H.R. No. 1129
                                  R E S O L U T I O N
    1-1        BE IT RESOLVED by the House of Representatives of the State
    1-2  of Texas, 74th Legislature, Regular Session, 1995, That House Rule
    1-3  13, Section 9(a), be suspended in part as provided by House Rule
    1-4  13, Section 9(f), to enable the conference committee appointed to
    1-5  resolve the differences on Senate Bill No.  1646 to consider and
    1-6  take action on the following matters:
    1-7        (1)  House Rule 13, Section 9(a)(4), is suspended to permit
    1-8  the committee to add text in Section 1.002(a), Public Facility
    1-9  Corporation Act (Article 717s, Revised Statutes), to read as
   1-10  follows:
   1-11        SECTION 1.  Section 1.002(a), Public Facility Corporation Act
   1-12  (Article 717s, Revised Statutes), is amended to read as follows:
   1-13        (a)  The purposes of this article are to authorize the
   1-14  creation and utilization of public facility corporations with the
   1-15  broadest possible powers to finance or <the acquisition of and to
   1-16  authorize sponsors to issue to or incur in favor of the
   1-17  corporations sponsor obligations issued or incurred in accordance
   1-18  with existing law,> to provide for the acquisition, construction,
   1-19  rehabilitation, renovation, repair, equipping, furnishing, and
   1-20  placement in service of public facilities <of the sponsors> in an
   1-21  orderly, planned manner and at the lowest possible borrowing costs.
   1-22        Explanation:  This change is necessary to clarify the
   1-23  authority of a public facility corporation to finance or otherwise
   1-24  provide for the provision of a public facility.
    2-1        (2)  House Rule 13, Section 9(a)(1), is suspended to permit
    2-2  the committee to amend text in Section 1.003(10), Public Facility
    2-3  Corporation Act (Article 717s, Revised Statutes), to read as
    2-4  follows:
    2-5              (10)  "Public facility" means any real, personal, or
    2-6  mixed property, or any interest in property <owned or to be owned
    2-7  by a sponsor,> devoted or to be devoted to public use, and
    2-8  authorized to be financed, refinanced, or provided by sponsor
    2-9  obligations.
   2-10        Explanation:  This change is necessary to clarify that a
   2-11  public facility does not have to be owned by a sponsor.
   2-12        (3)  House Rule 13, Section 9(a)(1), is suspended to permit
   2-13  the committee to amend text in Sections 2.011(a) and (b), Public
   2-14  Facility Corporation Act (Article 717s, Revised Statutes), to read
   2-15  as follows:
   2-16        SECTION 2.  Sections 2.011(a) and (b), Public Facility
   2-17  Corporation Act (Article 717s, Revised Statutes), are amended to
   2-18  read as follows:
   2-19        (a)  A sponsor may create one or more nonmember, nonstock,
   2-20  nonprofit public facility corporations for the <sole> purpose of
   2-21  issuing bonds under this article to purchase sponsor obligations of
   2-22  its sponsor, to finance public facilities on behalf of its sponsor,
   2-23  or to loan the proceeds of the obligations to other entities to
   2-24  accomplish the purposes of the sponsor.
   2-25        (b)  A sponsor may use the corporation to:
   2-26              (1)  acquire, construct, rehabilitate, renovate,
   2-27  repair, equip, furnish, or place in service public facilities <of
    3-1  the sponsor>; or
    3-2              (2)  issue bonds on the sponsor's behalf to finance the
    3-3  costs of the <sponsor's> public facilities.
    3-4        Explanation:  This change is necessary to clarify the
    3-5  permissible reasons a sponsor may create a public facility
    3-6  corporation.
