By Marchant H.B. No. 1587
74R5175 RJA-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the powers and duties of the Texas Public Finance
1-3 Authority and to the issuance of bonds for certain state projects;
1-4 granting the power of eminent domain; validating a prior
1-5 appropriation.
1-6 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-7 SECTION 1. The Texas Public Finance Authority Act (Article
1-8 601d, Vernon's Texas Civil Statutes) is amended to read as follows:
1-9 Sec. 1. SHORT TITLE. This Act may be cited as the Texas
1-10 Public Finance Authority Act.
1-11 Sec. 2. DEFINITIONS. In this Act:
1-12 (1) "Authority" means the Texas Public Finance
1-13 Authority.
1-14 (2) "Board" means the board of directors of the
1-15 authority.
1-16 (3) "Bonds" or "obligations" means bonds, notes,
1-17 certificates of participation, certificates of obligation,
1-18 commercial paper, or interests in contracts.
1-19 (4) "Building" means the physical structure used by a
1-20 state agency, public body, or other person to conduct its business
1-21 and affairs and the major equipment or other personal property that
1-22 is functionally related to the physical structure.
1-23 (5) "Commission" means the General Services
1-24 Commission.
2-1 (6) "Computer equipment" means:
2-2 (A) telecommunications devices or systems;
2-3 (B) automated information systems;
2-4 (C) computers on which information systems are
2-5 automated; or
2-6 (D) computer software.
2-7 (7) "Construction" means the erection, improvement,
2-8 repair, renovation, or remodeling of a building.
2-9 (8) "Equipment" means fixed assets, other than land or
2-10 buildings, used by a state agency, public body, or other person to
2-11 conduct its business and affairs. The term includes computer
2-12 equipment.
2-13 (9) "Proceeds" means the original proceeds of bonds
2-14 and the investment income on those proceeds.
2-15 (10) "State agency" means a board, commission,
2-16 department, office, agency, institution of higher education, or
2-17 other governmental entity in the executive, judicial, or
2-18 legislative branch of state government.
2-19 Sec. 3. PURPOSE. The purpose of this Act is to provide a
2-20 method of financing and refinancing the capital costs of various
2-21 state agencies and other public bodies as may be authorized by law.
2-22 The purpose includes the:
2-23 (1) acquisition or construction of buildings in Travis
2-24 County and the acquisition and construction of buildings in other
2-25 counties of the state as authorized by law; and
2-26 (2) financing or refinancing of the purchase or lease
2-27 of equipment by state agencies.
3-1 Sec. 4. PUBLIC FINANCE AUTHORITY. The Texas Public Finance
3-2 Authority is a public authority and body politic and corporate.
3-3 Sec. 5. COMPOSITION OF BOARD. The authority is governed by
3-4 a board of directors composed of six members appointed by the
3-5 governor with the advice and consent of the senate.
3-6 Sec. 6. TERMS. Members of the board serve staggered
3-7 six-year terms, with the terms of two members expiring on February
3-8 1 of each odd-numbered year.
3-9 Sec. 7. SUNSET PROVISION. The Texas Public Finance
3-10 Authority is subject to Chapter 325, Government Code (Texas Sunset
3-11 Act). Unless continued in existence as provided by that chapter,
3-12 the authority is abolished and this Act expires September 1, 1997.
3-13 Sec. 8. GENERAL POWERS. The board may:
3-14 (1) exercise, to the extent practicable, all powers
3-15 given to a corporation under the general laws of this state;
3-16 (2) have perpetual succession by its corporate name;
3-17 (3) sue and be sued in its corporate name;
3-18 (4) adopt a seal and use the seal as the board
3-19 considers appropriate;
3-20 (5) accept gifts and donations; and
3-21 (6) adopt rules and perform all functions reasonably
3-22 necessary for the board to administer its duties and
3-23 responsibilities prescribed by law, including this Act.
3-24 Sec. 9. SCOPE OF POWER. (a) The board's powers under this
3-25 Act are limited to the financing of the acquisition or construction
3-26 of a building, the purchase or lease of equipment, or other capital
3-27 financing authorized by this Act or another act of the legislature.
4-1 The board's powers do not affect the powers of the commission or
4-2 any other state agency.
4-3 (b) Buildings, equipment, or other projects financed by the
4-4 authority under this Act or another act of the legislature do not
4-5 become part of other property to which they may be attached or
4-6 affixed or into which they may be incorporated, regardless of
4-7 whether the other property is real or personal.
4-8 Sec. 10. EMINENT DOMAIN. The authority has the power of
4-9 eminent domain and may exercise the power for the purposes of this
4-10 Act in connection with the approved acquisition or construction of
4-11 buildings, equipment, or other projects, as provided by law,
4-12 including this Act.
4-13 Sec. 11. OFFICERS; QUORUM; MEETINGS. (a) The governor
4-14 biennially shall appoint a chairperson from the members of the
4-15 board. The board biennially shall elect a vice chairperson from
4-16 its members.
4-17 (b) A majority of the full membership of the board
4-18 constitutes a quorum.
4-19 (c) The board shall meet at least once in each quarter of
4-20 the calendar year and shall meet at other times at the call of the
4-21 chairperson or as prescribed by a rule of the board.
4-22 Sec. 12. COMPENSATION; EXPENSES. A member of the board is
4-23 entitled to:
4-24 (1) a per diem of $50, unless another amount is
4-25 specified in the General Appropriations Act, for each day the
4-26 member performs functions as a member of the board; and
4-27 (2) reimbursement for actual and necessary expenses
5-1 the member incurs in performing functions as a member of the board.
5-2 Sec. 13. STAFF. The authority shall employ persons and
5-3 contract with consultants as necessary for the authority to perform
5-4 its functions. Employees of the authority are considered to be
5-5 state employees.
5-6 Sec. 14. ISSUANCE OF BONDS. (a) The authority may issue
5-7 and sell bonds to finance the acquisition or construction of
5-8 buildings in Travis County or at any other location specified by
5-9 law. The authority may issue bonds and distribute the proceeds of
5-10 those bonds to appropriate agencies for acquiring, constructing, or
5-11 equipping new facilities or for major repair or renovation of
5-12 existing facilities, corrections institutions, including facilities
5-13 authorized by Sections 495.001(a) and 495.021(a), Government Code,
5-14 criminal justice facilities for the Texas Department of Criminal
5-15 Justice, including youth corrections institutions, and mental
5-16 health and mental retardation institutions. The authority's power
5-17 to issue bonds includes the power to issue and sell bonds for the
5-18 financing of a package of agreements involving one or more state
5-19 agencies.
5-20 (b) Before the authority may issue and sell bonds under this
5-21 Act, the legislature must have authorized in this Act, the General
5-22 Appropriations Act, or another act the specific project for which
5-23 the bonds are to be issued and sold and must have authorized the
5-24 estimated cost of the project or the maximum amount of indebtedness
5-25 that may be incurred by the issuance and sale of bonds for the
5-26 project.
5-27 (c) After the issuance of bonds under this Act, the
6-1 authority shall certify to the commission or to the appropriate
6-2 state agency and to the comptroller that the proceeds from the
6-3 issuance of the bonds are available. The proceeds of the bonds
6-4 shall be deposited in the state treasury or in the Texas Treasury
6-5 Safekeeping Trust Company, at the direction of the board, to the
6-6 account of the appropriate state agency. The proceeds shall be
6-7 held in a fund separate from other funds of the state and shall be
6-8 invested by the state treasurer at the direction of the board in
6-9 investments authorized by law. Proceeds of a particular issue of
6-10 bonds may not be commingled with any other funds. The proceeds
6-11 shall be credited to the account of the state agency that is
6-12 responsible under a contract or agreement for making rental or
6-13 installment payments to the authority or that is otherwise the
6-14 state agency for the benefit of which the bonds were issued.
6-15 (d) The authority is an issuer for purposes of Chapter 656,
6-16 Acts of the 68th Legislature, Regular Session, 1983 (Article 717q,
6-17 Vernon's Texas Civil Statutes).
6-18 (e) Investment income of proceeds that the authority
6-19 determines is necessary to finance the acquisition, construction,
6-20 purchase, or lease of buildings, equipment, or another project and
6-21 that is not required to be rebated to the federal government or
6-22 used for debt service shall be used as determined by the authority.
6-23 Sec. 15. ISSUANCE OF BONDS FOR EQUIPMENT. (a) The
6-24 authority may also issue and sell bonds for the financing of a
6-25 lease or other agreement if the agreement relates to equipment that
6-26 a state agency in the executive or judicial branch of state
6-27 government has purchased or leased or intends to purchase or lease.
7-1 The authority's power to issue bonds under this section includes
7-2 the power to issue and sell bonds for the financing of a package of
7-3 agreements involving one or more state agencies.
7-4 (b) Bonds issued by the authority are payable under an
7-5 agreement that may be:
7-6 (1) a lease under which the authority leases equipment
7-7 from a vendor for sublease to the commission or a state agency;
7-8 (2) a purchase by the authority of equipment and the
7-9 lease of that equipment either directly to the commission for the
7-10 benefit of a state agency or directly to a state agency;
7-11 (3) a purchase by the authority of equipment and the
7-12 sale of that equipment to a state agency on an installment payment
7-13 basis; or
7-14 (4) any other similar agreement.
7-15 (c) If an agreement is between the authority and a state
7-16 agency or between a vendor and a state agency, the commission shall
7-17 perform its functions as purchasing agent for the state with the
7-18 funds obtained under this Act being used solely to finance the
7-19 agreement. The authority and the commission shall adopt a
7-20 memorandum of understanding that defines the division of
7-21 responsibility between the authority and the commission.
7-22 (d) State agencies may enter into the types of agreements
7-23 described by Subsection (b) of this section to purchase or lease
7-24 necessary equipment.
7-25 (e) If a state agency is required by law to obtain the
7-26 approval of another state agency or perform any other act before a
7-27 state agency may purchase or lease computer equipment, the agency
8-1 must obtain approval or perform the act before the agency may enter
8-2 into an agreement under this Act. The authority shall adopt rules
8-3 providing that the equipment may not be financed before the
8-4 authority receives written proof that the requirements have been
8-5 satisfied.
8-6 Sec. 16. COMMISSION OR OTHER STATE AGENCY TO ACT. The
8-7 commission or other state agency involved in acquiring or
8-8 constructing a building or equipment financed by the issuance of
8-9 bonds under this Act shall carry out its statutory authority as if
8-10 the building or equipment were financed by legislative
8-11 appropriation. The authority and either the commission or another
8-12 state agency involved in the acquisition or construction of a
8-13 building shall adopt a memorandum of understanding that describes
8-14 the division of responsibility between the authority and the
8-15 commission or agency.
