BILL ANALYSIS C.S.H.B. 1587 By: Marchant (Sponsor) Finance 05-10-95 Senate Committee Report (Substituted) BACKGROUND The Texas Public Finance Authority Act of 1983 is in need of recodification. PURPOSE As proposed, C.S.H.B. 1587 recodifies the Texas Public Finance Authority Act regarding the powers and duties of the Texas Public Finance Authority; allows the authority to issue bonds for certain state projects; grants the power of eminent domain; and validates a prior state appropriation. RULEMAKING AUTHORITY It is the committee's opinion that rulemaking authority is granted under SECTION 1 (Sections 8(6), 14(c) and (e), 34(j), and 35(e), Article 601d, V.T.C.S.) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Article 601d, V.T.C.S. (The Texas Public Finance Authority Act, as follows: Sec. 1. SHORT TITLE: Texas Public Finance Authority Act. Sec. 2. DEFINITIONS. Defines "authority," "board," "bonds," "building," "commission," "computer equipment," "construction," "equipment," "proceeds," and "state agency." Sec. 3. PURPOSE. Sets forth the purpose of this Act, including certain duties. Sec. 4. PUBLIC FINANCE AUTHORITY. Provides that the Texas Public Finance Authority (authority) is a public authority and body politic and corporate. Sec. 5. COMPOSITION OF BOARD. Sets forth the composition of the board of directors (board) of the authority. Sec. 6. TERMS. Sets forth terms of the members of the board. Sec. 7. SUNSET PROVISION. Provides that the authority is subject to Chapter 325, Government Code (Texas Sunset Act). Provides that the authority is abolished and this Act expires September 1, 1997, unless continued in existence as provided by that chapter. Sec. 8. GENERAL POWERS. Sets forth the powers of the board. Sec. 9. SCOPE OF POWER. (a) Limits the board's powers to the financing of the acquisition or construction of a building, the purchase or lease of equipment, or other capital financing authorized by this Act or another act of the legislature. Provides that the board's powers do not affect the powers of the General Services Commission (commission) or any other state agency. (b) Provides that buildings, equipment, or other projects financed by the authority under this Act or another act of the legislature do not become a part of other property to which they may be attached or affixed or into which they may be incorporated, regardless of whether the other property is real or personal. Sec. 10. OFFICERS; QUORUM; MEETINGS. (a) Requires the governor biennially to appoint a chairperson from the members of the board. Requires the board to elect a vice chairperson from its members. (b) Sets forth criteria of a quorum of the board. (c) Sets forth meeting times of the board. Sec. 11. COMPENSATION; EXPENSES. Provides that a member of the board is entitled to a per diem of $50, unless another amount is specified in the General Appropriations Act, for each day the member performs functions as a member of the board, and reimbursement for actual and necessary expenses the member incurs in performing functions as a member of the board. Sec. 12. STAFF. Requires the authority to employ persons and contract with consultants as necessary for the authority to perform its functions. Provides that the employees of the authority are considered to be state employees. Sec. 13. ISSUANCE OF BONDS. (a) Authorizes the authority to issue and sell bonds to finance the acquisition or construction of buildings in Travis County or at any other location specified by law. Authorizes the authority to issue bonds and distribute the proceeds of those bonds to appropriate agencies for acquiring, constructing, or equipping new facilities or for major repair or renovation of existing facilities; corrections institutions, including facilities authorized by certain sections of the Government Code; criminal justice facilities for the Texas Department of Criminal Justice, including youth corrections institutions; and mental health and mental retardation institutions. Provides that the authority's power to issue bonds includes the power to issue and sell bonds for the financing of a package of agreements involving one or more state agencies. (b) Provides that before the authority may issue or sell bonds under this Act, the legislature must have authorized in this Act, the General Appropriations Act, or another act the specific project for which the bonds are to be issued and sold and must have authorized the estimated cost of the project or the maximum amount of indebtness that may be incurred by the issuance and sale of bonds for the project. (c) Requires the authority to certify to the commission or the appropriate state agency and to the comptroller that the proceeds from the issuance of bonds are available after the issuance of bonds under this Act. Requires the proceeds of bonds to be deposited in the state treasury or in the Texas Treasury Safekeeping Trust Company, at the direction of the board, to the account