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
2-1 to the race, color, disability, sex, religion, age, or national
2-2 origin of the appointees.
2-3 SECTION 2. The Texas Public Finance Authority Act (Article
2-4 601d, Vernon's Texas Civil Statutes) is amended by adding Sections
2-5 5A and 5B to read as follows:
2-6 Sec. 5A. GROUNDS FOR REMOVAL. (a) It is a ground for
2-7 removal from the board if a member:
2-8 (1) violates a prohibition established by Section 8A;
2-9 (2) cannot because of illness or disability discharge
2-10 the member's duties for a substantial part of the term for which
2-11 the member is appointed; or
2-12 (3) is absent from more than half of the regularly
2-13 scheduled board meetings that the member is eligible to attend
2-14 during a calendar year unless the absence is excused by majority
2-15 vote of the board.
2-16 (b) The validity of an action of the board is not affected
2-17 by the fact that it is taken when a ground for removal of a board
2-18 member exists.
2-19 (c) If the executive director of the authority has knowledge
2-20 that a potential ground for removal exists, the executive director
2-21 shall notify the presiding officer of the board of the potential
2-22 ground. The presiding officer shall then notify the governor and
2-23 the attorney general that a potential ground for removal exists.
2-24 If the potential ground for removal involves the presiding officer,
2-25 the executive director shall notify the assistant presiding
2-26 officer, who shall notify the governor and the attorney general
2-27 that a potential ground for removal exists.
3-1 Sec. 5B. BOARD MEMBER TRAINING. (a) To be eligible to take
3-2 office as a member of the board, a person appointed to the board
3-3 must complete at least one course of a training program that
3-4 complies with this section.
3-5 (b) The training program must provide information to the
3-6 person regarding:
3-7 (1) the enabling legislation that created the
3-8 authority and the board;
3-9 (2) the programs operated by the authority;
3-10 (3) the role and functions of the authority;
3-11 (4) the rules of the authority with an emphasis on the
3-12 rules that relate to disciplinary and investigatory authority;
3-13 (5) the current budget for the authority;
3-14 (6) the results of the most recent formal audit of the
3-15 authority;
3-16 (7) the requirements of the:
3-17 (A) open meetings law, Chapter 551, Government
3-18 Code;
3-19 (B) open records law, Chapter 552, Government
3-20 Code; and
3-21 (C) administrative procedure law, Chapter 2001,
3-22 Government Code;
3-23 (8) the requirements of the conflict of interest laws
3-24 and other laws relating to public officials; and
3-25 (9) any applicable ethics policies adopted by the
3-26 authority or the Texas Ethics Commission.
3-27 (c) A person appointed to the board is entitled to
4-1 reimbursement for travel expenses incurred in attending the
4-2 training program, as provided by the General Appropriations Act and
4-3 as if the person were a member of the board.
4-4 SECTION 3. Sections 6(a) and (c), Texas Public Finance
4-5 Authority Act (Article 601d, Vernon's Texas Civil Statutes), are
4-6 amended to read as follows:
4-7 (a) The governor [biennially] shall designate a member of
4-8 the board as the presiding officer of the board to serve in that
4-9 capacity at the pleasure of the governor [appoint a chairman from
4-10 the board's members]. The board biennially shall elect an
4-11 assistant presiding officer [a vice-chairman] from its members.
4-12 (c) The board shall meet at least once in each quarter of
4-13 the calendar year and shall meet at other times at the call of the
4-14 presiding officer [chairman] or as prescribed by a rule of the
4-15 board.
4-16 SECTION 4. The Texas Public Finance Authority Act (Article
4-17 601d, Vernon's Texas Civil Statutes) is amended by adding Section
4-18 6A to read as follows:
4-19 Sec. 6A. PUBLIC TESTIMONY AT BOARD MEETINGS. The board
4-20 shall develop and implement policies that provide the public with a
4-21 reasonable opportunity to appear before the board and to speak on
4-22 any issue under the jurisdiction of the authority.
4-23 SECTION 5. The Texas Public Finance Authority Act (Article
4-24 601d, Vernon's Texas Civil Statutes) is amended by adding Sections
4-25 8A-8G to read as follows:
4-26 Sec. 8A. CONFLICT OF INTEREST. (a) An officer, employee,
4-27 or paid consultant of a Texas trade association in the field of
5-1 public finance may not be a member of the board or an employee of
5-2 the authority who is exempt from the state's position
5-3 classification plan or is compensated at or above the amount
5-4 prescribed by the General Appropriations Act for step 1, salary
5-5 group 17, of the position classification salary schedule.
