1-1 By: Marchant (Senate Sponsor - Truan) H.B. No. 1587
1-2 (In the Senate - Received from the House April 21, 1995;
1-3 April 24, 1995, read first time and referred to Committee on
1-4 Finance; May 9, 1995, reported adversely, with favorable Committee
1-5 Substitute by the following vote: Yeas 9, Nays 0; May 9, 1995,
1-6 sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 1587 By: Truan
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the powers and duties of the Texas Public Finance
1-11 Authority and to the issuance of bonds for certain state projects;
1-12 validating a prior appropriation.
1-13 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14 SECTION 1. The Texas Public Finance Authority Act (Article
1-15 601d, Vernon's Texas Civil Statutes) is amended to read as follows:
1-16 Sec. 1. SHORT TITLE. This Act may be cited as the Texas
1-17 Public Finance Authority Act.
1-18 Sec. 2. DEFINITIONS. In this Act:
1-19 (1) "Authority" means the Texas Public Finance
1-20 Authority.
1-21 (2) "Board" means the board of directors of the
1-22 authority.
1-23 (3) "Bonds" or "obligations" means bonds, notes,
1-24 certificates of participation, certificates of obligation,
1-25 commercial paper, or interests in contracts.
1-26 (4) "Building" means the physical structure used by a
1-27 state agency, public body, or other person to conduct its business
1-28 and affairs and the major equipment or other personal property that
1-29 is functionally related to the physical structure.
1-30 (5) "Commission" means the General Services
1-31 Commission.
1-32 (6) "Computer equipment" means:
1-33 (A) telecommunications devices or systems;
1-34 (B) automated information systems;
1-35 (C) computers on which information systems are
1-36 automated; or
1-37 (D) computer software.
1-38 (7) "Construction" means the erection, improvement,
1-39 repair, renovation, or remodeling of a building.
1-40 (8) "Equipment" means fixed assets, other than land or
1-41 buildings, used by a state agency, public body, or other person to
1-42 conduct its business and affairs. The term includes computer
1-43 equipment.
1-44 (9) "Proceeds" means the original proceeds of bonds
1-45 and the investment income on those proceeds.
1-46 (10) "State agency" means a board, commission,
1-47 department, office, agency, institution of higher education, or
1-48 other governmental entity in the executive, judicial, or
1-49 legislative branch of state government.
1-50 Sec. 3. PURPOSE. The purpose of this Act is to provide a
1-51 method of financing and refinancing the capital costs of various
1-52 state agencies and other public bodies as may be authorized by law.
1-53 The purpose includes the:
1-54 (1) acquisition or construction of buildings in Travis
1-55 County and the acquisition and construction of buildings in other
1-56 counties of the state as authorized by law; and
1-57 (2) financing or refinancing of the purchase or lease
1-58 of equipment by state agencies.
1-59 Sec. 4. PUBLIC FINANCE AUTHORITY. The Texas Public Finance
1-60 Authority is a public authority and body politic and corporate.
1-61 Sec. 5. COMPOSITION OF BOARD. The authority is governed by
1-62 a board of directors composed of six members appointed by the
1-63 governor with the advice and consent of the senate.
1-64 Sec. 6. TERMS. Members of the board serve staggered
1-65 six-year terms, with the terms of two members expiring on February
1-66 1 of each odd-numbered year.
1-67 Sec. 7. SUNSET PROVISION. The Texas Public Finance
1-68 Authority is subject to Chapter 325, Government Code (Texas Sunset
2-1 Act). Unless continued in existence as provided by that chapter,
2-2 the authority is abolished and this Act expires September 1, 1997.
2-3 Sec. 8. GENERAL POWERS. The board may:
2-4 (1) exercise, to the extent practicable, all powers
2-5 given to a corporation under the general laws of this state;
2-6 (2) have perpetual succession by its corporate name;
2-7 (3) sue and be sued in its corporate name;
2-8 (4) adopt a seal and use the seal as the board
2-9 considers appropriate;
2-10 (5) accept gifts and donations; and
2-11 (6) adopt rules and perform all functions reasonably
2-12 necessary for the board to administer its duties and
2-13 responsibilities prescribed by law, including this Act.
2-14 Sec. 9. SCOPE OF POWER. (a) The board's powers under this
2-15 Act are limited to the financing of the acquisition or construction
2-16 of a building, the purchase or lease of equipment, or other capital
2-17 financing authorized by this Act or another act of the legislature.
2-18 The board's powers do not affect the powers of the commission or
2-19 any other state agency.
2-20 (b) Buildings, equipment, or other projects financed by the
2-21 authority under this Act or another act of the legislature do not
2-22 become part of other property to which they may be attached or
2-23 affixed or into which they may be incorporated, regardless of
2-24 whether the other property is real or personal.
2-25 Sec. 10. OFFICERS; QUORUM; MEETINGS. (a) The governor
2-26 biennially shall appoint a chairperson from the members of the
2-27 board. The board biennially shall elect a vice chairperson from
2-28 its members.
2-29 (b) A majority of the full membership of the board
2-30 constitutes a quorum.
2-31 (c) The board shall meet at least once in each quarter of
2-32 the calendar year and shall meet at other times at the call of the
2-33 chairperson or as prescribed by a rule of the board.
2-34 Sec. 11. COMPENSATION; EXPENSES. A member of the board is
2-35 entitled to:
2-36 (1) a per diem of $50, unless another amount is
2-37 specified in the General Appropriations Act, for each day the
2-38 member performs functions as a member of the board; and
2-39 (2) reimbursement for actual and necessary expenses
2-40 the member incurs in performing functions as a member of the board.
2-41 Sec. 12. STAFF. The authority shall employ persons and
2-42 contract with consultants as necessary for the authority to perform
2-43 its functions. Employees of the authority are considered to be
2-44 state employees.
2-45 Sec. 13. ISSUANCE OF BONDS. (a) The authority may issue
2-46 and sell bonds to finance the acquisition or construction of
2-47 buildings in Travis County or at any other location specified by
2-48 law. The authority may issue bonds and distribute the proceeds of
2-49 those bonds to appropriate agencies for acquiring, constructing, or
2-50 equipping new facilities or for major repair or renovation of
2-51 existing facilities, corrections institutions, including facilities
2-52 authorized by Sections 495.001(a) and 495.021(a), Government Code,
2-53 criminal justice facilities for the Texas Department of Criminal
2-54 Justice, including youth corrections institutions, and mental
2-55 health and mental retardation institutions. The authority's power
2-56 to issue bonds includes the power to issue and sell bonds for the
2-57 financing of a package of agreements involving one or more state
2-58 agencies.
2-59 (b) Before the authority may issue and sell bonds under this
2-60 Act, the legislature must have authorized in this Act, the General
2-61 Appropriations Act, or another act the specific project for which
2-62 the bonds are to be issued and sold and must have authorized the
2-63 estimated cost of the project or the maximum amount of indebtedness
2-64 that may be incurred by the issuance and sale of bonds for the
2-65 project.
2-66 (c) After the issuance of bonds under this Act, the
2-67 authority shall certify to the commission or to the appropriate
2-68 state agency and to the comptroller that the proceeds from the
2-69 issuance of the bonds are available. The proceeds of the bonds
2-70 shall be deposited in the state treasury, at the direction of the
3-1 board, to the account of the appropriate state agency. The
3-2 proceeds shall be held in a fund separate from other funds of the
3-3 state and shall be invested by the state treasurer with the
3-4 concurrence of the board in investments authorized by law. The
3-5 proceeds shall be credited to the account of the state agency that
3-6 is responsible under a contract or agreement for making rental or
3-7 installment payments to the authority or that is otherwise the
3-8 state agency for the benefit of which the bonds were issued.
3-9 (d) The authority is an issuer for purposes of Chapter 656,
3-10 Acts of the 68th Legislature, Regular Session, 1983 (Article 717q,
3-11 Vernon's Texas Civil Statutes).
3-12 (e) Investment income of proceeds that the authority
3-13 determines is necessary to finance the acquisition, construction,
3-14 purchase, or lease of buildings, equipment, or another project and
3-15 that is not required to be rebated to the federal government or
3-16 used for debt service shall be used as determined by the authority.
3-17 Sec. 14. ISSUANCE OF BONDS FOR EQUIPMENT. (a) The
3-18 authority may also issue and sell bonds for the financing of a
3-19 lease or other agreement if the agreement relates to equipment that
3-20 a state agency in the executive or judicial branch of state
3-21 government has purchased or leased or intends to purchase or lease.
3-22 The authority's power to issue bonds under this section includes
3-23 the power to issue and sell bonds for the financing of a package of
3-24 agreements involving one or more state agencies.
3-25 (b) Bonds issued by the authority are payable under an
3-26 agreement that may be:
3-27 (1) a lease under which the authority leases equipment
3-28 from a vendor for sublease to the commission or a state agency;
3-29 (2) a purchase by the authority of equipment and the
3-30 lease of that equipment either directly to the commission for the
3-31 benefit of a state agency or directly to a state agency;
3-32 (3) a purchase by the authority of equipment and the
3-33 sale of that equipment to a state agency on an installment payment
3-34 basis; or
3-35 (4) any other similar agreement.
3-36 (c) If an agreement is between the authority and a state
3-37 agency or between a vendor and a state agency, the commission shall
3-38 perform its functions as purchasing agent for the state with the
3-39 funds obtained under this Act being used solely to finance the
3-40 agreement. The authority and the commission shall adopt a
3-41 memorandum of understanding that defines the division of
3-42 responsibility between the authority and the commission.
3-43 (d) State agencies may enter into the types of agreements
3-44 described by Subsection (b) of this section to purchase or lease
3-45 necessary equipment.
3-46 (e) If a state agency is required by law to obtain the
3-47 approval of another state agency or perform any other act before a
3-48 state agency may purchase or lease computer equipment, the agency
3-49 must obtain approval or perform the act before the agency may enter
3-50 into an agreement under this Act. The authority shall adopt rules
3-51 providing that the equipment may not be financed before the
3-52 authority receives written proof that the requirements have been
3-53 satisfied.
3-54 Sec. 15. COMMISSION OR OTHER STATE AGENCY TO ACT. The
3-55 commission or other state agency involved in acquiring or
3-56 constructing a building or equipment financed by the issuance of
3-57 bonds under this Act shall carry out its statutory authority as if
3-58 the building or equipment were financed by legislative
3-59 appropriation. The authority and either the commission or another
3-60 state agency involved in the acquisition or construction of a
3-61 building shall adopt a memorandum of understanding that describes
3-62 the division of responsibility between the authority and the
3-63 commission or agency.
