Relating to the operation and dissolution of the Lubbock Reese Redevelopment Authority and to agreements between Texas Tech University and the authority.

89(R) HB 5092 - Enrolled version - Bill Text

H.B. No. 5092

AN ACT

relating to the operation and dissolution of the Lubbock Reese

Redevelopment Authority and to agreements between Texas Tech

University and the authority.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 3501.001, Special District Local Laws

Code, is amended by adding Subdivisions (5) and (6) to read as

follows:

(5)

"Critical infrastructure" has the meaning

assigned by Section 117.001, Business & Commerce Code.

(6)

"National security-related technology" means

technology that is:

(A)

researched or developed in collaboration

with Texas Tech University for a use related to national security by

the United States Department of Defense, the United States

Department of Defense's component services and agencies, the United

States Department of Energy, the United States Department of

Homeland Security, or another collaborating partner in the public

or private sector; and

(B)

used in qualified research, as defined by

Section 151.3182, Tax Code.

SECTION 2. Section 3501.003(a), Special District Local Laws

Code, is amended to read as follows:

(a) The purpose of the authority is to:

(1) undertake projects necessary or incidental to the

industrial, commercial, or business development, redevelopment,

maintenance, and expansion of new and existing businesses on the

property, now or formerly known as Reese Air Force Base, described

in Section 3501.002(a),
and to research related to national

security and critical infrastructure conducted on the property,

including the acquisition, construction, operation, maintenance,

enhancement, or disposal of:

(A) roads, bridges, and rights-of-way;

(B) housing;

(C) property;

(D) police, fire, medical, cultural,

educational, and research services, equipment, institutions, and

resources;

(E) other community support services;

(F) flood control, water, wastewater treatment,

and all other utility facilities; and

(G) other infrastructure improvements;

(2) encourage the development of new industry by

private businesses; [
and
]

(3) encourage financing of projects designated under

Section 3501.1024
; and

(4)

facilitate the establishment of an applied

research site in cooperation and collaboration with Texas Tech

University
.

SECTION 3. Sections 3501.004(c) and (d), Special District

Local Laws Code, are amended to read as follows:

(c)
Tangible personal property that is used primarily to

develop national security-related technology or critical

infrastructure technology, tangible personal property that is

national security-related technology or critical infrastructure

technology, or a
[
A
] commercial aircraft to be used as an instrument

of commerce that is under construction
or development, as

applicable,
in the authority is presumed to be in interstate,

international, or foreign commerce and not located in this state

for longer than a temporary period for purposes of Sections 11.01

and 21.02, Tax Code.

(d) Tangible personal property located in the authority is

presumed to be in interstate, international, or foreign commerce

and not located in this state for longer than a temporary period for

purposes of Sections 11.01 and 21.02, Tax Code, if the owner

demonstrates to the chief appraiser for the appraisal district in

which the authority is located that the owner intends to

incorporate the property into or attach the property to
tangible

personal property described by Subsection (c) or
a commercial

aircraft described by Subsection (c).

SECTION 4. Section 3501.005(a), Special District Local Laws

Code, is amended to read as follows:

(a) In this section, "qualifying project" means any real

estate project involving the construction of:

(1) a tenant finish-out or build-to-suit facility for

a tenant who, through the execution of a lease with the authority,

pays for or reimburses the authority for the cost of the

improvements;

(2) infrastructure improvements including roads,

driveways, or utility extensions made in connection with the sale

or lease of property owned by the authority and for which the

proceeds of the sale or the lease are used to reimburse the

authority for the infrastructure improvements; or

(3) an income-producing facility that generates

revenue for the authority and is constructed by
:

(A)
a private developer with special expertise in

development
; or

(B)

an entity whose purpose is to support the

research and development of national security-related technology

or critical infrastructure technology or services in collaboration

with Texas Tech University
.

SECTION 5. Section 3501.051, Special District Local Laws

Code, is amended to read as follows:

Sec. 3501.051. COMPOSITION OF BOARD. (a) The board is

composed of:

(1)
six
[
five
] directors appointed
in the manner

provided by Subsection (b)
[
by the governing body of the City of

Lubbock from a list of persons recommended by the board under this

section
];
and

(2) [
one director appointed by the commissioners court

of Lubbock County from a list of persons recommended by the board

under this section; and

[
(3)
] the executive director of the South Plains

Association of Governments.

