AN ACT

 1-1     relating to the continuation, functions, and name of the Texas

 1-2     National Guard Armory Board.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  The heading to Chapter 435, Government Code, is

 1-5     amended to read as follows:

 1-6                CHAPTER 435.  TEXAS MILITARY FACILITIES COMMISSION

 1-7                        [NATIONAL GUARD ARMORY BOARD]

 1-8           SECTION 2.  Chapter 435, Government Code, is amended by

 1-9     amending Sections 435.001 through 435.013, 435.021 through 435.026,

1-10     435.041 through 435.043, 435.047, and 435.048 and adding Sections

1-11     435.0043, 435.0044, 435.0045, 435.0095, and 435.014 through 435.017

1-12     to read as follows:

1-13           Sec. 435.001.  DEFINITIONS.  In this subchapter:

1-14                 (1)  "Bond" includes a debenture or other evidence of

1-15     indebtedness.

1-16                 (2)  "Commission [Board]" means the Texas Military

1-17     Facilities Commission [National Guard Armory Board].

1-18           Sec. 435.002.  COMMISSION [BOARD].  The Texas Military

1-19     Facilities Commission [National Guard Armory Board] is an agency of

1-20     the state.

1-21           Sec. 435.003.  APPLICATION OF SUNSET ACT[, OPEN MEETINGS, AND

1-22     ADMINISTRATIVE PROCEDURE LAWS].  [(a)]  The Texas Military

1-23     Facilities Commission [National Guard Armory Board] is subject to

 2-1     Chapter 325 (Texas Sunset Act).  Unless continued in existence as

 2-2     provided by that chapter, the commission [board] is abolished and

 2-3     this chapter expires September 1, 2009 [1997].

 2-4           [(b)  The board is subject to Chapter 551, and Chapter 2001.]

 2-5           Sec. 435.004.  COMPOSITION.  (a)  The commission [board] is

 2-6     composed of:

 2-7                 (1)  one [the two] senior officer [officers] of the

 2-8     Texas [Army] National Guard who is appointed by the governor with

 2-9     the advice and consent of the senate from a list submitted by the

2-10     adjutant general and[,] who must be actively serving in the Texas

2-11     [Army] National Guard at the time of appointment; and

2-12                 (2)  five members of the general public who are

2-13     appointed by the governor with the advice and consent of the

2-14     senate, who must not be actively serving in the Texas National

2-15     Guard while serving as members of the commission, and two of whom

2-16     must have experience in architecture, civil engineering, or

2-17     construction management [the senior officer of the Texas Air

2-18     National Guard, who must be actively serving in the Texas Air

2-19     National Guard at the time of appointment; and]

2-20                 [(3)  three members of the general public who are

2-21     appointed by the governor with the advice and consent of the senate

2-22     and who must not be actively serving in the Texas National Guard at

2-23     the time of appointment].

2-24           (b)  Appointments to the commission shall be made [The

2-25     governor shall appoint each public member] without regard to the

 3-1     [appointee's] race, color, disability [creed], sex, religion, age,

 3-2     or national origin of the appointees.

 3-3           (c)  A person is not eligible for appointment as a public

 3-4     member of the commission if the person or the person's spouse:

 3-5                 (1)  is employed by or participates in the management

 3-6     of a business entity or other organization receiving funds from the

 3-7     commission;

 3-8                 (2)  owns or controls, directly or indirectly, more

 3-9     than a 10 percent interest in a business entity or other

3-10     organization receiving funds from the commission; or

3-11                 (3)  uses or receives a substantial amount of tangible

3-12     goods, services, or funds from the commission, other than

3-13     compensation or reimbursement authorized by law for commission

3-14     membership, attendance, or expenses.

3-15           (d)  A person may not serve as a member of the commission

3-16     [board] if the person holds another office or position of honor,

3-17     trust, or profit under the state or federal government, except as a

3-18     member of the Texas National Guard.

3-19           [(d)  A person required to register as a lobbyist under

3-20     Chapter 305 of this code may not serve as a member of the board or

3-21     act as general counsel to the board.]

3-22           Sec. 435.0043.  CONFLICTS OF INTERESTS.  (a)  An officer,

3-23     employee, or paid consultant of a Texas trade association in a

3-24     field related to the operation of the commission may not be a

3-25     member of the commission or an employee of the commission who is

 4-1     exempt from the state's position classification plan or is

 4-2     compensated at or above the amount prescribed by the General

 4-3     Appropriations Act for step 1, salary group 17, of the position

 4-4     classification salary schedule.