3-64 Sec. 16. STATE LEASE FUND. (a) The state lease fund is a
3-65 dedicated account in the general revenue fund, and is hereby
3-66 re-created for purposes of Section 403.094, Government Code. The
3-67 fund may be used to deposit appropriations to the commission or
3-68 other state agency or directly to the authority on behalf of the
3-69 commission or the state agency for the payment of required rents,
3-70 fees, and installments to the authority to permit the authority to
4-1 pay principal and interest, if any, and redemption premium, if any,
4-2 with respect to any bonds issued by the authority. Amounts in the
4-3 fund may be used only for the payment of bonds as described in this
4-4 subsection. The interest earned on the investment income deposited
4-5 in the state lease fund shall be credited to and accounted for in
4-6 the state lease fund and used to pay debt service on bonds of the
4-7 authority.
4-8 (b) The legislature may transfer funds in the state lease
4-9 fund to the capital trust fund for other purposes as the
4-10 legislature determines after all bonds have been duly paid or
4-11 provided for.
4-12 Sec. 17. AUTHORITY TO ACT AS ISSUER. (a) With respect to
4-13 all bonds authorized to be issued by the Texas National Guard
4-14 Armory Board, Texas National Research Laboratory Commission, Parks
4-15 and Wildlife Department, and all institutions of higher education
4-16 authorized to issue bonds under Chapter 55, Education Code, the
4-17 authority has the exclusive authority to act on behalf of those
4-18 entities in issuing bonds on their behalf. In connection with
4-19 those issuances and with the issuance of refunding bonds on behalf
4-20 of those entities, the authority is subject to all rights, duties,
4-21 and conditions surrounding issuance applicable to the issuing
4-22 entity under the statute authorizing the issuance. All references
4-23 in an authorizing statute to the entity on whose behalf the bonds
4-24 are being issued apply to the authority in its capacity as issuer
4-25 on behalf of the entity.
4-26 (b) This section does not apply to The University of Texas
4-27 System, The Texas A&M University System, or a component of those
4-28 systems, to an institution of higher education authorized to issue
4-29 bonds under Section 17, Article VII, Texas Constitution, or to
4-30 bonds authorized to be issued by any of those systems, components,
4-31 or institutions.
4-32 Sec. 18. EXPENSES FOR CERTAIN COMPUTER EQUIPMENT. For
4-33 computer equipment that is the subject of a contingent
4-34 appropriation under Subchapter B, Chapter 317, Government Code, the
4-35 principal amount of bonds issued to finance the purchase of the
4-36 equipment must be sufficient to cover any payments of principal and
4-37 interest that must occur during the remainder of the biennium after
4-38 the bonds are issued.
4-39 Sec. 19. BOND REVIEW BOARD APPROVAL. (a) The authority may
4-40 not issue bonds unless the bond review board has approved the
4-41 issuance under Chapter 1078, Acts of the 70th Legislature, Regular
4-42 Session, 1987 (Article 717k-7, Vernon's Texas Civil Statutes).
4-43 (b) Bonds issued by the authority may be refunded as
4-44 determined by the authority and approved by the bond review board.
4-45 The projects authorized in Chapter 700, Acts of the 68th
4-46 Legislature, Regular Session, 1983, are ratified and confirmed.
4-47 Sec. 20. PROJECT ANALYSIS. (a) When the authority submits
4-48 its application for approval of an issue of bonds to the bond
4-49 review board, except as provided by Subsection (b) of this section,
4-50 the agency or institution that will use the project to be financed
4-51 by the bonds shall submit to the bond review board a project
4-52 analysis of the project. This subsection does not apply to the
4-53 Texas Department of Criminal Justice's minor renovation, repair, or
4-54 construction projects as defined by the department in cooperation
4-55 with the commission. The project analysis must be in the form
4-56 required for a project analysis requested from the commission under
4-57 Section 5.16, State Purchasing and General Services Act (Article
4-58 601b, Vernon's Texas Civil Statutes).
4-59 (b) Instead of the project analysis required by this
4-60 section, the Texas Department of Criminal Justice must submit to
4-61 the authority and the bond review board a master plan for
4-62 construction of corrections facilities. The plan must be in the
4-63 form, contain the information, and cover the period prescribed by
4-64 the bond review board and must be revised at least annually.
4-65 (c) The bond review board may not approve the issue of bonds
4-66 unless a project analysis is submitted as provided by this section.
4-67 Sec. 21. FORM OF BONDS. (a) The authority may issue bonds
4-68 in various series or issues.
4-69 (b) Bonds may mature serially or otherwise and bear interest
4-70 at the rate permitted by the constitution and laws of this state.
5-1 (c) In an order or resolution authorizing the issuance of
5-2 bonds, the authority may provide for the flow of funds, including
5-3 establishing and maintaining various funds.
5-4 (d) An order or resolution of the authority for the issuance
5-5 of bonds may contain other provisions and covenants as determined
5-6 by the authority. The bonds may be issued in the form,
5-7 denominations, and manner and under the terms, conditions, and
5-8 details provided by the authority in the order or resolution. The
5-9 bonds shall be signed and executed as provided in the order or
5-10 resolution. The authority may adopt and have executed any other
5-11 proceedings or instruments necessary and convenient in the issuance
5-12 of bonds.
5-13 (e) The bonds and any interest coupons issued by the
5-14 authority are investment securities under Chapter 8, Business &
5-15 Commerce Code, and may be issued registrable as to principal or as
5-16 to both principal and interest and may be made redeemable before
5-17 maturity, at the option of the authority, or may contain mandatory
5-18 redemption provisions.
5-19 Sec. 22. AUTHORIZED INVESTMENTS; SECURITY FOR PUBLIC FUNDS.
5-20 (a) Bonds issued under this Act are legal and authorized
5-21 investments for a bank, trust company, savings bank, savings and
5-22 loan association, insurance company, fiduciary, trustee, or
5-23 guardian or a sinking fund of a municipality, county, school
5-24 district, or political subdivision of the state and other public
5-25 funds of the state and its agencies, including the permanent school
5-26 fund.
5-27 (b) Bonds issued under this Act may secure deposits of
5-28 public funds of the state, a municipality, a county, a school
5-29 district, or another political corporation or subdivision of the
5-30 state. A bond may provide this security up to its value if
5-31 accompanied by all unmatured coupons.
5-32 Sec. 23. APPROVAL BY ATTORNEY GENERAL; REGISTRATION BY
5-33 COMPTROLLER. (a) The bonds issued by the authority must be
5-34 submitted to the attorney general for examination.
5-35 (b) If the attorney general finds that the bonds have been
5-36 authorized in accordance with law, the attorney general shall
5-37 approve the bonds, and the comptroller of public accounts shall
5-38 register the bonds.
5-39 (c) After the approval and registration of the bonds, the
5-40 bonds are incontestable in any court or other forum for any reason
5-41 and are valid and binding in accordance with their terms for all
5-42 purposes.
5-43 Sec. 24. REFUNDING BONDS. The authority may issue bonds to
5-44 refund all or any part of outstanding bonds issued under this Act,
5-45 including matured but unpaid interest.
5-46 Sec. 25. TAX STATUS OF BONDS. Bonds issued by the
5-47 authority, and any interest earnings on the bonds, any transaction
5-48 relating to the bonds, and profits made in the sale of the bonds,
5-49 are not subject to taxation by the state or by a city, county,
5-50 special district, or other political subdivision of the state.
5-51 Sec. 26. REVENUE BONDS. (a) An order or resolution of the
5-52 authority authorizing the issuance of revenue bonds may prohibit
5-53 the issuance of additional revenue bonds payable from the pledged
5-54 revenues, or the order or resolution may preserve the right of the
5-55 authority to issue additional revenue bonds on the condition that
5-56 the additional bonds are on a parity with or subordinate to the
5-57 lien and pledge of the revenues being used to support the revenue
5-58 bonds being issued under the order or resolution. In addition, the
5-59 authority may make covenants with respect to the revenue bonds, the
5-60 pledged revenues, and the operation and maintenance of the
5-61 buildings, equipment, or other projects financed with the proceeds
5-62 of the revenue bonds.
5-63 (b) In recognition that the cost estimates for acquisition,
5-64 construction, repair, or renovation of a project are not final at
5-65 the time the project is authorized for financing and that the bonds
5-66 may be issued to fund associated costs, including reasonably
5-67 required reserve funds, capitalized interest, administrative costs
5-68 of the authority, and issuing expenses, the principal amount of any
5-69 issuance of bonds for that purpose may be in an amount not to
5-70 exceed one and one-half the amount of the expected cost for the
6-1 project being financed. For additional costs to be included in the
6-2 principal amount, the authority must affirmatively find that the
6-3 costs are necessary and reasonable at the time the bonds are
6-4 issued.
6-5 (c) Investment income of proceeds that the authority
6-6 determines is not needed to finance the acquisition, construction,
6-7 purchase, or lease of buildings, equipment, or another project and
6-8 that is not required to be rebated to the federal government or
6-9 used for debt service shall be credited to and accounted for in
6-10 the state lease fund and used to pay debt service on bonds of the
6-11 authority.
6-12 (d) The authority may provide for the repayment of the
6-13 principal of and interest on the revenue bonds issued under this
6-14 Act from any source of funds lawfully available to the authority.
6-15 (e) The appropriate agency shall provide for the payment to
6-16 the authority under a lease agreement or other agreement adopted in
6-17 accordance with this Act an amount determined by the authority to
6-18 be sufficient to:
6-19 (1) pay the principal of and interest on the revenue
6-20 bonds;
6-21 (2) maintain any reserve fund necessary to service the
6-22 debt; and
6-23 (3) reimburse the authority for other costs and
6-24 expenses relating to a project or outstanding bonds.
6-25 (f) Each state agency for which revenue bonds have been
6-26 issued by the authority shall include in its biennial appropriation
6-27 request to the legislature an amount sufficient to pay the
6-28 principal of and interest on outstanding revenue bonds issued for
6-29 the benefit of the agency.
6-30 (g) The commission or the appropriate state agency shall
6-31 establish schedules necessary to properly charge occupying state
6-32 agencies for the expenses incurred in financing the acquisition or
6-33 construction of buildings or other projects in accordance with this
6-34 Act.
6-35 (h) Occupying state agencies shall pay to the commission,
6-36 the appropriate state agency, or directly into the state lease fund
6-37 the amount determined by the commission when the payments are due.