8-16 Sec. 17. STATE LEASE FUND. (a) The state lease fund is a
8-17 dedicated fund in the state treasury. The fund may be used to
8-18 deposit appropriations to the commission or other state agency or
8-19 directly to the authority on behalf of the commission or the state
8-20 agency for the payment of required rents, fees, and installments to
8-21 the authority to permit the authority to pay principal and
8-22 interest, if any, and redemption premium, if any, with respect to
8-23 any bonds issued by the authority. Amounts in the fund may be used
8-24 only for the payment of bonds as described in this subsection. The
8-25 interest earned on the investment income deposited in the state
8-26 lease fund shall be credited to and accounted for in the state
8-27 lease fund and used to pay debt service on bonds of the authority.
9-1 (b) The legislature may transfer funds in the state lease
9-2 fund to the capital trust fund for other purposes as the
9-3 legislature determines after all bonds have been duly paid or
9-4 provided for.
9-5 (c) Sections 403.094 and 403.095, Government Code, do not
9-6 apply to the state lease fund.
9-7 Sec. 18. AUTHORITY TO ACT AS ISSUER. (a) With respect to
9-8 all bonds authorized to be issued by the Texas National Guard
9-9 Armory Board, Texas National Research Laboratory Commission, Parks
9-10 and Wildlife Department, and all institutions of higher education
9-11 authorized to issue bonds under Chapter 55, Education Code, the
9-12 authority has the exclusive authority to act on behalf of those
9-13 entities in issuing bonds on their behalf. In connection with
9-14 those issuances and with the issuance of refunding bonds on behalf
9-15 of those entities, the authority is subject to all rights, duties,
9-16 and conditions surrounding issuance applicable to the issuing
9-17 entity under the statute authorizing the issuance. All references
9-18 in an authorizing statute to the entity on whose behalf the bonds
9-19 are being issued apply to the authority in its capacity as issuer
9-20 on behalf of the entity.
9-21 (b) This section does not apply to The University of Texas
9-22 System, The Texas A&M University System, or a component of those
9-23 systems, to an institution of higher education authorized to issue
9-24 bonds under Section 17, Article VII, Texas Constitution, or to
9-25 bonds authorized to be issued by any of those systems, components,
9-26 or institutions.
9-27 Sec. 19. EXPENSES FOR CERTAIN COMPUTER EQUIPMENT. For
10-1 computer equipment that is the subject of a contingent
10-2 appropriation under Subchapter B, Chapter 317, Government Code, the
10-3 principal amount of bonds issued to finance the purchase of the
10-4 equipment must be sufficient to cover any payments of principal and
10-5 interest that must occur during the remainder of the biennium after
10-6 the bonds are issued.
10-7 Sec. 20. BOND REVIEW BOARD APPROVAL. (a) The authority may
10-8 not issue bonds unless the bond review board has approved the
10-9 issuance under Chapter 1078, Acts of the 70th Legislature, Regular
10-10 Session, 1987 (Article 717k-7, Vernon's Texas Civil Statutes).
10-11 (b) Bonds issued by the authority may be refunded as
10-12 determined by the authority and approved by the bond review board.
10-13 The projects authorized in Chapter 700, Acts of the 68th
10-14 Legislature, Regular Session, 1983, are ratified and confirmed.
10-15 Sec. 21. PROJECT ANALYSIS. (a) When the authority submits
10-16 its application for approval of an issue of bonds to the bond
10-17 review board, except as provided by Subsection (b) of this section,
10-18 the agency or institution that will use the project to be financed
10-19 by the bonds shall submit to the bond review board a project
10-20 analysis of the project. This subsection does not apply to the
10-21 Texas Department of Criminal Justice's minor renovation, repair, or
10-22 construction projects as defined by the department in cooperation
10-23 with the commission. The project analysis must be in the form
10-24 required for a project analysis requested from the commission under
10-25 Section 5.16, State Purchasing and General Services Act (Article
10-26 601b, Vernon's Texas Civil Statutes).
10-27 (b) Instead of the project analysis required by this
11-1 section, the Texas Department of Criminal Justice must submit to
11-2 the authority and the bond review board a master plan for
11-3 construction of corrections facilities. The plan must be in the
11-4 form, contain the information, and cover the period prescribed by
11-5 the bond review board and must be revised at least annually.
11-6 (c) The bond review board may not approve the issue of bonds
11-7 unless a project analysis is submitted as provided by this section.
11-8 Sec. 22. FORM OF BONDS. (a) The authority may issue bonds
11-9 in various series or issues.
11-10 (b) Bonds may mature serially or otherwise and bear interest
11-11 at the rate permitted by the constitution and laws of this state.
11-12 (c) In an order or resolution authorizing the issuance of
11-13 bonds, the authority may provide for the flow of funds, including
11-14 establishing and maintaining various funds.
11-15 (d) An order or resolution of the authority for the issuance
11-16 of bonds may contain other provisions and covenants as determined
11-17 by the authority. The bonds may be issued in the form,
11-18 denominations, and manner and under the terms, conditions, and
11-19 details provided by the authority in the order or resolution. The
11-20 bonds shall be signed and executed as provided in the order or
11-21 resolution. The authority may adopt and have executed any other
11-22 proceedings or instruments necessary and convenient in the issuance
11-23 of bonds.
11-24 (e) The bonds and any interest coupons issued by the
11-25 authority are investment securities under Chapter 8, Business &
11-26 Commerce Code, and may be issued registrable as to principal or as
11-27 to both principal and interest and may be made redeemable before
12-1 maturity, at the option of the authority, or may contain mandatory
12-2 redemption provisions.
12-3 Sec. 23. AUTHORIZED INVESTMENTS; SECURITY FOR PUBLIC FUNDS.
12-4 (a) Bonds issued under this Act are legal and authorized
12-5 investments for a bank, trust company, savings bank, savings and
12-6 loan association, insurance company, fiduciary, trustee, or
12-7 guardian or a sinking fund of a municipality, county, school
12-8 district, or political subdivision of the state and other public
12-9 funds of the state and its agencies, including the permanent school
12-10 fund.
12-11 (b) Bonds issued under this Act may secure deposits of
12-12 public funds of the state, a municipality, a county, a school
12-13 district, or another political corporation or subdivision of the
12-14 state. A bond may provide this security up to its value if
12-15 accompanied by all unmatured coupons.
12-16 Sec. 24. APPROVAL BY ATTORNEY GENERAL; REGISTRATION BY
12-17 COMPTROLLER. (a) The bonds issued by the authority must be
12-18 submitted to the attorney general for examination.
12-19 (b) If the attorney general finds that the bonds have been
12-20 authorized in accordance with law, the attorney general shall
12-21 approve the bonds, and the comptroller of public accounts shall
12-22 register the bonds.
12-23 (c) After the approval and registration of the bonds, the
12-24 bonds are incontestable in any court or other forum for any reason
12-25 and are valid and binding in accordance with their terms for all
12-26 purposes.
12-27 Sec. 25. REFUNDING BONDS. The authority may issue bonds to
13-1 refund all or any part of outstanding bonds issued under this Act,
13-2 including matured but unpaid interest.
13-3 Sec. 26. TAX STATUS OF BONDS. Bonds issued by the
13-4 authority, and any interest earnings on the bonds, any transaction
13-5 relating to the bonds, and profits made in the sale of the bonds,
13-6 are not subject to taxation by the state or by a city, county,
13-7 special district, or other political subdivision of the state.
13-8 Sec. 27. REVENUE BONDS. (a) An order or resolution of the
13-9 authority authorizing the issuance of revenue bonds may prohibit
13-10 the issuance of additional revenue bonds payable from the pledged
13-11 revenues, or the order or resolution may preserve the right of the
13-12 authority to issue additional revenue bonds on the condition that
13-13 the additional bonds are on a parity with or subordinate to the
13-14 lien and pledge of the revenues being used to support the revenue
13-15 bonds being issued under the order or resolution. In addition, the
13-16 authority may make covenants with respect to the revenue bonds, the
13-17 pledged revenues, and the operation and maintenance of the
13-18 buildings, equipment, or other projects financed with the proceeds
13-19 of the revenue bonds.
13-20 (b) In recognition that the cost estimates for acquisition,
13-21 construction, repair, or renovation of a project are not final at
13-22 the time the project is authorized for financing and that the bonds
13-23 may be issued to fund associated costs, including reasonably
13-24 required reserve funds, capitalized interest, administrative costs
13-25 of the authority, and issuing expenses, the principal amount of any
13-26 issuance of bonds for that purpose may be in an amount not to
13-27 exceed one and one-half the amount of the expected cost for the
14-1 project being financed. For additional costs to be included in the
14-2 principal amount, the authority must affirmatively find that the
14-3 costs are necessary and reasonable at the time the bonds are
14-4 issued.
14-5 (c) Investment income of proceeds that the authority
14-6 determines is not needed to finance the acquisition, construction,
14-7 purchase, or lease of buildings, equipment, or another project and
14-8 that is not required to be rebated to the federal government or
14-9 used for debt service shall be credited to and accounted for in
14-10 the state lease fund and used to pay debt service on bonds of the
14-11 authority.
14-12 (d) The authority may provide for the repayment of the
14-13 principal of and interest on the revenue bonds issued under this
14-14 Act from any source of funds lawfully available to the authority.
14-15 (e) The appropriate agency shall provide for the payment to
14-16 the authority under a lease agreement or other agreement adopted in
14-17 accordance with this Act an amount determined by the authority to
14-18 be sufficient to:
14-19 (1) pay the principal of and interest on the revenue
14-20 bonds;
14-21 (2) maintain any reserve fund necessary to service the
14-22 debt; and
14-23 (3) reimburse the authority for other costs and
14-24 expenses relating to a project or outstanding bonds.
14-25 (f) Each state agency for which revenue bonds have been
14-26 issued by the authority shall include in its biennial appropriation
14-27 request to the legislature an amount sufficient to pay the
15-1 principal of and interest on outstanding revenue bonds issued for
15-2 the benefit of the agency.
15-3 (g) The commission or the appropriate state agency shall
15-4 establish schedules necessary to properly charge occupying state
15-5 agencies for the expenses incurred in financing the acquisition or
15-6 construction of buildings or other projects in accordance with this
15-7 Act.