5-6 (b) A person who is the spouse of an officer, manager, or
5-7 paid consultant of a Texas trade association in the field of public
5-8 finance may not be a member of the board and may not be an employee
5-9 of the authority who is exempt from the state's position
5-10 classification plan or is compensated at or above the amount
5-11 prescribed by the General Appropriations Act for step 1, salary
5-12 group 17, of the position classification salary schedule.
5-13 (c) For the purposes of this section, a Texas trade
5-14 association is a nonprofit, cooperative, and voluntarily joined
5-15 association of business or professional competitors in this state
5-16 designed to assist its members and its industry or profession in
5-17 dealing with mutual business or professional problems and in
5-18 promoting their common interest.
5-19 (d) A person may not serve as a member of the board or act
5-20 as the general counsel to the board or the authority if the person
5-21 is required to register as a lobbyist under Chapter 305, Government
5-22 Code, because of the person's activities for compensation on behalf
5-23 of a profession related to the operation of the authority.
5-24 Sec. 8B. INFORMATION ON RESPONSIBILITIES OF BOARD MEMBERS
5-25 AND EMPLOYEES. The executive director of the authority or the
5-26 executive director's designee shall provide to members of the board
5-27 and to authority employees, as often as necessary, information
6-1 regarding their qualification for office or employment under this
6-2 Act and their responsibilities under applicable laws relating to
6-3 standards of conduct for state officers or employees.
6-4 Sec. 8C. SEPARATION OF POLICYMAKING AND MANAGEMENT
6-5 RESPONSIBILITIES. The board shall develop and implement policies
6-6 that clearly separate the policymaking responsibilities of the
6-7 board and the management responsibilities of the executive director
6-8 and the staff of the authority.
6-9 Sec. 8D. EQUAL EMPLOYMENT OPPORTUNITY. (a) The executive
6-10 director of the authority or the executive director's designee
6-11 shall prepare and maintain a written policy statement to assure
6-12 implementation of a program of equal employment opportunity under
6-13 which all personnel transactions are made without regard to race,
6-14 color, disability, sex, religion, age, or national origin. The
6-15 policy statement must include:
6-16 (1) personnel policies, including policies relating to
6-17 recruitment, evaluation, selection, appointment, training, and
6-18 promotion of personnel that are in compliance with requirements of
6-19 Chapter 21, Labor Code;
6-20 (2) a comprehensive analysis of the authority
6-21 workforce that meets federal and state guidelines;
6-22 (3) procedures by which a determination can be made
6-23 about the extent of underuse in the authority workforce of all
6-24 persons for whom federal or state guidelines encourage a more
6-25 equitable balance; and
6-26 (4) reasonable methods to appropriately address those
6-27 areas of underuse.
7-1 (b) A policy statement prepared under Subsection (a) must
7-2 cover an annual period, be updated annually and reviewed by the
7-3 Texas Commission on Human Rights for compliance with Subsection
7-4 (a)(1), and be filed with the governor's office.
7-5 (c) The governor's office shall deliver a biennial report to
7-6 the legislature based on the information received under Subsection
7-7 (b). The report may be made separately or as a part of other
7-8 biennial reports made to the legislature.
7-9 Sec. 8E. CAREER LADDER; EMPLOYEE PERFORMANCE EVALUATIONS.
7-10 (a) The executive director of the authority or the executive
7-11 director's designee shall develop an intra-agency career ladder
7-12 program that addresses opportunities for mobility and advancement
7-13 for employees within the authority. The program shall require
7-14 intra-agency posting of all positions concurrently with any public
7-15 posting.
7-16 (b) The executive director of the authority or the executive
7-17 director's designee shall develop a system of annual performance
7-18 evaluations that are based on documented employee performance. All
7-19 merit pay for authority employees must be based on the system
7-20 established under this subsection.
7-21 Sec. 8F. COMPLIANCE WITH LAWS RELATING TO ACCESSIBILITY.
7-22 The authority shall comply with federal and state laws related to
7-23 program and facility accessibility.
7-24 Sec. 8G. INFORMATION ON COMPLAINTS. (a) The authority
7-25 shall keep a file about each written complaint filed with the
7-26 authority that the authority has authority to resolve. The
7-27 authority shall provide to the person filing the complaint and the
8-1 persons or entities complained about the authority's policies and
8-2 procedures pertaining to complaint investigation and resolution.