6-38 In lieu of the payments, the legislature may, on behalf of
6-39 occupying state agencies, directly appropriate funds to the state
6-40 lease fund.
6-41 (i) Payments received by the commission or a state agency
6-42 under this section shall be deposited to the credit of the state
6-43 lease fund.
6-44 (j) The rights of the state agency in property financed by
6-45 the authority through the issuance of revenue bonds are those of a
6-46 lessee, and a person claiming under or through the agency may not
6-47 acquire any greater rights with respect to that property.
6-48 Sec. 27. CONVEYANCE OF PROPERTY. (a) When the principal of
6-49 and interest on bonds relating to equipment or a building financed
6-50 under this Act are paid in full and the equipment or building is
6-51 free of all liens, the authority shall certify to the commission or
6-52 the appropriate state agency that rentals, payments, or
6-53 installments are no longer required to pay the principal of and
6-54 interest on the bonds.
6-55 (b) When making the certification under Subsection (a) of
6-56 this section, the authority shall, if necessary and for $1, convey
6-57 the title of the building or equipment, including any involved real
6-58 property, to the commission or the appropriate state agency.
6-59 Sec. 28. PREFERENCE IN LEASING. Buildings owned by the
6-60 authority are state-owned space for the purposes of:
6-61 (1) Section 6.04, State Purchasing and General
6-62 Services Act (Article 601b, Vernon's Texas Civil Statutes); and
6-63 (2) child-care facility sites located in state-owned
6-64 buildings under Chapter 663, Government Code, and Articles 4 and 5,
6-65 State Purchasing and General Services Act (Article 601b, Vernon's
6-66 Texas Civil Statutes).
6-67 Sec. 29. MANNER OF REPAYMENT OF REVENUE BONDS. (a) The
6-68 authority may provide for the payment of the principal of and
6-69 interest on revenue bonds issued under this Act:
6-70 (1) by pledging all or part of the rents, issues,
7-1 profits, and other revenues derived from leasing a building,
7-2 equipment, or other project to a state agency either directly or
7-3 through the commission;
7-4 (2) by pledging all or part of the revenues derived
7-5 from selling equipment or another project on an installment basis
7-6 to a state agency either directly or through the commission; or
7-7 (3) from any other source of funds lawfully available
7-8 to the authority.
7-9 (b) From funds appropriated for paying rental charges or
7-10 making installment payments on buildings, equipment, or other
7-11 projects, the commission or an occupying or using state agency
7-12 shall pay to the authority a rental or make installment payments on
7-13 the buildings, equipment, or other projects. The authority shall
7-14 determine the amount of the rental or installment payments. The
7-15 amount must be sufficient to:
7-16 (1) pay the principal of and interest on the revenue
7-17 bonds issued by the authority for the project;
7-18 (2) maintain any reserve fund for servicing the
7-19 revenue bonds; and
7-20 (3) reimburse the authority for other costs and
7-21 expenses incurred by it with respect to the revenue bonds.
7-22 (c) When the commission or state agency is required by
7-23 Subsection (b) of this section to pay a rental to the authority and
7-24 the commission or state agency depends on receiving a rental from
7-25 an occupying or using state agency to pay the authority, the
7-26 commission or state agency shall set the rental in an amount that
7-27 is sufficient to pay the rental required by the authority.
7-28 (d) All lease and installment sale contracts entered into
7-29 under this Act must be contingent on the appropriation of
7-30 sufficient funds by the legislature. If sufficient appropriated
7-31 funds are not available, the commission or a state agency fails or
7-32 refuses to pay rentals or installments, or the commission or a
7-33 state agency fails or refuses to renew a lease contract, the
7-34 authority may take the action necessary to ensure that the payment
7-35 of principal of and interest on revenue bonds are continued without
7-36 interruption. Permissible actions include the re-leasing or
7-37 subleasing of buildings or other projects to a state agency or any
7-38 other entity and the repossession and resale of equipment to a
7-39 state agency or any other entity. The authority may also access
7-40 the state agency's appropriated funds from time to time by issuing
7-41 vouchers on those funds to the comptroller to transfer funds from
7-42 accounts of the state agency to the state lease fund for payment of
7-43 principal of and interest on the revenue bonds.
7-44 (e) The authority may lease all or part of a building or
7-45 other project, the acquisition or construction of which was
7-46 financed under this Act, to any person or entity when the building
7-47 or other project cannot be leased to the commission or a state
7-48 agency. The authority may determine the terms of the lease.
7-49 (f) In addition to other sources of repayment provided by
7-50 this section, the legislature may direct, by law, that funds in the
7-51 capital trust fund be used to pay the principal of and interest on
7-52 revenue bonds issued under this Act for the acquisition and
7-53 construction of a building, equipment, or other project. The
7-54 legislature may also require the deposit into the capital trust
7-55 fund of all or part of the proceeds of a transaction concerning a
7-56 building, equipment, or other project.
7-57 Sec. 30. STATE DEBT NOT CREATED BY REVENUE BONDS. (a)
7-58 Revenue bonds issued under this Act are not debts of the state or
7-59 any state agency, political corporation, or political subdivision
7-60 of the state and are not a pledge of the faith and credit of any of
7-61 those entities. The revenue bonds are payable solely from revenue
7-62 as provided by this Act.
7-63 (b) A revenue bond must contain on its face a statement to
7-64 the effect that:
7-65 (1) neither the state nor a state agency, political
7-66 corporation, or political subdivision of the state is obligated to
7-67 pay the principal of or interest on the bond except as provided by
7-68 this Act; and
7-69 (2) neither the faith and credit nor the taxing power
7-70 of the state or any state agency, political corporation, or
8-1 political subdivision of the state is pledged to the payment of the
8-2 principal of or interest on the bond.
8-3 Sec. 31. CERTIFICATION OF RECEIPT OF PROCEEDS. On the
8-4 issuance of bonds under this Act, the authority shall certify to
8-5 the appropriate state agency and to the comptroller that proceeds
8-6 of the bonds are available.
8-7 Sec. 32. SPECIFIC PROJECTS. (a) In addition to the
8-8 buildings that the legislature has previously approved for
8-9 acquisition or construction, the buildings described by this
8-10 section are approved for financing in accordance with this Act.
8-11 (b) The following projects are approved:
8-12 Project Estimated Cost
8-13 1. Aircraft Maintenance Shop and Office $2,787,000
8-14 Facilities in Travis County
8-15 2. Cosmetology Commission Building in 1,520,000
8-16 Travis County
8-17 3. Hazardous Materials Testing Laboratory 1,350,000
8-18 for the Texas Department of
8-19 Health in Travis County
8-20 4. New Warehouse and Renovation of Existing 2,990,000
8-21 Warehouse for the State Purchasing
8-22 and General Services Commission in
8-23 Travis County
8-24 5. Purchase and Renovation by the State 10,000,000
8-25 Purchasing and General Services
8-26 Commission
8-27 of real property which is located
8-28 in, or partially or wholly within
8-29 1,000 feet of: the Capitol Complex,
8-30 Travis County, and the John H.
8-31 Winters Human Services Complex,
8-32 Travis County
8-33 6. Records and Equipment Warehouse for the 1,538,000
8-34 State Board of Insurance in Travis
8-35 County
8-36 7. State Board of Insurance Building in 59,937,000
8-37 Travis County
8-38 8. State Data Processing Disaster Recovery 3,011,000
8-39 Operations Center in Travis County
8-40 9. Purchase and Renovation of New 2,000,000
8-41 Headquarters and Warehouse for
8-42 State Purchasing and General
8-43 Services Commission in Travis County
8-44 10. Purchase and Renovation of an Office 43,500,000
8-45 Building in Travis County ____________
8-46 TOTAL $128,633,000
8-47 (c) Notwithstanding the limitations prescribed in this Act
8-48 relating to the location of buildings for which bonds may be
8-49 issued, the authority may issue bonds under this Act to finance the
8-50 renovation of West Building, G. J. Sutton State Office Complex in
8-51 Bexar County, at an estimated cost of $1,375,000; the construction
8-52 or purchase and renovation of a building or buildings by the
8-53 commission in Tarrant County, at an estimated cost of $10 million;
8-54 the construction or purchase and renovation of a building or
8-55 buildings by the commission in Harris County, at an estimated cost
8-56 of $20 million; and the purchase and renovation of a building or
8-57 buildings by the commission in McLennan County, at an estimated
8-58 cost of $5 million. For purposes of this subsection regarding
8-59 Tarrant and Harris counties, the commission shall, prior to
8-60 requesting the authority to issue bonds, prepare project analyses
8-61 for the potential construction projects and subsequent thereto
8-62 perform an alternative purchase analysis pursuant to the provisions
8-63 of Section 5.34, State Purchasing and General Services Act (Article
8-64 601b, Vernon's Texas Civil Statutes).
8-65 (d) Regarding Project 5 in Subsection (b) of this section,
8-66 the legislature finds that there is a continued need for the
8-67 acquisition of real property located in or in the immediate
8-68 vicinity of state office building complexes for the continued
8-69 operation of the government of the state in provision of service to
8-70 the people of this state; that there are periodic fluctuations in
9-1 the prices and values of real property; and that the ability of the
9-2 state to respond to rapidly changing market conditions is necessary
9-3 in order to acquire real property at substantial savings to the
9-4 taxpayers. Therefore, the commission is empowered hereby and in
9-5 accordance with Project 5 of Subsection (b) of this section to
9-6 purchase real property identified in that project number and to
9-7 make contracts necessary to carry out and effectuate the purposes
9-8 herein stated. Prior to the purchase of the property, the
9-9 commission must determine that the purchase would be in the state's
9-10 best interest.
9-11 Sec. 33. PURCHASE AND RENOVATION OF TEXAS EMPLOYMENT
9-12 COMMISSION PROPERTY. (a) The Texas Employment Commission shall
9-13 sell to the commission office buildings and parking facilities in
9-14 its possession in or near the Capitol Complex, and the commission
9-15 shall purchase and renovate the buildings and parking facilities,
9-16 at an estimated cost of $46 million. The purchase and renovation
9-17 is approved for financing in accordance with this Act and bonds may
9-18 be issued to finance the purchase and renovation in accordance with
9-19 this Act.