15-8 (h) Occupying state agencies shall pay to the commission,
15-9 the appropriate state agency, or directly into the state lease fund
15-10 the amount determined by the commission when the payments are due.
15-11 In lieu of the payments, the legislature may, on behalf of
15-12 occupying state agencies, directly appropriate funds to the state
15-13 lease fund.
15-14 (i) Payments received by the commission or a state agency
15-15 under this section shall be deposited to the credit of the state
15-16 lease fund.
15-17 (j) The rights of the state agency in property financed by
15-18 the authority through the issuance of revenue bonds are those of a
15-19 lessee, and a person claiming under or through the agency may not
15-20 acquire any greater rights with respect to that property.
15-21 Sec. 28. CONVEYANCE OF PROPERTY. (a) When the principal of
15-22 and interest on bonds relating to equipment or a building financed
15-23 under this Act are paid in full and the equipment or building is
15-24 free of all liens, the authority shall certify to the commission or
15-25 the appropriate state agency that rentals, payments, or
15-26 installments are no longer required to pay the principal of and
15-27 interest on the bonds.
16-1 (b) When making the certification under Subsection (a) of
16-2 this section, the authority shall, if necessary and for $1, convey
16-3 the title of the building or equipment, including any involved real
16-4 property, to the commission or the appropriate state agency.
16-5 Sec. 29. PREFERENCE IN LEASING. Buildings owned by the
16-6 authority are state-owned space for the purposes of:
16-7 (1) Section 6.04, State Purchasing and General
16-8 Services Act (Article 601b, Vernon's Texas Civil Statutes); and
16-9 (2) child-care facility sites located in state-owned
16-10 buildings under Chapter 663, Government Code, and Articles 4 and 5,
16-11 State Purchasing and General Services Act (Article 601b, Vernon's
16-12 Texas Civil Statutes).
16-13 Sec. 30. MANNER OF REPAYMENT OF REVENUE BONDS. (a) The
16-14 authority may provide for the payment of the principal of and
16-15 interest on revenue bonds issued under this Act:
16-16 (1) by pledging all or part of the rents, issues,
16-17 profits, and other revenues derived from leasing a building,
16-18 equipment, or other project to a state agency either directly or
16-19 through the commission;
16-20 (2) by pledging all or part of the revenues derived
16-21 from selling equipment or another project on an installment basis
16-22 to a state agency either directly or through the commission; or
16-23 (3) from any other source of funds lawfully available
16-24 to the authority.
16-25 (b) From funds appropriated for paying rental charges or
16-26 making installment payments on buildings, equipment, or other
16-27 projects, the commission or an occupying or using state agency
17-1 shall pay to the authority a rental or make installment payments on
17-2 the buildings, equipment, or other projects. The authority shall
17-3 determine the amount of the rental or installment payments. The
17-4 amount must be sufficient to:
17-5 (1) pay the principal of and interest on the revenue
17-6 bonds issued by the authority for the project;
17-7 (2) maintain any reserve fund for servicing the
17-8 revenue bonds; and
17-9 (3) reimburse the authority for other costs and
17-10 expenses incurred by it with respect to the revenue bonds.
17-11 (c) When the commission or state agency is required by
17-12 Subsection (b) of this section to pay a rental to the authority and
17-13 the commission or state agency depends on receiving a rental from
17-14 an occupying or using state agency to pay the authority, the
17-15 commission or state agency shall set the rental in an amount that
17-16 is sufficient to pay the rental required by the authority.
17-17 (d) All lease and installment sale contracts entered into
17-18 under this Act must be contingent on the appropriation of
17-19 sufficient funds by the legislature. If sufficient appropriated
17-20 funds are not available, the commission or a state agency fails or
17-21 refuses to pay rentals or installments, or the commission or a
17-22 state agency fails or refuses to renew a lease contract, the
17-23 authority may take the action necessary to ensure that the payment
17-24 of principal of and interest on revenue bonds are continued without
17-25 interruption. Permissible actions include the re-leasing or
17-26 subleasing of buildings or other projects to a state agency or any
17-27 other entity and the repossession and resale of equipment to a
18-1 state agency or any other entity. The authority may also access
18-2 the state agency's appropriated funds from time to time by issuing
18-3 vouchers on those funds to the comptroller to transfer funds from
18-4 accounts of the state agency to the state lease fund for payment of
18-5 principal of and interest on the revenue bonds.
18-6 (e) The authority may lease all or part of a building or
18-7 other project, the acquisition or construction of which was
18-8 financed under this Act, to any person or entity when the building
18-9 or other project cannot be leased to the commission or a state
18-10 agency. The authority may determine the terms of the lease.
18-11 (f) In addition to other sources of repayment provided by
18-12 this section, the legislature may direct, by law, that funds in the
18-13 capital trust fund be used to pay the principal of and interest on
18-14 revenue bonds issued under this Act for the acquisition and
18-15 construction of a building, equipment, or other project. The
18-16 legislature may also require the deposit into the capital trust
18-17 fund of all or part of the proceeds of a transaction concerning a
18-18 building, equipment, or other project.
18-19 Sec. 31. STATE DEBT NOT CREATED BY REVENUE BONDS. (a)
18-20 Revenue bonds issued under this Act are not debts of the state or
18-21 any state agency, political corporation, or political subdivision
18-22 of the state and are not a pledge of the faith and credit of any of
18-23 those entities. The revenue bonds are payable solely from revenue
18-24 as provided by this Act.
18-25 (b) A revenue bond must contain on its face a statement to
18-26 the effect that:
18-27 (1) neither the state nor a state agency, political
19-1 corporation, or political subdivision of the state is obligated to
19-2 pay the principal of or interest on the bond except as provided by
19-3 this Act; and
19-4 (2) neither the faith and credit nor the taxing power
19-5 of the state or any state agency, political corporation, or
19-6 political subdivision of the state is pledged to the payment of the
19-7 principal of or interest on the bond.
19-8 Sec. 32. CERTIFICATION OF RECEIPT OF PROCEEDS. On the
19-9 issuance of bonds under this Act, the authority shall certify to
19-10 the appropriate state agency and to the comptroller that proceeds
19-11 of the bonds are available.
19-12 Sec. 33. SPECIFIC PROJECTS. (a) In addition to the
19-13 buildings that the legislature has previously approved for
19-14 acquisition or construction, the buildings described by this
19-15 section are approved for financing in accordance with this Act.
19-16 (b) The following projects are approved:
19-17 Project Estimated Cost
19-18 1. Aircraft Maintenance Shop and Office $2,787,000
19-19 Facilities in Travis County
19-20 2. Cosmetology Commission Building in 1,520,000
19-21 Travis County
19-22 3. Hazardous Materials Testing Laboratory 1,350,000
19-23 for the Texas Department of
19-24 Health in Travis County
19-25 4. New Warehouse and Renovation of Existing 2,990,000
19-26 Warehouse for the State Purchasing
19-27 and General Services Commission in
20-1 Travis County
20-2 5. Purchase and Renovation by the State 10,000,000
20-3 Purchasing and General Services
20-4 Commission
20-5 of real property which is located
20-6 in, or partially or wholly within
20-7 1,000 feet of: the Capitol Complex,
20-8 Travis County, and the John H.
20-9 Winters Human Services Complex,
20-10 Travis County
20-11 6. Records and Equipment Warehouse for the 1,538,000
20-12 State Board of Insurance in Travis
20-13 County
20-14 7. State Board of Insurance Building in 59,937,000
20-15 Travis County
20-16 8. State Data Processing Disaster Recovery 3,011,000
20-17 Operations Center in Travis County
20-18 9. Purchase and Renovation of New 2,000,000
20-19 Headquarters and Warehouse for
20-20 State Purchasing and General
20-21 Services Commission in Travis County
20-22 10. Purchase and Renovation of an Office 43,500,000
20-23 Building in Travis County ____________
20-24 TOTAL $128,633,000
20-25 (c) Notwithstanding the limitations prescribed in this Act
20-26 relating to the location of buildings for which bonds may be
20-27 issued, the authority may issue bonds under this Act to finance the
21-1 renovation of West Building, G. J. Sutton State Office Complex in
21-2 Bexar County, at an estimated cost of $1,375,000; the construction
21-3 or purchase and renovation of a building or buildings by the
21-4 commission in Tarrant County, at an estimated cost of $10 million;
21-5 the construction or purchase and renovation of a building or
21-6 buildings by the commission in Harris County, at an estimated cost
21-7 of $20 million; and the purchase and renovation of a building or
21-8 buildings by the commission in McLennan County, at an estimated
21-9 cost of $5 million. For purposes of this subsection regarding
21-10 Tarrant and Harris counties, the commission shall, prior to
21-11 requesting the authority to issue bonds, prepare project analyses
21-12 for the potential construction projects and subsequent thereto
21-13 perform an alternative purchase analysis pursuant to the provisions
21-14 of Section 5.34, State Purchasing and General Services Act (Article
21-15 601b, Vernon's Texas Civil Statutes).
21-16 (d) Regarding Project 5 in Subsection (b) of this section,
21-17 the legislature finds that there is a continued need for the
21-18 acquisition of real property located in or in the immediate
21-19 vicinity of state office building complexes for the continued
21-20 operation of the government of the state in provision of service to
21-21 the people of this state; that there are periodic fluctuations in
21-22 the prices and values of real property; and that the ability of the
21-23 state to respond to rapidly changing market conditions is necessary
21-24 in order to acquire real property at substantial savings to the
21-25 taxpayers. Therefore, the commission is empowered hereby and in
21-26 accordance with Project 5 of Subsection (b) of this section to
21-27 purchase real property identified in that project number and to
22-1 make contracts necessary to carry out and effectuate the purposes
22-2 herein stated. Prior to the purchase of the property, the
22-3 commission must determine that the purchase would be in the state's
22-4 best interest.
22-5 Sec. 34. PURCHASE AND RENOVATION OF TEXAS EMPLOYMENT
22-6 COMMISSION PROPERTY. (a) The Texas Employment Commission shall
22-7 sell to the commission office buildings and parking facilities in
22-8 its possession in or near the Capitol Complex, and the commission
22-9 shall purchase and renovate the buildings and parking facilities,
22-10 at an estimated cost of $46 million. The purchase and renovation
22-11 is approved for financing in accordance with this Act and bonds may
22-12 be issued to finance the purchase and renovation in accordance with
22-13 this Act.