 4-5           (b)  A person who is the spouse  of an officer, manager, or

 4-6     paid consultant of a Texas trade association in a field related to

 4-7     the operation of the commission may not be a member of the

 4-8     commission and may not be an employee of the commission who is

 4-9     exempt from the state's position classification plan or is

4-10     compensated at or above the amount prescribed by the General

4-11     Appropriations Act for step 1, salary group 17, of the position

4-12     classification salary schedule.

4-13           (c)  For the purposes of this section, a Texas trade

4-14     association is a nonprofit, cooperative, and voluntarily joined

4-15     association in this state designed to assist its members and its

4-16     industry or profession in dealing with mutual problems and in

4-17     promoting their common interest.

4-18           (d)  A person may not serve as a member of the commission or

4-19     act as the general counsel to the commission if the person is

4-20     required to register as a lobbyist under Chapter 305 because of the

4-21     person's activities for compensation on behalf of a profession

4-22     related to the operation of the commission.

4-23           Sec. 435.0044.  PRESIDING OFFICER.  The governor shall

4-24     designate a member of the commission as the presiding officer of

4-25     the commission to serve in that capacity at the pleasure of the

 5-1     governor.

 5-2           Sec. 435.0045.  COMMISSION MEMBER TRAINING.  (a)  Before a

 5-3     member of the commission may assume the member's duties and before

 5-4     the member may be confirmed by the senate, the member must complete

 5-5     at least one course of the training program established under this

 5-6     section.

 5-7           (b)  A training program established under this section shall

 5-8     provide information to the member regarding:

 5-9                 (1)  the enabling legislation that created the

5-10     commission;

5-11                 (2)  the programs operated by the commission;

5-12                 (3)  the role and functions of the commission;

5-13                 (4)  the rules of the commission with an emphasis on

5-14     the rules that relate to disciplinary and investigatory authority;

5-15                 (5)  the current budget for the commission;

5-16                 (6)  the results of the most recent formal audit of the

5-17     commission;

5-18                 (7)  the requirements of the:

5-19                       (A)  open meetings law, Chapter 551;

5-20                       (B)  open records law, Chapter 552; and

5-21                       (C)  administrative procedure law, Chapter 2001;

5-22                 (8)  the requirements of the conflict of interest laws

5-23     and other laws relating to public officials; and

5-24                 (9)  any applicable ethics policies adopted by the

5-25     commission or the Texas Ethics Commission.

 6-1           Sec. 435.005.  VACANCY; INABILITY TO SERVE.  (a)  If a member

 6-2     of the commission [board] who is a senior [an] officer of the Texas

 6-3     National Guard retires from active service with the Texas National

 6-4     Guard, the member's position on the commission [board] becomes

 6-5     vacant.  That [(b)  A] vacancy on the commission [board] is filled

 6-6     for the unexpired term in the same manner in which the position was

 6-7     originally filled [by the person who fills the position in the

 6-8     Texas National Guard of the person whose retirement created the

 6-9     vacancy.  The governor shall certify the officer filling the

6-10     vacancy to the secretary of state, who shall notify the officer of

6-11     the officer's eligibility to fill the vacancy not later than the

6-12     10th day after the date the vacancy occurs.  Not later than the

6-13     15th day after the date the officer receives the notice, the

6-14     officer shall qualify by taking and filing with the secretary of

6-15     state the constitutional oath of office.  If the officer fails to

6-16     qualify as a member of the board under the state constitution or

6-17     this chapter, the governor shall certify to the secretary of state

6-18     the next senior officer in military rank to qualify].

6-19           (b) [(c)]  If a member of the commission [board] who is a

6-20     senior officer [member] of the Texas National Guard is unable to

6-21     serve as a commission [board] member because of induction into

6-22     federal service of the member or the member's military unit, the

6-23     governor shall fill the position in the same manner in which the

6-24     position was originally filled, and [designate the next senior

6-25     officer of the Texas National Guard as] the member's successor [in

 7-1     function] on the commission serves [board] for the period of the

 7-2     induction into federal service.  The successor shall qualify as a

 7-3     member of the commission [board].

 7-4           Sec. 435.006.  REMOVAL.  (a)  It is a ground for removal from

 7-5     the commission [board] if a member:

 7-6                 (1)  does not have at the time of appointment the

 7-7     qualifications required by Sections 435.004(a) and (c);

 7-8                 (2)  does not maintain during service on the commission

 7-9     the qualifications required by Sections 435.004(a) and (c);

7-10                 (3)  violates a prohibition established by Section

7-11     435.004(d) or 435.0043;

7-12                 (4)  cannot because of illness or disability discharge

7-13     the member's duties for a substantial part of the term for which

7-14     the member is appointed; or

7-15                 (5)  is absent from more than half of the regularly

7-16     scheduled commission meetings that the member is eligible to attend

7-17     during a calendar year [fails to attend at least one-half of the

7-18     regularly scheduled board meetings held in a calendar year,

7-19     excluding meetings held while the person was not a member].