8-3 The authority, at least quarterly and until final disposition of
8-4 the complaint, shall notify the person filing the complaint and the
8-5 persons or entities complained about of the status of the complaint
8-6 unless the notice would jeopardize an undercover investigation.
8-7 (b) The authority shall keep information about each
8-8 complaint filed with the authority. The information shall include:
8-9 (1) the date the complaint is received;
8-10 (2) the name of the complainant;
8-11 (3) the subject matter of the complaint;
8-12 (4) a record of all persons contacted in relation to
8-13 the complaint;
8-14 (5) a summary of the results of the review or
8-15 investigation of the complaint; and
8-16 (6) for complaints for which the authority took no
8-17 action, an explanation of the reason the complaint was closed
8-18 without action.
8-19 SECTION 6. Section 9B, Texas Public Finance Authority Act
8-20 (Article 601d, Vernon's Texas Civil Statutes), is amended by
8-21 amending Subsection (a) and adding Subsection (c) to read as
8-22 follows:
8-23 (a) With respect to all bonds authorized to be issued by the
8-24 Texas National Guard Armory Board, Texas National Research
8-25 Laboratory Commission, Parks and Wildlife Department, the Texas
8-26 Low-Level Radioactive Waste Disposal Authority, and all
8-27 institutions of higher education authorized to issue bonds under
9-1 Chapter 55, Education Code, the authority has the exclusive
9-2 authority to act on behalf of those entities in issuing bonds on
9-3 their behalf. In connection with those issuances and with the
9-4 issuance of refunding bonds on behalf of those entities, the
9-5 authority is subject to all rights, duties, and conditions
9-6 surrounding issuance previously applicable to the issuing entity
9-7 under the statute authorizing the issuance. All references in an
9-8 authorizing statute to the entity on whose behalf the bonds are
9-9 being issued apply equally to the authority in its capacity as
9-10 issuer on behalf of the entity.
9-11 (c) Notwithstanding any other provision of this section,
9-12 with respect to all bonds authorized to be issued by Midwestern
9-13 State University, Stephen F. Austin State University, or Texas
9-14 Southern University, the authority has the exclusive authority to
9-15 act on behalf of those institutions in issuing bonds on their
9-16 behalf. In connection with those issuances and with the issuance
9-17 of refunding bonds on behalf of those institutions, the authority
9-18 is subject to all rights, duties, and conditions surrounding
9-19 issuance previously applicable to the issuing institution under the
9-20 statute authorizing the issuance. All references in an authorizing
9-21 statute to the institution on whose behalf the bonds are being
9-22 issued apply equally to the authority in its capacity as issuer on
9-23 behalf of the institution.
9-24 SECTION 7. The Texas Public Finance Authority Act (Article
9-25 601d, Vernon's Texas Civil Statutes) is amended by adding Section
9-26 9D to read as follows:
9-27 Sec. 9D. OBLIGATION ISSUANCE ORIENTATION; INFORMATION TO AND
10-1 FROM CLIENT AGENCIES. (a) The authority shall develop an
10-2 orientation to the obligation issuance process for the authority's
10-3 client agencies.
10-4 (b) The orientation must include:
10-5 (1) information explaining the obligation issuance
10-6 process in plain language; and
10-7 (2) an orientation meeting to be held before the
10-8 issuance process begins.
10-9 (c) As part of the orientation, a client agency shall
10-10 provide to the authority:
10-11 (1) detailed information concerning the project for
10-12 which obligations are to be issued;
10-13 (2) a description of the legislative authority for the
10-14 issuance of the obligations; and
10-15 (3) the names of employees of the client agency who
10-16 are designated to work with the authority in connection with the
10-17 project.
10-18 (d) The authority shall prepare information of interest to
10-19 the authority's client agencies describing the functions of the
10-20 authority and the procedures by which complaints are filed with and
10-21 resolved by the authority. The authority shall make the
10-22 information available to its client agencies.
10-23 (e) The board by rule shall establish methods by which
10-24 client agencies are notified of the name, mailing address, and
10-25 telephone number of the authority for the purpose of directing
10-26 complaints to the authority. The board may provide for that
10-27 notification on a form provided to a client agency during the
11-1 orientation.
11-2 (f) In this section, "client agency" means a state agency on
11-3 whose behalf the board may issue obligations.
