By Turner of Harris                                   H.B. No. 2096
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  authorizing the issuance of revenue bonds by Regional Education
    1-3  Service Centers.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Texas Education Code is amended by adding Section
    1-6  11.331 to read as follows:
    1-7        "Sec. 11.331  Revenue Bonds
    1-8        (a)  For the purpose of providing funds to acquire, purchase,
    1-9  construct, improve, enlarge, and/or equip Regional Education
   1-10  Service Centers, the Board of Directors of each such Service
   1-11  Center, the Board of Directors of each such Service Center, shall
   1-12  be authorized to issue its revenue bonds to be payable from and
   1-13  secured by liens on and pledges of all or any part of any of the
   1-14  revenues from any rentals, rates, charges, or other revenues that
   1-15  it may receive from any source, in the manner hereinafter provided.
   1-16  Said bonds may be additionally secured by mortgages and deeds of
   1-17  trust on any real property on which any of the facilities of the
   1-18  Regional Education Service Center are or will be located, or any
   1-19  real or personal property incident or appurtenant to said
   1-20  facilities, and the Board of Directors of each Regional Education
   1-21  Service Center may authorize the execution and delivery of trust
   1-22  indentures, mortgages, deeds of trust or other forms of
   1-23  encumbrances to evidence same.  Said bonds may be issued to mature
    2-1  serially or otherwise not to exceed 50 years from their date.  In
    2-2  the authorization of any such bonds, each Board of Directors of
    2-3  each Regional Education Service Center may provide for the
    2-4  subsequent issuance of additional parity bonds, or subordinate lien
    2-5  bonds, or other types of bonds, under such terms or conditions as
    2-6  may be set forth in the resolution or order authorizing the
    2-7  issuance of said bonds, all within the discretion of the Board of
    2-8  Directors of each Regional Education Service Center.  Said bonds,
    2-9  and any interest coupons appertaining thereto, shall be negotiable
   2-10  instruments (provided that such bonds may be issued registrable as
   2-11  to principal alone or as to both principal and interest), and shall
   2-12  be executed, and may be made redeemable prior to maturity, and may
   2-13  be issued in such form, denominations, and manner, and under such
   2-14  terms, conditions, and details, and may be sold in such manner, at
   2-15  rates, as shall be determined and provided by the Board of
   2-16  Directors of each Regional Education Service Center in the
   2-17  resolution or order authorizing the issuance of said bonds.  If so
   2-18  permitted in the bond resolution or order, any required part of the
   2-19  proceeds from the sale of the bonds may be used for paying interest
   2-20  thereon during the period of the construction of any facilities to
   2-21  be provided through the expenses of said facilities to the extent,
   2-22  and for the period of time, specified in said bond resolution, and
   2-23  also for the creation of reserves for the payment of the principal
   2-24  of and interest on the bonds; and such moneys may be invested,
   2-25  until needed, to the extent, and in the manner provided, in said
    3-1  bond resolution order.
    3-2        (b)  The Board of Directors of each Regional Education
    3-3  Service Center shall be authorized to pledge all or any part of any
    3-4  of its revenues from any source to the payment of any bonds issued
    3-5  hereunder, including the payment of principal, interest, and any
    3-6  other amounts required or permitted in connection with said bonds.
    3-7        (c)  Any revenue bonds issued by any such Board of Directors
    3-8  of a Regional Education Service Center under this section, and any
    3-9  revenue bonds issued by any such Board of Directors of a Regional
   3-10  Education Service Center under any other Texas statute and payable
   3-11  from its revenues from any source and any other existing debt of
   3-12  any kind may be refunded or otherwise refinanced by such governing
   3-13  Board of Directors, and in such case all pertinent and appropriate
   3-14  provisions of this section shall be fully applicable to such
   3-15  refunding bonds.  In refunding or otherwise refinancing any such
   3-16  bonds or other debt the Board of Directors of a Regional Education
   3-17  Service Center may, in the same authorizing proceedings, refund or
   3-18  refinance bonds issued pursuant to this code and bonds issued
   3-19  pursuant to any other such Texas statute and combine all said
   3-20  refunding bonds and any other additional new bonds to be issued
   3-21  pursuant hereto into one or more issues or series of bonds, and may
   3-22  provide for the subsequent issuance of additional parity bonds, or
   3-23  subordinate lien bonds, or other type of bonds.   All refunding
   3-24  bonds shall be issued and delivered under such terms and conditions
   3-25  as may be set forth in the authorizing proceedings.
    4-1        (d)  All bonds issued pursuant to this section, and the
    4-2  appropriate proceedings authorizing their issuance, shall be
    4-3  submitted to the attorney general of Texas for examination.  If he
    4-4  finds that such bonds have been authorized in accordance with law
    4-5  he shall approve them, and thereupon they shall be registered by
    4-6  the comptroller of public accounts of Texas; and after such
    4-7  approval and registration such bonds shall be incontestable in any
    4-8  court, or other forum, for any reason, and shall be valid and
    4-9  binding obligations in accordance with their terms for all
   4-10  purposes.
   4-11        (e)  All bonds issued pursuant to this section shall be legal
   4-12  and authorized investments for all banks, trust companies, building
   4-13  and loan associations, savings and loan associations, small
   4-14  business investment corporations, insurance companies of all kinds
   4-15  and types, fiduciaries, trustees, and guardians, and for all
   4-16  interest and sinking funds and other public funds of Texas and all
   4-17  agencies, subdivisions, and instrumentalities thereof, including
   4-18  all counties, cities, towns, villages, school districts, and all
   4-19  other kinds and types of districts, public agencies and bodies
   4-20  politic.  Said bonds also shall be eligible and lawful security for
   4-21  all deposits of public funds of Texas and all agencies,
   4-22  subdivisions, and instrumentalities thereof, including all
   4-23  counties, cities, towns, villages, school districts, and all other
   4-24  kinds and types of districts, public agencies, and bodies politic,
   4-25  to the extent of the market value of said bonds, when accompanied
    5-1  by any unmatured interest coupons appurtenant thereto."
    5-2        SECTION 2.  Texas Education Code, Section 11.33(a)(7) is
    5-3  amended to read as follows:
    5-4              "School districts as participant members in the center
    5-5  shall provide and pay to the proper center a proportionate amount
    5-6  determined on the basis of the average daily student attendance for
    5-7  the next preceding school year matching the amount provided by the
    5-8  state.  The matching funds provided by the participant districts,
    5-9  including any donated or other local funds, may be used to pay for
   5-10  costs of administration of or servicing by the center and to
   5-11  purchase supplemental educational media.  Except as provided in
   5-12  Section 11.331, a <A> center shall not enter into obligations which
   5-13  shall exceed funds available or reasonably anticipated as
   5-14  receivable for the current school year."
   5-15        SECTION 3.  This Act takes effect on September 1, 1993.
   5-16        SECTION 4.  The importance of this legislation and the
   5-17  crowded condition of the calendars in both houses create an
   5-18  emergency and an imperative public necessity that the
   5-19  constitutional rule requiring bills to be read on three several
   5-20  days in each house be suspended, and this rule is hereby suspended.