7-20           (b)  The validity of an action of the commission is not

7-21     affected by the fact that it is taken when a ground for removal of

7-22     a commission member exists.

7-23           (c)  If the executive director has knowledge that a potential

7-24     ground for removal exists, the executive director shall notify the

7-25     presiding officer of the commission of the potential ground.  The

 8-1     presiding officer shall then notify the governor and the attorney

 8-2     general that a potential ground for removal exists.  If the

 8-3     potential ground for removal involves the presiding officer, the

 8-4     executive director shall notify the next highest officer of the

 8-5     commission, who shall notify the governor and the attorney general

 8-6     that a potential ground for removal exists.

 8-7           Sec. 435.007.  TERM AND OFFICERS.  (a)  The term of office of

 8-8     a commission [board] member is six years without regard to the

 8-9     organizational structure of the Texas National Guard.

8-10           (b)  The commission [board] annually shall elect a [chairman

8-11     and] treasurer from among its members.

8-12           Sec. 435.008.  Per Diem and Expenses.  (a)  A member is

8-13     entitled to a per diem as set by legislative appropriation for each

8-14     day that the member engages in the business of the commission

8-15     [board].

8-16           (b)  A member may not receive compensation for meals,

8-17     lodging, or other travel expenses, except that the member is

8-18     entitled to compensation for transportation expenses as provided by

8-19     the General Appropriations Act.

8-20           Sec. 435.009.  PERSONNEL.  (a)  The commission [board] may

8-21     employ an executive director [secretary] and other officials,

8-22     counsel, agents, and employees as necessary to carry out the

8-23     commission's [board's] purposes and duties, and may prescribe their

8-24     duties and fix their compensation.

8-25           (b)  The executive director [secretary] or the executive

 9-1     director's [secretary's] designee shall develop an intra-agency [a]

 9-2     career ladder program that addresses opportunities for mobility and

 9-3     advancement for employees within the commission [agency].  The

 9-4     program shall [must] require intra-agency posting of all positions

 9-5     concurrently with any public posting [that openings in all

 9-6     positions except entry level positions be posted within the board

 9-7     for at least 10 days before they are posted for the public].

 9-8           (c)  The executive director [secretary] or the executive

 9-9     director's [secretary's] designee shall develop a system of annual

9-10     performance evaluations that are based on documented employee

9-11     performance [evaluation based on measurable job tasks].  All merit

9-12     pay for commission employees must be based on the system

9-13     established under this subsection [Merit pay for board employees

9-14     shall be based on this system].

9-15           (d)  The executive director or the executive director's

9-16     designee shall provide to members of the commission and to agency

9-17     employees, as often as necessary, information regarding their

9-18     qualification for office or employment under this chapter and their

9-19     responsibilities under applicable laws relating to standards of

9-20     conduct for state officers or employees.

9-21           (e)  The commission shall develop and implement policies that

9-22     clearly separate the policymaking responsibilities of the

9-23     commission and the management responsibilities of the executive

9-24     director and the staff of the commission.

9-25           Sec. 435.0095.  EQUAL EMPLOYMENT OPPORTUNITY POLICY

 10-1    STATEMENT.  (a)  The executive director or the executive director's

 10-2    designee shall prepare and maintain a written policy statement to

 10-3    assure implementation of a program of equal employment opportunity

 10-4    under which all personnel transactions are made without regard to

 10-5    race, color, disability, sex, religion, age, or national origin.

 10-6    The policy statement must include:

 10-7                (1)  personnel policies, including policies relating to

 10-8    recruitment, evaluation, selection, appointment, training, and

 10-9    promotion of personnel that are in compliance with requirements of

10-10    Chapter 21, Labor Code;

10-11                (2)  a comprehensive analysis of the commission

10-12    workforce that meets federal and state laws, rules, and regulations

10-13    and instructions directly promulgated from those laws, rules, and

10-14    regulations;

10-15                (3)  procedures by which a determination can be made

10-16    about the extent of underuse in the commission workforce of all

10-17    persons for whom federal or state laws, rules, and regulations and

10-18    instructions directly promulgated from those laws, rules, and

10-19    regulations encourage a more equitable balance; and

10-20                (4)  reasonable methods to appropriately address those

10-21    areas of underuse.

10-22          (b)  A policy statement prepared under Subsection (a) must

10-23    cover an annual period, be updated annually and reviewed by the

10-24    Commission on Human Rights for compliance with Subsection (a)(1),

10-25    and be filed with the governor's office.