11-4 SECTION 8. The Texas Public Finance Authority Act (Article
11-5 601d, Vernon's Texas Civil Statutes) is amended by adding Sections
11-6 26A and 26B to read as follows:
11-7 Sec. 26A. APPLICATION OF STATE FUNDS REFORM ACT. All money
11-8 paid to the authority under this Act is subject to Subchapter F,
11-9 Chapter 404, Government Code.
11-10 Sec. 26B. ANNUAL FINANCIAL REPORT. The board, authority, or
11-11 executive director of the authority shall prepare annually a
11-12 complete and detailed written report accounting for all funds
11-13 received and disbursed by the authority during the preceding fiscal
11-14 year. The annual report must meet the reporting requirements
11-15 applicable to financial reporting provided in the General
11-16 Appropriations Act.
11-17 SECTION 9. Section 31, Texas Public Finance Authority Act
11-18 (Article 601d, Vernon's Texas Civil Statutes), is amended to read
11-19 as follows:
11-20 Sec. 31. SUNSET PROVISION. The Texas Public Finance
11-21 Authority is subject to Chapter 325, Government Code (Texas Sunset
11-22 Act). Unless continued in existence as provided by that chapter
11-23 the authority is abolished and this article expires September 1,
11-24 2009 [1997].
11-25 SECTION 10. Section 55.13, Education Code, is amended by
11-26 adding Subsection (c) to read as follows:
11-27 (c) Notwithstanding any other provision of this section,
12-1 with respect to all bonds authorized to be issued by Midwestern
12-2 State University, Stephen F. Austin State University, or Texas
12-3 Southern University, the Texas Public Finance Authority shall
12-4 exercise the authority of a board to issue bonds on behalf of those
12-5 institutions, in the manner provided by this subchapter, including
12-6 the authority to issue refunding bonds under Section 55.19. In
12-7 connection with the issuance of bonds under this chapter, the Texas
12-8 Public Finance Authority has all the rights and duties granted or
12-9 assigned to and is subject to the same conditions as a board under
12-10 this chapter.
12-11 SECTION 11. Section 402.094(c), Health and Safety Code, is
12-12 amended to read as follows:
12-13 (c) The authority may lease property on terms and conditions
12-14 the board determines advantageous to the authority, but land that
12-15 is part of a licensed disposal site may [not] be leased only from
12-16 the Texas Public Finance Authority as provided by the Texas Public
12-17 Finance Authority Act (Article 601d, Vernon's Texas Civil
12-18 Statutes).
12-19 SECTION 12. Section 402.291, Health and Safety Code, is
12-20 amended by adding Subsection (d) to read as follows:
12-21 (d) The Texas Public Finance Authority, acting on behalf of
12-22 the Texas Low-Level Radioactive Waste Disposal Authority, shall
12-23 issue all bonds authorized under this subchapter. In connection
12-24 with the issuance of those bonds, the Texas Public Finance
12-25 Authority is subject to all rights, duties, and conditions provided
12-26 by this subchapter with respect to the issuance of bonds by the
12-27 Texas Low-Level Radioactive Waste Disposal Authority.
13-1 SECTION 13. The changes in law made by this Act in the
13-2 qualifications of, and the prohibitions applying to, members of the
13-3 board of directors of the Texas Public Finance Authority do not
13-4 affect the entitlement of a member serving on the board immediately
13-5 before September 1, 1997, to continue to carry out the functions of
13-6 the board for the remainder of the member's term. The changes in
13-7 law apply only to a member appointed on or after September 1, 1997.
13-8 This Act does not prohibit a person who is a member of the board on
13-9 September 1, 1997, from being reappointed to the board if the
13-10 person has the qualifications required for a member under the Texas
13-11 Public Finance Authority Act (Article 601d, Vernon's Texas Civil
13-12 Statutes), as amended by this Act.
13-13 SECTION 14. This Act takes effect September 1, 1997.
13-14 SECTION 15. The importance of this legislation and the
13-15 crowded condition of the calendars in both houses create an
13-16 emergency and an imperative public necessity that the
13-17 constitutional rule requiring bills to be read on three several
13-18 days in each house be suspended, and this rule is hereby suspended.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1077 was passed by the House on April
2, 1997, by a non-record vote; and that the House concurred in
Senate amendments to H.B. No. 1077 on May 12, 1997, by a non-record
vote.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 1077 was passed by the Senate, with
amendments, on May 8, 1997, by the following vote: Yeas 30, Nays
0.
_______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor