A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the powers and duties of and the continuation of the
1-3 Texas Public Finance Authority.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 4, Texas Public Finance Authority Act
1-6 (Article 601d, Vernon's Texas Civil Statutes), is amended to read
1-7 as follows:
1-8 Sec. 4. COMPOSITION OF GOVERNING BOARD. (a) The authority
1-9 is governed by a board of directors composed of six members
1-10 appointed by the governor with the advice and consent of the
1-11 senate.
1-12 (b) A person is not eligible for appointment as a member of
1-13 the board if the person or the person's spouse:
1-14 (1) is employed by or participates in the management
1-15 of a business entity or other organization receiving funds from the
1-16 authority;
1-17 (2) owns or controls, directly or indirectly, more
1-18 than a 10 percent interest in a business entity or other
1-19 organization receiving funds from the authority; or
1-20 (3) uses or receives a substantial amount of tangible
1-21 goods, services, or funds from the authority, other than
1-22 compensation or reimbursement authorized by law for board
1-23 membership, attendance, or expenses.
1-24 (c) Appointments to the board shall be made without regard
1-25 to the race, color, disability, sex, religion, age, or national
1-26 origin of the appointees.
1-27 SECTION 2. The Texas Public Finance Authority Act (Article
2-1 601d, Vernon's Texas Civil Statutes) is amended by adding Sections
2-2 5A and 5B to read as follows:
2-3 Sec. 5A. GROUNDS FOR REMOVAL. (a) It is a ground for
2-4 removal from the board if a member:
2-5 (1) violates a prohibition established by Section 8A;
2-6 (2) cannot because of illness or disability discharge
2-7 the member's duties for a substantial part of the term for which
2-8 the member is appointed; or
2-9 (3) is absent from more than half of the regularly
2-10 scheduled board meetings that the member is eligible to attend
2-11 during a calendar year unless the absence is excused by majority
2-12 vote of the board.
2-13 (b) The validity of an action of the board is not affected
2-14 by the fact that it is taken when a ground for removal of a board
2-15 member exists.
2-16 (c) If the executive director of the authority has knowledge
2-17 that a potential ground for removal exists, the executive director
2-18 shall notify the presiding officer of the board of the potential
2-19 ground. The presiding officer shall then notify the governor and
2-20 the attorney general that a potential ground for removal exists.
2-21 If the potential ground for removal involves the presiding officer,
2-22 the executive director shall notify the assistant presiding
2-23 officer, who shall notify the governor and the attorney general
2-24 that a potential ground for removal exists.
2-25 Sec. 5B. BOARD MEMBER TRAINING. (a) Before a member of the
2-26 board may assume the member's duties and before the member may be
2-27 confirmed by the senate, the member must complete at least one
3-1 course of the training program established under this section.
3-2 (b) A training program established under this section shall
3-3 provide information to the member regarding:
3-4 (1) the enabling legislation that created the
3-5 authority and the board;
3-6 (2) the programs operated by the authority;
3-7 (3) the role and functions of the authority;
3-8 (4) the rules of the authority with an emphasis on the
3-9 rules that relate to disciplinary and investigatory authority;
3-10 (5) the current budget for the authority;
3-11 (6) the results of the most recent formal audit of the
3-12 authority;
3-13 (7) the requirements of the:
3-14 (A) open meetings law, Chapter 551, Government
3-15 Code; and
3-16 (B) open records law, Chapter 552, Government
3-17 Code;
3-18 (8) the requirements of the conflict of interest laws
3-19 and other laws relating to public officials; and
3-20 (9) any applicable ethics policies adopted by the
3-21 authority or the Texas Ethics Commission.
3-22 SECTION 3. Sections 6(a) and (c), Texas Public Finance
3-23 Authority Act (Article 601d, Vernon's Texas Civil Statutes), are
3-24 amended to read as follows:
3-25 (a) The governor [biennially] shall designate a member of
3-26 the board as the presiding officer of the board to serve in that
3-27 capacity at the pleasure of the governor [appoint a chairman from
4-1 the board's members]. The board biennially shall elect an
4-2 assistant presiding officer [a vice-chairman] from its members.
4-3 (c) The board shall meet at least once in each quarter of
4-4 the calendar year and shall meet at other times at the call of the
4-5 presiding officer [chairman] or as prescribed by a rule of the
4-6 board.
4-7 SECTION 4. The Texas Public Finance Authority Act (Article
4-8 601d, Vernon's Texas Civil Statutes) is amended by adding Section
4-9 6A to read as follows:
4-10 Sec. 6A. PUBLIC TESTIMONY AT BOARD MEETINGS. The board
4-11 shall develop and implement policies that provide the public with a
4-12 reasonable opportunity to appear before the board and to speak on
4-13 any issue under the jurisdiction of the authority.