 11-1          (c)  The governor's office shall deliver a biennial report to

 11-2    the legislature based on the information received under Subsection

 11-3    (b).  The report may be made separately or as a part of other

 11-4    biennial reports made to the legislature.

 11-5          Sec. 435.010.  Headquarters.  The commission [board] shall

 11-6    maintain a headquarters in Travis County.

 11-7          Sec. 435.011.  RULES; ACTIONS OF THE COMMISSION [BOARD].

 11-8    (a)  The commission [board] may adopt necessary rules for carrying

 11-9    out its business and may adopt reasonable methods to accomplish its

11-10    purposes.  This chapter shall be construed liberally to effect

11-11    those purposes.

11-12          (b)  The commission [board] shall act by resolution adopted

11-13    at a meeting held according to its rules.

11-14          Sec. 435.012.  RECORDS; AUDIT; REPORT.  (a)  The commission

11-15    [board] shall keep accurate minutes of its meetings and shall keep

11-16    accurate records and books of account that conform with approved

11-17    methods of accounting and that clearly reflect the income and

11-18    expenses of the commission [board] and all transactions in relation

11-19    to its property.

11-20          (b)  The financial transactions of the commission [board] are

11-21    subject to audit by the state auditor in accordance with Chapter

11-22    321[, Government Code].

11-23          (c)  The executive director shall prepare annually [On or

11-24    before January 1 of each year, the board shall make in writing to

11-25    the governor and the presiding officer of each house of the

 12-1    legislature] a complete and detailed written report accounting for

 12-2    all funds received and disbursed by the commission [board] during

 12-3    the preceding fiscal year.  The annual report must meet the

 12-4    reporting requirements applicable to financial reporting provided

 12-5    in the General Appropriations Act.

 12-6          Sec. 435.013.  General Powers.  (a)  The commission is the

 12-7    exclusive authority for the construction, repair, and maintenance

 12-8    of National Guard armories, facilities, and improvements owned by

 12-9    the state located on commission property.  The commission [board]

12-10    is a public authority and a body politic and corporate and has all

12-11    powers necessary for the acquisition, construction, rental,

12-12    control, maintenance, [and] operation, and disposition of Texas

12-13    National Guard or Texas State Guard facilities and real property

12-14    [armories], including all property and equipment necessary or

12-15    useful in connection with the facilities [armories].

12-16          (b)  The commission [board] may:

12-17                (1)  sue and be sued;

12-18                (2)  enter into contracts in connection with any matter

12-19    within its purposes or duties; and

12-20                (3)  have and use a corporate seal.

12-21          Sec. 435.014.  PUBLIC HEARINGS.  The commission shall develop

12-22    and implement policies that provide the public with a reasonable

12-23    opportunity to appear before the commission and to speak on any

12-24    issue under the jurisdiction of the commission.

12-25          Sec. 435.015.  PUBLIC INTEREST INFORMATION AND COMPLAINTS.

 13-1    (a)  The commission shall prepare information of public interest

 13-2    describing the functions of the commission and the procedures by

 13-3    which complaints are filed with and resolved by the commission.

 13-4    The commission shall make the information available to the public

 13-5    and appropriate state agencies.

 13-6          (b)  The commission by rule shall establish methods by which

 13-7    consumers and service recipients are notified of the name, mailing

 13-8    address, and telephone number of the commission for the purpose of

 13-9    directing complaints to the commission relating to building

13-10    maintenance or agency performance.  The commission may provide for

13-11    that notification on a sign prominently displayed in each building

13-12    under the jurisdiction of the commission.

13-13          (c)  The commission shall keep a file about each written

13-14    complaint filed with the commission that the agency has authority

13-15    to resolve.  The commission shall provide to the person filing the

13-16    complaint and the persons or entities complained about the

13-17    commission's policies and procedures pertaining to complaint

13-18    investigation and resolution.  The commission, at least quarterly

13-19    and until final disposition of the complaint, shall notify the

13-20    person filing the complaint and the persons or entities complained

13-21    about of the status of the complaint unless the notice would

13-22    jeopardize an undercover investigation.

13-23          (d)  The commission shall keep information about each

13-24    complaint filed with the commission.  The information shall

13-25    include:

 14-1                (1)  the date the complaint is received;

 14-2                (2)  the name of the complainant;

 14-3                (3)  the subject matter of the complaint;

 14-4                (4)  a record of all persons contacted in relation to

 14-5    the complaint;

 14-6                (5)  a summary of the results of the review or

 14-7    investigation of the complaint; and

 14-8                (6)  for complaints for which the agency took no

 14-9    action, an explanation of the reason the complaint was closed

14-10    without action.