9-20 (b) After the office buildings have been acquired, the
9-21 commission may, from funds made available by the authority,
9-22 renovate the facilities as necessary for occupancy in accordance
9-23 with the allocation of space within the building made under
9-24 Subsection (c) of this section. In negotiating the price for the
9-25 Texas Employment Commission facilities, the commission shall
9-26 consider the cost to the Texas Employment Commission of alternative
9-27 space outside the Capitol Complex. The commission shall also
9-28 consider the price in the context of the reasonable rates that
9-29 might otherwise be paid by prospective occupying state agencies for
9-30 rent in comparable space.
9-31 (c) The space in that office building and parking facilities
9-32 is allocated to the legislature and legislative agencies for their
9-33 use. The presiding officers of each house of the legislature shall
9-34 jointly decide the allocation of the space within the buildings and
9-35 facilities.
9-36 Sec. 34. GENERAL OBLIGATION BONDS. (a) The authority may
9-37 issue up to $500 million in general obligation bonds and distribute
9-38 the proceeds of those bonds to appropriate agencies for use for
9-39 acquiring, constructing, or equipping new facilities or for major
9-40 repair or renovation of existing facilities, corrections
9-41 institutions, including youth corrections institutions, and mental
9-42 health and mental retardation institutions.
9-43 (b) The authority may issue up to $400 million in general
9-44 obligation bonds, in addition to the amount authorized by
9-45 Subsection (a) of this section, and distribute the proceeds of
9-46 those bonds to appropriate agencies for the same uses as authorized
9-47 by Subsection (a) of this section and to the Department of Public
9-48 Safety for the purchase, repair, and renovation of the Austin
9-49 Independent School District administration building adjacent to the
9-50 Department of Public Safety state headquarters, for the purpose of
9-51 expanding the department's state headquarters' central office
9-52 building.
9-53 (c) The authority may issue up to $1.055 billion in general
9-54 obligation bonds, in addition to the amounts authorized by
9-55 Subsections (a) and (b) of this section, and distribute the
9-56 proceeds of those bonds to appropriate agencies for use for
9-57 acquiring, constructing, or equipping new prisons and substance
9-58 abuse felony punishment facilities to confine criminals and youth
9-59 corrections institutions, for major repair or renovation of
9-60 existing prison facilities and youth corrections institutions, and
9-61 for the acquisition of, major repair to, or renovation of other
9-62 facilities for use as state prisons, substance abuse felony
9-63 punishment facilities, or facilities in which pilot programs
9-64 established as provided by Section 614.011, Health and Safety Code,
9-65 are conducted.
9-66 (d) The authority may issue up to $1 billion in general
9-67 obligation bonds, in addition to amounts authorized by Subsections
9-68 (a), (b), and (c) of this section, and distribute the proceeds of
9-69 those bonds to appropriate agencies for use for acquiring,
9-70 constructing, or equipping new facilities or for major repair or
10-1 renovation of existing facilities of corrections institutions,
10-2 including youth corrections institutions, and mental health and
10-3 mental retardation institutions.
10-4 (e) The authority shall make a good faith effort to use
10-5 historically underutilized businesses to assist in the issuance of
10-6 at least 30 percent of the total value of the bonds authorized by
10-7 Subsection (d) of this section. The authority shall report to the
10-8 legislature and the governor on the level of historically
10-9 underutilized business participation in the issuance of those
10-10 bonds. In this subsection, "historically underutilized business"
10-11 means a business entity formed for the purpose of making a profit
10-12 of which at least 51 percent is owned by one or more persons who
10-13 are socially disadvantaged because of their identification as
10-14 members of certain groups, including women, African Americans,
10-15 Hispanic Americans, Native Americans, and Asian Americans, who have
10-16 suffered the effects of discriminatory practices or similar
10-17 insidious circumstances over which they have no control, or in
10-18 which at least 51 percent of all classes of the shares of stock or
10-19 other equitable securities is owned by one or more persons who are
10-20 socially disadvantaged because of their identification as members
10-21 of certain groups, including women, African Americans, Hispanic
10-22 Americans, Native Americans, and Asian Americans, who have suffered
10-23 the effects of discriminatory practices or similar insidious
10-24 circumstances over which they have no control. Those persons who
10-25 own at least 51 percent of all classes of the shares of stock or
10-26 other equitable securities must have proportionate interest in the
10-27 control, operation, and management of the corporation's affairs.
10-28 (f) The proceeds of bonds may be used to refinance an
10-29 existing obligation for a purpose described by Subsections (a)-(d)
10-30 of this section. The authority may issue general obligation bonds
10-31 authorized under Subsection (a) or (b) of this section to refund
10-32 revenue bonds issued under this Act.
10-33 (g) The authority may issue up to $45 million in general
10-34 obligation bonds, in addition to the amounts authorized by
10-35 Subsections (a)-(d) of this section, and distribute the proceeds of
10-36 those bonds to appropriate agencies for use in acquiring,
10-37 constructing, or equipping new mental health or mental retardation
10-38 facilities, including community-based facilities, or for major
10-39 repair or renovation of mental health or mental retardation
10-40 facilities. The proceeds may be used to refinance an existing
10-41 obligation for a purpose described in this subsection. The
10-42 authority may issue general obligation bonds authorized under this
10-43 section to refund revenue bonds issued under this Act.
10-44 (h) The authority may issue up to $50 million in general
10-45 obligation bonds, in addition to the amounts authorized by
10-46 Subsections (a)-(d) of this section, and distribute the proceeds of
10-47 those bonds to appropriate agencies for acquiring, constructing, or
10-48 equipping new youth corrections facilities or for major repair or
10-49 renovation of existing youth corrections facilities.
10-50 (i) The bonds authorized by this section may be issued at a
10-51 rate of interest, according to the terms, and in a form determined
10-52 by the authority.
10-53 (j) The authority by rule shall establish guidelines,
10-54 criteria, and procedures for distributions of proceeds of bonds.
10-55 (k) The authority shall provide an accurate estimate of
10-56 interest and sinking fund balances available for payment of debt
10-57 service on general obligation bonds to the Legislative Budget Board
10-58 and the Governor's Office of Budget and Planning not later than
10-59 January 1 of each odd-numbered year.
10-60 Sec. 35. ISSUANCE OF OBLIGATIONS FOR ALTERNATIVE FUELS
10-61 PROJECTS. (a) The authority may, if it determines that a project
10-62 is financially viable and sufficient revenue is or will be
10-63 available, issue and sell obligations for the financing of:
10-64 (1) the conversion of state agency vehicles and other
10-65 sources of substantial energy output to alternative fuels under
10-66 Section 3.29, State Purchasing and General Services Act (Article
10-67 601b, Vernon's Texas Civil Statutes);
10-68 (2) the construction, acquisition, or maintenance by
10-69 the General Services Commission of fueling stations supplying
10-70 alternative fuels or equipment enhancing the use of engine-driven
11-1 technology to support state agency vehicles and other energy
11-2 applications that use alternative fuels;
11-3 (3) the conversion of school district motor vehicles
11-4 and other sources of substantial energy output to alternative fuels
11-5 under Section 21.174, Education Code;
11-6 (4) the construction, acquisition, or maintenance by a
11-7 school district of fueling stations supplying alternative fuels or
11-8 equipment enhancing the use of engine-driven technology to support
11-9 school district motor vehicles and other energy applications that
11-10 use alternative fuels;
11-11 (5) the conversion of local mass transit authority or
11-12 department motor vehicles and other sources of substantial energy
11-13 output to alternative fuels under Section 14, Chapter 141, Acts of
11-14 the 63rd Legislature, Regular Session, 1973 (Article 1118x,
11-15 Vernon's Texas Civil Statutes); Section 20, Chapter 683, Acts of
11-16 the 66th Legislature, 1979 (Article 1118y, Vernon's Texas Civil
11-17 Statutes); and Section 6, Article 1118z, Revised Statutes;
11-18 (6) the construction, acquisition, or maintenance of
11-19 fueling stations supplying alternative fuels or equipment enhancing
11-20 the use of engine-driven technology by a local mass transit
11-21 authority or department to support transit authority or department
11-22 vehicles and other energy applications that use alternative fuels;
11-23 and
11-24 (7) a joint venture between the private sector and a
11-25 state agency or political subdivision that is required under law to
11-26 use alternative fuels in the agency's or subdivision's vehicles or
11-27 other energy applications to:
11-28 (A) convert vehicles or other sources of
11-29 substantial energy output to alternative fuels;
11-30 (B) develop fueling stations and resources for
11-31 the supply of alternative fuels and engine-driven applications;
11-32 (C) aid in the distribution of alternative
11-33 fuels; and
11-34 (D) engage in other projects to facilitate the
11-35 use of alternative fuels.
11-36 (b) The authority may issue and sell not more than $50
11-37 million in obligations for projects under this section.
11-38 (c) The board may provide for the payment of the principal
11-39 of or interest on the bonds and obligations issued under this
11-40 section:
11-41 (1) by pledging all or a part of the revenue the state
11-42 derives from the sale of alternative fuels, alternative fuels
11-43 equipment or technology, or vehicles powered by alternative fuels;
11-44 (2) by contracting with a political subdivision or a
11-45 private entity to pledge revenue the political subdivision or
11-46 private entity derives from the sale of alternative fuels,
11-47 alternative fuels equipment or technology, or vehicles powered by
11-48 alternative fuels in an amount sufficient to ensure that the bonds
11-49 or obligations are paid;
11-50 (3) by pledging appropriated general revenues of the
11-51 state or other appropriated money in the state treasury; or
11-52 (4) from any other source of funds available to the
11-53 board.
11-54 (d) The authority shall attempt to include minority-owned
11-55 businesses in the issuance and underwriting of at least 20 percent
11-56 of the bonds and obligations issued under this section and
11-57 women-owned businesses in the issuance and underwriting of at least
11-58 10 percent of the bonds and obligations issued under this section.
11-59 (e) The alternative fuels council shall evaluate an
11-60 application under this section by an eligible entity for the
11-61 financing of the acquisition, construction, or improvement of
11-62 alternative fuels infrastructure and shall determine whether the
11-63 proposed project will increase energy or cost savings to the
11-64 applicant. A bond or other obligation may not be issued under
11-65 Subsection (a) of this section unless the alternative fuels council
11-66 certifies that the proposed project will increase energy or cost
11-67 savings to the applicant. The alternative fuels council may by
11-68 rule adopt procedures and standards for the evaluation of an
11-69 application for financing of a proposed project under this section.
11-70 (f) Costs of administration of the alternative fuels finance
12-1 program shall be considered a part of project costs and shall be
12-2 funded with bond proceeds. <Sec. 1. SHORT TITLE. This Act may be
12-3 cited as the Texas Public Finance Authority Act.>
12-4 <Sec. 1A. DEFINITIONS. In this Act:>
12-5 <(1) "Authority" means the Texas Public Finance
12-6 Authority.>
12-7 <(2) "Board" means the board of directors of the
12-8 authority.>
12-9 <(3) "Building" means the physical structure used by a
12-10 state agency to conduct official state business and the major
12-11 equipment or personal property that is functionally related to the
12-12 physical structure.>
12-13 <(4) "Commission" means the State Purchasing and
12-14 General Services Commission.>
12-15 <(5) "Computer equipment" means telecommunications
12-16 devices or systems, automated information systems, the computers on
12-17 which information systems are automated, and computer software.>
12-18 <(6) "Construction" means the erection, improvement,
12-19 repair, renovation, and remodeling of a building.>
12-20 <(7) "Equipment" means fixed assets, other than land
12-21 or buildings, used by a state agency to conduct official state
12-22 business. The term includes computer equipment.>
12-23 <(8) "Obligations" means bonds, notes, certificates of
12-24 participation, certificates of obligation, and interests in
12-25 contracts.>
12-26 <(9) "State agency" means a board, commission,
12-27 department, office, agency, institution of higher education, or
12-28 other governmental entity in the executive, judicial, or
12-29 legislative branch of state government.>
12-30 <Sec. 2. PURPOSE. The purpose of this Act is to provide a
12-31 method of financing:>
12-32 <(1) for the acquisition or construction of buildings
12-33 in Travis County, Texas; and>
12-34 <(2) for the purchase or lease of equipment by state
12-35 agencies in the executive or judicial branch of state government.>
12-36 <Sec. 3. PUBLIC FINANCE AUTHORITY. The Texas Public Finance
12-37 Authority is established as a public authority and body politic and
12-38 corporate.>
12-39 <Sec. 4. COMPOSITION OF GOVERNING BOARD. The authority is
12-40 governed by a board of directors composed of six members appointed
12-41 by the governor with the advice and consent of the senate.>
12-42 <Sec. 5. TERMS. Members of the board are appointed for
12-43 staggered terms of six years with two members' terms expiring on
12-44 February 1 of each odd-numbered year.>
12-45 <Sec. 6. OFFICERS; QUORUM; MEETINGS. (a) The governor
12-46 biennially shall appoint a chairman from the board's members. The
12-47 board biennially shall elect a vice-chairman from its members.>
12-48 <(b) A majority of the full membership of the board
12-49 constitutes a quorum.>
12-50 <(c) The board shall meet at least once in each quarter of
12-51 the calendar year and shall meet at other times at the call of the
12-52 chairman or as prescribed by a rule of the board.>
12-53 <Sec. 7. COMPENSATION AND EXPENSES. A member of the board
12-54 is entitled to:>
12-55 <(1) a per diem of $50, unless otherwise specified in
12-56 the General Appropriations Act, for each day the member performs
12-57 functions as a member of the board; and>
12-58 <(2) reimbursement for the actual and necessary
12-59 expenses that the member incurs in performing those functions.>
12-60 <Sec. 8. STAFF. The board shall employ persons and contract
12-61 with consultants as necessary for the board to perform its
12-62 functions. Employees of the board are considered to be state
12-63 employees.>
12-64 <Sec. 9. ISSUANCE OF BONDS. (a) The board may issue and
12-65 sell bonds in the name of the authority to finance projects that
12-66 consist of the acquisition or construction of buildings in Travis
12-67 County, Texas. Upon receiving a request described in Section 5.34,
12-68 State Purchasing and General Services Act (Article 601b, Vernon's
12-69 Texas Civil Statutes), the board may issue bonds in amounts up to
12-70 the previously authorized amount of bonds plus five percent of the
13-1 acquisition cost of the property, all as described in the request.>
13-2 <(b) When the acquisition or construction of a building has
13-3 been authorized in accordance with this Act or under Section 5.34
13-4 or 5.342, State Purchasing and General Services Act (Article 601b,
13-5 Vernon's Texas Civil Statutes), the board shall promptly issue and
13-6 sell bonds in the name of the authority under this Act, including
13-7 Sections 10B and 16 of this Act, to finance the acquisition or
13-8 construction of the building. When the proceeds from the bond
13-9 issuance are available, the board shall promptly deposit the
13-10 proceeds in the state treasury under Section 23 of this Act and
13-11 shall promptly make the determinations that are to be made by the
13-12 board under Section 23 of this Act.>
13-13 <(c) The commission or other state agency involved in
13-14 acquiring or constructing a building financed by the issuance of
13-15 bonds under this Act shall carry out its statutory authority as if
13-16 the building were financed by legislative appropriation. The board
13-17 and either the commission or another state agency involved in the
13-18 acquisition or construction of a building shall adopt a memorandum
13-19 of understanding that defines the division of authority between the
13-20 board and the commission or agency.>
13-21 <Sec. 9A. ISSUANCE OF OBLIGATIONS FOR EQUIPMENT. (a) The
13-22 authority may issue and sell obligations for the financing of a
13-23 lease or other agreement so long as the agreement concerns
13-24 equipment that a state agency in the executive or judicial branch
13-25 of state government has purchased or leased or intends to purchase
13-26 or lease. The authority's power to issue obligations includes the
13-27 power to issue and sell obligations for the financing of a package
13-28 of agreements involving one or more state agencies.>
13-29 <(b) The obligations issued by the authority shall be
13-30 payable pursuant to an agreement that may be in the nature of:>
13-31 <(1) a lease under which the authority leases
13-32 equipment from a vendor for sublease to the commission or a state
13-33 agency;>
13-34 <(2) a purchase by the authority of equipment and the
13-35 lease of that equipment either directly to the commission for the
13-36 benefit of a state agency or directly to a state agency;>
13-37 <(3) a purchase by the authority of equipment and the
13-38 sale of that equipment to a state agency on an installment payment
13-39 basis; or>
13-40 <(4) any similar agreement.>
13-41 <(c) If an agreement is between the authority and a state
13-42 agency or between a vendor and a state agency, the commission shall
13-43 nevertheless perform its functions as purchasing agent for the
13-44 state with the funds obtained pursuant to this section being used
13-45 solely for the purpose of financing the agreement. The board and
13-46 the commission shall adopt a memorandum of understanding that
13-47 defines the division of authority between the board and the
13-48 commission.>
13-49 <(d) State agencies are authorized to enter into the types
13-50 of contracts and agreements delineated in this section for the
13-51 purpose of purchasing or leasing necessary equipment. If a law
13-52 requires a state agency to obtain the approval of another state
13-53 agency or perform any other act before a state agency may purchase
13-54 or lease computer equipment, then those requirements must be
13-55 satisfied before an agency may enter into a contract or agreement
13-56 under this Act. The authority shall promulgate rules so that the
13-57 equipment may not be financed before the authority receives written
13-58 proof that the requirements have been satisfied.>
13-59 <Sec. 9B. AUTHORITY TO ACT AS ISSUER. (a) With respect to
13-60 all bonds authorized to be issued by the Texas National Guard
13-61 Armory Board, Texas National Research Laboratory Commission, Parks
13-62 and Wildlife Department, and all institutions of higher education
13-63 authorized to issue bonds under Chapter 55, Education Code, the
13-64 authority has the exclusive authority to act on behalf of those
13-65 entities in issuing bonds on their behalf. In connection with
13-66 those issuances and with the issuance of refunding bonds on behalf
13-67 of those entities, the authority is subject to all rights, duties,
13-68 and conditions surrounding issuance previously applicable to the
13-69 issuing entity under the statute authorizing the issuance. All
13-70 references in an authorizing statute to the entity on whose behalf
14-1 the bonds are being issued apply equally to the authority in its
14-2 capacity as issuer on behalf of the entity.>
14-3 <(b) This section does not apply to The University of Texas
14-4 System, The Texas A&M University System, or a component of those
14-5 systems, to an institution of higher education authorized to issue
14-6 bonds under Article VII, Section 17, of the Texas Constitution, or
14-7 to bonds authorized to be issued by any of those systems,
14-8 components, or institutions.>
14-9 <Sec. 9C. ISSUANCE OF OBLIGATIONS FOR ALTERNATIVE FUELS
14-10 PROJECTS. (a) The authority may, if it determines that a project
14-11 is financially viable and sufficient revenue is or will be
14-12 available, issue and sell obligations for the financing of:>
14-13 <(1) the conversion of state agency vehicles and other
14-14 sources of substantial energy output to alternative fuels under
14-15 Section 3.29, State Purchasing and General Services Act (Article
14-16 601b, Vernon's Texas Civil Statutes), and its subsequent
14-17 amendments;>
14-18 <(2) the construction, acquisition, or maintenance by
14-19 the General Services Commission of fueling stations supplying
14-20 alternative fuels or equipment enhancing the use of engine-driven
14-21 technology to support state agency vehicles and other energy
14-22 applications that use alternative fuels;>
14-23 <(3) the conversion of school district motor vehicles
14-24 and other sources of substantial energy output to alternative fuels
14-25 under Section 21.174, Education Code, and its subsequent
14-26 amendments;>
