1-1 By: Telford (Senate Sponsor - Armbrister) H.B. No. 1077
1-2 (In the Senate - Received from the House April 3, 1997;
1-3 April 8, 1997, read first time and referred to Committee on State
1-4 Affairs; April 30, 1997, reported favorably, as amended, by the
1-5 following vote: Yeas 10, Nays 0; April 30, 1997, sent to printer.)
1-6 COMMITTEE AMENDMENT NO. 1 By: Armbrister
1-7 Amend H.B. No. 1077 in Section 2 of the bill by striking the
1-8 proposed Section 5B, Texas Public Finance Authority Act (Article
1-9 601d, Vernon's Texas Civil Statutes) (engrossed bill, page 3, lines
1-10 1-24), and substituting:
1-11 Sec. 5B. BOARD MEMBER TRAINING. (a) To be eligible to take
1-12 office as a member of the board, a person appointed to the board
1-13 must complete at least one course of a training program that
1-14 complies with this section.
1-15 (b) The training program must provide information to the
1-16 person regarding:
1-17 (1) the enabling legislation that created the
1-18 authority and the board;
1-19 (2) the programs operated by the authority;
1-20 (3) the role and functions of the authority;
1-21 (4) the rules of the authority with an emphasis on the
1-22 rules that relate to disciplinary and investigatory authority;
1-23 (5) the current budget for the authority;
1-24 (6) the results of the most recent formal audit of the
1-25 authority;
1-26 (7) the requirements of the:
1-27 (A) open meetings law, Chapter 551, Government
1-28 Code;
1-29 (B) open records law, Chapter 552, Government
1-30 Code; and
1-31 (C) administrative procedure law, Chapter 2001,
1-32 Government Code;
1-33 (8) the requirements of the conflict of interest laws
1-34 and other laws relating to public officials; and
1-35 (9) any applicable ethics policies adopted by the
1-36 authority or the Texas Ethics Commission.
1-37 (c) A person appointed to the board is entitled to
1-38 reimbursement for travel expenses incurred in attending the
1-39 training program, as provided by the General Appropriations Act and
1-40 as if the person were a member of the board.
1-41 A BILL TO BE ENTITLED
1-42 AN ACT
1-43 relating to the powers and duties of and the continuation of the
1-44 Texas Public Finance Authority.
1-45 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-46 SECTION 1. Section 4, Texas Public Finance Authority Act
1-47 (Article 601d, Vernon's Texas Civil Statutes), is amended to read
1-48 as follows:
1-49 Sec. 4. COMPOSITION OF GOVERNING BOARD. (a) The authority
1-50 is governed by a board of directors composed of six members
1-51 appointed by the governor with the advice and consent of the
1-52 senate.
1-53 (b) A person is not eligible for appointment as a member of
1-54 the board if the person or the person's spouse:
1-55 (1) is employed by or participates in the management
1-56 of a business entity or other organization receiving funds from the
1-57 authority;
1-58 (2) owns or controls, directly or indirectly, more
1-59 than a 10 percent interest in a business entity or other
1-60 organization receiving funds from the authority; or
1-61 (3) uses or receives a substantial amount of tangible
1-62 goods, services, or funds from the authority, other than
1-63 compensation or reimbursement authorized by law for board
1-64 membership, attendance, or expenses.
2-1 (c) Appointments to the board shall be made without regard
2-2 to the race, color, disability, sex, religion, age, or national
2-3 origin of the appointees.
2-4 SECTION 2. The Texas Public Finance Authority Act (Article
2-5 601d, Vernon's Texas Civil Statutes) is amended by adding Sections
2-6 5A and 5B to read as follows:
2-7 Sec. 5A. GROUNDS FOR REMOVAL. (a) It is a ground for
2-8 removal from the board if a member:
2-9 (1) violates a prohibition established by Section 8A;
2-10 (2) cannot because of illness or disability discharge
2-11 the member's duties for a substantial part of the term for which
2-12 the member is appointed; or
2-13 (3) is absent from more than half of the regularly
2-14 scheduled board meetings that the member is eligible to attend
2-15 during a calendar year unless the absence is excused by majority
2-16 vote of the board.
2-17 (b) The validity of an action of the board is not affected
2-18 by the fact that it is taken when a ground for removal of a board
2-19 member exists.
2-20 (c) If the executive director of the authority has knowledge
2-21 that a potential ground for removal exists, the executive director
2-22 shall notify the presiding officer of the board of the potential
2-23 ground. The presiding officer shall then notify the governor and
2-24 the attorney general that a potential ground for removal exists.
2-25 If the potential ground for removal involves the presiding officer,
2-26 the executive director shall notify the assistant presiding
2-27 officer, who shall notify the governor and the attorney general
2-28 that a potential ground for removal exists.
2-29 Sec. 5B. BOARD MEMBER TRAINING. (a) Before a member of the
2-30 board may assume the member's duties and before the member may be
2-31 confirmed by the senate, the member must complete at least one
2-32 course of the training program established under this section.
2-33 (b) A training program established under this section shall
2-34 provide information to the member regarding:
2-35 (1) the enabling legislation that created the
2-36 authority and the board;
2-37 (2) the programs operated by the authority;
2-38 (3) the role and functions of the authority;
2-39 (4) the rules of the authority with an emphasis on the
2-40 rules that relate to disciplinary and investigatory authority;
2-41 (5) the current budget for the authority;
2-42 (6) the results of the most recent formal audit of the
2-43 authority;
2-44 (7) the requirements of the:
2-45 (A) open meetings law, Chapter 551, Government
2-46 Code; and
2-47 (B) open records law, Chapter 552, Government
2-48 Code;
2-49 (8) the requirements of the conflict of interest laws
2-50 and other laws relating to public officials; and
2-51 (9) any applicable ethics policies adopted by the
2-52 authority or the Texas Ethics Commission.
2-53 SECTION 3. Sections 6(a) and (c), Texas Public Finance
2-54 Authority Act (Article 601d, Vernon's Texas Civil Statutes), are
2-55 amended to read as follows:
2-56 (a) The governor [biennially] shall designate a member of
2-57 the board as the presiding officer of the board to serve in that
2-58 capacity at the pleasure of the governor [appoint a chairman from
2-59 the board's members]. The board biennially shall elect an
2-60 assistant presiding officer [a vice-chairman] from its members.
2-61 (c) The board shall meet at least once in each quarter of
2-62 the calendar year and shall meet at other times at the call of the
2-63 presiding officer [chairman] or as prescribed by a rule of the
2-64 board.
2-65 SECTION 4. The Texas Public Finance Authority Act (Article
2-66 601d, Vernon's Texas Civil Statutes) is amended by adding Section
2-67 6A to read as follows:
2-68 Sec. 6A. PUBLIC TESTIMONY AT BOARD MEETINGS. The board
2-69 shall develop and implement policies that provide the public with a
3-1 reasonable opportunity to appear before the board and to speak on
3-2 any issue under the jurisdiction of the authority.
3-3 SECTION 5. The Texas Public Finance Authority Act (Article
3-4 601d, Vernon's Texas Civil Statutes) is amended by adding Sections
3-5 8A-8G to read as follows:
3-6 Sec. 8A. CONFLICT OF INTEREST. (a) An officer, employee,
3-7 or paid consultant of a Texas trade association in the field of
3-8 public finance may not be a member of the board or an employee of
3-9 the authority who is exempt from the state's position
3-10 classification plan or is compensated at or above the amount
3-11 prescribed by the General Appropriations Act for step 1, salary
3-12 group 17, of the position classification salary schedule.
3-13 (b) A person who is the spouse of an officer, manager, or
3-14 paid consultant of a Texas trade association in the field of public
3-15 finance may not be a member of the board and may not be an employee
3-16 of the authority who is exempt from the state's position
3-17 classification plan or is compensated at or above the amount
3-18 prescribed by the General Appropriations Act for step 1, salary
3-19 group 17, of the position classification salary schedule.
3-20 (c) For the purposes of this section, a Texas trade
3-21 association is a nonprofit, cooperative, and voluntarily joined
3-22 association of business or professional competitors in this state
3-23 designed to assist its members and its industry or profession in
3-24 dealing with mutual business or professional problems and in
3-25 promoting their common interest.
3-26 (d) A person may not serve as a member of the board or act
3-27 as the general counsel to the board or the authority if the person
3-28 is required to register as a lobbyist under Chapter 305, Government
3-29 Code, because of the person's activities for compensation on behalf
3-30 of a profession related to the operation of the authority.
3-31 Sec. 8B. INFORMATION ON RESPONSIBILITIES OF BOARD MEMBERS
3-32 AND EMPLOYEES. The executive director of the authority or the
3-33 executive director's designee shall provide to members of the board
3-34 and to authority employees, as often as necessary, information
3-35 regarding their qualification for office or employment under this
3-36 Act and their responsibilities under applicable laws relating to
3-37 standards of conduct for state officers or employees.
3-38 Sec. 8C. SEPARATION OF POLICYMAKING AND MANAGEMENT
3-39 RESPONSIBILITIES. The board shall develop and implement policies
3-40 that clearly separate the policymaking responsibilities of the
3-41 board and the management responsibilities of the executive director
3-42 and the staff of the authority.
3-43 Sec. 8D. EQUAL EMPLOYMENT OPPORTUNITY. (a) The executive
3-44 director of the authority or the executive director's designee
3-45 shall prepare and maintain a written policy statement to assure
3-46 implementation of a program of equal employment opportunity under
3-47 which all personnel transactions are made without regard to race,
3-48 color, disability, sex, religion, age, or national origin. The
3-49 policy statement must include:
3-50 (1) personnel policies, including policies relating to
3-51 recruitment, evaluation, selection, appointment, training, and
3-52 promotion of personnel that are in compliance with requirements of
3-53 Chapter 21, Labor Code;
3-54 (2) a comprehensive analysis of the authority
3-55 workforce that meets federal and state guidelines;
3-56 (3) procedures by which a determination can be made
3-57 about the extent of underuse in the authority workforce of all
3-58 persons for whom federal or state guidelines encourage a more
3-59 equitable balance; and
3-60 (4) reasonable methods to appropriately address those
3-61 areas of underuse.
3-62 (b) A policy statement prepared under Subsection (a) must
3-63 cover an annual period, be updated annually and reviewed by the
3-64 Texas Commission on Human Rights for compliance with Subsection
3-65 (a)(1), and be filed with the governor's office.
3-66 (c) The governor's office shall deliver a biennial report to
3-67 the legislature based on the information received under Subsection
3-68 (b). The report may be made separately or as a part of other
3-69 biennial reports made to the legislature.
4-1 Sec. 8E. CAREER LADDER; EMPLOYEE PERFORMANCE EVALUATIONS.
4-2 (a) The executive director of the authority or the executive
4-3 director's designee shall develop an intra-agency career ladder
4-4 program that addresses opportunities for mobility and advancement
4-5 for employees within the authority. The program shall require
4-6 intra-agency posting of all positions concurrently with any public
4-7 posting.
4-8 (b) The executive director of the authority or the executive
4-9 director's designee shall develop a system of annual performance
4-10 evaluations that are based on documented employee performance. All
4-11 merit pay for authority employees must be based on the system
4-12 established under this subsection.
4-13 Sec. 8F. COMPLIANCE WITH LAWS RELATING TO ACCESSIBILITY.
4-14 The authority shall comply with federal and state laws related to
4-15 program and facility accessibility.
4-16 Sec. 8G. INFORMATION ON COMPLAINTS. (a) The authority
4-17 shall keep a file about each written complaint filed with the
4-18 authority that the authority has authority to resolve. The
4-19 authority shall provide to the person filing the complaint and the
4-20 persons or entities complained about the authority's policies and
4-21 procedures pertaining to complaint investigation and resolution.
4-22 The authority, at least quarterly and until final disposition of
4-23 the complaint, shall notify the person filing the complaint and the
4-24 persons or entities complained about of the status of the complaint
4-25 unless the notice would jeopardize an undercover investigation.