14-11          Sec. 435.016.  FUNDS SUBJECT TO STATE FUNDS REFORM ACT.  All

14-12    money paid to the commission under this chapter, except money

14-13    directly related to bonds used to build, renovate, or modify

14-14    National Guard armories, is subject to Subchapter F, Chapter 404.

14-15          Sec. 435.017.  PROGRAM AND FACILITY ACCESSIBILITY.  The

14-16    commission shall comply with federal and state laws related to

14-17    program and facility accessibility.  The executive director shall

14-18    also prepare and maintain a written plan that describes how a

14-19    person who does not speak English can be provided reasonable access

14-20    to commission programs and services.

14-21          Sec. 435.021.  Acquisition; Management; Pledge of Rents,

14-22    Issues, and Profits.  (a)  The commission [board] by gift, lease,

14-23    or purchase may acquire real and personal property, including

14-24    leasehold estates in real property, for use for any purpose the

14-25    commission [board] considers necessary in connection with the Texas

 15-1    National Guard or for the use of units of the Texas National Guard.

 15-2          (b)  The commission [board] by gift, purchase, or

 15-3    construction may acquire furniture and equipment suitable for

 15-4    facility [armory] purposes.

 15-5          (c)  The commission [board] may hold, manage, [and] maintain,

 15-6    lease, or sell its property and may pledge all or part of the

 15-7    rents, issues, and profits of the property.

 15-8          Sec. 435.022.  Construction; Furnishing and Equipment.

 15-9    (a)  The commission [board] may construct buildings on its real

15-10    property, whether held in fee simple or otherwise.  The commission

15-11    [board] may furnish and equip the buildings.

15-12          (b)  The commission [board] may construct a building on land

15-13    comprising a state camp only on a site selected and described by a

15-14    board of officers.  The adjutant general shall select the officers

15-15    from time to time for that purpose.  The officers shall select and

15-16    describe the site promptly after request by the commission [board]

15-17    to the adjutant general.  The site may not exceed 200,000 square

15-18    feet.  The officers shall certify the description to the commission

15-19    [board] and furnish a copy of it to the adjutant general, who shall

15-20    preserve it in the adjutant general's office.  If the commission

15-21    [board] constructs a building on the site selected and described,

15-22    the site becomes the property of the commission [board] for all

15-23    purposes of this chapter as if the site had been acquired by gift

15-24    to or purchase by the commission [board].

15-25          Sec. 435.023.  Lease of Property.  (a)  The commission

 16-1    [board] may execute and deliver a lease that leases to the state a

 16-2    building, its site, and the equipment in it.  The adjutant general

 16-3    shall execute the lease for the state as provided by Section

 16-4    431.030.  The commission [board] shall determine a lawful term of

 16-5    the lease and may renew the lease from time to time.

 16-6          (b)  The commission [board] may make the annual rent charged

 16-7    the state under the lease payable in installments.  The amount of

 16-8    the rent must be sufficient to:

 16-9                (1)  provide for the operation and maintenance of the

16-10    property;

16-11                (2)  pay the interest on, provide for the retirement

16-12    of, and pay the expenses related to the issuance of, any bonds

16-13    issued to acquire, construct, or equip the property; and

16-14                (3)  pay the commission's [board's] necessary expenses

16-15    not otherwise provided for.

16-16          (c)  The commission [board] may lease the property to any

16-17    person under terms the commission [board] determines if the state

16-18    fails or refuses to:

16-19                (1)  lease the property;

16-20                (2)  renew an existing lease at the rent provided to be

16-21    paid; or

16-22                (3)  pay the rent required in the lease.

16-23          (d)  The law requiring notice and competitive bids does not

16-24    apply to a lease under this section.

16-25          (e)  For the purposes of this section the term "lease"

 17-1    includes "sublease."

 17-2          Sec. 435.024.  Transfer to State.  When property that the

 17-3    commission [board] owns is fully paid for and free of liens, and

 17-4    all obligations incurred in connection with the acquisition and

 17-5    construction of the property have been fully paid, the commission

 17-6    [board] may donate and transfer the property to the state by

 17-7    appropriate instruments of transfer.  The instruments of transfer

 17-8    shall be kept in the custody of the adjutant general's department.

 17-9          Sec. 435.025.  COMMISSION [TEXAS NATIONAL GUARD] PROPERTY.

17-10    (a)  When property that the commission owns is fully paid for and

17-11    free of liens, and all obligations incurred in connection with the

17-12    acquisition and construction of the property have been fully paid,

17-13    the commission may properly dispose of the property if:

17-14                (1)  the property is designated by the commission and

17-15    the adjutant general as surplus; and

17-16                (2)  the disposal is in the best interests of the

17-17    commission and the Texas National Guard and its components or

17-18    successors.