    3-7        (4)  House Rule 13, Section 9(a)(4), is suspended to permit
    3-8  the committee to add text in Section 4.041(a), Public Facility
    3-9  Corporation Act (Article 717s, Revised Statutes), to read as
   3-10  follows:
   3-11        SECTION 3.  Section 4.041(a), Public Facility Corporation Act
   3-12  (Article 717s, Revised Statutes), is amended to read as follows:
   3-13        (a)  Subject to Section 4.049 of this article, each
   3-14  corporation established under this article has the rights and
   3-15  powers necessary or convenient to accomplish the corporation's
   3-16  purposes, including the power to:
   3-17              (1)  acquire title to a public facility in order to
   3-18  lease, convey, or dispose of the public facility to the
   3-19  corporation's sponsor or, on direction of the sponsor and in
   3-20  furtherance of the sponsor's purposes, to any other entity;
   3-21              (2)  accept a mortgage or pledge of a public facility
   3-22  financed, refinanced, or provided by sponsor obligations purchased
   3-23  by the corporation and, as security for the payment of any
   3-24  connected bonds or credit agreements that the corporation issues or
   3-25  incurs, assign the mortgage or pledge and the revenues and receipts
   3-26  from the mortgage or pledge and from the sponsor obligations or
   3-27  grant other security;
    4-1              (3)  sell, convey, mortgage, pledge, lease, exchange,
    4-2  transfer, and otherwise dispose of all or any part of the
    4-3  corporation's property and assets, including sponsor obligations;
    4-4              (4)  make a contract, incur a liability, and borrow
    4-5  money at interest;
    4-6              (5)  lend money for its corporate purpose, invest and
    4-7  reinvest its funds, and take and hold security for the payment of
    4-8  money loaned or invested;
    4-9              (6)  sue, be sued, complain, and defend in its
   4-10  corporate name;
   4-11              (7)  appoint agents of the corporation and determine
   4-12  their duties; and
   4-13              (8)  have a corporate seal and use the seal by having
   4-14  it or a facsimile of it impressed on, affixed to, or reproduced on
   4-15  an instrument required or authorized to be executed by the
   4-16  corporation's proper officers.
   4-17        Explanation:  This change is necessary to clarify the
   4-18  permissible reasons a public facility corporation may acquire title
   4-19  to a public facility.
   4-20        (5)  House Rule 13, Section 9(a)(1), is suspended to permit
   4-21  the committee to amend text in Sections 4.043(a) and (e), Public
   4-22  Facility Corporation Act (Article 717s, Revised Statutes), to read
   4-23  as follows:
   4-24        SECTION 4.  Sections 4.043(a) and (e), Public Facility
   4-25  Corporation Act (Article 717s, Revised Statutes), are amended to
   4-26  read as follows:
   4-27        (a)  With the approval of its sponsor, a corporation may
    5-1  issue or incur bonds to finance, refinance, or provide one or more
    5-2  public facilities <of its sponsor>.  However, this article does not
    5-3  authorize the sponsor to issue any sponsor obligation, use a letter
    5-4  of credit, or mortgage any public facilities unless the sponsor
    5-5  otherwise is so empowered.
    5-6        (e)  The proceeds of the bonds of a corporation may be used
    5-7  <solely> to finance, refinance, or provide one or more public
    5-8  facilities, to fund reserve funds determined by the sponsor and the
    5-9  corporation to be necessary and appropriate, or to pay the <of the
   5-10  sponsor of the corporation through the purchase by the corporation
   5-11  of one or more sponsor obligations of the sponsor, the deposit of
   5-12  proceeds of the bonds to a reserve fund for the bonds, or the
   5-13  payment of> costs of issuance.  The purchase by the corporation of
   5-14  a sponsor obligation does not constitute or give rise to the
   5-15  extinguishment of the debt represented by the sponsor obligation.
   5-16  Pending any of the uses described by this subsection, the proceeds
   5-17  of the bonds may be invested or reinvested in accordance with
   5-18  Section 4.041 of this article.
   5-19        Explanation:  This change is necessary to clarify the
   5-20  permissible reasons for the issuance of bonds by a public facility
   5-21  corporation and the permissible uses of the proceeds of the bonds
   5-22  by a corporation.
   5-23        (6)  House Rule 13, Section 9(a)(4), is suspended to permit
   5-24  the committee to add text in Section 4.045(a), Public Facility
   5-25  Corporation Act (Article 717s, Revised Statutes), to read as
   5-26  follows:
   5-27        SECTION 5.  Section 4.045(a), Public Facility Corporation Act
    6-1  (Article 717s, Revised Statutes), is amended to read as follows:
    6-2        (a)  Bonds of the corporation are payable from revenues
    6-3  derived from public facilities or sponsor obligations.  Bonds
    6-4  issued under this article are not an obligation or a pledge of the
    6-5  faith and credit of the state, a sponsor, or other political
    6-6  subdivision or agency of the state.
    6-7        Explanation:  This change is necessary to clarify the
    6-8  permissible methods for the payment of bonds issued by a public
    6-9  facility corporation.