1-1 By: Turner S.B. No. 1237
1-2 (In the Senate - Filed March 12, 1993; March 16, 1993, read
1-3 first time and referred to Committee on Education; April 15, 1993,
1-4 reported favorably by the following vote: Yeas 11, Nays 0;
1-5 April 15, 1993, sent to printer.)
1-6 COMMITTEE VOTE
1-7 Yea Nay PNV Absent
1-8 Ratliff x
1-9 Haley x
1-10 Barrientos x
1-11 Bivins x
1-12 Harris of Tarrant x
1-13 Luna x
1-14 Montford x
1-15 Shapiro x
1-16 Sibley x
1-17 Turner x
1-18 Zaffirini x
1-19 A BILL TO BE ENTITLED
1-20 AN ACT
1-21 relating to the powers of the board of directors of Texas A&M
1-22 University and to the board's authority to finance utility
1-23 services, including the issuance of bonds.
1-24 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-25 SECTION 1. Section 85.24, Education Code, is amended to read
1-26 as follows:
1-27 Sec. 85.24. UTILITIES. (a) The board from time to time may
1-28 improve and equip existing central power plants and may construct,
1-29 acquire, improve, and equip steam plants and additions to them, and
1-30 the board may acquire land for these purposes for the institutions
1-31 under its control, when the total cost, type of construction,
1-32 capacity, and plans and specifications have been approved by the
1-33 board. As used in this subsection, "steam plants" does not include
1-34 electrical generating facilities, but "central power plants" does
1-35 include electrical generating facilities. The board may
1-36 additionally enter into contracts for the purchase of any utility
1-37 services or commodities and may pledge to the payment of such
1-38 contracts any sources it is authorized to pledge to the payment of
1-39 bonds under this code under such terms and conditions as determined
1-40 by the board.
1-41 (b) The board from time to time may construct, extend, and
1-42 improve the water systems, sewer systems, or both, for any or all
1-43 institutions under its control, when the total cost, type of
1-44 construction, capacity, and plans and specifications have been
1-45 approved by the board.
1-46 (c) The board may furnish water, sewer, steam, power,
1-47 electricity, or any or all of those services from the power and
1-48 steam plant or plants and other facilities located at each
1-49 institution to any or all dormitories, kitchens and dining halls,
1-50 hospitals, student activity buildings, gymnasiums, athletic
1-51 buildings and stadiums, the dormitory for help, laundry, and other
1-52 buildings or facilities that may have been or may be constructed at
1-53 each institution, and may determine the amount to be charged as a
1-54 part of the maintenance and operation expense of those buildings or
1-55 facilities for the service or services. The board may allocate the
1-56 cost of furnishing the services to revenue-producing buildings and
1-57 facilities and to other buildings and facilities at the
1-58 institutions. The board may pledge the net revenues from the
1-59 amounts thus received for the services to pay the principal of and
1-60 interest on, and to create and maintain the reserve for, the
1-61 negotiable revenue bonds issued for the purpose of constructing,
1-62 acquiring, improving, extending, or equipping the power and steam
1-63 plants, or additions thereto, or other facilities, and may secure
1-64 the bonds additionally by pledging rentals, rates, charges, and
1-65 fees for the use or availability of all or any property, buildings,
1-66 structures, activities, operations, or facilities, of any nature,
1-67 which may be fixed and collected from all or any designated part of
1-68 the students enrolled in the institution or institutions or from
2-1 others in the amounts and in the manner determined and provided by
2-2 the board in the resolution authorizing the issuance of the bonds.
2-3 (d) The board may create by order one or more nonprofit
2-4 corporations to act on behalf of the board in the exercise of any
2-5 power of the board under this section, including the authority to
2-6 acquire, construct, develop, and operate a cogeneration facility
2-7 for the production of steam, electric power and energy, hot and
2-8 chilled water, or any of the above, and to enter into such
2-9 contracts and issue debt on behalf of the board for such purposes
2-10 under such terms and conditions as determined by the board of
2-11 directors.
2-12 (e)(1) When exercising a power under this Act, a corporation
2-13 created under this Act and the board of directors of the
2-14 corporation have the same powers as the board.