17-19          (b)  The commission [board] may receive from the adjutant

17-20    general a state-owned national guard camp and all the land,

17-21    improvements, and personal property connected with it.  The

17-22    commission [board] may:

17-23                (1)  administer the property with its other property;

17-24    or

17-25                (2)  properly dispose of the property if:

 18-1                      (A)  the property is designated by the commission

 18-2    [board] and adjutant general as surplus; and

 18-3                      (B)  the disposal is in the best interests of the

 18-4    Texas National Guard and [or] its components or successors.

 18-5          (c) [(b)]  To accomplish the purposes of Subsections

 18-6    [Subsection] (a) and (b), the commission [board] may remove,

 18-7    dismantle, or sever any of the property or authorize its removal,

 18-8    dismantling, or severance.

 18-9          (d) [(c)]  If property under this section is designated for

18-10    sale, the commission [board] shall sell it to the highest bidder

18-11    for cash.  The commission [board] may reject any or all bids.

18-12          (e)  If property under this section is designated for

18-13    exchange, the commission may exchange the property for one or more

18-14    parcels of land equal to or exceeding the value of the

18-15    commission-owned property.

18-16          (f) [(d)]  Except as provided by Subsection (g)(1) [(e)(1)],

18-17    a sale, [or] deed, or exchange made under this section must reserve

18-18    to the state a one-sixteenth mineral interest free of cost of

18-19    production.

18-20          (g) [(e)]  The commission [board] may:

18-21                (1)  reconvey to the original grantor or donor all

18-22    rights, title, and interests, including mineral interests, to all

18-23    or part of the land conveyed by that person; and

18-24                (2)  convey to the original grantor or donor, on a

18-25    negotiated basis at fair market value, improvements constructed on

 19-1    the land reconveyed.

 19-2          (h) [(f)]  The commission [board] shall deposit proceeds of

 19-3    sales under this section in the state treasury to the credit of the

 19-4    commission [board] for the use and benefit of the Texas National

 19-5    Guard or its components or successors.

 19-6          Sec. 435.026.  Tax Status of Property.  Property held by the

 19-7    commission [board] and rents, issues, and profits of the property

 19-8    are exempt from taxation by the state, a municipality, a county or

 19-9    other political subdivision, or a taxing district of the state.

19-10          Sec. 435.041.  Borrowing Money; Issuing and Selling Bonds.

19-11    (a)  The commission [board] from time to time may borrow money and

19-12    may request the Texas Public Finance Authority, on behalf of the

19-13    commission [board], to issue and sell fully negotiable bonds to

19-14    acquire one or more building sites or buildings or to construct,

19-15    remodel, repair, or equip one or more buildings.

19-16          (b)  The Texas Public Finance Authority may sell the bonds in

19-17    any manner it determines to be in the best interest of the

19-18    commission [board], except that it may not sell a bond that has not

19-19    been approved by the attorney general and registered with the

19-20    comptroller.  The Texas Public Finance Authority is subject to all

19-21    rights, duties, and conditions set forth in this subchapter with

19-22    respect to the issuance of bonds by the commission [board],

19-23    including the issuance of refunding bonds under Section 435.048.

19-24          Sec. 435.042.  Form.  (a)  The bonds must be signed by the

19-25    commission's presiding officer [board's chairman] and countersigned

 20-1    by its treasurer.  The commission's [board's] corporate seal must

 20-2    be affixed to the bonds and attested by the commission's [board's]

 20-3    executive director [secretary].  The commission [board] is not

 20-4    prohibited from issuing bonds signed or attested by a commission

 20-5    [board] officer because the officer ceased to be an officer before

 20-6    the bonds were issued.

 20-7          (b)  The commission [board] may issue bonds in:

 20-8                (1)  fully registered form without interest coupons;

 20-9                (2)  coupon form registrable as to principal only; or

20-10                (3)  bearer form with coupons attached.

20-11          (c)  Coupons must be authenticated by the facsimile signature

20-12    of the commission's [board's] treasurer.

20-13          (d)  The commission [board] may issue bonds in series.  All

20-14    series of bonds issued under the same trust indenture or trust

20-15    agreement must rank equally without preference or priority of one

20-16    series over another.

20-17          Sec. 435.043.  Security and Repayment.  (a)  Except as

20-18    provided by Subsection (b), the bonds must be secured by a pledge

20-19    of, and payable solely from, the rents, issues, and profits of:

20-20                (1)  all commission [board] property; or

20-21                (2)  property the commission [board] acquires or

20-22    constructs, in whole or part, with the proceeds of the sale of the

20-23    bonds.