of the appropriate state agency. Requires the proceeds to be held in a fund separate from other funds of the state and to be invested by the state treasurer at the direction of the board in investments authorized by law. Prohibits proceeds of a particular issue of bonds from being commingled with any other funds. Requires the proceeds to be credited to the account of the state agency that is responsible under the contract or agreement for making rental or installment payments to the authority or that is otherwise the state agency for the benefit of which the bonds were issued. (d) Provides that the authority is an issuer for purposes of Chapter 656, Article 717q, V.T.C.S. (e) Requires the investment income of proceeds that the authority determines is necessary to finance the acquisition, construction, purchase, or lease of buildings, equipment, or another project and that is not required to be rebated to the federal government or used for debt service to be used as determined by the authority. Sec. 14. ISSUANCE OF BONDS FOR EQUIPMENT. (a) Authorizes the authority to also issue and sell bonds for the financing of the lease or other agreement if the agreement relates to equipment that a state agency in the executive or judicial branch of state government has purchased or leased or intends to purchase or lease. Provides that the authority's power to issue bonds under this section includes the power to issue and sell bonds for the financing of a package of agreements involving one or more state agencies. (b) Provides that bonds issued by the authority are payable under a certain agreement. (c) Requires the commission to perform its functions as purchasing agent for the state with the funds obtained under this Act being used solely to finance the agreement if an agreement is between the authority and a state agency or between a vendor and a state agency. Requires the authority and the commission to adopt a memorandum of understanding that defines the division of responsibility between the authority and the commission. (d) Authorizes the state agencies to enter into the types of agreements described by Subsection (b) of this section to purchase or lease necessary equipment. (e) Requires the agency to obtain approval or perform an act before the agency may enter into an agreement under this Act if a state agency is required by law to obtain the approval of another state agency or perform any other act before a state agency may purchase or lease computer equipment. Requires the authority to adopt rules providing that the equipment may not be financed before the authority receives written proof that the requirements have been satisfied. Sec. 15. COMMISSION OR OTHER STATE AGENCY TO ACT. Requires the commission or other state agency involved in acquiring or constructing a building or equipment financed by the issuance of bonds under this Act to carry out its statutory authority as if the building or equipment were financed by legislative appropriation. Requires the authority and either the commission or another state agency involved in the acquisition or construction of a building to adopt a memorandum of understanding that describes the division of responsibility between the authority and the commission or agency. Sec. 16. STATE LEASE FUND. (a) Provides that the state lease fund is a dedicated account in the general revenue fund, and is hereby re-created for purposes of Section 403.094, Government Code. Authorizes the fund to be used to deposit appropriations to the commission or other state agency or directly to the authority on behalf of the commission or the state agency for the payment of required rents, fees, and installments to the authority to permit the authority to pay principal and interest, if any, and redemption premium, if any, with respect to any bonds issued by the authority. Authorizes amounts in the fund to be used only for the payment of bonds as described in this subsection. Requires the interest earned on the investment income deposited in the state lease fund to be credited to and accounted for in the state lease fund and used to pay debt service on bonds of the authority. (b) Authorizes the legislature to transfer funds in the state lease fund to the capital trust fund for other purposes as the legislature determines after all bonds have been duly paid or provided for. Sec. 17. AUTHORITY TO ACT AS ISSUER. (a) Provides that the authority has the exclusive authority to act on behalf of certain entities in issuing bonds on their behalf. Provides that the authority is subject to all rights, duties, and conditions surrounding issuance applicable to the issuing entity under the statute authorizing the issuance in connection with those issuances and with the issuance of refunding bonds on behalf of those entities. Provides that all references in an authorizing statute to the entity on whose behalf the bonds are being issued apply to the authority in its capacity as issuer on behalf of the entity. (b) Provides that this section does not apply to the University of Texas System, the Texas A&M University System, or a component of those systems, to an institution of higher education authorized to issue bonds under Section 17, Article VII, Texas Constitution, or to bonds authorized to be issued by any of those systems, components, or institutions. Sec. 18. EXPENSES FOR CERTAIN COMPUTER EQUIPMENT. Requires the principal amount of bonds issued to finance the purchase of the equipment to be sufficient to cover any payments of principal and interest that must occur during the remainder of the biennium after the bonds are issued for computer equipment that is the subject of a contingent appropriation under Chapter 317B, Government Code. Sec. 19. BOND REVIEW BOARD APPROVAL. (a) Prohibits the authority from issuing bonds unless the bond review board has approved the issuance under Chapter 1078, Article 717k-7, V.T.C.S. (b) Authorizes bonds issued by the authority to be refunded as determined by the authority and approved by the bond review board. Ratifies and confirms the projects authorized in Chapter 700, Acts of the 68th Legislature, Regular Session, 1983. Sec. 20. PROJECT ANALYSIS. (a) Requires the agency or institution that will use the project to be financed by the bonds to submit to the bond review board a project analysis of the project when the authority submits its application for approval of issue of bonds to the bond review board. Provides that this subsection does not apply to the Texas Department of Criminal Justice's (department) minor renovation, repair, or construction projects as defined by the department in cooperation with the commission. Requires the project to be in the form required for a project analysis requested from the commission under current law. (b) Requires the department to submit to the authority and the bond review board a master plan for construction of corrections facilities. Requires the plan to be in the form, contain the information, and cover the period prescribed by the bond review board and to be revised at least annually. (c) Prohibits the bond review board from approving the issue of bonds unless a project analysis is submitted as provided by this section. Sec. 21. FORM OF BONDS. (a) Authorizes the authority to issue bonds in various series or issues. (b) Authorizes the bonds to mature serially or otherwise and bear interest at the rate permitted by the constitution and laws of this state. (c) Authorizes the authority to provide for the flow of funds, including establishing and maintaining various funds. (d) Authorizes an order or resolution of the authority for the issuance of bonds to contain other provisions and covenants as determined by the authority. Authorizes the bonds to be issued in the form, denominations, and manner and under the terms, conditions, and details provided by the authority in the order or resolution. Requires the bonds to be signed and executed as provided in the order or resolution. Authorizes the authority to adopt and have executed any other proceedings or instruments necessary and convenient in the issuance of bonds. (e) Provides that the bonds and any interest coupons issued by the authority are investment securities under Chapter 8, Business and Commerce Code, and may be issued registrable as to principal or as to both principal and interest and may be made redeemable before maturity, at the option of the authority, or may contain mandatory redemption provisions. Sec. 22. AUTHORIZED INVESTMENTS; SECURITY FOR PUBLIC FUNDS. (a) Provides that bonds issued under this Act are legal and authorized investments for a bank, trust company, savings bank, savings and loan association, insurance company, fiduciary, trustee, or guardian or a sinking fund of a municipality, county, school district, or political subdivision of the state and other public funds of the state and its agencies, including the permanent school fund. (b) Authorizes bonds issued under this Act to secure deposits of public funds of the state, a municipality, a county, a school district, or another political corporation or subdivision of the state. Authorizes a bond to provide this security up to its value if accompanied by all unmatured coupons. Sec. 23. APPROVAL BY ATTORNEY GENERAL; REGISTRATION BY COMPTROLLER. (a) Requires the bonds issued by the authority to be submitted to the attorney general for examination. (b) Requires the attorney general to approve the bonds, and the comptroller of public accounts to register the bonds if the attorney general finds that the bonds have been authorized in accordance with the law. (c) Provides that the bonds are incontestable in any court or other forum for any reason and are valid and binding in accordance with their terms for all purposes. Sec. 24. REFUNDING BONDS. Authorizes the authority to issue bonds to refund all or part of outstanding bonds issued under this