4-14 SECTION 5. The Texas Public Finance Authority Act (Article
4-15 601d, Vernon's Texas Civil Statutes) is amended by adding Sections
4-16 8A-8G to read as follows:
4-17 Sec. 8A. CONFLICT OF INTEREST. (a) An officer, employee,
4-18 or paid consultant of a Texas trade association in the field of
4-19 public finance may not be a member of the board or an employee of
4-20 the authority who is exempt from the state's position
4-21 classification plan or is compensated at or above the amount
4-22 prescribed by the General Appropriations Act for step 1, salary
4-23 group 17, of the position classification salary schedule.
4-24 (b) A person who is the spouse of an officer, manager, or
4-25 paid consultant of a Texas trade association in the field of public
4-26 finance may not be a member of the board and may not be an employee
4-27 of the authority who is exempt from the state's position
5-1 classification plan or is compensated at or above the amount
5-2 prescribed by the General Appropriations Act for step 1, salary
5-3 group 17, of the position classification salary schedule.
5-4 (c) For the purposes of this section, a Texas trade
5-5 association is a nonprofit, cooperative, and voluntarily joined
5-6 association of business or professional competitors in this state
5-7 designed to assist its members and its industry or profession in
5-8 dealing with mutual business or professional problems and in
5-9 promoting their common interest.
5-10 (d) A person may not serve as a member of the board or act
5-11 as the general counsel to the board or the authority if the person
5-12 is required to register as a lobbyist under Chapter 305, Government
5-13 Code, because of the person's activities for compensation on behalf
5-14 of a profession related to the operation of the authority.
5-15 Sec. 8B. INFORMATION ON RESPONSIBILITIES OF BOARD MEMBERS
5-16 AND EMPLOYEES. The executive director of the authority or the
5-17 executive director's designee shall provide to members of the board
5-18 and to authority employees, as often as necessary, information
5-19 regarding their qualification for office or employment under this
5-20 Act and their responsibilities under applicable laws relating to
5-21 standards of conduct for state officers or employees.
5-22 Sec. 8C. SEPARATION OF POLICYMAKING AND MANAGEMENT
5-23 RESPONSIBILITIES. The board shall develop and implement policies
5-24 that clearly separate the policymaking responsibilities of the
5-25 board and the management responsibilities of the executive director
5-26 and the staff of the authority.
5-27 Sec. 8D. EQUAL EMPLOYMENT OPPORTUNITY. (a) The executive
6-1 director of the authority or the executive director's designee
6-2 shall prepare and maintain a written policy statement to assure
6-3 implementation of a program of equal employment opportunity under
6-4 which all personnel transactions are made without regard to race,
6-5 color, disability, sex, religion, age, or national origin. The
6-6 policy statement must include:
6-7 (1) personnel policies, including policies relating to
6-8 recruitment, evaluation, selection, appointment, training, and
6-9 promotion of personnel that are in compliance with requirements of
6-10 Chapter 21, Labor Code;
6-11 (2) a comprehensive analysis of the authority
6-12 workforce that meets federal and state guidelines;
6-13 (3) procedures by which a determination can be made
6-14 about the extent of underuse in the authority workforce of all
6-15 persons for whom federal or state guidelines encourage a more
6-16 equitable balance; and
6-17 (4) reasonable methods to appropriately address those
6-18 areas of underuse.
6-19 (b) A policy statement prepared under Subsection (a) must
6-20 cover an annual period, be updated annually and reviewed by the
6-21 Texas Commission on Human Rights for compliance with Subsection
6-22 (a)(1), and be filed with the governor's office.
6-23 (c) The governor's office shall deliver a biennial report to
6-24 the legislature based on the information received under Subsection
6-25 (b). The report may be made separately or as a part of other
6-26 biennial reports made to the legislature.
6-27 Sec. 8E. CAREER LADDER; EMPLOYEE PERFORMANCE EVALUATIONS.
7-1 (a) The executive director of the authority or the executive
7-2 director's designee shall develop an intra-agency career ladder
7-3 program that addresses opportunities for mobility and advancement
7-4 for employees within the authority. The program shall require
7-5 intra-agency posting of all positions concurrently with any public
7-6 posting.
7-7 (b) The executive director of the authority or the executive
7-8 director's designee shall develop a system of annual performance
7-9 evaluations that are based on documented employee performance. All
7-10 merit pay for authority employees must be based on the system
7-11 established under this subsection.
