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.