20-24          (b)  Interest due not later than two years after the date

20-25    bonds or a series of bonds are issued and sold may be paid from the

 21-1    proceeds of the sale of the bonds.

 21-2          Sec. 435.047.  Trust Deeds and Trust Agreements.  (a)  The

 21-3    commission [board] may from time to time execute and deliver trust

 21-4    deeds and trust agreements.  The trustee under a trust deed or

 21-5    trust agreement must be a bank or trust company authorized by the

 21-6    laws of this state or the United States to accept and execute

 21-7    trusts in this state, or an individual selected by the commission

 21-8    [board].  The commission [board] shall select the trustee on the

 21-9    basis of written competitive bids.

21-10          (b)  The trust deed or trust agreement must be signed in the

21-11    name and on behalf of the commission [board] by the commission's

21-12    presiding officer [board's chairman] and countersigned by the

21-13    commission's [board's] treasurer.  The corporate seal of the

21-14    commission [board] must be affixed to the trust deed or agreement

21-15    and attested by the commission's [board's] executive director

21-16    [secretary].

21-17          (c)  The trust deed or trust agreement may contain provisions

21-18    approved by the commission [board] for the protection and

21-19    enforcement of the rights and remedies of the trustee and the

21-20    holders of the bonds, including provisions for the acceleration of

21-21    the maturity of the bonds on default by the commission [board] on

21-22    the bonds or the trust deed or trust agreement under which they

21-23    were issued.  The trust deed or trust agreement must equally secure

21-24    all bonds issued under it.  The trust deed or trust agreement may

21-25    limit or place conditions on the commission's [board's] right to

 22-1    issue additional bonds.

 22-2          (d)  If a bank or trust company is named as trustee, the

 22-3    trust deed or trust agreement may provide for deposit with and

 22-4    disbursement by the trustee of proceeds of the bonds issued under

 22-5    or secured by the trust deed or trust agreement and rents, issues,

 22-6    and profits of all property acquired or constructed from those

 22-7    proceeds.

 22-8          Sec. 435.048.  Refunding Bonds.  (a)  The commission [board]

 22-9    may request the Texas Public Finance Authority to issue refunding

22-10    bonds to refund any outstanding bonds that the commission [board],

22-11    or the Texas Public Finance Authority on behalf of the commission

22-12    [board], has lawfully issued, and interest on the bonds.  The Texas

22-13    Public Finance Authority may issue the refunding bonds in exchange

22-14    or substitution for outstanding bonds or may sell the refunding

22-15    bonds and use the proceeds to pay or redeem outstanding bonds.

22-16          (b)  If refunding bonds are sold, they may be sold in an

22-17    amount necessary to:

22-18                (1)  pay principal of, interest on, and premium, if

22-19    any, of the bonds being refunded;

22-20                (2)  make a deposit in a reserve fund as provided in

22-21    the resolution authorizing the refunding bonds; and

22-22                (3)  pay expenses incurred in the issuance, sale, and

22-23    delivery of the refunding bonds.

22-24          (c)  Until refunding bond proceeds are needed for purposes

22-25    under Subsection (b), the commission [board] may invest them in

 23-1    direct obligations of the United States, and may use or pledge the

 23-2    income from the investments as provided in the resolution

 23-3    authorizing the refunding bonds.

 23-4          (d)  In addition to the authority provided by this section,

 23-5    the commission [board] may refund its outstanding bonds according

 23-6    to applicable general law.

 23-7          SECTION 3.  Subsection (a), Section 109.47, Education Code,

 23-8    is amended to read as follows:

 23-9          (a)  The board may select and lease a portion of the campus

23-10    to the Texas National Guard for the purpose of erecting an armory

23-11    and other buildings suitable for use by the Texas National Guard.

23-12    The board may enter into a lease contract with the Texas Military

23-13    Facilities Commission [National Guard Armory Board] on terms which

23-14    are suitable and satisfactory to the board for a term of not more

23-15    than 99 years.

23-16          SECTION 4.  Subsections (a), (b), and (c), Section 431.030,

23-17    Government Code, are amended to read as follows:

23-18          (a)  Except as provided by Subsection (b), the adjutant

23-19    general, for and on behalf of the state, may lease from the Texas

23-20    Military Facilities Commission [National Guard Armory Board] a

23-21    building, its site, and the equipment in it, as provided by Section

23-22    435.023, for use as an armory or for another proper purpose.  The

23-23    adjutant general may renew the lease.