14-27 <(4) the construction, acquisition, or maintenance by
14-28 a school district of fueling stations supplying alternative fuels
14-29 or equipment enhancing the use of engine-driven technology to
14-30 support school district motor vehicles and other energy
14-31 applications that use alternative fuels;>
14-32 <(5) the conversion of local mass transit authority or
14-33 department motor vehicles and other sources of substantial energy
14-34 output to alternative fuels under Section 14, Chapter 141, Acts of
14-35 the 63rd Legislature, Regular Session, 1973 (Article 1118x,
14-36 Vernon's Texas Civil Statutes), Section 20, Chapter 683, Acts of
14-37 the 66th Legislature, 1979 (Article 1118y, Vernon's Texas Civil
14-38 Statutes), and Section 6, Article 1118z, Revised Statutes, and
14-39 their subsequent amendments;>
14-40 <(6) the construction, acquisition, or maintenance of
14-41 fueling stations supplying alternative fuels or equipment enhancing
14-42 the use of engine-driven technology by a local mass transit
14-43 authority or department to support transit authority or department
14-44 vehicles and other energy applications that use alternative fuels;
14-45 and>
14-46 <(7) a joint venture between the private sector and a
14-47 state agency or political subdivision that is required under law to
14-48 use alternative fuels in the agency's or subdivision's vehicles or
14-49 other energy applications to:>
14-50 <(A) convert vehicles or other sources of
14-51 substantial energy output to alternative fuels;>
14-52 <(B) develop fueling stations and resources for
14-53 the supply of alternative fuels and engine-driven applications;>
14-54 <(C) aid in the distribution of alternative
14-55 fuels; and>
14-56 <(D) engage in other projects to facilitate the
14-57 use of alternative fuels.>
14-58 <(b) The authority may not issue and sell more than $50
14-59 million in obligations for projects under this section.>
14-60 <(c) The board may provide for the payment of the principal
14-61 of or interest on the bonds and obligations issued under this
14-62 section:>
14-63 <(1) by pledging all or a part of the revenue the
14-64 state derives from the sale of alternative fuels, alternative fuels
14-65 equipment or technology, or vehicles powered by alternative fuels;>
14-66 <(2) by contracting with a political subdivision or a
14-67 private entity to pledge revenue the political subdivision or
14-68 private entity derives from the sale of alternative fuels,
14-69 alternative fuels equipment or technology, or vehicles powered by
14-70 alternative fuels in an amount sufficient to ensure that the bonds
15-1 or obligations are paid;>
15-2 <(3) by pledging appropriated general revenues of the
15-3 state or other appropriated money in the state treasury; or>
15-4 <(4) from any other source of funds available to the
15-5 board.>
15-6 <(d) The authority shall attempt to include minority-owned
15-7 businesses in the issuance and underwriting of at least 20 percent
15-8 of the bonds and obligations issued under this section and
15-9 women-owned businesses in the issuance and underwriting of at least
15-10 10 percent of the bonds and obligations issued under this section.>
15-11 <(e) The Alternative Fuels Council shall evaluate an
15-12 application under this section by an eligible entity for the
15-13 financing of the acquisition, construction, or improvement of
15-14 alternative fuels infrastructure and shall determine whether the
15-15 proposed project will increase energy or cost savings to the
15-16 applicant. A bond or other obligation may not be issued under
15-17 Subsection (a) of this section unless the Alternative Fuels Council
15-18 certifies that the proposed project will increase energy or cost
15-19 savings to the applicant. The Alternative Fuels Council may by
15-20 rule adopt procedures and standards for the evaluation of an
15-21 application for financing of a proposed project under this section.>
15-22 <(f) Costs of administration of the alternative fuels
15-23 finance program shall be considered a part of project costs and
15-24 shall be funded with bond proceeds.>
15-25 <Sec. 10. APPROVAL REQUIRED. (a) Before the board may
15-26 issue and sell bonds under the authority of Section 9 of this Act,
15-27 the legislature, by law, must have specifically authorized:>
15-28 <(1) the acquisition or construction of the building
15-29 for which the bonds are to be issued and sold; and>
15-30 <(2) the estimated cost of the acquisition or
15-31 construction of the building or the maximum amount of bonded
15-32 indebtedness that may be incurred by the issuance and sale of the
15-33 bonds.>
15-34 <(a) Except as permitted by Sections 24A(b)(5) and 24A(d) of
15-35 this Act or Section 5.34 or 5.342, State Purchasing and General
15-36 Services Act (Article 601b, Vernon's Texas Civil Statutes), before
15-37 the board may issue and sell bonds, the legislature by law must
15-38 have authorized in this Act, the General Appropriations Act, or
15-39 another Act the specific project for which the bonds are to be
15-40 issued and sold and must have authorized the estimated cost of the
15-41 project or the maximum amount of bonded indebtedness that may be
15-42 incurred by the issuance and sale of bonds for the project. In
15-43 recognition that the cost estimates for acquisition, construction,
15-44 repair, or renovation of a project will not be final at the time
15-45 the project is authorized for financing and that the bonds may be
15-46 issued to fund associated costs, including but not limited to
15-47 reasonably required reserve funds, capitalized interest,
15-48 administrative costs of the authority, and issuing expenses, the
15-49 principal amount of any bond issue for that purpose may be up to
15-50 1-1/2 the amount of the estimated cost for the project being
15-51 financed. For additional costs to be included in that principal
15-52 amount, the board must affirmatively find that those costs are
15-53 necessary and reasonable at the time the bonds are issued.>
15-54 <(b) This section does not apply to the extent that Section
15-55 5.34, State Purchasing and General Services Act (Article 601b,
15-56 Vernon's Texas Civil Statutes), authorizes the issuance of bonds.>
15-57 <Sec. 10A. EXPENSES INCLUDED IN PRINCIPAL AMOUNT. (a) The
15-58 principal amount of bonds may be inclusive of required reserve
15-59 funds, capitalized interest, the authority's administrative costs,
15-60 issuing expenses, and other expenses associated with the
15-61 authority's issuance and sale of those bonds.>
15-62 <(b) The principal amount of obligations may be inclusive of
15-63 required reserve funds, capitalized interest, the authority's
15-64 administrative costs, issuing expenses, and other expenses
15-65 associated with the authority's issuance and sale of those
15-66 obligations. For computer equipment that is the subject of a
15-67 contingent appropriation under Subchapter B, Chapter 317,
15-68 Government Code, the principal amount of obligations issued to
15-69 finance the purchase of that equipment shall be sufficient to cover
15-70 any payments of principal and interest that must occur during the
16-1 remainder of the biennium after the obligations are issued.>
16-2 <(c) In recognition of the expenses specified in Subsections
16-3 (a) and (b) of this section and the fact that cost estimates
16-4 frequently are not final when the legislature authorizes the
16-5 acquisition or construction of a building, the principal amount of
16-6 any bond issue or issuance of obligations may be up to 1 1/2 times
16-7 the estimated cost of the building being acquired or constructed or
16-8 the equipment being leased or purchased. However, before
16-9 additional expenses may be included in determining the principal
16-10 amount, the board must affirmatively find that those expenses are
16-11 necessary and reasonable.>
16-12 <Sec. 10A. PROJECT ANALYSIS. (a) When the authority
16-13 submits its application for approval of a bond issue to the bond
16-14 review board, the agency or institution that will use the project
16-15 to be financed by the bonds shall submit to the bond review board a
16-16 project analysis of the project. This section shall not apply to
16-17 Texas Department of Correction's minor renovation, repair, or
16-18 construction projects as defined by the department in cooperation
16-19 with the State Purchasing and General Services Commission.>
16-20 <(b) The project analysis must be in the form required for a
16-21 project analysis requested from the State Purchasing and General
16-22 Services Commission under Section 5.16, State Purchasing and
16-23 General Services Act (Article 601b, Vernon's Texas Civil Statutes).
16-24 Instead of the project analysis required by this section, the Texas
16-25 Department of Corrections may substitute the master plan required
16-26 to be submitted by Section 3, Chapter 696, Acts of the 70th
16-27 Legislature, Regular Session, 1987 (Article 601d-1, Vernon's Texas
16-28 Civil Statutes), if the master plan contains information
16-29 substantially equivalent to the information required to be in a
16-30 project analysis under Section 5.16, State Purchasing and General
16-31 Services Act (Article 601b, Vernon's Texas Civil Statutes).>
16-32 <(c) The bond review board may not approve the bond issue
16-33 unless a project analysis is submitted as provided by this section.>
16-34 <Sec. 10B. BOND REVIEW BOARD APPROVAL. (a) The authority
16-35 may not issue bonds or obligations until the Bond Review Board has
16-36 approved the issuance under the provisions of Chapter 1078, Acts of
16-37 the 70th Legislature, Regular Session, 1987 (Article 717k-7,
16-38 Vernon's Texas Civil Statutes). Bonds and obligations issued by
16-39 the authority may be refunded or refinanced as determined by the
16-40 board and approved by the Bond Review Board.>
16-41 <(b) The projects authorized in Chapter 700, Acts of the
16-42 68th Legislature, Regular Session, 1983, are ratified and
16-43 confirmed.>
16-44 <Sec. 11. SCOPE OF POWER. (a) The board's authority under
16-45 this Act is limited to the financing of the acquisition or
16-46 construction of a building or the purchase or lease of equipment.
