75R12434 MCK-D                          

         By Armbrister                                          S.B. No. 352

         Substitute the following for S.B. No. 352:

         By Pitts                                           C.S.S.B. No. 352

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the continuation, functions, and name of the Texas

 1-3     National Guard Armory Board.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  The heading to Chapter 435, Government Code, is

 1-6     amended to read as follows:

 1-7                CHAPTER 435.  TEXAS MILITARY FACILITIES COMMISSION

 1-8                       [NATIONAL GUARD ARMORY BOARD] 

 1-9           SECTION 2.  Chapter 435, Government Code, is amended by

1-10     amending Sections 435.001-435.013, 435.021-435.026,

1-11     435.041-435.043, 435.047, and 435.048, and by adding Sections

1-12     435.0043, 435.0044, 435.0045, 435.0095, and 435.014-435.017 to read

1-13     as follows:

1-14           Sec. 435.001.  DEFINITIONS.  In this subchapter:

1-15                 (1)  "Bond" includes a debenture or other evidence of

1-16     indebtedness.

1-17                 (2)  "Commission [Board]" means the Texas Military

1-18     Facilities Commission [National Guard Armory Board].

1-19           Sec. 435.002.  COMMISSION [BOARD].  The Texas Military

1-20     Facilities Commission [National Guard Armory Board] is an agency of

1-21     the state.

1-22           Sec. 435.003.  APPLICATION OF SUNSET ACT[, OPEN MEETINGS, AND

1-23     ADMINISTRATIVE PROCEDURE LAWS].  [(a)]  The Texas Military

1-24     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

2-26     [appointee's] race, color, disability [creed], sex, religion, age,

2-27     or national origin of the appointees.

 3-1           (c)  A person is not eligible for appointment as a public

 3-2     member of the commission if the person or the person's spouse:

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

 3-4     of a business entity or other organization receiving funds from the

 3-5     commission;

 3-6                 (2)  owns or controls, directly or indirectly, more

 3-7     than a 10 percent interest in a business entity or other

 3-8     organization receiving funds from the commission; or

 3-9                 (3)  uses or receives a substantial amount of tangible

3-10     goods, services, or funds from the commission, other than

3-11     compensation or reimbursement authorized by law for commission

3-12     membership, attendance, or expenses.

3-13           (d)  A person may not serve as a member of the commission

3-14     [board] if the person holds another office or position of honor,

3-15     trust, or profit under the  state or federal government, except as

3-16     a member of the Texas National Guard.

3-17           [(d)  A person required to register as a lobbyist under

3-18     Chapter 305 of this code may not serve as a member of the board or

3-19     act as general counsel to the board.]

3-20           Sec. 435.0043.  CONFLICTS OF INTERESTS.  (a)  An officer,

3-21     employee, or paid consultant of a Texas trade association in a

3-22     field related to the operation of the commission may not be a

3-23     member of the commission or an employee of the commission who is

3-24     exempt from the state's position classification plan or is

3-25     compensated at or above the amount prescribed by the General

3-26     Appropriations Act for step 1, salary group 17, of the position

3-27     classification salary schedule.

 4-1           (b)  A person who is the spouse  of an officer, manager, or

 4-2     paid consultant of a Texas trade association in a field related to

 4-3     the operation of the commission may not be a member of the

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

 4-5     exempt from the state's position classification plan or is

 4-6     compensated at or above the amount prescribed by the General

 4-7     Appropriations Act for step 1, salary group 17, of the position

 4-8     classification salary schedule.

 4-9           (c)  For the purposes of this section, a Texas trade

4-10     association is a nonprofit, cooperative, and voluntarily joined

4-11     association in this state designed to assist its members and its

4-12     industry or profession in dealing with mutual problems and in

4-13     promoting their common interest.

4-14           (d)  A person may not serve as a member of the commission or

4-15     act as the general counsel to the commission if the person is

4-16     required to register as a lobbyist under Chapter 305 because of the

4-17     person's activities for compensation on  behalf of a profession

4-18     related to the operation of the commission.

4-19           Sec. 435.0044.  PRESIDING OFFICER.  The governor shall

4-20     designate a member of the commission as the presiding officer of

4-21     the commission to serve in that capacity at the pleasure of the

4-22     governor.

4-23           Sec. 435.0045.  COMMISSION MEMBER TRAINING.  (a)  Before a

4-24     member of the commission may assume the member's duties and before

4-25     the member may be confirmed by the senate, the member must complete

4-26     at least one course of the training program established under this

4-27     section.

