the municipality or county is four for that entity, on expiration | 
      
        |  | of the term of each director appointed by the entity, the director's | 
      
        |  | position is abolished. | 
      
        |  | (c)  A municipality or county may not appoint a director | 
      
        |  | under Section 375.306, Local Government Code, as amended by this | 
      
        |  | Act, until the number of directors appointed by the municipality or | 
      
        |  | county, after existing terms expire and positions are abolished, is | 
      
        |  | four or fewer directors for that entity.  An initial appointment by | 
      
        |  | a municipality or county under Section 375.306, Local Government | 
      
        |  | Code, as amended by this Act, to replace a director whose term | 
      
        |  | expires but whose position is not abolished may be limited to one | 
      
        |  | year to achieve staggering of terms under Subsection (e), Section | 
      
        |  | 375.306, Local Government Code. | 
      
        |  | SECTION 5.  This Act takes effect immediately if it receives | 
      
        |  | a vote of two-thirds of all the members elected to each house, as | 
      
        |  | provided by Section 39, Article III, Texas Constitution.  If this | 
      
        |  | Act does not receive the vote necessary for immediate effect, this | 
      
        |  | Act takes effect September 1, 2011. | 
      
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        |  | ______________________________ | ______________________________ | 
      
        |  | President of the Senate | Speaker of the House | 
      
        |  | 
      
        |  | I hereby certify that S.B. No. 1493 passed the Senate on | 
      
        |  | May 11, 2011, by the following vote:  Yeas 31, Nays 0. | 
      
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        |  | 
      
        |  | ______________________________ | 
      
        |  | Secretary of the Senate | 
      
        |  | 
      
        |  | I hereby certify that S.B. No. 1493 passed the House on | 
      
        |  | May 23, 2011, by the following vote:  Yeas 142, Nays 0, one | 
      
        |  | present not voting. | 
      
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        |  | ______________________________ | 
      
        |  | Chief Clerk of the House | 
      
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        |  | Approved: | 
      
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        |  | ______________________________ | 
      
        |  | Date | 
      
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        |  | ______________________________ | 
      
        |  | Governor |