By Romo H.B. No. 1013
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the issuance of obligations by the Texas Public Finance
1-3 Authority.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 9B, Texas Public Finance Authority Act
1-6 (Article 601d, Vernon's Texas Civil Statutes), is amended to read
1-7 as follows:
1-8 Sec. 9B. Authority to Act as Issuer. (a) With respect to
1-9 all bonds authorized to be issued by the Texas National Guard
1-10 Armory Board, Texas National Research Laboratory Commission, Parks
1-11 and Wildlife Department, Texas Department of Commerce, Texas Higher
1-12 Education Coordinating Board, Texas Agricultural Finance Authority,
1-13 and all institutions of higher education authorized to issue bonds
1-14 under Chapter 55, Education Code, or Section 17, Article VII, Texas
1-15 Constitution, other than Texas Tech University, Texas Tech
1-16 University Health Sciences Center, the Texas State University
1-17 System or a component of that system, and the University of Houston
1-18 System or a component of that system, the authority has the
1-19 exclusive authority to act on behalf of those entities in issuing
1-20 bonds on their behalf. In connection with those issuances and with
1-21 the issuance of refunding bonds on behalf of those entities, the
1-22 authority is subject to all rights, duties, and conditions
1-23 surrounding issuance previously applicable to the issuing entity
1-24 under the statute authorizing the issuance. All references in an
2-1 authorizing statute to the entity on whose behalf the bonds are
2-2 being issued apply equally to the authority in its capacity as
2-3 issuer on behalf of the entity.
2-4 (b) This section does not apply to The University of Texas
2-5 System, The Texas A&M University System, the University of Houston
2-6 System, the Texas State University System, or a component of those
2-7 systems, to Texas Tech University or Texas Tech University Health
2-8 Sciences Center <an institution of higher education authorized to
2-9 issue bonds under Article VII, Section 17, of the Texas
2-10 Constitution>, or to bonds authorized to be issued by any of those
2-11 systems, components, or institutions.
2-12 SECTION 2. The Texas Public Finance Authority Act (Article
2-13 601d, Vernon's Texas Civil Statutes) is amended by adding Section
2-14 9D to read as follows:
2-15 Sec. 9D. PARTICIPATION OF CERTAIN BUSINESSES IN ISSUANCE OF
2-16 OBLIGATIONS. (a) In this section:
2-17 (1) "Minority group member" includes an individual
2-18 identified as:
2-19 (A) African American; or
2-20 (B) Mexican American or other American of
2-21 Hispanic origin.
2-22 (2) "Minority-owned business" means a business entity
2-23 in which at least 51 percent of the ownership interests in the
2-24 entity are held by one or more minority group members, including a
2-25 corporation in which at least 51 percent of the shares are owned by
2-26 one or more minority group members, and that is managed, operated,
2-27 and controlled by one or more minority group members.
3-1 (3) "Woman-owned business" means a business entity in
3-2 which at least 51 percent of the ownership interests in the entity
3-3 are held by one or more women, including a corporation in which at
3-4 least 51 percent of the shares are owned by one or more women, and
3-5 that is managed, operated, and controlled by one or more women.
3-6 (b) The authority shall make a good faith effort to include
3-7 woman-owned and minority-owned businesses as businesses receiving
3-8 contracts for the purchase of services and supplies used in
3-9 connection with the issuance of at least 20 percent of the total
3-10 dollar value of obligations issued by the authority each fiscal
3-11 year.
3-12 (c) The authority shall submit a report to the governor and
3-13 the legislature at the end of each fiscal year that includes:
3-14 (1) the name of each woman-owned and minority-owned
3-15 business participating in any issuance that fiscal year;
3-16 (2) the number of woman-owned and minority-owned
3-17 businesses submitting bids or proposals in connection with an
3-18 issuance that fiscal year; and
3-19 (3) the amount of obligations issued during that
3-20 fiscal year and the estimated amount of compensation received for
3-21 participation in the issuance by each woman-owned and
3-22 minority-owned business.
3-23 (d) The authority shall give a preference to a business that
3-24 maintains an office located in this state that is dedicated to
3-25 conducting public finance undertakings if the cost and quality of
3-26 services being offered or bid by the business in connection with
3-27 the issuance of obligations are equal to the cost and quality of
4-1 services being offered or bid by a business that does not maintain
4-2 an office in this state dedicated to conducting public finance
4-3 undertakings.
4-4 SECTION 3. Subchapter D, Chapter 58, Agriculture Code, is
4-5 amended by adding Section 58.041 to read as follows:
4-6 Sec. 58.041. BOND ISSUANCE BY TEXAS PUBLIC FINANCE
4-7 AUTHORITY. The Texas Public Finance Authority shall exercise the
4-8 board's authority provided by law to issue bonds and refunding
4-9 bonds. The Texas Public Finance Authority is subject to all
4-10 rights, duties, and conditions provided by law with respect to
4-11 issuance of bonds by the board.
4-12 SECTION 4. Subchapter C, Chapter 61, Education Code, is
4-13 amended by adding Section 61.084 to read as follows:
4-14 Sec. 61.084. BOND ISSUANCE BY TEXAS PUBLIC FINANCE
4-15 AUTHORITY. (a) The Texas Public Finance Authority shall exercise
4-16 the board's authority provided by law to issue bonds and refunding
4-17 bonds. The Texas Public Finance Authority is subject to all
4-18 rights, duties, and conditions provided by law with respect to
4-19 issuance of bonds by the board.
4-20 (b) For purposes of Sections 50b, 50b-1, 50b-2, and 50b-3,
4-21 Article III, Texas Constitution, the authority is the successor to
4-22 the board.
4-23 SECTION 5. Subchapter A, Chapter 481, Government Code, is
4-24 amended by adding Section 481.0091 to read as follows:
4-25 Sec. 481.0091. BOND ISSUANCE BY TEXAS PUBLIC FINANCE
4-26 AUTHORITY. The Texas Public Finance Authority shall exercise the
4-27 department's authority provided by law to issue bonds and refunding
5-1 bonds. The Texas Public Finance Authority is subject to all
5-2 rights, duties, and conditions provided by law with respect to
5-3 issuance of bonds by the department.
5-4 SECTION 6. The importance of this legislation and the
5-5 crowded condition of the calendars in both houses create an
5-6 emergency and an imperative public necessity that the
5-7 constitutional rule requiring bills to be read on three several
5-8 days in each house be suspended, and this rule is hereby suspended.