22-14 (b) After the office buildings have been acquired, the
22-15 commission may, from funds made available by the authority,
22-16 renovate the facilities as necessary for occupancy in accordance
22-17 with the allocation of space within the building made under
22-18 Subsection (c) of this section. In negotiating the price for the
22-19 Texas Employment Commission facilities, the commission shall
22-20 consider the cost to the Texas Employment Commission of alternative
22-21 space outside the Capitol Complex. The commission shall also
22-22 consider the price in the context of the reasonable rates that
22-23 might otherwise be paid by prospective occupying state agencies for
22-24 rent in comparable space.
22-25 (c) The space in that office building and parking facilities
22-26 is allocated to the legislature and legislative agencies for their
22-27 use. The presiding officers of each house of the legislature shall
23-1 jointly decide the allocation of the space within the buildings and
23-2 facilities.
23-3 Sec. 35. GENERAL OBLIGATION BONDS. (a) The authority may
23-4 issue up to $500 million in general obligation bonds and distribute
23-5 the proceeds of those bonds to appropriate agencies for use for
23-6 acquiring, constructing, or equipping new facilities or for major
23-7 repair or renovation of existing facilities, corrections
23-8 institutions, including youth corrections institutions, and mental
23-9 health and mental retardation institutions.
23-10 (b) The authority may issue up to $400 million in general
23-11 obligation bonds, in addition to the amount authorized by
23-12 Subsection (a) of this section, and distribute the proceeds of
23-13 those bonds to appropriate agencies for the same uses as authorized
23-14 by Subsection (a) of this section and to the Department of Public
23-15 Safety for the purchase, repair, and renovation of the Austin
23-16 Independent School District administration building adjacent to the
23-17 Department of Public Safety state headquarters, for the purpose of
23-18 expanding the department's state headquarters' central office
23-19 building.
23-20 (c) The authority may issue up to $1.055 billion in general
23-21 obligation bonds, in addition to the amounts authorized by
23-22 Subsections (a) and (b) of this section, and distribute the
23-23 proceeds of those bonds to appropriate agencies for use for
23-24 acquiring, constructing, or equipping new prisons and substance
23-25 abuse felony punishment facilities to confine criminals and youth
23-26 corrections institutions, for major repair or renovation of
23-27 existing prison facilities and youth corrections institutions, and
24-1 for the acquisition of, major repair to, or renovation of other
24-2 facilities for use as state prisons, substance abuse felony
24-3 punishment facilities, or facilities in which pilot programs
24-4 established as provided by Section 614.011, Health and Safety Code,
24-5 are conducted.
24-6 (d) The authority may issue up to $1 billion in general
24-7 obligation bonds, in addition to amounts authorized by Subsections
24-8 (a), (b), and (c) of this section, and distribute the proceeds of
24-9 those bonds to appropriate agencies for use for acquiring,
24-10 constructing, or equipping new facilities or for major repair or
24-11 renovation of existing facilities of corrections institutions,
24-12 including youth corrections institutions, and mental health and
24-13 mental retardation institutions.
24-14 (e) The authority shall make a good faith effort to use
24-15 historically underutilized businesses to assist in the issuance of
24-16 at least 30 percent of the total value of the bonds authorized by
24-17 Subsection (d) of this section. The authority shall report to the
24-18 legislature and the governor on the level of historically
24-19 underutilized business participation in the issuance of those
24-20 bonds. In this subsection, "historically underutilized business"
24-21 means a business entity formed for the purpose of making a profit
24-22 of which at least 51 percent is owned by one or more persons who
24-23 are socially disadvantaged because of their identification as
24-24 members of certain groups, including women, African Americans,
24-25 Hispanic Americans, Native Americans, and Asian Americans, who have
24-26 suffered the effects of discriminatory practices or similar
24-27 insidious circumstances over which they have no control, or in
25-1 which at least 51 percent of all classes of the shares of stock or
25-2 other equitable securities is owned by one or more persons who are
25-3 socially disadvantaged because of their identification as members
25-4 of certain groups, including women, African Americans, Hispanic
25-5 Americans, Native Americans, and Asian Americans, who have suffered
25-6 the effects of discriminatory practices or similar insidious
25-7 circumstances over which they have no control. Those persons who
25-8 own at least 51 percent of all classes of the shares of stock or
25-9 other equitable securities must have proportionate interest in the
25-10 control, operation, and management of the corporation's affairs.
25-11 (f) The proceeds of bonds may be used to refinance an
25-12 existing obligation for a purpose described by Subsections (a)-(d)
25-13 of this section. The authority may issue general obligation bonds
25-14 authorized under Subsection (a) or (b) of this section to refund
25-15 revenue bonds issued under this Act.
25-16 (g) The authority may issue up to $45 million in general
25-17 obligation bonds, in addition to the amounts authorized by
25-18 Subsections (a)-(d) of this section, and distribute the proceeds of
25-19 those bonds to appropriate agencies for use in acquiring,
25-20 constructing, or equipping new mental health or mental retardation
25-21 facilities, including community-based facilities, or for major
25-22 repair or renovation of mental health or mental retardation
25-23 facilities. The proceeds may be used to refinance an existing
25-24 obligation for a purpose described in this subsection. The
25-25 authority may issue general obligation bonds authorized under this
25-26 section to refund revenue bonds issued under this Act.
25-27 (h) The authority may issue up to $50 million in general
26-1 obligation bonds, in addition to the amounts authorized by
26-2 Subsections (a)-(d) of this section, and distribute the proceeds of
26-3 those bonds to appropriate agencies for acquiring, constructing, or
26-4 equipping new youth corrections facilities or for major repair or
26-5 renovation of existing youth corrections facilities.
26-6 (i) The bonds authorized by this section may be issued at a
26-7 rate of interest, according to the terms, and in a form determined
26-8 by the authority.
26-9 (j) The authority by rule shall establish guidelines,
26-10 criteria, and procedures for distributions of proceeds of bonds.
26-11 (k) The authority shall provide an accurate estimate of
26-12 interest and sinking fund balances available for payment of debt
26-13 service on general obligation bonds to the Legislative Budget Board
26-14 and the Governor's Office of Budget and Planning not later than
26-15 January 1 of each odd-numbered year.
26-16 Sec. 36. ISSUANCE OF OBLIGATIONS FOR ALTERNATIVE FUELS
26-17 PROJECTS. (a) The authority may, if it determines that a project
26-18 is financially viable and sufficient revenue is or will be
26-19 available, issue and sell obligations for the financing of:
26-20 (1) the conversion of state agency vehicles and other
26-21 sources of substantial energy output to alternative fuels under
26-22 Section 3.29, State Purchasing and General Services Act (Article
26-23 601b, Vernon's Texas Civil Statutes);
26-24 (2) the construction, acquisition, or maintenance by
26-25 the General Services Commission of fueling stations supplying
26-26 alternative fuels or equipment enhancing the use of engine-driven
26-27 technology to support state agency vehicles and other energy
27-1 applications that use alternative fuels;
27-2 (3) the conversion of school district motor vehicles
27-3 and other sources of substantial energy output to alternative fuels
27-4 under Section 21.174, Education Code;
27-5 (4) the construction, acquisition, or maintenance by a
27-6 school district of fueling stations supplying alternative fuels or
27-7 equipment enhancing the use of engine-driven technology to support
27-8 school district motor vehicles and other energy applications that
27-9 use alternative fuels;
27-10 (5) the conversion of local mass transit authority or
27-11 department motor vehicles and other sources of substantial energy
27-12 output to alternative fuels under Section 14, Chapter 141, Acts of
27-13 the 63rd Legislature, Regular Session, 1973 (Article 1118x,
27-14 Vernon's Texas Civil Statutes); Section 20, Chapter 683, Acts of
27-15 the 66th Legislature, 1979 (Article 1118y, Vernon's Texas Civil
27-16 Statutes); and Section 6, Article 1118z, Revised Statutes;
27-17 (6) the construction, acquisition, or maintenance of
27-18 fueling stations supplying alternative fuels or equipment enhancing
27-19 the use of engine-driven technology by a local mass transit
27-20 authority or department to support transit authority or department
27-21 vehicles and other energy applications that use alternative fuels;
27-22 and
27-23 (7) a joint venture between the private sector and a
27-24 state agency or political subdivision that is required under law to
27-25 use alternative fuels in the agency's or subdivision's vehicles or
27-26 other energy applications to:
27-27 (A) convert vehicles or other sources of
28-1 substantial energy output to alternative fuels;
28-2 (B) develop fueling stations and resources for
28-3 the supply of alternative fuels and engine-driven applications;
28-4 (C) aid in the distribution of alternative
28-5 fuels; and
28-6 (D) engage in other projects to facilitate the
28-7 use of alternative fuels.
28-8 (b) The authority may issue and sell not more than $50
28-9 million in obligations for projects under this section.
28-10 (c) The board may provide for the payment of the principal
28-11 of or interest on the bonds and obligations issued under this
28-12 section:
28-13 (1) by pledging all or a part of the revenue the state
28-14 derives from the sale of alternative fuels, alternative fuels
28-15 equipment or technology, or vehicles powered by alternative fuels;
28-16 (2) by contracting with a political subdivision or a
28-17 private entity to pledge revenue the political subdivision or
28-18 private entity derives from the sale of alternative fuels,
28-19 alternative fuels equipment or technology, or vehicles powered by
28-20 alternative fuels in an amount sufficient to ensure that the bonds
28-21 or obligations are paid;
28-22 (3) by pledging appropriated general revenues of the
28-23 state or other appropriated money in the state treasury; or
28-24 (4) from any other source of funds available to the
28-25 board.
28-26 (d) The authority shall attempt to include minority-owned
28-27 businesses in the issuance and underwriting of at least 20 percent
29-1 of the bonds and obligations issued under this section and
29-2 women-owned businesses in the issuance and underwriting of at least
29-3 10 percent of the bonds and obligations issued under this section.
29-4 (e) The alternative fuels council shall evaluate an
29-5 application under this section by an eligible entity for the
29-6 financing of the acquisition, construction, or improvement of
29-7 alternative fuels infrastructure and shall determine whether the
29-8 proposed project will increase energy or cost savings to the
29-9 applicant. A bond or other obligation may not be issued under
29-10 Subsection (a) of this section unless the alternative fuels council
29-11 certifies that the proposed project will increase energy or cost
29-12 savings to the applicant. The alternative fuels council may by
29-13 rule adopt procedures and standards for the evaluation of an
29-14 application for financing of a proposed project under this section.