2-15 (2) The board shall appoint the directors of a
2-16 nonprofit corporation created under this section. A member of the
2-17 board may serve as a member of the nonprofit corporation's board of
2-18 directors. The corporation's directors serve at the will of the
2-19 board.
2-20 (3) The budget of a nonprofit corporation created
2-21 under this section must be approved by the board. The activities
2-22 of the corporation are subject to the continuing review and
2-23 supervision of the board. No debt may be incurred by the nonprofit
2-24 corporation until it has been approved by the board.
2-25 (4) A nonprofit corporation created under this section
2-26 is a public entity performing an essential public function, and
2-27 property owned by a corporation is public property used for an
2-28 essential public and governmental purpose. Therefore, the
2-29 corporation and the corporation's property are exempt from all
2-30 taxes and special assessments of the state or of a municipality,
2-31 county, or other political subdivision of the state.
2-32 (f)(1) The Texas Non-Profit Corporation Act (Article
2-33 1396-1.01 et seq., Vernon's Texas Civil Statutes) and its
2-34 subsequent amendments and Sections 5 through 20 and 33 through 36,
2-35 Development Corporation Act of 1979 (Article 5190.6, Vernon's Texas
2-36 Civil Statutes), and its subsequent amendments apply to and govern
2-37 a corporation created under this section.
2-38 (2) As used in this section, "bonds" shall mean bonds,
2-39 notes, commercial paper, or other evidence of indebtedness.
2-40 (g) All proceedings relating to the issuance of bonds issued
2-41 pursuant to this section shall be submitted to the attorney general
2-42 for examination. If the attorney general finds that the bonds and
2-43 the proceedings have been authorized in accordance with law, the
2-44 attorney general shall approve the bonds and the proceedings,
2-45 including any trust agreements or other agreements securing the
2-46 payment of the bonds, and the bonds shall be registered by the
2-47 comptroller of public accounts. After approval and registration,
2-48 the bonds and such proceedings are incontestable in any court or
2-49 other forum for any reason and are valid and binding obligations in
2-50 accordance with their terms for all purposes.
2-51 (h) Bonds may not be issued under this section unless the
2-52 issuance of the bonds has been reviewed and approved by the bond
2-53 review board.
2-54 SECTION 2. The importance of this legislation and the
2-55 crowded condition of the calendars in both houses create an
2-56 emergency and an imperative public necessity that the
2-57 constitutional rule requiring bills to be read on three several
2-58 days in each house be suspended, and this rule is hereby suspended,
2-59 and that this Act take effect and be in force from and after its
2-60 passage, and it is so enacted.
2-61 * * * * *
2-62 Austin,
2-63 Texas
2-64 April 15, 1993
2-65 Hon. Bob Bullock
2-66 President of the Senate
2-67 Sir:
2-68 We, your Committee on Education to which was referred S.B.
2-69 No. 1237, have had the same under consideration, and I am
2-70 instructed to report it back to the Senate with the recommendation
3-1 that it do pass and be printed.
3-2 Ratliff,
3-3 Chairman
3-4 * * * * *
3-5 WITNESSES
3-6 FOR AGAINST ON
3-7 ___________________________________________________________________
3-8 Name: W. H. Mobley x
3-9 Representing: Texas A&M University
3-10 City: College Station
3-11 -------------------------------------------------------------------
3-12 Name: Joe Sugg x
3-13 Representing: TAMU
3-14 City: College Station
3-15 -------------------------------------------------------------------
3-16 Name: Christy Jacobs x
3-17 Representing: Texas A&M
3-18 City: Bryan
3-19 -------------------------------------------------------------------
3-20 Name: Christy M. Durham x
3-21 Representing: Texas A&M Student Government
3-22 City: College Station
3-23 -------------------------------------------------------------------
3-24 Name: Juli Phillips x
3-25 Representing: Texas A&M
3-26 City: College Station
3-27 -------------------------------------------------------------------
3-28 Name: Pamela Haith x
3-29 Representing: Texas A&M
3-30 City: College Station
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3-32 Name: Russell Langley x
3-33 Representing: Texas A&M Student Government
3-34 City: College Station
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