By: Turner S.B. No. 1237
A BILL TO BE ENTITLED
AN ACT
1-1 relating to utility improvements on the Texas A&M University
1-2 campus.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Sec. 85.24 of the Education Code is amended to
1-5 read as follows:
1-6 (a) The board from time to time may improve and equip
1-7 existing central power plants and may construct, acquire, improve,
1-8 and equip steam plants and additions to them, and the board may
1-9 acquire land for these purposes for the institutions under its
1-10 control, when the total cost, type of construction, capacity, and
1-11 plans and specifications have been approved by the board. As used
1-12 in this subsection, "steam plants" does not include electrical
1-13 generating facilities, but "central power plants" does include
1-14 electrical generating facilities. The Board may additionally enter
1-15 into contracts for the purchase of any utility services or
1-16 commodities and may pledge to the payment of such contracts any
1-17 sources it is authorized to pledge to the payment of bonds under
1-18 this code under such terms and conditions as determined by the
1-19 board.
1-20 (b) The board from time to time may construct, extend, and
1-21 improve the water systems, sewer systems, or both, for any or all
1-22 institutions under its control, when the total cost, type of
1-23 construction, capacity, and plans and specifications have been
2-1 approved by the board.
2-2 (c) The board may furnish water, sewer, steam, power,
2-3 electricity, or any or all of those services from the power and
2-4 steam plant or plants and other facilities located at each
2-5 institution to any or all dormitories, kitchens and dining halls,
2-6 hospitals, student activity buildings, gymnasiums, athletic
2-7 buildings and stadiums, the dormitory for help, laundry, and other
2-8 buildings or facilities that may have been or may be constructed at
2-9 each institution, and may determine the amount to be charged as a
2-10 part of the maintenance and operation expense of those buildings or
2-11 facilities for the service or services. The board may allocate the
2-12 cost of furnishing the services to revenue-producing buildings and
2-13 facilities and to other buildings and facilities at the
2-14 institutions. The board may pledge the net revenues from the
2-15 amounts thus received for the services to pay the principal of and
2-16 interest on, and to create and maintain the reserve for, the
2-17 negotiable revenue bonds issued for the purpose of constructing,
2-18 acquiring, improving, extending, or equipping the power and steam
2-19 plants, or additions thereto, or other facilities, and may secure
2-20 the bonds additionally by pledging rentals, rates, charges, and
2-21 fees for the use or availability of all or any property, buildings,
2-22 structures, activities, operations, or facilities, of any nature,
2-23 which may be fixed and collected from all or any designated part of
2-24 the students enrolled in the institution or institutions or from
2-25 others in the amounts and in the manner determined and provided by
3-1 the board in the resolution authorizing the issuance of the bonds.
3-2 (d) The board may create by order one or more nonprofit
3-3 corporations to act on behalf of the board in the exercise of any
3-4 power of the board under this section, including the authority to
3-5 acquire, construct, develop, and operate a cogeneration facility
3-6 for the production of steam, electric power and energy, hot and
3-7 chilled water or any of the above, and to enter into such contracts
3-8 and issue debt on behalf of the board for such purposes under such
3-9 terms and conditions as determined by the board of directors.
3-10 (1) When exercising a power under this Act, a
3-11 corporation created under this Act and the board of directors of
3-12 the corporation have the same powers as the board.
3-13 (2) The board shall appoint the directors of a
3-14 nonprofit corporation created under this section. A member of the
3-15 board may serve as a member of the nonprofit corporation's board of
3-16 directors. The corporation's directors serve at the will of the
3-17 board.
3-18 (3) The budget of a nonprofit corporation created
3-19 under this section must be approved by the board. The activities
3-20 of the corporation are subject to the continuing review and
3-21 supervision of the board. No debt may be incurred by the nonprofit
3-22 corporation until it has been approved by the board.
3-23 (4) A nonprofit corporation created under this section
3-24 is a public entity performing an essential public function, and
3-25 property owned by a corporation is public property used for an
4-1 essential public and governmental purpose. Therefore, the
4-2 corporation and the corporation's property are exempt from all
4-3 taxes and special assessments of the state or of a municipality,
4-4 county, or other political subdivision of the state.
4-5 (5) The Texas Non-Profit Corporation Act (Article
4-6 1396-1.01 et seq., Vernon's Texas Civil Statutes), and its
4-7 subsequent amendments and Sections 5-20 and 33-36, Development
4-8 Corporation Act of 1976 (Article 5190.6 Vernon's Texas Civil
4-9 Statutes), and its subsequent amendments apply to and govern a
4-10 corporation created under this section.
4-11 (6) As used in this section, bonds shall mean bonds,
4-12 notes, commercial paper or other evidence of indebtedness.
4-13 (7) All proceedings relating to the issuance of Bonds
4-14 issued pursuant to this section shall be submitted to the attorney
4-15 general for examination. If the attorney general finds that the
4-16 Bonds and the proceedings have been authorized in accordance with
4-17 law, he shall approve the Bonds and the proceedings, including any
4-18 trust agreements or other agreements securing the payment of the
4-19 Bonds, and the Bonds shall be registered by the comptroller of
4-20 public accounts. After the approval and registration, the Bonds
4-21 and such proceedings are incontestable in any court or other forum
4-22 for any reason and are valid and binding obligations in accordance
4-23 with their terms for all purposes.
4-24 (8) Bonds may not be issued under this section unless
4-25 the issuance of the bonds has been reviewed and approved by the
5-1 bond review board.
5-2 SECTION 2. The importance of this legislation and the
5-3 crowded condition of the calendars in both houses create an
5-4 emergency and an imperative public necessity that the
5-5 constitutional rule requiring bills to be read on three several
5-6 days in each house be suspended, and this rule is hereby suspended,
5-7 and that this Act take effect and be in force from and after its
5-8 passage, and it is so enacted.