29-15 (f) Costs of administration of the alternative fuels finance
29-16 program shall be considered a part of project costs and shall be
29-17 funded with bond proceeds. <Sec. 1. SHORT TITLE. This Act may be
29-18 cited as the Texas Public Finance Authority Act.>
29-19 <Sec. 1A. DEFINITIONS. In this Act:>
29-20 <(1) "Authority" means the Texas Public Finance
29-21 Authority.>
29-22 <(2) "Board" means the board of directors of the
29-23 authority.>
29-24 <(3) "Building" means the physical structure used by a
29-25 state agency to conduct official state business and the major
29-26 equipment or personal property that is functionally related to the
29-27 physical structure.>
30-1 <(4) "Commission" means the State Purchasing and
30-2 General Services Commission.>
30-3 <(5) "Computer equipment" means telecommunications
30-4 devices or systems, automated information systems, the computers on
30-5 which information systems are automated, and computer software.>
30-6 <(6) "Construction" means the erection, improvement,
30-7 repair, renovation, and remodeling of a building.>
30-8 <(7) "Equipment" means fixed assets, other than land
30-9 or buildings, used by a state agency to conduct official state
30-10 business. The term includes computer equipment.>
30-11 <(8) "Obligations" means bonds, notes, certificates of
30-12 participation, certificates of obligation, and interests in
30-13 contracts.>
30-14 <(9) "State agency" means a board, commission,
30-15 department, office, agency, institution of higher education, or
30-16 other governmental entity in the executive, judicial, or
30-17 legislative branch of state government.>
30-18 <Sec. 2. PURPOSE. The purpose of this Act is to provide a
30-19 method of financing:>
30-20 <(1) for the acquisition or construction of buildings
30-21 in Travis County, Texas; and>
30-22 <(2) for the purchase or lease of equipment by state
30-23 agencies in the executive or judicial branch of state government.>
30-24 <Sec. 3. PUBLIC FINANCE AUTHORITY. The Texas Public Finance
30-25 Authority is established as a public authority and body politic and
30-26 corporate.>
30-27 <Sec. 4. COMPOSITION OF GOVERNING BOARD. The authority is
31-1 governed by a board of directors composed of six members appointed
31-2 by the governor with the advice and consent of the senate.>
31-3 <Sec. 5. TERMS. Members of the board are appointed for
31-4 staggered terms of six years with two members' terms expiring on
31-5 February 1 of each odd-numbered year.>
31-6 <Sec. 6. OFFICERS; QUORUM; MEETINGS. (a) The governor
31-7 biennially shall appoint a chairman from the board's members. The
31-8 board biennially shall elect a vice-chairman from its members.>
31-9 <(b) A majority of the full membership of the board
31-10 constitutes a quorum.>
31-11 <(c) The board shall meet at least once in each quarter of
31-12 the calendar year and shall meet at other times at the call of the
31-13 chairman or as prescribed by a rule of the board.>
31-14 <Sec. 7. COMPENSATION AND EXPENSES. A member of the board
31-15 is entitled to:>
31-16 <(1) a per diem of $50, unless otherwise specified in
31-17 the General Appropriations Act, for each day the member performs
31-18 functions as a member of the board; and>
31-19 <(2) reimbursement for the actual and necessary
31-20 expenses that the member incurs in performing those functions.>
31-21 <Sec. 8. STAFF. The board shall employ persons and contract
31-22 with consultants as necessary for the board to perform its
31-23 functions. Employees of the board are considered to be state
31-24 employees.>
31-25 <Sec. 9. ISSUANCE OF BONDS. (a) The board may issue and
31-26 sell bonds in the name of the authority to finance projects that
31-27 consist of the acquisition or construction of buildings in Travis
32-1 County, Texas. Upon receiving a request described in Section 5.34,
32-2 State Purchasing and General Services Act (Article 601b, Vernon's
32-3 Texas Civil Statutes), the board may issue bonds in amounts up to
32-4 the previously authorized amount of bonds plus five percent of the
32-5 acquisition cost of the property, all as described in the request.>
32-6 <(b) When the acquisition or construction of a building has
32-7 been authorized in accordance with this Act or under Section 5.34
32-8 or 5.342, State Purchasing and General Services Act (Article 601b,
32-9 Vernon's Texas Civil Statutes), the board shall promptly issue and
32-10 sell bonds in the name of the authority under this Act, including
32-11 Sections 10B and 16 of this Act, to finance the acquisition or
32-12 construction of the building. When the proceeds from the bond
32-13 issuance are available, the board shall promptly deposit the
32-14 proceeds in the state treasury under Section 23 of this Act and
32-15 shall promptly make the determinations that are to be made by the
32-16 board under Section 23 of this Act.>
32-17 <(c) The commission or other state agency involved in
32-18 acquiring or constructing a building financed by the issuance of
32-19 bonds under this Act shall carry out its statutory authority as if
32-20 the building were financed by legislative appropriation. The board
32-21 and either the commission or another state agency involved in the
32-22 acquisition or construction of a building shall adopt a memorandum
32-23 of understanding that defines the division of authority between the
32-24 board and the commission or agency.>
32-25 <Sec. 9A. ISSUANCE OF OBLIGATIONS FOR EQUIPMENT. (a) The
32-26 authority may issue and sell obligations for the financing of a
32-27 lease or other agreement so long as the agreement concerns
33-1 equipment that a state agency in the executive or judicial branch
33-2 of state government has purchased or leased or intends to purchase
33-3 or lease. The authority's power to issue obligations includes the
33-4 power to issue and sell obligations for the financing of a package
33-5 of agreements involving one or more state agencies.>
33-6 <(b) The obligations issued by the authority shall be
33-7 payable pursuant to an agreement that may be in the nature of:>
33-8 <(1) a lease under which the authority leases
33-9 equipment from a vendor for sublease to the commission or a state
33-10 agency;>
33-11 <(2) a purchase by the authority of equipment and the
33-12 lease of that equipment either directly to the commission for the
33-13 benefit of a state agency or directly to a state agency;>
33-14 <(3) a purchase by the authority of equipment and the
33-15 sale of that equipment to a state agency on an installment payment
33-16 basis; or>
33-17 <(4) any similar agreement.>
33-18 <(c) If an agreement is between the authority and a state
33-19 agency or between a vendor and a state agency, the commission shall
33-20 nevertheless perform its functions as purchasing agent for the
33-21 state with the funds obtained pursuant to this section being used
33-22 solely for the purpose of financing the agreement. The board and
33-23 the commission shall adopt a memorandum of understanding that
33-24 defines the division of authority between the board and the
33-25 commission.>
33-26 <(d) State agencies are authorized to enter into the types
33-27 of contracts and agreements delineated in this section for the
34-1 purpose of purchasing or leasing necessary equipment. If a law
34-2 requires a state agency to obtain the approval of another state
34-3 agency or perform any other act before a state agency may purchase
34-4 or lease computer equipment, then those requirements must be
34-5 satisfied before an agency may enter into a contract or agreement
34-6 under this Act. The authority shall promulgate rules so that the
34-7 equipment may not be financed before the authority receives written
34-8 proof that the requirements have been satisfied.>
34-9 <Sec. 9B. AUTHORITY TO ACT AS ISSUER. (a) With respect to
34-10 all bonds authorized to be issued by the Texas National Guard
34-11 Armory Board, Texas National Research Laboratory Commission, Parks
34-12 and Wildlife Department, and all institutions of higher education
34-13 authorized to issue bonds under Chapter 55, Education Code, the
34-14 authority has the exclusive authority to act on behalf of those
34-15 entities in issuing bonds on their behalf. In connection with
34-16 those issuances and with the issuance of refunding bonds on behalf
34-17 of those entities, the authority is subject to all rights, duties,
34-18 and conditions surrounding issuance previously applicable to the
34-19 issuing entity under the statute authorizing the issuance. All
34-20 references in an authorizing statute to the entity on whose behalf
34-21 the bonds are being issued apply equally to the authority in its
34-22 capacity as issuer on behalf of the entity.>
34-23 <(b) This section does not apply to The University of Texas
34-24 System, The Texas A&M University System, or a component of those
34-25 systems, to an institution of higher education authorized to issue
34-26 bonds under Article VII, Section 17, of the Texas Constitution, or
34-27 to bonds authorized to be issued by any of those systems,
35-1 components, or institutions.>
35-2 <Sec. 9C. ISSUANCE OF OBLIGATIONS FOR ALTERNATIVE FUELS
35-3 PROJECTS. (a) The authority may, if it determines that a project
35-4 is financially viable and sufficient revenue is or will be
35-5 available, issue and sell obligations for the financing of:>
35-6 <(1) the conversion of state agency vehicles and other
35-7 sources of substantial energy output to alternative fuels under
35-8 Section 3.29, State Purchasing and General Services Act (Article
35-9 601b, Vernon's Texas Civil Statutes), and its subsequent
35-10 amendments;>
35-11 <(2) the construction, acquisition, or maintenance by
35-12 the General Services Commission of fueling stations supplying
35-13 alternative fuels or equipment enhancing the use of engine-driven
35-14 technology to support state agency vehicles and other energy
35-15 applications that use alternative fuels;>
35-16 <(3) the conversion of school district motor vehicles
35-17 and other sources of substantial energy output to alternative fuels
35-18 under Section 21.174, Education Code, and its subsequent
35-19 amendments;>