(b) Before the term of
an appointed
[
a
] director [
appointed

under Subsection (a)(1) or (a)(2)
] expires, the board, in

consultation with the
president of Texas Tech University, or the

president's designee
[
City of Lubbock or Lubbock County, as

applicable, shall recommend to the governing body of the City of

Lubbock or the commissioners court of Lubbock County, as

applicable, a list of persons to serve on the succeeding board.

After reviewing the list of recommendations, the governing body of

the City of Lubbock or the commissioners court of Lubbock County, as

applicable
], shall appoint
a person to serve as a successor

director
[
the appropriate number of directors from the recommended

persons, or request that the board provide additional

recommendations
].

(c) The [
governing body of the City of Lubbock, the

commissioners court of Lubbock County, or the
] board [
, as

appropriate,
] shall make [
recommendations and
] appointments
of

successor directors
to the board so that places on the board are

occupied by persons with experience in:

(1) real estate;

(2) finance;

(3) manufacturing;

(4) agriculture; and

(5)
national security-related technology or critical

infrastructure technology
[
general business
].

SECTION 6. Section 3501.102(b), Special District Local Laws

Code, is amended to read as follows:

(b) The authority may exercise[
, on approval by and in

coordination with the governor,
] any power necessary or convenient

to accomplish a purpose of this chapter, including the power to:

(1) sue and be sued, and plead and be impleaded, in its

own name;

(2) adopt an official seal;

(3) adopt and enforce bylaws and rules for the conduct

of its affairs;

(4) acquire, hold, own, and dispose of its revenue,

income, receipts, and money from any source;

(5) select its depository;

(6) establish its fiscal year;

(7) adopt an annual operating budget for all major

expenditures before the beginning of the fiscal year;

(8) establish a system of accounts for the authority;

(9) invest its money in accordance with Chapter 2256,

Government Code;

(10) acquire, hold, own, use, rent, lease, or dispose

of any property, including a license, patent, right, right-of-way,

easement, and other interest in property, by purchase, exchange,

gift, assignment, condemnation, lease, sale, or any other means, to

perform a duty or to exercise a power under this chapter;

(11) manage, operate, or improve that property, to

perform a duty or to exercise a power under this chapter;

(12) sell, assign, lease, encumber, mortgage, or

otherwise dispose of any base property, or any interest in that

property, release or relinquish any right, title, claim, lien,

interest, easement, or demand, however acquired, and,

notwithstanding any other law, conduct any transaction authorized

by this subdivision by public or private sale;

(13) lease or rent any land, buildings, structures, or

facilities located on the base property to any person to accomplish

the purposes of this chapter;

(14) request and accept any appropriation, grant,

allocation, subsidy, guarantee, aid, service, labor, material,

gift, or money from any source, including the federal government,

the state, a public agency, and a political subdivision;

(15) maintain an office;

(16) appoint and determine the duties, tenure,

qualifications, compensation, and removal of officers, employees,

agents, professional advisors, and counselors, including financial

consultants, accountants, attorneys, architects, engineers,

appraisers, and financing experts, as considered necessary or

advisable by the board;

(17) borrow money as necessary to acquire, improve, or

operate a facility on the base property, not to exceed the amount

determined by the board;

(18) establish, impose, and collect rents, rates,

fees, and charges for its facilities and services;

(19) exercise the powers Chapter 380, Local Government

Code, grants to a municipality for expansion of economic

development and commercial activity;

(20) lend money for a purpose authorized by Section

52-a, Article III, Texas Constitution;

(21) authorize by resolution the incorporation of a

nonprofit airport facility financing corporation in the manner

provided by Subchapter E, Chapter 22, Transportation Code, for the

purposes provided by Section 22.152(a), Transportation Code;

(22) exercise the powers granted to a local government

for the financing of facilities to be located on airport property,

including powers granted by Chapter 22, Transportation Code,

consistent with the requirements and the purposes of Section 52-a,

Article III, Texas Constitution;