7-12 Sec. 8F. COMPLIANCE WITH LAWS RELATING TO ACCESSIBILITY.
7-13 The authority shall comply with federal and state laws related to
7-14 program and facility accessibility.
7-15 Sec. 8G. INFORMATION ON COMPLAINTS. (a) The authority
7-16 shall keep a file about each written complaint filed with the
7-17 authority that the authority has authority to resolve. The
7-18 authority shall provide to the person filing the complaint and the
7-19 persons or entities complained about the authority's policies and
7-20 procedures pertaining to complaint investigation and resolution.
7-21 The authority, at least quarterly and until final disposition of
7-22 the complaint, shall notify the person filing the complaint and the
7-23 persons or entities complained about of the status of the complaint
7-24 unless the notice would jeopardize an undercover investigation.
7-25 (b) The authority shall keep information about each
7-26 complaint filed with the authority. The information shall include:
7-27 (1) the date the complaint is received;
8-1 (2) the name of the complainant;
8-2 (3) the subject matter of the complaint;
8-3 (4) a record of all persons contacted in relation to
8-4 the complaint;
8-5 (5) a summary of the results of the review or
8-6 investigation of the complaint; and
8-7 (6) for complaints for which the authority took no
8-8 action, an explanation of the reason the complaint was closed
8-9 without action.
8-10 SECTION 6. Section 9B, Texas Public Finance Authority Act
8-11 (Article 601d, Vernon's Texas Civil Statutes), is amended by
8-12 amending Subsection (a) and adding Subsection (c) to read as
8-13 follows:
8-14 (a) With respect to all bonds authorized to be issued by the
8-15 Texas National Guard Armory Board, Texas National Research
8-16 Laboratory Commission, Parks and Wildlife Department, the Texas
8-17 Low-Level Radioactive Waste Disposal Authority, and all
8-18 institutions of higher education authorized to issue bonds under
8-19 Chapter 55, Education Code, the authority has the exclusive
8-20 authority to act on behalf of those entities in issuing bonds on
8-21 their behalf. In connection with those issuances and with the
8-22 issuance of refunding bonds on behalf of those entities, the
8-23 authority is subject to all rights, duties, and conditions
8-24 surrounding issuance previously applicable to the issuing entity
8-25 under the statute authorizing the issuance. All references in an
8-26 authorizing statute to the entity on whose behalf the bonds are
8-27 being issued apply equally to the authority in its capacity as
9-1 issuer on behalf of the entity.
9-2 (c) Notwithstanding any other provision of this section,
9-3 with respect to all bonds authorized to be issued by Midwestern
9-4 State University, Stephen F. Austin State University, or Texas
9-5 Southern University, the authority has the exclusive authority to
9-6 act on behalf of those institutions in issuing bonds on their
9-7 behalf. In connection with those issuances and with the issuance
9-8 of refunding bonds on behalf of those institutions, the authority
9-9 is subject to all rights, duties, and conditions surrounding
9-10 issuance previously applicable to the issuing institution under the
9-11 statute authorizing the issuance. All references in an authorizing
9-12 statute to the institution on whose behalf the bonds are being
9-13 issued apply equally to the authority in its capacity as issuer on
9-14 behalf of the institution.
9-15 SECTION 7. The Texas Public Finance Authority Act (Article
9-16 601d, Vernon's Texas Civil Statutes) is amended by adding Section
9-17 9D to read as follows:
9-18 Sec. 9D. OBLIGATION ISSUANCE ORIENTATION; INFORMATION TO AND
9-19 FROM CLIENT AGENCIES. (a) The authority shall develop an
9-20 orientation to the obligation issuance process for the authority's
9-21 client agencies.
9-22 (b) The orientation must include:
9-23 (1) information explaining the obligation issuance
9-24 process in plain language; and
9-25 (2) an orientation meeting to be held before the
9-26 issuance process begins.
9-27 (c) As part of the orientation, a client agency shall
10-1 provide to the authority:
10-2 (1) detailed information concerning the project for
10-3 which obligations are to be issued;
10-4 (2) a description of the legislative authority for the
10-5 issuance of the obligations; and
10-6 (3) the names of employees of the client agency who
10-7 are designated to work with the authority in connection with the
10-8 project.
10-9 (d) The authority shall prepare information of interest to
10-10 the authority's client agencies describing the functions of the
10-11 authority and the procedures by which complaints are filed with and
10-12 resolved by the authority. The authority shall make the
10-13 information available to its client agencies.