35-20 <(4) the construction, acquisition, or maintenance by
35-21 a school district of fueling stations supplying alternative fuels
35-22 or equipment enhancing the use of engine-driven technology to
35-23 support school district motor vehicles and other energy
35-24 applications that use alternative fuels;>
35-25 <(5) the conversion of local mass transit authority or
35-26 department motor vehicles and other sources of substantial energy
35-27 output to alternative fuels under Section 14, Chapter 141, Acts of
36-1 the 63rd Legislature, Regular Session, 1973 (Article 1118x,
36-2 Vernon's Texas Civil Statutes), Section 20, Chapter 683, Acts of
36-3 the 66th Legislature, 1979 (Article 1118y, Vernon's Texas Civil
36-4 Statutes), and Section 6, Article 1118z, Revised Statutes, and
36-5 their subsequent amendments;>
36-6 <(6) the construction, acquisition, or maintenance of
36-7 fueling stations supplying alternative fuels or equipment enhancing
36-8 the use of engine-driven technology by a local mass transit
36-9 authority or department to support transit authority or department
36-10 vehicles and other energy applications that use alternative fuels;
36-11 and>
36-12 <(7) a joint venture between the private sector and a
36-13 state agency or political subdivision that is required under law to
36-14 use alternative fuels in the agency's or subdivision's vehicles or
36-15 other energy applications to:>
36-16 <(A) convert vehicles or other sources of
36-17 substantial energy output to alternative fuels;>
36-18 <(B) develop fueling stations and resources for
36-19 the supply of alternative fuels and engine-driven applications;>
36-20 <(C) aid in the distribution of alternative
36-21 fuels; and>
36-22 <(D) engage in other projects to facilitate the
36-23 use of alternative fuels.>
36-24 <(b) The authority may not issue and sell more than $50
36-25 million in obligations for projects under this section.>
36-26 <(c) The board may provide for the payment of the principal
36-27 of or interest on the bonds and obligations issued under this
37-1 section:>
37-2 <(1) by pledging all or a part of the revenue the
37-3 state derives from the sale of alternative fuels, alternative fuels
37-4 equipment or technology, or vehicles powered by alternative fuels;>
37-5 <(2) by contracting with a political subdivision or a
37-6 private entity to pledge revenue the political subdivision or
37-7 private entity derives from the sale of alternative fuels,
37-8 alternative fuels equipment or technology, or vehicles powered by
37-9 alternative fuels in an amount sufficient to ensure that the bonds
37-10 or obligations are paid;>
37-11 <(3) by pledging appropriated general revenues of the
37-12 state or other appropriated money in the state treasury; or>
37-13 <(4) from any other source of funds available to the
37-14 board.>
37-15 <(d) The authority shall attempt to include minority-owned
37-16 businesses in the issuance and underwriting of at least 20 percent
37-17 of the bonds and obligations issued under this section and
37-18 women-owned businesses in the issuance and underwriting of at least
37-19 10 percent of the bonds and obligations issued under this section.>
37-20 <(e) The Alternative Fuels Council shall evaluate an
37-21 application under this section by an eligible entity for the
37-22 financing of the acquisition, construction, or improvement of
37-23 alternative fuels infrastructure and shall determine whether the
37-24 proposed project will increase energy or cost savings to the
37-25 applicant. A bond or other obligation may not be issued under
37-26 Subsection (a) of this section unless the Alternative Fuels Council
37-27 certifies that the proposed project will increase energy or cost
38-1 savings to the applicant. The Alternative Fuels Council may by
38-2 rule adopt procedures and standards for the evaluation of an
38-3 application for financing of a proposed project under this section.>
38-4 <(f) Costs of administration of the alternative fuels
38-5 finance program shall be considered a part of project costs and
38-6 shall be funded with bond proceeds.>
38-7 <Sec. 10. APPROVAL REQUIRED. (a) Before the board may
38-8 issue and sell bonds under the authority of Section 9 of this Act,
38-9 the legislature, by law, must have specifically authorized:>
38-10 <(1) the acquisition or construction of the building
38-11 for which the bonds are to be issued and sold; and>
38-12 <(2) the estimated cost of the acquisition or
38-13 construction of the building or the maximum amount of bonded
38-14 indebtedness that may be incurred by the issuance and sale of the
38-15 bonds.>
38-16 <(a) Except as permitted by Sections 24A(b)(5) and 24A(d) of
38-17 this Act or Section 5.34 or 5.342, State Purchasing and General
38-18 Services Act (Article 601b, Vernon's Texas Civil Statutes), before
38-19 the board may issue and sell bonds, the legislature by law must
38-20 have authorized in this Act, the General Appropriations Act, or
38-21 another Act the specific project for which the bonds are to be
38-22 issued and sold and must have authorized the estimated cost of the
38-23 project or the maximum amount of bonded indebtedness that may be
38-24 incurred by the issuance and sale of bonds for the project. In
38-25 recognition that the cost estimates for acquisition, construction,
38-26 repair, or renovation of a project will not be final at the time
38-27 the project is authorized for financing and that the bonds may be
39-1 issued to fund associated costs, including but not limited to
39-2 reasonably required reserve funds, capitalized interest,
39-3 administrative costs of the authority, and issuing expenses, the
39-4 principal amount of any bond issue for that purpose may be up to
39-5 1-1/2 the amount of the estimated cost for the project being
39-6 financed. For additional costs to be included in that principal
39-7 amount, the board must affirmatively find that those costs are
39-8 necessary and reasonable at the time the bonds are issued.>
39-9 <(b) This section does not apply to the extent that Section
39-10 5.34, State Purchasing and General Services Act (Article 601b,
39-11 Vernon's Texas Civil Statutes), authorizes the issuance of bonds.>
39-12 <Sec. 10A. EXPENSES INCLUDED IN PRINCIPAL AMOUNT. (a) The
39-13 principal amount of bonds may be inclusive of required reserve
39-14 funds, capitalized interest, the authority's administrative costs,
39-15 issuing expenses, and other expenses associated with the
39-16 authority's issuance and sale of those bonds.>
39-17 <(b) The principal amount of obligations may be inclusive of
39-18 required reserve funds, capitalized interest, the authority's
39-19 administrative costs, issuing expenses, and other expenses
39-20 associated with the authority's issuance and sale of those
39-21 obligations. For computer equipment that is the subject of a
39-22 contingent appropriation under Subchapter B, Chapter 317,
39-23 Government Code, the principal amount of obligations issued to
39-24 finance the purchase of that equipment shall be sufficient to cover
39-25 any payments of principal and interest that must occur during the
39-26 remainder of the biennium after the obligations are issued.>
39-27 <(c) In recognition of the expenses specified in Subsections
40-1 (a) and (b) of this section and the fact that cost estimates
40-2 frequently are not final when the legislature authorizes the
40-3 acquisition or construction of a building, the principal amount of
40-4 any bond issue or issuance of obligations may be up to 1 1/2 times
40-5 the estimated cost of the building being acquired or constructed or
40-6 the equipment being leased or purchased. However, before
40-7 additional expenses may be included in determining the principal
40-8 amount, the board must affirmatively find that those expenses are
40-9 necessary and reasonable.>
40-10 <Sec. 10A. PROJECT ANALYSIS. (a) When the authority
40-11 submits its application for approval of a bond issue to the bond
40-12 review board, the agency or institution that will use the project
40-13 to be financed by the bonds shall submit to the bond review board a
40-14 project analysis of the project. This section shall not apply to
40-15 Texas Department of Correction's minor renovation, repair, or
40-16 construction projects as defined by the department in cooperation
40-17 with the State Purchasing and General Services Commission.>
40-18 <(b) The project analysis must be in the form required for a
40-19 project analysis requested from the State Purchasing and General
40-20 Services Commission under Section 5.16, State Purchasing and
40-21 General Services Act (Article 601b, Vernon's Texas Civil Statutes).
40-22 Instead of the project analysis required by this section, the Texas
40-23 Department of Corrections may substitute the master plan required
40-24 to be submitted by Section 3, Chapter 696, Acts of the 70th
40-25 Legislature, Regular Session, 1987 (Article 601d-1, Vernon's Texas
40-26 Civil Statutes), if the master plan contains information
40-27 substantially equivalent to the information required to be in a
41-1 project analysis under Section 5.16, State Purchasing and General
41-2 Services Act (Article 601b, Vernon's Texas Civil Statutes).>
41-3 <(c) The bond review board may not approve the bond issue
41-4 unless a project analysis is submitted as provided by this section.>
41-5 <Sec. 10B. BOND REVIEW BOARD APPROVAL. (a) The authority
41-6 may not issue bonds or obligations until the Bond Review Board has
41-7 approved the issuance under the provisions of Chapter 1078, Acts of
41-8 the 70th Legislature, Regular Session, 1987 (Article 717k-7,
41-9 Vernon's Texas Civil Statutes). Bonds and obligations issued by
41-10 the authority may be refunded or refinanced as determined by the
41-11 board and approved by the Bond Review Board.>
41-12 <(b) The projects authorized in Chapter 700, Acts of the
41-13 68th Legislature, Regular Session, 1983, are ratified and
41-14 confirmed.>
41-15 <Sec. 11. SCOPE OF POWER. (a) The board's authority under
41-16 this Act is limited to the financing of the acquisition or
41-17 construction of a building or the purchase or lease of equipment.