4-26 (b) The authority shall keep information about each
4-27 complaint filed with the authority. The information shall include:
4-28 (1) the date the complaint is received;
4-29 (2) the name of the complainant;
4-30 (3) the subject matter of the complaint;
4-31 (4) a record of all persons contacted in relation to
4-32 the complaint;
4-33 (5) a summary of the results of the review or
4-34 investigation of the complaint; and
4-35 (6) for complaints for which the authority took no
4-36 action, an explanation of the reason the complaint was closed
4-37 without action.
4-38 SECTION 6. Section 9B, Texas Public Finance Authority Act
4-39 (Article 601d, Vernon's Texas Civil Statutes), is amended by
4-40 amending Subsection (a) and adding Subsection (c) to read as
4-41 follows:
4-42 (a) With respect to all bonds authorized to be issued by the
4-43 Texas National Guard Armory Board, Texas National Research
4-44 Laboratory Commission, Parks and Wildlife Department, the Texas
4-45 Low-Level Radioactive Waste Disposal Authority, and all
4-46 institutions of higher education authorized to issue bonds under
4-47 Chapter 55, Education Code, the authority has the exclusive
4-48 authority to act on behalf of those entities in issuing bonds on
4-49 their behalf. In connection with those issuances and with the
4-50 issuance of refunding bonds on behalf of those entities, the
4-51 authority is subject to all rights, duties, and conditions
4-52 surrounding issuance previously applicable to the issuing entity
4-53 under the statute authorizing the issuance. All references in an
4-54 authorizing statute to the entity on whose behalf the bonds are
4-55 being issued apply equally to the authority in its capacity as
4-56 issuer on behalf of the entity.
4-57 (c) Notwithstanding any other provision of this section,
4-58 with respect to all bonds authorized to be issued by Midwestern
4-59 State University, Stephen F. Austin State University, or Texas
4-60 Southern University, the authority has the exclusive authority to
4-61 act on behalf of those institutions in issuing bonds on their
4-62 behalf. In connection with those issuances and with the issuance
4-63 of refunding bonds on behalf of those institutions, the authority
4-64 is subject to all rights, duties, and conditions surrounding
4-65 issuance previously applicable to the issuing institution under the
4-66 statute authorizing the issuance. All references in an authorizing
4-67 statute to the institution on whose behalf the bonds are being
4-68 issued apply equally to the authority in its capacity as issuer on
4-69 behalf of the institution.
5-1 SECTION 7. The Texas Public Finance Authority Act (Article
5-2 601d, Vernon's Texas Civil Statutes) is amended by adding Section
5-3 9D to read as follows:
5-4 Sec. 9D. OBLIGATION ISSUANCE ORIENTATION; INFORMATION TO AND
5-5 FROM CLIENT AGENCIES. (a) The authority shall develop an
5-6 orientation to the obligation issuance process for the authority's
5-7 client agencies.
5-8 (b) The orientation must include:
5-9 (1) information explaining the obligation issuance
5-10 process in plain language; and
5-11 (2) an orientation meeting to be held before the
5-12 issuance process begins.
5-13 (c) As part of the orientation, a client agency shall
5-14 provide to the authority:
5-15 (1) detailed information concerning the project for
5-16 which obligations are to be issued;
5-17 (2) a description of the legislative authority for the
5-18 issuance of the obligations; and
5-19 (3) the names of employees of the client agency who
5-20 are designated to work with the authority in connection with the
5-21 project.
5-22 (d) The authority shall prepare information of interest to
5-23 the authority's client agencies describing the functions of the
5-24 authority and the procedures by which complaints are filed with and
5-25 resolved by the authority. The authority shall make the
5-26 information available to its client agencies.
5-27 (e) The board by rule shall establish methods by which
5-28 client agencies are notified of the name, mailing address, and
5-29 telephone number of the authority for the purpose of directing
5-30 complaints to the authority. The board may provide for that
5-31 notification on a form provided to a client agency during the
5-32 orientation.
5-33 (f) In this section, "client agency" means a state agency on
5-34 whose behalf the board may issue obligations.