10-14 (e) The board by rule shall establish methods by which
10-15 client agencies are notified of the name, mailing address, and
10-16 telephone number of the authority for the purpose of directing
10-17 complaints to the authority. The board may provide for that
10-18 notification on a form provided to a client agency during the
10-19 orientation.
10-20 (f) In this section, "client agency" means a state agency on
10-21 whose behalf the board may issue obligations.
10-22 SECTION 8. The Texas Public Finance Authority Act (Article
10-23 601d, Vernon's Texas Civil Statutes) is amended by adding Sections
10-24 26A and 26B to read as follows:
10-25 Sec. 26A. APPLICATION OF STATE FUNDS REFORM ACT. All money
10-26 paid to the authority under this Act is subject to Subchapter F,
10-27 Chapter 404, Government Code.
11-1 Sec. 26B. ANNUAL FINANCIAL REPORT. The board, authority, or
11-2 executive director of the authority shall prepare annually a
11-3 complete and detailed written report accounting for all funds
11-4 received and disbursed by the authority during the preceding fiscal
11-5 year. The annual report must meet the reporting requirements
11-6 applicable to financial reporting provided in the General
11-7 Appropriations Act.
11-8 SECTION 9. Section 31, Texas Public Finance Authority Act
11-9 (Article 601d, Vernon's Texas Civil Statutes), is amended to read
11-10 as follows:
11-11 Sec. 31. SUNSET PROVISION. The Texas Public Finance
11-12 Authority is subject to Chapter 325, Government Code (Texas Sunset
11-13 Act). Unless continued in existence as provided by that chapter
11-14 the authority is abolished and this article expires September 1,
11-15 2009 [1997].
11-16 SECTION 10. Section 55.13, Education Code, is amended by
11-17 adding Subsection (c) to read as follows:
11-18 (c) Notwithstanding any other provision of this section,
11-19 with respect to all bonds authorized to be issued by Midwestern
11-20 State University, Stephen F. Austin State University, or Texas
11-21 Southern University, the Texas Public Finance Authority shall
11-22 exercise the authority of a board to issue bonds on behalf of those
11-23 institutions, in the manner provided by this subchapter, including
11-24 the authority to issue refunding bonds under Section 55.19. In
11-25 connection with the issuance of bonds under this chapter, the Texas
11-26 Public Finance Authority has all the rights and duties granted or
11-27 assigned to and is subject to the same conditions as a board under
12-1 this chapter.
12-2 SECTION 11. Section 402.094(c), Health and Safety Code, is
12-3 amended to read as follows:
12-4 (c) The authority may lease property on terms and conditions
12-5 the board determines advantageous to the authority, but land that
12-6 is part of a licensed disposal site may [not] be leased only from
12-7 the Texas Public Finance Authority as provided by the Texas Public
12-8 Finance Authority Act (Article 601d, Vernon's Texas Civil
12-9 Statutes).
12-10 SECTION 12. Section 402.291, Health and Safety Code, is
12-11 amended by adding Subsection (d) to read as follows:
12-12 (d) The Texas Public Finance Authority, acting on behalf of
12-13 the Texas Low-Level Radioactive Waste Disposal Authority, shall
12-14 issue all bonds authorized under this subchapter. In connection
12-15 with the issuance of those bonds, the Texas Public Finance
12-16 Authority is subject to all rights, duties, and conditions provided
12-17 by this subchapter with respect to the issuance of bonds by the
12-18 Texas Low-Level Radioactive Waste Disposal Authority.
12-19 SECTION 13. The changes in law made by this Act in the
12-20 qualifications of, and the prohibitions applying to, members of the
12-21 board of directors of the Texas Public Finance Authority do not
12-22 affect the entitlement of a member serving on the board immediately
12-23 before September 1, 1997, to continue to carry out the functions of
12-24 the board for the remainder of the member's term. The changes in
12-25 law apply only to a member appointed on or after September 1, 1997.
12-26 This Act does not prohibit a person who is a member of the board on
12-27 September 1, 1997, from being reappointed to the board if the
13-1 person has the qualifications required for a member under the Texas
13-2 Public Finance Authority Act (Article 601d, Vernon's Texas Civil
13-3 Statutes), as amended by this Act.
13-4 SECTION 14. This Act takes effect September 1, 1997.
13-5 SECTION 15. The importance of this legislation and the
13-6 crowded condition of the calendars in both houses create an
13-7 emergency and an imperative public necessity that the
13-8 constitutional rule requiring bills to be read on three several
13-9 days in each house be suspended, and this rule is hereby suspended.