Act, including matured but unpaid interest. Sec. 25. TAX STATUS OF BONDS. Provides that bonds issued by the authority, and any interest earnings on the bonds, any transaction relating to the bonds, and profits made in the sale of the bonds, are not subject to taxation by the state or by a city, county, special district, or other political subdivision of the state. Sec. 26. REVENUE BONDS. (a) Authorizes an order or resolution of the authority authorizing the issuance of revenue bonds to prohibit the issuance of additional revenue bonds payable from the pledged revenues, or the order or resolution may preserve the right of the authority to issue additional revenue bonds on the condition that additional bonds are on a parity with or subordinate to the lien and pledge of the revenues, and the operation and maintenance of the buildings, equipment, or other projects financed with the proceeds of the revenue bonds. (b) Authorizes the principal amount of any issuance of bonds for that purpose to be in an amount not to exceed one and one-half the amount of the expected cost for the project being financed in recognition that the cost estimates for acquisition, construction, repair, or renovation of a project are not final at the time the project is authorized for financing and that the bonds may be issued to fund associated costs, including reasonably required reserve funds, capitalized interest, administrative costs of the authority, and issuing expenses. Requires the authority to affirmatively find that the costs are necessary and reasonable at the time the bonds are issued. (c) Requires investment income of proceeds that the authority determines is not needed to finance the acquisition, construction, purchase, or lease of buildings, equipment, or another project and that is not required to be rebated to the federal government or used for debt service to be credited to and accounted for in the state lease fund and used to pay debt service on bonds of the authority. (d) Authorizes the authority to provide for the repayment of the principal of and interest on the revenue bonds issued under this Act from any source of funds lawfully available to the authority. (e) Requires the appropriate agency to provide for the payment to the authority under the lease agreement or other agreement adopted in accordance with this Act an amount determined by the authority to be sufficient to pay the principal of and interest on the revenue bonds; maintain any reserve fund necessary to service the debt; and reimburse the authority for other costs and expenses relating to a project or outstanding bonds. (f) Requires each state agency for which revenue bonds have been issued by the authority to include in its biennial appropriation request to the legislature an amount sufficient to pay the principal of an interest on outstanding revenue bonds issued for the benefit of the agency. (g) Requires the commission or the appropriate agency to establish schedules necessary to properly charge occupying state agencies for the expenses incurred in financing the acquisition or construction of buildings or other projects in accordance with this Act. (h) Requires occupying state agencies to pay to the commission, the appropriate state agency, or directly into the state lease fund that amount determined by the commission when the payments are due. Authorizes the legislature to directly appropriate funds to the state lease fund in lieu of the payments. (i) Requires payments received by the commission or a state agency under this section to be deposited to the credit of the state lease fund. (j) Provides that the rights of the state agency in property financed by the authority through the issuance of revenue bonds are those of a lessee, and a person claiming under or through the agency may not acquire any greater rights with respect to that property. Sec. 27. CONVEYANCE OF PROPERTY. (a) Requires the authority to certify to the commission or the appropriate state agency that rentals, payments, or installments are no longer required to pay the principal of the interest on the bonds when the principal of and interest on bonds relating to equipment or a building financed under this Act are paid in full and the equipment or building is free of all liens. (b) Requires the authority, if necessary and for $1, to convey the title of the building or equipment, including any involved real property, to the commission or the appropriate state agency when making the certification under Subsection (a) of this section. Sec. 28. PREFERENCE IN LEASING. Provides that buildings owned by the authority are state-owned space for certain purposes. Sec. 29. MANNER OF REPAYMENT OF REVENUE BONDS. (a) Authorizes the authority to provide for the payment of the principal of and interest on revenue bonds issued under this Act by pledging all or part of the rents, issues, profits, and other revenues derived from leasing a building, equipment, or other project