 5-1           (b)  A training program established under this section shall

 5-2     provide information to the member regarding:

 5-3                 (1)  the enabling legislation that created the

 5-4     commission;

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

 5-6                 (3)  the role and functions of the commission;

 5-7                 (4)  the rules of the commission with an emphasis on

 5-8     the rules that relate to disciplinary and investigatory authority;

 5-9                 (5)  the current budget for the commission;

5-10                 (6)  the results of the most recent formal audit of the

5-11     commission;

5-12                 (7)  the requirements of the:

5-13                       (A)  open meetings law, Chapter 551;

5-14                       (B)  open records law, Chapter 552; and

5-15                       (C)  administrative procedure law, Chapter 2001;

5-16                 (8)  the requirements of the conflict of interest laws

5-17     and other laws relating to public officials; and

5-18                 (9)  any applicable ethics policies adopted by the

5-19     commission or the Texas Ethics Commission.

5-20           Sec. 435.005.  VACANCY; INABILITY TO SERVE.  (a)  If a member

5-21     of the commission [board] who is a senior [an] officer of the Texas

5-22     National Guard retires from active service with the Texas National

5-23     Guard, the member's position on the commission [board] becomes

5-24     vacant.  That [(b)  A] vacancy on the commission [board] is filled

5-25     for the unexpired  term in the same manner in which the position

5-26     was originally filled [by the person who fills the position in the

5-27     Texas National Guard of the person whose retirement created the

 6-1     vacancy.  The governor shall certify the officer filling the

 6-2     vacancy to the secretary of state, who shall notify the officer of

 6-3     the officer's eligibility to fill the vacancy not later than the

 6-4     10th day after the date the vacancy occurs.  Not later than the

 6-5     15th day after the date the officer receives the notice, the

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

 6-7     state the constitutional oath of office.  If the officer fails to

 6-8     qualify as a member of the board under the state constitution or

 6-9     this chapter, the governor shall certify to the secretary of state

6-10     the next senior officer in military rank to qualify].

6-11           (b) [(c)]  If a member of the commission [board] who is a

6-12     senior officer [a member] of the Texas National Guard is unable to

6-13     serve as a commission [board] member because of induction into

6-14     federal service of the member or the member's military unit, the

6-15     governor shall fill the position in the same manner in which the

6-16     position was originally filled, and [designate the next senior

6-17     officer of the Texas National Guard as] the member's successor [in

6-18     function] on the commission serves [board] for the period of the

6-19     induction into federal service.  The successor shall qualify as a

6-20     member of the commission [board].

6-21           Sec. 435.006.  REMOVAL.  (a)  It is a ground for removal from

6-22     the commission [board] if a member:

6-23                 (1)  does not have at the time of appointment the

6-24     qualifications required by Sections 435.004(a) and (c);

6-25                 (2)  does not maintain during service on the commission

6-26     the qualifications required by Sections 435.004(a) and (c);

6-27                 (3)  violates a prohibition established by Section

 7-1     435.004(d) or 435.0043;

 7-2                 (4)  cannot because of illness or disability discharge

 7-3     the member's duties for a substantial part of the term for which

 7-4     the member is appointed; or

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

 7-6     scheduled commission meetings that the member is eligible to attend

 7-7     during a calendar year unless the absence is excused by majority

 7-8     vote of the commission [fails to attend at least one-half of the

 7-9     regularly scheduled board meetings held in a calendar year,

7-10     excluding meetings held while the person was not a member].

7-11           (b)  The validity of an action of the commission is not

7-12     affected by the fact that it is taken when a ground for removal of

7-13     a commission member exists.

7-14           (c)  If the executive director has knowledge that a potential

7-15     ground for removal exists, the executive director shall notify the

7-16     presiding officer of the commission of the potential ground.  The

7-17     presiding officer shall then notify the governor and the attorney

7-18     general that a potential ground for removal exists.  If the

7-19     potential ground for removal involves the presiding officer, the

7-20     executive director shall notify the next highest officer of the

7-21     commission, who shall notify the governor and the attorney general

7-22     that a potential ground for removal exists.

7-23           Sec. 435.007.  TERM AND OFFICERS.  (a)  The term of office of

7-24     a commission [board] member is six years without regard to the

7-25     organizational structure of the Texas National Guard.

7-26           (b)  The commission [board] annually shall elect a [chairman

7-27     and] treasurer from among its members.

 8-1           Sec. 435.008.  Per Diem and Expenses.  (a)  A member is

 8-2     entitled to a per diem as set by legislative appropriation for each

 8-3     day that the member engages in the business of the commission

 8-4     [board].

