Suspending limitations on conference committee
jurisdiction, S.B. 1646
By ____________________ H.R. No. ____
74R14186 CAG-D
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 3. 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 5. 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 6. 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 8. 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.
6-10 ¯BEGCAPTIONÆ
6-11 Suspending limitations on conference committee jurisdiction, S.B.
6-12 1646.
6-13 ¯ENDCAPTIONÆ