23-24          (b)  If adequate facilities for armory purposes are available

23-25    for rental from the Texas Military Facilities Commission [National

 24-1    Guard Armory Board] in or about a municipality, the adjutant

 24-2    general may not lease property in or about the municipality for

 24-3    those purposes from a person other than the commission [board].

 24-4          (c)  If all or part of a state-owned Texas National Guard

 24-5    camp and the land, improvements, buildings, facilities,

 24-6    installations, and personal property connected with the camp are

 24-7    designated by the adjutant general as surplus or are in excess of

 24-8    the needs of the Texas National Guard or its successors or

 24-9    components, the adjutant general, for and on behalf of the state,

24-10    may transfer the property to the Texas Military Facilities

24-11    Commission [National Guard Armory Board] for administration, sale,

24-12    or other proper disposal.  Before declaring property as surplus and

24-13    transferring it to the commission [board], the adjutant general may

24-14    remove, sever, dismantle, or exchange all or part of the property

24-15    for the use and benefit of the Texas National Guard or its

24-16    successors.

24-17          SECTION 5.  Subsection (c), Section 431.045, Government Code,

24-18    is amended to read as follows:

24-19          (c)  The governing body of a county or municipality, on

24-20    behalf of the county or municipality, may donate to the Texas

24-21    Military Facilities Commission [National Guard Armory Board], or to

24-22    a unit for transfer to that commission [board], land for use as a

24-23    site for an armory or other building suitable for use by a unit.

24-24    The donation may be in fee simple or otherwise.

24-25          SECTION 6.  Subsection (a), Section 9B, Texas Public Finance

 25-1    Authority Act (Article 601d, Vernon's Texas Civil Statutes), is

 25-2    amended to read as follows:

 25-3          (a)  With respect to all bonds authorized to be issued by the

 25-4    Texas Military Facilities Commission [National Guard Armory Board],

 25-5    Texas National Research Laboratory Commission, Parks and Wildlife

 25-6    Department, and all institutions of higher education authorized to

 25-7    issue bonds under Chapter 55, Education Code, the authority has the

 25-8    exclusive authority to act on behalf of those entities in issuing

 25-9    bonds on their behalf.  In connection with those issuances and with

25-10    the issuance of refunding bonds on behalf of those entities, the

25-11    authority is subject to all rights, duties, and conditions

25-12    surrounding issuance previously applicable to the issuing entity

25-13    under the statute authorizing the issuance.  All references in an

25-14    authorizing statute to the entity on whose behalf the bonds are

25-15    being issued apply equally to the authority in its capacity as

25-16    issuer on behalf of the entity.

25-17          SECTION 7.  (a)  The name of the Texas National Guard Armory

25-18    Board is changed to the Texas Military Facilities Commission.  A

25-19    reference in law to the board means the commission.

25-20          (b)  Before using new stationery or other supplies printed

25-21    with the name Texas Military Facilities Commission, the commission

25-22    shall use all stationery and other supplies that are printed with

25-23    the commission's former name and that are in its possession on the

25-24    effective date of this Act.

25-25          SECTION 8.  The changes in law made by this Act relating to

 26-1    the qualifications of, and the prohibitions applying to, members of

 26-2    the Texas Military Facilities Commission do not affect the

 26-3    entitlement of a member of the commission serving immediately

 26-4    before the effective date of this Act to continue to carry out the

 26-5    functions of the commission for the remainder of the member's term.

 26-6    The changes in law apply only to a member appointed on or after

 26-7    September 1, 1997.  This Act does not prohibit a person who is a

 26-8    member of the commission on September 1, 1997, from being

 26-9    reappointed to the commission if the person has the qualifications

26-10    required for a member under Chapter 435, Government Code, as

26-11    amended by this Act.

26-12          SECTION 9.  This Act takes effect September 1, 1997.

26-13          SECTION 10.  The importance of this legislation and the

26-14    crowded condition of the calendars in both houses create an

26-15    emergency and an imperative public necessity that the

26-16    constitutional rule requiring bills to be read on three several

26-17    days in each house be suspended, and this rule is hereby suspended.

         _______________________________     _______________________________

             President of the Senate              Speaker of the House

               I hereby certify that S.B. No. 352 passed the Senate on

         April 10, 1997, by the following vote:  Yeas 31, Nays 0; and that

         the Senate concurred in House amendments on May 29, 1997, by a

         viva-voce vote.

                                             _______________________________

                                                 Secretary of the Senate

               I hereby certify that S.B. No. 352 passed the House, with

         amendments, on May 22, 1997, by a non-record vote.

                                             _______________________________

                                                 Chief Clerk of the House

         Approved:

         _______________________________

                     Date

         _______________________________

                   Governor