41-18 That authority does not affect the authority of the commission or
41-19 any other state agency.>
41-20 <(b) Buildings and equipment financed by the authority
41-21 pursuant to this Act shall not become part of other property to
41-22 which they may be attached or affixed or into which they may be
41-23 incorporated, regardless of whether the other property is real or
41-24 personal.>
41-25 <Sec. 12. MANNER OF REPAYMENT OF BONDS. (a) The board may
41-26 provide for the payment of the principal of and interest on the
41-27 bonds and obligations issued under this Act:>
42-1 <(1) by pledging all or part of the rents, issues,
42-2 profits, and other revenues derived from leasing a building or
42-3 equipment to a state agency either directly or through the
42-4 commission;>
42-5 <(2) by pledging all or part of the revenues derived
42-6 from selling equipment on an installment basis to a state agency
42-7 either directly or through the commission; or>
42-8 <(3) from any other source of funds lawfully available
42-9 to the board.>
42-10 <(b) From funds appropriated for paying rental charges or
42-11 making installment payments on buildings or equipment, either the
42-12 commission or an occupying or using state agency shall pay to the
42-13 board a rental or make installment payments on the buildings or
42-14 equipment. The amount of the rental or installment payments shall
42-15 be determined by the board. However, the amount must be sufficient
42-16 to:>
42-17 <(1) pay the principal of and interest on the bonds or
42-18 obligations;>
42-19 <(2) maintain any reserve fund required for servicing
42-20 the bonds or obligations; and>
42-21 <(3) reimburse the authority for other costs and
42-22 expenses incurred by it with respect to the bonds or obligations.>
42-23 <(c) When the commission or a state agency is required by
42-24 Subsection (b) of this section to pay a rental to the authority and
42-25 the commission or state agency depends upon receiving a rental from
42-26 an occupying or using state agency in order to pay the authority,
42-27 the commission or state agency shall set the rental in an amount
43-1 that is sufficient to pay the rental required by the board.>
43-2 <(d) All lease and installment sale contracts entered into
43-3 under this Act shall be contingent upon the legislature's
43-4 appropriation of sufficient funds. If sufficient appropriated
43-5 funds are unavailable, the commission or a state agency fails or
43-6 refuses to pay rentals or installments, or the commission or a
43-7 state agency fails or refuses to renew a lease contract, the board
43-8 may take whatever action is necessary to ensure that the payment of
43-9 principal and interest on bonds or obligations are continued
43-10 without interruption. Permissible actions include, but are not
43-11 limited to, the re-leasing or subleasing of buildings or equipment
43-12 to a state agency or any other entity and the repossession and
43-13 resale of equipment to a state agency or any other entity.>
43-14 <(e) The board may lease all or part of a building, the
43-15 acquisition or construction of which was financed under this Act,
43-16 to any person or entity when the building cannot be leased to the
43-17 commission or a state agency. The board may determine the terms of
43-18 such a lease.>
43-19 <(f) In addition to other sources of repayment provided by
43-20 this section, the legislature may direct, by law, that funds in the
43-21 capital trust fund be used to pay the principal and interest on
43-22 bonds issued under this Act for the acquisition or construction of
43-23 a building. In addition, the legislature may require the deposit
43-24 into the capital trust fund of all or part of the proceeds of a
43-25 transaction concerning a building.>
43-26 <Sec. 13. STATE DEBT NOT CREATED. (a) Bonds and
43-27 obligations issued under this Act are not debts of the state or any
44-1 state agency, political corporation, or political subdivision of
44-2 the state and are not a pledge of the faith and credit of any of
44-3 them. The bonds are payable solely from revenue as provided by
44-4 this Act.>
44-5 <(b) The bonds or obligations must contain on their face a
44-6 statement to the effect that:>
44-7 <(1) neither the state nor a state agency, political
44-8 corporation, or political subdivision of the state is obligated to
44-9 pay the principal of or interest on the bonds or obligations except
44-10 as provided by this Act; and>
44-11 <(2) neither the faith and credit nor the taxing power
44-12 of the state or any state agency, political corporation, or
44-13 political subdivision of the state is pledged to the payment of the
44-14 principal of or interest on the bonds or obligations.>
44-15 <Sec. 14. FORM OF BONDS. (a) The board may issue bonds and
44-16 obligations in various series or issues.>
44-17 <(b) Bonds and obligations may mature serially or otherwise
44-18 and shall bear interest at the rate permitted by the constitution
44-19 and laws of the state.>
44-20 <(c) The bonds, obligations, and interest coupons, if any,
44-21 are investment securities under the terms of Chapter 8 of the
44-22 Business & Commerce Code and may be issued registrable as to
44-23 principal or as to both principal and interest and may be made
44-24 redeemable before maturity, at the option of the board, or may
44-25 contain a mandatory redemption provision.>
44-26 <(d) The bonds and obligations may be issued in the form,
44-27 denominations, and manner and under the terms, conditions, and
45-1 details provided by the board in the order or resolution
45-2 authorizing their issuance. The bonds and obligations shall be
45-3 signed and executed as provided in that resolution or order.>
45-4 <Sec. 15. PROVISIONS OF BONDS. (a) In an order or
45-5 resolution authorizing the issuance of bonds or obligations,
45-6 including the refunding of bonds or obligations, the board may
45-7 provide for the flow of funds, the establishment and maintenance of
45-8 the interest and sinking fund, the reserve fund, and other funds.
45-9 In addition, the board may make covenants with respect to the bonds
45-10 or obligations, the pledged revenues, and the operation and
45-11 maintenance of the buildings or equipment financed under this Act.>
45-12 <(b) An order or resolution of the board authorizing the
45-13 issuance of bonds or obligations may prohibit the issuance of
45-14 additional bonds or obligations payable from the pledged revenues.
45-15 In lieu of the preceding, an order or resolution may preserve the
45-16 right of the board to issue additional bonds or obligations on the
45-17 condition that they are on a parity with or subordinate to the lien
45-18 and pledge on the revenues being used to support the bonds or
45-19 obligations being issued pursuant to the order or resolution.>
45-20 <(c) An order or resolution of the board for the issuance of
45-21 bonds or obligations may contain other provisions and covenants as
45-22 the board may determine.>
45-23 <(d) The board may adopt and have executed any other
45-24 proceedings or instruments necessary and convenient in the issuance
45-25 of bonds or obligations.>
45-26 <Sec. 16. APPROVAL BY ATTORNEY GENERAL; REGISTRATION BY
45-27 COMPTROLLER. (a) The bonds and obligations issued by the board
46-1 must be submitted to the attorney general for examination.>
46-2 <(b) If the attorney general finds that the bonds and
46-3 obligations have been authorized in accordance with law, he shall
46-4 approve them, and they shall be registered by the comptroller of
46-5 public accounts.>
46-6 <(c) After the approval and registration of bonds and
46-7 obligations, they are incontestable in any court or other forum for
46-8 any reason and are valid and binding in accordance with their terms
46-9 for all purposes.>
46-10 <Sec. 17. REFUNDING BONDS. (a) The board may issue bonds
46-11 and obligations to refund all or any part of its outstanding bonds
46-12 and obligations issued under this Act, including matured but unpaid
46-13 interest.>
46-14 <(b) The board may refund its bonds and obligations as
46-15 provided by the general laws of the state for revenue bonds.>
46-16 <Sec. 18. BONDS ARE SECURITY FOR DEPOSITS. The bonds and
46-17 obligations are eligible to secure deposits of public funds of the
46-18 state and cities, counties, school districts, and other political
46-19 subdivisions of the state. The bonds and obligations are lawful
46-20 and sufficient security for deposits to the extent of their face
46-21 value when accompanied by all unmatured coupons, if any.>
46-22 <Sec. 19. BONDS AS INVESTMENTS. The bonds and obligations
46-23 are legal and authorized investments for:>
46-24 <(1) banks;>
46-25 <(2) savings banks;>
46-26 <(3) trust companies;>
46-27 <(4) savings and loan associations;>
47-1 <(5) insurance companies;>
47-2 <(6) fiduciaries;>
47-3 <(7) trustees;>
47-4 <(8) guardians; and>
47-5 <(9) sinking funds of cities, counties, school
47-6 districts, and other political subdivisions of the state and other
47-7 public funds of the state and its agencies, including the permanent
47-8 school fund.>
47-9 <Sec. 20. TAX STATUS OF BONDS. The bonds and obligations
47-10 issued by the board, any transaction relating to the bonds or
47-11 obligations, and profits made in the sale of the bonds and
47-12 obligations are free from taxation by the state or by any city,
47-13 county, special district, or other political subdivision of the
47-14 state.>
47-15 <Sec. 21. ><Other Powers><. The board may:>
47-16 <(1) exercise, to the extent practicable, all powers
47-17 given to a corporation under the general laws of the state;>
47-18 <(2) have perpetual succession by its corporate name;>
47-19 <(3) sue and be sued in its corporate name;>
47-20 <(4) adopt a seal and use it as the board considers
47-21 appropriate;>
47-22 <(5) accept gifts and donations; and>
47-23 <(6) adopt rules and perform all functions reasonably
47-24 necessary for the board to administer its functions prescribed by
47-25 this Act.>
47-26 <Sec. 22. ><Prior Appropriations><. The appropriations made by
47-27 Section 2, Article II, Senate Bill 1355, Acts of the 68th
48-1 Legislature, Regular Session, 1983, are validated, ratified, and
48-2 confirmed for the periods and purposes specified by that section.>
48-3 <Sec. 23. ><Bond Proceeds><. (a) After the issuance of bonds
48-4 or obligations, the board shall certify to the commission or to the
48-5 appropriate state agency and to the comptroller of public accounts
48-6 that the proceeds from the issuance are available. The board shall
48-7 deposit the proceeds in the state treasury. The proceeds shall be
48-8 credited to the account of the state agency that is responsible
48-9 under a contract or agreement for making rental or installment
48-10 payments to the authority.>
48-11 <(b) The process of acquiring or constructing a building or
48-12 purchasing or leasing equipment may begin after:>
48-13 <(1) the authority has certified that obligations in
48-14 an amount sufficient to pay the construction or purchase price of
48-15 the project have been authorized for issuance by the authority
48-16 under an interim construction finance agreement established by the
48-17 authority in accordance with Chapter 656, Acts of the 68th
48-18 Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
48-19 Civil Statutes), and its subsequent amendments; or>
48-20 <(2) the proceeds have been deposited into the state
48-21 treasury, the comptroller of public accounts has certified that the
48-22 proceeds are available, the reserve funds and capitalized interest,
48-23 as certified by the authority as reasonably required, have been
48-24 paid, and the costs of issuing the bonds or obligations have been
48-25 paid after receiving a certificate from the authority specifying
48-26 those costs.>
48-27 <(c) The state treasurer shall invest, with the concurrence
49-1 of the board, the unexpended bond proceeds and investment income
49-2 thereon in investments approved by law for the investment of state
49-3 funds.>
49-4 <(d) The investment income that the board determines is
49-5 needed to finance the acquisition, construction, purchase, or lease
49-6 of buildings or equipment and that is not required to be rebated to
49-7 the federal government shall be credited to the account of the
49-8 appropriate state agency.>
49-9 <(e) The investment income that the board determines is not
49-10 needed to finance the acquisition, construction, purchase, or lease
49-11 of buildings or equipment and that is not required to be rebated to
49-12 the federal government shall be credited to and accounted for in