16-47 That authority does not affect the authority of the commission or
16-48 any other state agency.>
16-49 <(b) Buildings and equipment financed by the authority
16-50 pursuant to this Act shall not become part of other property to
16-51 which they may be attached or affixed or into which they may be
16-52 incorporated, regardless of whether the other property is real or
16-53 personal.>
16-54 <Sec. 12. MANNER OF REPAYMENT OF BONDS. (a) The board may
16-55 provide for the payment of the principal of and interest on the
16-56 bonds and obligations issued under this Act:>
16-57 <(1) by pledging all or part of the rents, issues,
16-58 profits, and other revenues derived from leasing a building or
16-59 equipment to a state agency either directly or through the
16-60 commission;>
16-61 <(2) by pledging all or part of the revenues derived
16-62 from selling equipment on an installment basis to a state agency
16-63 either directly or through the commission; or>
16-64 <(3) from any other source of funds lawfully available
16-65 to the board.>
16-66 <(b) From funds appropriated for paying rental charges or
16-67 making installment payments on buildings or equipment, either the
16-68 commission or an occupying or using state agency shall pay to the
16-69 board a rental or make installment payments on the buildings or
16-70 equipment. The amount of the rental or installment payments shall
17-1 be determined by the board. However, the amount must be sufficient
17-2 to:>
17-3 <(1) pay the principal of and interest on the bonds or
17-4 obligations;>
17-5 <(2) maintain any reserve fund required for servicing
17-6 the bonds or obligations; and>
17-7 <(3) reimburse the authority for other costs and
17-8 expenses incurred by it with respect to the bonds or obligations.>
17-9 <(c) When the commission or a state agency is required by
17-10 Subsection (b) of this section to pay a rental to the authority and
17-11 the commission or state agency depends upon receiving a rental from
17-12 an occupying or using state agency in order to pay the authority,
17-13 the commission or state agency shall set the rental in an amount
17-14 that is sufficient to pay the rental required by the board.>
17-15 <(d) All lease and installment sale contracts entered into
17-16 under this Act shall be contingent upon the legislature's
17-17 appropriation of sufficient funds. If sufficient appropriated
17-18 funds are unavailable, the commission or a state agency fails or
17-19 refuses to pay rentals or installments, or the commission or a
17-20 state agency fails or refuses to renew a lease contract, the board
17-21 may take whatever action is necessary to ensure that the payment of
17-22 principal and interest on bonds or obligations are continued
17-23 without interruption. Permissible actions include, but are not
17-24 limited to, the re-leasing or subleasing of buildings or equipment
17-25 to a state agency or any other entity and the repossession and
17-26 resale of equipment to a state agency or any other entity.>
17-27 <(e) The board may lease all or part of a building, the
17-28 acquisition or construction of which was financed under this Act,
17-29 to any person or entity when the building cannot be leased to the
17-30 commission or a state agency. The board may determine the terms of
17-31 such a lease.>
17-32 <(f) In addition to other sources of repayment provided by
17-33 this section, the legislature may direct, by law, that funds in the
17-34 capital trust fund be used to pay the principal and interest on
17-35 bonds issued under this Act for the acquisition or construction of
17-36 a building. In addition, the legislature may require the deposit
17-37 into the capital trust fund of all or part of the proceeds of a
17-38 transaction concerning a building.>
17-39 <Sec. 13. STATE DEBT NOT CREATED. (a) Bonds and
17-40 obligations issued under this Act are not debts of the state or any
17-41 state agency, political corporation, or political subdivision of
17-42 the state and are not a pledge of the faith and credit of any of
17-43 them. The bonds are payable solely from revenue as provided by
17-44 this Act.>
17-45 <(b) The bonds or obligations must contain on their face a
17-46 statement to the effect that:>
17-47 <(1) neither the state nor a state agency, political
17-48 corporation, or political subdivision of the state is obligated to
17-49 pay the principal of or interest on the bonds or obligations except
17-50 as provided by this Act; and>
17-51 <(2) neither the faith and credit nor the taxing power
17-52 of the state or any state agency, political corporation, or
17-53 political subdivision of the state is pledged to the payment of the
17-54 principal of or interest on the bonds or obligations.>
17-55 <Sec. 14. FORM OF BONDS. (a) The board may issue bonds and
17-56 obligations in various series or issues.>
17-57 <(b) Bonds and obligations may mature serially or otherwise
17-58 and shall bear interest at the rate permitted by the constitution
17-59 and laws of the state.>
17-60 <(c) The bonds, obligations, and interest coupons, if any,
17-61 are investment securities under the terms of Chapter 8 of the
17-62 Business & Commerce Code and may be issued registrable as to
17-63 principal or as to both principal and interest and may be made
17-64 redeemable before maturity, at the option of the board, or may
17-65 contain a mandatory redemption provision.>
17-66 <(d) The bonds and obligations may be issued in the form,
17-67 denominations, and manner and under the terms, conditions, and
17-68 details provided by the board in the order or resolution
17-69 authorizing their issuance. The bonds and obligations shall be
17-70 signed and executed as provided in that resolution or order.>
18-1 <Sec. 15. PROVISIONS OF BONDS. (a) In an order or
18-2 resolution authorizing the issuance of bonds or obligations,
18-3 including the refunding of bonds or obligations, the board may
18-4 provide for the flow of funds, the establishment and maintenance of
18-5 the interest and sinking fund, the reserve fund, and other funds.
18-6 In addition, the board may make covenants with respect to the bonds
18-7 or obligations, the pledged revenues, and the operation and
18-8 maintenance of the buildings or equipment financed under this Act.>
18-9 <(b) An order or resolution of the board authorizing the
18-10 issuance of bonds or obligations may prohibit the issuance of
18-11 additional bonds or obligations payable from the pledged revenues.
18-12 In lieu of the preceding, an order or resolution may preserve the
18-13 right of the board to issue additional bonds or obligations on the
18-14 condition that they are on a parity with or subordinate to the lien
18-15 and pledge on the revenues being used to support the bonds or
18-16 obligations being issued pursuant to the order or resolution.>
18-17 <(c) An order or resolution of the board for the issuance of
18-18 bonds or obligations may contain other provisions and covenants as
18-19 the board may determine.>
18-20 <(d) The board may adopt and have executed any other
18-21 proceedings or instruments necessary and convenient in the issuance
18-22 of bonds or obligations.>
18-23 <Sec. 16. APPROVAL BY ATTORNEY GENERAL; REGISTRATION BY
18-24 COMPTROLLER. (a) The bonds and obligations issued by the board
18-25 must be submitted to the attorney general for examination.>
18-26 <(b) If the attorney general finds that the bonds and
18-27 obligations have been authorized in accordance with law, he shall
18-28 approve them, and they shall be registered by the comptroller of
18-29 public accounts.>
18-30 <(c) After the approval and registration of bonds and
18-31 obligations, they are incontestable in any court or other forum for
18-32 any reason and are valid and binding in accordance with their terms
18-33 for all purposes.>
18-34 <Sec. 17. REFUNDING BONDS. (a) The board may issue bonds
18-35 and obligations to refund all or any part of its outstanding bonds
18-36 and obligations issued under this Act, including matured but unpaid
18-37 interest.>
18-38 <(b) The board may refund its bonds and obligations as
18-39 provided by the general laws of the state for revenue bonds.>
18-40 <Sec. 18. BONDS ARE SECURITY FOR DEPOSITS. The bonds and
18-41 obligations are eligible to secure deposits of public funds of the
18-42 state and cities, counties, school districts, and other political
18-43 subdivisions of the state. The bonds and obligations are lawful
18-44 and sufficient security for deposits to the extent of their face
18-45 value when accompanied by all unmatured coupons, if any.>
18-46 <Sec. 19. BONDS AS INVESTMENTS. The bonds and obligations
18-47 are legal and authorized investments for:>
18-48 <(1) banks;>
18-49 <(2) savings banks;>
18-50 <(3) trust companies;>
18-51 <(4) savings and loan associations;>
18-52 <(5) insurance companies;>
18-53 <(6) fiduciaries;>
18-54 <(7) trustees;>
18-55 <(8) guardians; and>
18-56 <(9) sinking funds of cities, counties, school
18-57 districts, and other political subdivisions of the state and other
18-58 public funds of the state and its agencies, including the permanent
18-59 school fund.>
18-60 <Sec. 20. TAX STATUS OF BONDS. The bonds and obligations
18-61 issued by the board, any transaction relating to the bonds or
18-62 obligations, and profits made in the sale of the bonds and
18-63 obligations are free from taxation by the state or by any city,
18-64 county, special district, or other political subdivision of the
18-65 state.>
18-66 <Sec. 21. ><Other Powers><. The board may:>
18-67 <(1) exercise, to the extent practicable, all powers
18-68 given to a corporation under the general laws of the state;>
18-69 <(2) have perpetual succession by its corporate name;>
18-70 <(3) sue and be sued in its corporate name;>
19-1 <(4) adopt a seal and use it as the board considers
19-2 appropriate;>
19-3 <(5) accept gifts and donations; and>
19-4 <(6) adopt rules and perform all functions reasonably
19-5 necessary for the board to administer its functions prescribed by
19-6 this Act.>
19-7 <Sec. 22. ><Prior Appropriations><. The appropriations made by
19-8 Section 2, Article II, Senate Bill 1355, Acts of the 68th
19-9 Legislature, Regular Session, 1983, are validated, ratified, and
19-10 confirmed for the periods and purposes specified by that section.>
19-11 <Sec. 23. ><Bond Proceeds><. (a) After the issuance of bonds
19-12 or obligations, the board shall certify to the commission or to the
19-13 appropriate state agency and to the comptroller of public accounts
19-14 that the proceeds from the issuance are available. The board shall
19-15 deposit the proceeds in the state treasury. The proceeds shall be
19-16 credited to the account of the state agency that is responsible
19-17 under a contract or agreement for making rental or installment
19-18 payments to the authority.>
19-19 <(b) The process of acquiring or constructing a building or
19-20 purchasing or leasing equipment may begin after:>
19-21 <(1) the authority has certified that obligations in
19-22 an amount sufficient to pay the construction or purchase price of
19-23 the project have been authorized for issuance by the authority
19-24 under an interim construction finance agreement established by the
19-25 authority in accordance with Chapter 656, Acts of the 68th
19-26 Legislature, Regular Session, 1983 (Article 717q, Vernon's Texas
19-27 Civil Statutes), and its subsequent amendments; or>
19-28 <(2) the proceeds have been deposited into the state
19-29 treasury, the comptroller of public accounts has certified that the
19-30 proceeds are available, the reserve funds and capitalized interest,
19-31 as certified by the authority as reasonably required, have been
19-32 paid, and the costs of issuing the bonds or obligations have been
19-33 paid after receiving a certificate from the authority specifying
19-34 those costs.>
19-35 <(c) The state treasurer shall invest, with the concurrence
19-36 of the board, the unexpended bond proceeds and investment income
19-37 thereon in investments approved by law for the investment of state
19-38 funds.>
19-39 <(d) The investment income that the board determines is
19-40 needed to finance the acquisition, construction, purchase, or lease
19-41 of buildings or equipment and that is not required to be rebated to
19-42 the federal government shall be credited to the account of the
19-43 appropriate state agency.>
19-44 <(e) The investment income that the board determines is not
19-45 needed to finance the acquisition, construction, purchase, or lease
19-46 of buildings or equipment and that is not required to be rebated to
19-47 the federal government shall be credited to and accounted for in