to a state agency either directly or through the commission; by pledging all or part of the revenues derived from selling equipment or another project on an installment basis to a state agency either directly or through the commission; or from any other source of funds lawfully available to the authority. (b) Requires the commission or an occupying or using state agency to pay to the authority a rental or make installment payments on the buildings, equipment, or other projects. Requires the authority to determine the amount of the rental or installment payments. Requires the amount to be sufficient. (c) Requires the commission or state agency to set the rental in an amount that is sufficient to pay the rental required by the authority when the commission or state agency is required by Subsection (b) of this section to pay a rental to the authority and the commission or state agency depends on receiving a rental from an occupying or using state agency to pay the authority. (d) Requires all lease and installment sale contracts entered into under this Acto to be contingent on the appropriation of sufficient funds by the legislature. Authorizes the authority to take the action necessary to ensure that the payment of principal of and interest on revenue bonds are continued without interruption, if sufficient appropriated funds are not available, the commission or a state agency fails or refuses to pay rentals or installments, or the commission or a state agency fails or refuses to renew a lease contract. Provides that permissible actions include the re-leasing or subleasing of buildings or other projects to a state agency or any other entity and the repossession and resale of equipment to a state agency or any other entity. Authorizes the authority to also access the state agency's appropriated funds from time to time by issuing vouchers on those funds to the comptroller to transfer funds from accounts of the state agency to the state agency to the state lease fund for payment of principal of and interest on the revenue bonds. (e) Authorizes the authority to lease all or part of a building or other project, the acquisition or construction of which was financed under this Act, to any person or entity when the building or other project cannot be leased to the commission or a state agency. Authorizes the authority to determine the terms of the lease. (f) Authorizes the legislature to direct, by law, that funds in the capital trust fund be used to pay the principal of and interest on revenue issued under this Act for the acquisition and construction of a building, equipment, or other project in addition to other sources of repayment provided by this section. Authorizes the legislature to also require the deposit into the capital trust fund of all or part of the proceeds of a transaction concerning a building, equipment, or other project. Sec. 30. STATE DEBT NOT CREATED BY REVENUE BONDS. (a) Provides that revenue bonds issued under this Act are not debts of the state or any state agency, political corporation, or political subdivision or the state and are not a pledge of the faith and credit of any of those entities. Provides that the revenue bonds are payable solely from revenue as provided by this Act. (b) Requires a revenue bond to contain on its face a certain statement. Sec. 31. CERTIFICATION OF RECEIPT OF PROCEEDS. Requires the authority to certify to the appropriate state agency and to the comptroller that proceeds of the bonds are available on the issuance of bonds under this Act. Sec. 32. SPECIFIC PROJECTS. (a) Provides that the buildings described by this section are approved for financing in accordance with this Act in addition to the buildings that the legislature has previously approved for acquisition or construction. (b) Approves certain projects totaling $128,633,00. (c) Authorizes the authority to issue bonds under this Act to finance renovations and constructions of certain buildings notwithstanding the limitations prescribed in this Act relating to the location of buildings for which bonds may be issued. Requires the commission, prior to requesting the authority to issue bonds, to prepare project analyses for the potential construction projects and subsequent thereto perform an alternative purchase analysis pursuant to the provisions of Section 5.34, Article 601b, V.T.C.S. (General Purchasing and General Services Act), for the purposes of this subsection regarding Tarrant and Harris counties. (d) Provides that the legislature finds that there is a continued need for the acquisition of real property located in or in the immediate vicinity of state office building complexes for the continued operation of the government of the state in provision of service to the people of this state; that there are periodic fluctuations in the prices and values of real property; and that the ability of the state to respond to rapidly changing market conditions is necessary in order