49-13 the state lease fund in the state treasury. Notwithstanding the
49-14 provisions of Section 404.071, Government Code, the interest earned
49-15 on the investment income that is deposited in the state lease fund
49-16 shall be credited to and accounted for in the state lease fund.>
49-17 <Sec. 24A. ><Specific projects><. (a) In addition to the
49-18 buildings that the legislature has previously approved for
49-19 acquisition or construction, the buildings described by this
49-20 section are approved for financing in accordance with Section 9 of
49-21 this Act. This section in no way limits the authority of the board
49-22 to issue obligations to finance the purchase or lease of equipment.>
49-23 <(b) The following projects are approved:>
49-24 <Project> <Estimated Cost>
49-25 <1. Aircraft Maintenance Shop and Office>
49-26 <Facilities in Travis County> <$2,787,000>
49-27 <2. Cosmetology Commission Building in>
50-1 <Travis County> <1,520,000>
50-2 <3. Hazardous Materials Testing Laboratory>
50-3 <for the Texas Department of Health>
50-4 <in Travis County> <1,350,000>
50-5 <4. New Warehouse and Renovation of>
50-6 <Existing warehouse for the State>
50-7 <Purchasing and General Services>
50-8 <Commission in Travis County> <2,990,000>
50-9 <5. Purchase and Renovation by the State>
50-10 <Purchasing and General Services>
50-11 <Commission of real property>
50-12 <which is located in, or partially or>
50-13 <wholly within 1,000 feet of:>
50-14 <the Capitol Complex, Travis County,>
50-15 <and the John H. Winters Human>
50-16 <Services Complex, Travis County> <10,000,000>
50-17 <6. Records and Equipment Warehouse for>
50-18 <the State Board of Insurance in>
50-19 <Travis County> <1,538,000>
50-20 <7. State Board of Insurance Building>
50-21 <in Travis County> <59,937,000>
50-22 <8. State Data Processing Disaster>
50-23 <Recovery Operations Center in>
50-24 <Travis County> <3,011,000>
50-25 <9. Purchase and Renovation of New>
50-26 <Headquarters and Warehouse for State>
50-27 <Purchasing and General>
51-1 <Services Commission in Travis County> <2,000,000>
51-2 <10. Purchase and Renovation of an Office>
51-3 <Building in Travis County> <43,500,000>
51-4 <_____________>
51-5 <TOTAL> <$128,633,000>
51-6 <(c) Notwithstanding the limitations prescribed by Section 9
51-7 of this Act relating to the location of buildings for which bonds
51-8 may be issued, the authority may issue bonds under this Act to
51-9 finance the renovation of West Building, G. J. Sutton State Office
51-10 Complex in Bexar County, at an estimated cost of $1,375,000; the
51-11 construction or purchase and renovation of a building or buildings
51-12 by the commission in Tarrant County, at an estimated cost of
51-13 $10,000,000; the construction or purchase and renovation of a
51-14 building or buildings by the commission in Harris County, at an
51-15 estimated cost of $20,000,000; and the purchase and renovation of a
51-16 building or buildings by the commission in McLennan County, at an
51-17 estimated cost of $5,000,000. For purposes of this subsection
51-18 regarding Tarrant and Harris counties, the commission shall, prior
51-19 to requesting the authority to issue bonds, prepare project
51-20 analyses for the potential construction projects and subsequent
51-21 thereto perform an alternative purchase analysis pursuant to the
51-22 provisions of Section 5.34, State Purchasing and General Services
51-23 Act (Article 601b, Vernon's Texas Civil Statutes).>
51-24 <(d) Regarding Project 5 in Subsection (b) of this section,
51-25 the legislature finds that there is a continued need for the
51-26 acquisition of real property which is located in or in the
51-27 immediate vicinity of state office building complexes for the
52-1 continued operation of the government of the State of Texas in
52-2 provision of service to the people of this state; that there are
52-3 periodic fluctuations in the prices and values of real property;
52-4 and that the ability of the state to respond to rapidly changing
52-5 market conditions is necessary in order to acquire real property at
52-6 substantial savings to the taxpayer. Therefore, the State
52-7 Purchasing and General Services Commission is empowered hereby and
52-8 in accordance with Project 5 of Subsection (b) of this section to
52-9 purchase real property identified in that project number and to
52-10 make contracts necessary to carry out and effectuate the purposes
52-11 herein stated. Prior to the purchase of such property, the
52-12 commission must determine that the purchase would be in the state's
52-13 best interest.>
52-14 <Sec. 25. ><Rent and Fees><. (a) The commission or the
52-15 appropriate state agency shall establish schedules necessary to
52-16 properly charge occupying state agencies for the expenses incurred
52-17 in financing the acquisition or construction of buildings in
52-18 accordance with this Act.>
52-19 <(b) Occupying state agencies shall pay to the commission,
52-20 the appropriate state agency, or directly into the state lease fund
52-21 the amount determined by the commission when the payments are due.
52-22 In lieu of the preceding payments, the legislature may, on the
52-23 behalf of occupying state agencies, directly appropriate funds to
52-24 the state lease fund.>
52-25 <(c) Payments received by the commission or a state agency
52-26 under this section shall be deposited to the credit of the state
52-27 lease fund.>
53-1 <(d) The Child Care Development Board is not an occupying
53-2 state agency for purposes of this section. The commission or the
53-3 appropriate state agency, with the cooperation and assistance of
53-4 the Child Care Development Board, shall include in the schedules
53-5 developed under Subsection (a) of this section the method of
53-6 charging state agencies that occupy all or part of a building
53-7 governed by this section for the space in the building that is used
53-8 for a child care facility under Article 6252-3e, Revised Statutes,
53-9 and Articles 4 and 5, State Purchasing and General Services Act
53-10 (Article 601b, Vernon's Texas Civil Statutes). An occupying
53-11 agency's share shall be based at least in part on the ratio of the
53-12 number of the occupying agency's employees who work in the building
53-13 to the total number of state employees who work in the building.>
53-14 <Sec. 26. ><State Lease Fund><. (a) The state lease fund
53-15 created by Article II, Chapter 700, Acts of the 68th Legislature,
53-16 Regular Session, 1983 (Article 601c, Vernon's Texas Civil
53-17 Statutes), may be used to finance appropriations to the commission
53-18 or other state agencies or directly to the authority on behalf of
53-19 the preceding entities for the payment of required rents, fees, and
53-20 installments to the authority.>
53-21 <(b) In addition, the legislature may transfer funds on
53-22 deposit in the state lease fund to the capital trust fund for such
53-23 other purposes as the legislature may determine after all bonds and
53-24 obligations have been duly paid or provided for.>
53-25 <Sec. 27. ><Purchase and Renovation of Texas Employment
53-26 Commission Property><. (a) The Texas Employment Commission shall
53-27 sell to the commission office buildings and parking facilities in
54-1 its possession in or near the Capitol Complex, and the commission
54-2 shall purchase and renovate the buildings and parking facilities,
54-3 at an estimated cost of $46,000,000. The purchase and renovation is
54-4 approved for financing in accordance with Section 9 of this Act and
54-5 bonds may be issued to finance the purchase and renovation in
54-6 accordance with Section 10 of this Act.>
54-7 <(b) After the office buildings have been acquired, the
54-8 commission may, from funds made available by the authority,
54-9 renovate the facilities as necessary for occupancy in accordance
54-10 with the allocation of space within the building made under
54-11 Subsection (c) of this section. In negotiating the price for the
54-12 Texas Employment Commission facilities, the commission shall
54-13 consider the cost to the Texas Employment Commission of alternative
54-14 space outside the Capitol Complex. The commission shall also
54-15 consider the price in the context of the reasonable rates that
54-16 might otherwise be paid by prospective occupying state agencies for
54-17 rent in comparable space.>
54-18 <(c) The space in the office buildings and parking
54-19 facilities is allocated to the legislature and legislative agencies
54-20 for their use. The presiding officers of each house of the
54-21 legislature shall jointly decide the allocation of the space within
54-22 the buildings and facilities.>
54-23 <Sec. 28. ><Conveyance of Property><. (a) When the principal
54-24 of and interest on bonds or obligations relating to equipment or a
54-25 building financed under this Act are paid in full and the equipment
54-26 or building is free of all liens, the board shall certify to the
54-27 commission or the appropriate state agency that rentals, payments,
55-1 or installments are no longer required to pay the principal and
55-2 interest on the bonds or obligations.>
55-3 <(b) When making the certification called for in Subsection
55-4 (a), the board shall, if necessary and for the sum of $1.00, convey
55-5 the title of the building or equipment, including any involved real
55-6 property, to the commission or the appropriate state agency.>
55-7 <Sec. 29. ><Preference in Leasing><. Buildings owned by the
55-8 authority shall be considered state-owned space for the purposes
55-9 of:>
55-10 <(1) Section 6.04, State Purchasing and General
55-11 Services Act (Article 601b, Vernon's Texas Civil Statutes); and>
55-12 <(2) child care facility sites located in state-owned
55-13 buildings under Article 6252-3e, Revised Statutes, and Articles 4
55-14 and 5, State Purchasing and General Services Act (Article 601b,
55-15 Vernon's Texas Civil Statutes).>
55-16 <Sec. 30. ><Eminent Domain><. The authority has the power of
55-17 eminent domain and may exercise the power for the purposes set
55-18 forth in this Act in connection with the approved acquisition or
55-19 construction of buildings as provided in Section 10 of this Act.>
55-20 <Sec. 31. ><Sunset provision><. The Texas Public Finance
55-21 Authority is subject to Chapter 325, Government Code (Texas Sunset
55-22 Act). Unless continued in existence as provided by that chapter
55-23 the authority is abolished and this article expires September 1,
55-24 1997.>
55-25 <Sec. 32. ><Relationship to Previous Board><. The authority
55-26 created by this Act shall succeed to the ownership of all property
55-27 of and all lease and rental contracts entered into by the Texas
56-1 Public Building Authority that was created by Senate Bill 1355,
56-2 Acts of the 68th Legislature, Regular Session, 1983, and all of the
56-3 obligations contracted or assumed by the previous authority with
56-4 respect to any such property or contract shall be obligations of
56-5 the authority created under this Act. Actions taken by the
56-6 previous authority are validated, ratified, and confirmed.>
56-7 <Sec. 34. ><Repealer><. Articles I and II, and Section 1,
56-8 Article III, Chapter 700, Acts of the 68th Legislature, Regular
56-9 Session, 1983 (Article 601c, Vernon's Texas Civil Statutes), are
56-10 repealed.>
56-11 SECTION 2. The appropriations made by Section 2, Article II,
56-12 Chapter 700, Acts of the 68th Legislature, Regular Session, 1983,
56-13 are validated, ratified, and confirmed for the periods and purposes
56-14 specified by that section.
56-15 SECTION 3. The Texas Public Finance Authority shall succeed
56-16 to the ownership of all property of and all lease and rental
56-17 contracts entered into by the Texas Public Building Authority that
56-18 was created by Chapter 700, Acts of the 68th Legislature, Regular
56-19 Session, 1983, and all of the obligations contracted or assumed by
56-20 the previous authority with respect to any property or contract are
56-21 obligations of the authority. Actions taken by the previous
56-22 authority are validated, ratified, and confirmed.
56-23 SECTION 4. Sections 1-10, Chapter 696, Acts of the 70th
56-24 Legislature, Regular Session, 1987 (Article 601d-1, Vernon's Texas
56-25 Civil Statutes), are repealed.
56-26 SECTION 5. This Act takes effect September 1, 1995.
56-27 SECTION 6. The importance of this legislation and the
57-1 crowded condition of the calendars in both houses create an
57-2 emergency and an imperative public necessity that the
57-3 constitutional rule requiring bills to be read on three several
57-4 days in each house be suspended, and this rule is hereby suspended.