19-48 the state lease fund in the state treasury. Notwithstanding the
19-49 provisions of Section 404.071, Government Code, the interest earned
19-50 on the investment income that is deposited in the state lease fund
19-51 shall be credited to and accounted for in the state lease fund.>
19-52 <Sec. 24A. ><Specific projects><. (a) In addition to the
19-53 buildings that the legislature has previously approved for
19-54 acquisition or construction, the buildings described by this
19-55 section are approved for financing in accordance with Section 9 of
19-56 this Act. This section in no way limits the authority of the board
19-57 to issue obligations to finance the purchase or lease of equipment.>
19-58 <(b) The following projects are approved:>
19-59 <Project> <Estimated Cost>
19-60 <1. Aircraft Maintenance Shop and Office>
19-61 <Facilities in Travis County> <$2,787,000>
19-62 <2. Cosmetology Commission Building in>
19-63 <Travis County> <1,520,000>
19-64 <3. Hazardous Materials Testing Laboratory>
19-65 <for the Texas Department of Health>
19-66 <in Travis County> <1,350,000>
19-67 <4. New Warehouse and Renovation of>
19-68 <Existing warehouse for the State>
19-69 <Purchasing and General Services>
19-70 <Commission in Travis County> <2,990,000>
20-1 <5. Purchase and Renovation by the State>
20-2 <Purchasing and General Services>
20-3 <Commission of real property>
20-4 <which is located in, or partially or>
20-5 <wholly within 1,000 feet of:>
20-6 <the Capitol Complex, Travis County,>
20-7 <and the John H. Winters Human>
20-8 <Services Complex, Travis County> <10,000,000>
20-9 <6. Records and Equipment Warehouse for>
20-10 <the State Board of Insurance in>
20-11 <Travis County> <1,538,000>
20-12 <7. State Board of Insurance Building>
20-13 <in Travis County> <59,937,000>
20-14 <8. State Data Processing Disaster>
20-15 <Recovery Operations Center in>
20-16 <Travis County> <3,011,000>
20-17 <9. Purchase and Renovation of New>
20-18 <Headquarters and Warehouse for State>
20-19 <Purchasing and General>
20-20 <Services Commission in Travis County> <2,000,000>
20-21 <10. Purchase and Renovation of an Office>
20-22 <Building in Travis County> <43,500,000>
20-23 <_____________>
20-24 <TOTAL> <$128,633,000>
20-25 <(c) Notwithstanding the limitations prescribed by Section 9
20-26 of this Act relating to the location of buildings for which bonds
20-27 may be issued, the authority may issue bonds under this Act to
20-28 finance the renovation of West Building, G. J. Sutton State Office
20-29 Complex in Bexar County, at an estimated cost of $1,375,000; the
20-30 construction or purchase and renovation of a building or buildings
20-31 by the commission in Tarrant County, at an estimated cost of
20-32 $10,000,000; the construction or purchase and renovation of a
20-33 building or buildings by the commission in Harris County, at an
20-34 estimated cost of $20,000,000; and the purchase and renovation of a
20-35 building or buildings by the commission in McLennan County, at an
20-36 estimated cost of $5,000,000. For purposes of this subsection
20-37 regarding Tarrant and Harris counties, the commission shall, prior
20-38 to requesting the authority to issue bonds, prepare project
20-39 analyses for the potential construction projects and subsequent
20-40 thereto perform an alternative purchase analysis pursuant to the
20-41 provisions of Section 5.34, State Purchasing and General Services
20-42 Act (Article 601b, Vernon's Texas Civil Statutes).>
20-43 <(d) Regarding Project 5 in Subsection (b) of this section,
20-44 the legislature finds that there is a continued need for the
20-45 acquisition of real property which is located in or in the
20-46 immediate vicinity of state office building complexes for the
20-47 continued operation of the government of the State of Texas in
20-48 provision of service to the people of this state; that there are
20-49 periodic fluctuations in the prices and values of real property;
20-50 and that the ability of the state to respond to rapidly changing
20-51 market conditions is necessary in order to acquire real property at
20-52 substantial savings to the taxpayer. Therefore, the State
20-53 Purchasing and General Services Commission is empowered hereby and
20-54 in accordance with Project 5 of Subsection (b) of this section to
20-55 purchase real property identified in that project number and to
20-56 make contracts necessary to carry out and effectuate the purposes
20-57 herein stated. Prior to the purchase of such property, the
20-58 commission must determine that the purchase would be in the state's
20-59 best interest.>
20-60 <Sec. 25. ><Rent and Fees><. (a) The commission or the
20-61 appropriate state agency shall establish schedules necessary to
20-62 properly charge occupying state agencies for the expenses incurred
20-63 in financing the acquisition or construction of buildings in
20-64 accordance with this Act.>
20-65 <(b) Occupying state agencies shall pay to the commission,
20-66 the appropriate state agency, or directly into the state lease fund
20-67 the amount determined by the commission when the payments are due.
20-68 In lieu of the preceding payments, the legislature may, on the
20-69 behalf of occupying state agencies, directly appropriate funds to
20-70 the state lease fund.>
21-1 <(c) Payments received by the commission or a state agency
21-2 under this section shall be deposited to the credit of the state
21-3 lease fund.>
21-4 <(d) The Child Care Development Board is not an occupying
21-5 state agency for purposes of this section. The commission or the
21-6 appropriate state agency, with the cooperation and assistance of
21-7 the Child Care Development Board, shall include in the schedules
21-8 developed under Subsection (a) of this section the method of
21-9 charging state agencies that occupy all or part of a building
21-10 governed by this section for the space in the building that is used
21-11 for a child care facility under Article 6252-3e, Revised Statutes,
21-12 and Articles 4 and 5, State Purchasing and General Services Act
21-13 (Article 601b, Vernon's Texas Civil Statutes). An occupying
21-14 agency's share shall be based at least in part on the ratio of the
21-15 number of the occupying agency's employees who work in the building
21-16 to the total number of state employees who work in the building.>
21-17 <Sec. 26. ><State Lease Fund><. (a) The state lease fund
21-18 created by Article II, Chapter 700, Acts of the 68th Legislature,
21-19 Regular Session, 1983 (Article 601c, Vernon's Texas Civil
21-20 Statutes), may be used to finance appropriations to the commission
21-21 or other state agencies or directly to the authority on behalf of
21-22 the preceding entities for the payment of required rents, fees, and
21-23 installments to the authority.>
21-24 <(b) In addition, the legislature may transfer funds on
21-25 deposit in the state lease fund to the capital trust fund for such
21-26 other purposes as the legislature may determine after all bonds and
21-27 obligations have been duly paid or provided for.>
21-28 <Sec. 27. ><Purchase and Renovation of Texas Employment
21-29 Commission Property><. (a) The Texas Employment Commission shall
21-30 sell to the commission office buildings and parking facilities in
21-31 its possession in or near the Capitol Complex, and the commission
21-32 shall purchase and renovate the buildings and parking facilities,
21-33 at an estimated cost of $46,000,000. The purchase and renovation is
21-34 approved for financing in accordance with Section 9 of this Act and
21-35 bonds may be issued to finance the purchase and renovation in
21-36 accordance with Section 10 of this Act.>
21-37 <(b) After the office buildings have been acquired, the
21-38 commission may, from funds made available by the authority,
21-39 renovate the facilities as necessary for occupancy in accordance
21-40 with the allocation of space within the building made under
21-41 Subsection (c) of this section. In negotiating the price for the
21-42 Texas Employment Commission facilities, the commission shall
21-43 consider the cost to the Texas Employment Commission of alternative
21-44 space outside the Capitol Complex. The commission shall also
21-45 consider the price in the context of the reasonable rates that
21-46 might otherwise be paid by prospective occupying state agencies for
21-47 rent in comparable space.>
21-48 <(c) The space in the office buildings and parking
21-49 facilities is allocated to the legislature and legislative agencies
21-50 for their use. The presiding officers of each house of the
21-51 legislature shall jointly decide the allocation of the space within
21-52 the buildings and facilities.>
21-53 <Sec. 28. ><Conveyance of Property><. (a) When the principal
21-54 of and interest on bonds or obligations relating to equipment or a
21-55 building financed under this Act are paid in full and the equipment
21-56 or building is free of all liens, the board shall certify to the
21-57 commission or the appropriate state agency that rentals, payments,
21-58 or installments are no longer required to pay the principal and
21-59 interest on the bonds or obligations.>
21-60 <(b) When making the certification called for in Subsection
21-61 (a), the board shall, if necessary and for the sum of $1.00, convey
21-62 the title of the building or equipment, including any involved real
21-63 property, to the commission or the appropriate state agency.>
21-64 <Sec. 29. ><Preference in Leasing><. Buildings owned by the
21-65 authority shall be considered state-owned space for the purposes
21-66 of:>
21-67 <(1) Section 6.04, State Purchasing and General
21-68 Services Act (Article 601b, Vernon's Texas Civil Statutes); and>
21-69 <(2) child care facility sites located in state-owned
21-70 buildings under Article 6252-3e, Revised Statutes, and Articles 4
22-1 and 5, State Purchasing and General Services Act (Article 601b,
22-2 Vernon's Texas Civil Statutes).>
22-3 <Sec. 30. ><Eminent Domain><. The authority has the power of
22-4 eminent domain and may exercise the power for the purposes set
22-5 forth in this Act in connection with the approved acquisition or
22-6 construction of buildings as provided in Section 10 of this Act.>
22-7 <Sec. 31. ><Sunset provision><. The Texas Public Finance
22-8 Authority is subject to Chapter 325, Government Code (Texas Sunset
22-9 Act). Unless continued in existence as provided by that chapter
22-10 the authority is abolished and this article expires September 1,
22-11 1997.>
22-12 <Sec. 32. ><Relationship to Previous Board><. The authority
22-13 created by this Act shall succeed to the ownership of all property
22-14 of and all lease and rental contracts entered into by the Texas
22-15 Public Building Authority that was created by Senate Bill 1355,
22-16 Acts of the 68th Legislature, Regular Session, 1983, and all of the
22-17 obligations contracted or assumed by the previous authority with
22-18 respect to any such property or contract shall be obligations of
22-19 the authority created under this Act. Actions taken by the
22-20 previous authority are validated, ratified, and confirmed.>
22-21 <Sec. 34. ><Repealer><. Articles I and II, and Section 1,
22-22 Article III, Chapter 700, Acts of the 68th Legislature, Regular
22-23 Session, 1983 (Article 601c, Vernon's Texas Civil Statutes), are
22-24 repealed.>
22-25 SECTION 2. The appropriations made by Section 2, Article II,
22-26 Chapter 700, Acts of the 68th Legislature, Regular Session, 1983,
22-27 are validated, ratified, and confirmed for the periods and purposes
22-28 specified by that section.
22-29 SECTION 3. The Texas Public Finance Authority shall succeed
22-30 to the ownership of all property of and all lease and rental
22-31 contracts entered into by the Texas Public Building Authority that
22-32 was created by Chapter 700, Acts of the 68th Legislature, Regular
22-33 Session, 1983, and all of the obligations contracted or assumed by
22-34 the previous authority with respect to any property or contract are
22-35 obligations of the authority. Actions taken by the previous
22-36 authority are validated, ratified, and confirmed.
22-37 SECTION 4. Sections 1-10, Chapter 696, Acts of the 70th
22-38 Legislature, Regular Session, 1987 (Article 601d-1, Vernon's Texas
22-39 Civil Statutes), are repealed.
22-40 SECTION 5. This Act takes effect September 1, 1995.
22-41 SECTION 6. The importance of this legislation and the
22-42 crowded condition of the calendars in both houses create an
22-43 emergency and an imperative public necessity that the
22-44 constitutional rule requiring bills to be read on three several
22-45 days in each house be suspended, and this rule is hereby suspended.
22-46 * * * * *