5-35 SECTION 8. The Texas Public Finance Authority Act (Article
5-36 601d, Vernon's Texas Civil Statutes) is amended by adding Sections
5-37 26A and 26B to read as follows:
5-38 Sec. 26A. APPLICATION OF STATE FUNDS REFORM ACT. All money
5-39 paid to the authority under this Act is subject to Subchapter F,
5-40 Chapter 404, Government Code.
5-41 Sec. 26B. ANNUAL FINANCIAL REPORT. The board, authority, or
5-42 executive director of the authority shall prepare annually a
5-43 complete and detailed written report accounting for all funds
5-44 received and disbursed by the authority during the preceding fiscal
5-45 year. The annual report must meet the reporting requirements
5-46 applicable to financial reporting provided in the General
5-47 Appropriations Act.
5-48 SECTION 9. Section 31, Texas Public Finance Authority Act
5-49 (Article 601d, Vernon's Texas Civil Statutes), is amended to read
5-50 as follows:
5-51 Sec. 31. SUNSET PROVISION. The Texas Public Finance
5-52 Authority is subject to Chapter 325, Government Code (Texas Sunset
5-53 Act). Unless continued in existence as provided by that chapter
5-54 the authority is abolished and this article expires September 1,
5-55 2009 [1997].
5-56 SECTION 10. Section 55.13, Education Code, is amended by
5-57 adding Subsection (c) to read as follows:
5-58 (c) Notwithstanding any other provision of this section,
5-59 with respect to all bonds authorized to be issued by Midwestern
5-60 State University, Stephen F. Austin State University, or Texas
5-61 Southern University, the Texas Public Finance Authority shall
5-62 exercise the authority of a board to issue bonds on behalf of those
5-63 institutions, in the manner provided by this subchapter, including
5-64 the authority to issue refunding bonds under Section 55.19. In
5-65 connection with the issuance of bonds under this chapter, the Texas
5-66 Public Finance Authority has all the rights and duties granted or
5-67 assigned to and is subject to the same conditions as a board under
5-68 this chapter.
5-69 SECTION 11. Section 402.094(c), Health and Safety Code, is
6-1 amended to read as follows:
6-2 (c) The authority may lease property on terms and conditions
6-3 the board determines advantageous to the authority, but land that
6-4 is part of a licensed disposal site may [not] be leased only from
6-5 the Texas Public Finance Authority as provided by the Texas Public
6-6 Finance Authority Act (Article 601d, Vernon's Texas Civil
6-7 Statutes).
6-8 SECTION 12. Section 402.291, Health and Safety Code, is
6-9 amended by adding Subsection (d) to read as follows:
6-10 (d) The Texas Public Finance Authority, acting on behalf of
6-11 the Texas Low-Level Radioactive Waste Disposal Authority, shall
6-12 issue all bonds authorized under this subchapter. In connection
6-13 with the issuance of those bonds, the Texas Public Finance
6-14 Authority is subject to all rights, duties, and conditions provided
6-15 by this subchapter with respect to the issuance of bonds by the
6-16 Texas Low-Level Radioactive Waste Disposal Authority.
6-17 SECTION 13. The changes in law made by this Act in the
6-18 qualifications of, and the prohibitions applying to, members of the
6-19 board of directors of the Texas Public Finance Authority do not
6-20 affect the entitlement of a member serving on the board immediately
6-21 before September 1, 1997, to continue to carry out the functions of
6-22 the board for the remainder of the member's term. The changes in
6-23 law apply only to a member appointed on or after September 1, 1997.
6-24 This Act does not prohibit a person who is a member of the board on
6-25 September 1, 1997, from being reappointed to the board if the
6-26 person has the qualifications required for a member under the Texas
6-27 Public Finance Authority Act (Article 601d, Vernon's Texas Civil
6-28 Statutes), as amended by this Act.
6-29 SECTION 14. This Act takes effect September 1, 1997.
6-30 SECTION 15. The importance of this legislation and the
6-31 crowded condition of the calendars in both houses create an
6-32 emergency and an imperative public necessity that the
6-33 constitutional rule requiring bills to be read on three several
6-34 days in each house be suspended, and this rule is hereby suspended.
6-35 * * * * *