to acquire real property at substantial savings to the taxpayers. Provides that the commission is therefore empowered hereby and in accordance with Project 5 of Subsection (b) of this section to purchase real property identified in that project number to make contracts necessary to carry out and effectuate the purposes herein stated. Requires the commission to determine that the purchase would be in the state's best interests. Sec. 33. PURCHASE AND RENOVATION OF TEXAS EMPLOYMENT COMMISSION PROPERTY. (a) Requires the Texas Employment Commission (TEC) to sell to the commission office buildings and parking facilities in its possession in or near the Capitol Complex, and the commission shall purchase and renovate the buildings and parking facilities, at an estimated cost of $46 million. Provides that the purchase and renovation is approved for financing in accordance with this Act and bonds may be issued to finance the purchase and renovation in accordance with this Act. (b) Authorizes the commission, from funds made available by the authority, to renovate the facilities as necessary for occupancy in accordance with the allocation of space within the building made under Subsection (c) of this section after the buildings have been acquired. Requires the commission to consider the cost to TEC of alternative space outside the Capitol Complex in negotiating the price for the TEC facilities. Requires the commission to also consider the price in the context of the reasonable rates that might otherwise be paid by prospective occupying state agencies for rent in comparable space. (c) Provides that the space in that office building and parking facilities is allocated to the legislature and legislative agencies for their use. Requires the presiding officers of each house of the legislature to jointly decide the allocation of the space within the buildings and facilities. Sec. 34. GENERAL OBLIGATION BONDS. (a) Authorizes the authority to issue up to $500 million in general obligation bonds and distribute the proceeds of those bonds to appropriate agencies for use for acquiring, constructing, or equipping new facilities, corrections institutions, including youth corrections institutions, and mental health and mental retardation institutions. (b) Authorizes the authority to issue up to $400 million in general obligation bonds, in addition to the amount authorized by Subsection (a) of this section, and distribute the proceeds of those bonds to appropriate agencies for the same uses as authorized by Subsection (a) of this section and to the department for the purchase, repair, and renovation of the Austin Independent School District administration building adjacent to the department state headquarters, for the purpose of expanding the department's state headquarters' central office building. (c) Authorizes the authority to issue up to $1.055 billion in general obligation bonds, in addition to the amounts authorized by Subsections (a) and (b) of this section, and distribute the proceeds of those bonds to appropriate agencies for use for acquiring, constructing, or equipping new prisons and substance abuse felony punishment facilities to confine criminals and youth corrections institutions, for major repair or renovation of existing prison facilities and youth corrections institutions, and for the acquisition of or renovation of other facilities for use as state prisons, substance abuse felony punishment facilities, or facilities in which pilot programs established as provided by Section 614.011, Health and Safety Code, are conducted. (d) Authorizes the authority to issue up to $1 billion in general obligation bonds, in addition to amounts authorized by Subsections (a), (b), and (c) of this section, and distribute the proceeds of those bonds to appropriate agencies for use for acquiring, constructing, or equipping new facilities or for major repair or renovation of existing facilities of corrections institutions, including youth corrections institutions, and mental health and mental retardation institutions. (e) Requires the authority to make good faith effort to use historically underutilized businesses to assist in the issuance of at least 30 percent of the total value of the bonds authorized by Subsection (d) of this section. Requires the authority to report to the legislature and the governor on the level of historically underutilized business participation in the issuance of those bonds. Defines "historically underutilized business." Requires those persons who own at least 51 percent of all classes of the shares of stock or other equitable securities to have proportionate interest in the control, operation, and management of the corporation's affairs. (f) Authorizes the proceeds to be used to refinance an existing obligation for a purpose described by Subsections (a)-(d) of this section. Authorizes the authority to issue general obligation bonds authorized under Subsection (a) or (b) of this section to refund revenue bonds issued under this Act. (g) Authorizes the authority to issue up to $45 million in general obligation bonds, in addition to the amounts authorized by Subsections (a)-(d) of this section, and distribute the proceeds of those bonds to appropriate agencies for use in acquiring, constructing, or equipping new mental health or mental retardation facilities, including community-based facilities, or for major repair or renovation of mental health or mental retardation facilities. Authorizes the proceeds to be used to refinance an existing obligation for a purpose described in this subsection. Authorizes the authority to issue general obligation bonds authorized under this section to refund revenue bonds issued under this Act. (h) Authorizes the authority to issue up to $50 million in general obligation bonds, in addition to the amounts authorized by Subsections (a)-(d) of this section, and distribute the proceeds of those bonds to appropriate agencies for acquiring, constructing, or equipping new youth corrections facilities or for major repair or renovation of existing youth corrections facilities. (i) Authorizes the bonds authorized by this section to be issued at a rate of interest, according to the terms, and in a form determined by the authority. (j) Requires the authority, by rule, to establish guidelines, criteria, and procedures for distributions of proceeds of bonds. (k) Requires the authority to provide an accurate estimate of interest and sinking fund balances available for payment of debt service on general obligation bonds to the Legislative Budget Board and Governor's Office of Budget and Planning not later than January 1 of each odd-numbered year. Sec. 35. ISSUANCE OF OBLIGATIONS FOR ALTERNATIVE FUELS PROJECTS. (a) Authorizes the authority, if it determines that a project is financially viable and sufficient revenue is or will be available, to issue and sell obligations for the funding of certain items. (b) Authorizes the authority to issue and sell not more than $50 million in obligations for projects under this section. (c) Authorizes the board to provide for the payment of the principal of or interest on the bonds and obligations issued under this section by pledging all or part of the revenue the state derives from the sale of alternative fuels, alternative fuels equipment or technology, or vehicles powered by alternative fuels; by contracting with a political subdivision or a private entity derives from the sale of alternative fuels, alternative fuels equipment or technology, or vehicles powered by alternative fuels in an amount sufficient to ensure that the bonds or obligations are paid; by pledging appropriated general revenues of the state or other appropriated money in the state treasury; or from any other source of funds available to the board. (d) Requires the authority to attempt to include minority-owned businesses in the issuance and underwriting of at least 20 percent of the bonds and obligations issued under this section and women-owned businesses in the issuance and underwriting of at least 10 percent of the bonds and obligations issued under this section. (e) Requires the alternative fuels council to evaluate an application under this section by an eligible entity for the financing of the acquisition, construction, or improvement of alternative fuels infrastructure and to determine whether the proposed project will increase energy or cost savings to the applicant. Prohibits a bond or other obligation from being issued under Subsection (a) of this section unless the alternative fuels council certifies that the proposed project will increase energy or cost savings to the applicant. Authorizes the alternative fuels council, by rule, to adopt procedures and standards for the evaluation of an application for financing of a proposed project under this section. (f) Requires costs of administration of the alternative fuels finance program to be considered a part of project costs and to be funded with bond proceeds. Deletes existing Sections 1-34. SECTION 2. Validates, ratifies, and confirms the appropriations made by Section 2, Article II, Chapter 700, Acts of the 68th Legislature, Regular Session, 1983, for the periods and purposes specified by that section. SECTION 3. Requires the authority to succeed to the ownership of all property of and all lease rental contracts entered into by the Texas Public Building Authority that was created by Chapter 700, Acts of the 68th Legislature, Regular Session, 1983, and all of the obligations contracted or assumed by the previous authority with respect to any property or contract are obligations of the authority. Validates, ratifies, and confirms actions taken by the previous authority. SECTION 4. Repealer: Article 601d-1, V.T.C.S. (Issuance of bonds to finance certain state facilities; bond review board). SECTION 5. Effective date: September 1, 1995. SECTION 6. Emergency clause.