(23) lease, own, and operate an airport and exercise

the powers granted to municipalities and counties by Chapter 22,

Transportation Code;

(24) lease, own, and operate port facilities for air,

truck, and rail transportation;

(25) provide security for port functions, facilities,

and operations;

(26) cooperate with and participate in programs and

critical infrastructure and national
security efforts of this state

and the United States
Department of Defense, the component services

and agencies of the United States Department of Defense, the United

States Department of Energy, the United States
Department of

Homeland Security
, or another collaborating partner in the public

or private sector
; [
and
]

(27) participate as a member or partner of a limited

liability company, a limited liability partnership, or other entity

organized to finance a project designated as a redevelopment

project under Section 3501.1024
; and

(28)

enter into interagency agreements with Texas Tech

University in the manner provided by Chapter 771, Government Code,

as necessary to:

(A)

facilitate and support Texas Tech University

research and development activities on base property; or

(B)

facilitate the transfer of portions of the

base property to Texas Tech University to further a purpose of the

authority
.

SECTION 7. Subchapter D, Chapter 3501, Special District

Local Laws Code, is amended to read as follows:

SUBCHAPTER D.
TRANSFER OF OWNERSHIP;
DISSOLUTION

Sec. 3501.151. LEGISLATIVE INTENT.
(a) The legislature

intends that the authority transfer ownership of portions of the

base property to Texas Tech University in a manner authorized by

this chapter as necessary for the purposes of an agreement

described by Section 3501.102(b)(28). The agreement may provide

for the continued operation of the authority after the transfer.

(b)
The legislature intends that the authority be dissolved

under Section 3501.152
after conveyance
or transfer
[
and sale
] of

all of the base property.

Sec. 3501.152.
DISSOLUTION
[
DUTY TO DISSOLVE
]. [
(a)
] The

authority
may
[
shall
] be dissolved
only
[
on approval of the City of

Lubbock and Lubbock County
]:

(1) when
the board determines that
all the functions

of the authority are performed and completed; [
and
]

(2) after all debts or obligations have been satisfied

or retired with the assets of the authority
; and

(3) after
[
.

[
(b) On dissolution,
] any remaining
real property and other

assets of the authority
have been
[
shall be
] conveyed or

transferred
:

(A)

to Texas Tech University, if approved by the

Board of Regents of the Texas Tech University System; or

(B)

if Texas Tech University declines to accept

any remaining real property and other assets of the authority,
to

the City of Lubbock [
and Lubbock County in proportion to any initial

contribution of money made
].

SECTION 8. Subchapter C, Chapter 109, Education Code, is

amended by adding Section 109.105 to read as follows:

Sec.

109.105.

APPLIED RESEARCH SITE AT FORMER REESE AIR

FORCE BASE. A facility transferred to Texas Tech University from

the Lubbock Reese Redevelopment Authority under Chapter 3501,

Special District Local Laws Code, is not required to be included in

a facilities inventory audit under Subchapter C, Chapter 61, of

this code and is not subject to the facilities inventory rules of

the Texas Higher Education Coordinating Board until the facility is

placed in service and assigned an educational and general function

by the university.

SECTION 9. The changes in law made by this Act to Section

3501.051, Special District Local Laws Code, do not affect the

entitlement of a member serving on the board of directors of the

Lubbock Reese Redevelopment Authority immediately before the

effective date of this Act to continue to carry out the board's

functions for the remainder of the member's term. The change in law

applies only to a member appointed on or after the effective date of

this Act. This Act does not prohibit a person who is a member of the

board on the effective date of this Act from being reappointed to

the board if the person has the qualifications required for a member

under Section 3501.051(c), Special District Local Laws Code, as

amended by this Act.

SECTION 10. This Act takes effect September 1, 2025.

______________________________

______________________________

President of the Senate

Speaker of the House

I certify that H.B. No. 5092 was passed by the House on May 2,

2025, by the following vote: Yeas 114, Nays 21, 1 present, not

voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 5092 was passed by the Senate on May

14, 2025, by the following vote: Yeas 31, Nays 0.

______________________________

Secretary of the Senate

APPROVED: _____________________

Date

_____________________

Governor