 8-5           (b)  A member may not receive compensation for meals,

 8-6     lodging, or other travel expenses, except that the member is

 8-7     entitled to compensation for transportation expenses as provided by

 8-8     the General Appropriations Act.

 8-9           Sec. 435.009.  PERSONNEL.  (a)  The commission [board] may

8-10     employ an executive director [secretary] and other officials,

8-11     counsel, agents, and employees as necessary to carry out the

8-12     commission's [board's] purposes and duties, and may prescribe their

8-13     duties and fix their compensation.

8-14           (b)  The executive director [secretary] or the executive

8-15     director's [secretary's] designee shall develop an intra-agency [a]

8-16     career ladder program that addresses opportunities for mobility and

8-17     advancement for employees within the commission [agency].  The

8-18     program shall [must] require intra-agency posting of all positions

8-19     concurrently with any public posting [that openings in all

8-20     positions except entry level positions be posted within the board

8-21     for at least 10 days before they are posted for the public].

8-22           (c)  The executive director [secretary] or the executive

8-23     director's [secretary's] designee shall develop a system of annual

8-24     performance evaluations that are based on documented employee

8-25     performance [evaluation based on measurable job tasks].  All merit

8-26     pay for commission employees must be based on the system

8-27     established under this subsection [Merit pay for board employees

 9-1     shall be based on this system].

 9-2           (d)  The executive director or the executive director's

 9-3     designee shall provide to members of the commission and to agency

 9-4     employees, as often as necessary, information regarding their

 9-5     qualification for office or employment under this chapter and their

 9-6     responsibilities under applicable laws relating to standards of

 9-7     conduct for state officers or employees.

 9-8           (e)  The commission shall develop and implement policies that

 9-9     clearly separate the policymaking responsibilities of the

9-10     commission and the management responsibilities of the executive

9-11     director and the staff of the commission.

9-12           Sec. 435.0095.  EQUAL EMPLOYMENT OPPORTUNITY POLICY

9-13     STATEMENT.  (a)  The executive director or the executive director's

9-14     designee shall prepare and maintain a written policy statement to

9-15     assure implementation of a program of equal employment opportunity

9-16     under which all personnel transactions are made without regard to

9-17     race, color, disability, sex, religion, age, or national origin.

9-18     The policy statement must include:

9-19                 (1)  personnel policies, including policies relating to

9-20     recruitment, evaluation, selection, appointment, training, and

9-21     promotion of personnel that are in compliance with requirements of

9-22     Chapter 21, Labor Code;

9-23                 (2)  a comprehensive analysis of the commission

9-24     workforce that meets federal and state laws, rules, regulations,

9-25     and instructions directly promulgated from those laws, rules, and

9-26     regulations;

9-27                 (3)  procedures by which a determination can be made

 10-1    about the extent of underuse in the commission workforce of all

 10-2    persons for whom federal or state laws, rules, regulations, and

 10-3    instructions directly promulgated from those laws, rules, and

 10-4    regulations encourage a more equitable balance; and

 10-5                (4)  reasonable methods to appropriately address those

 10-6    areas of underuse.

 10-7          (b)  A policy statement prepared under Subsection (a) must

 10-8    cover an annual period, be updated annually and reviewed by the

 10-9    Commission on Human Rights for compliance with Subsection (a)(1),

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

10-11          (c)  The governor's office shall deliver a biennial report to

10-12    the legislature based on the information received under Subsection

10-13    (b).  The report may be made separately or as a part of other

10-14    biennial reports made to the legislature.

10-15          Sec. 435.010.  Headquarters.  The commission [board] shall

10-16    maintain a headquarters in Travis County.

10-17          Sec. 435.011.  RULES; ACTIONS OF THE COMMISSION [BOARD].  (a)

10-18    The commission [board] may adopt necessary rules for carrying out

10-19    its business and may adopt reasonable methods to accomplish its

10-20    purposes.  This chapter shall be construed liberally to effect

10-21    those purposes.

10-22          (b)  The commission [board] shall act by resolution adopted

10-23    at a meeting held according to its rules.

10-24          Sec. 435.012.  RECORDS; AUDIT; REPORT.  (a)  The commission

10-25    [board] shall keep accurate minutes of its meetings and shall keep

10-26    accurate records and books of account that conform with approved

10-27    methods of accounting and that clearly reflect the income and

 11-1    expenses of the commission [board] and all transactions in relation

 11-2    to its property.

 11-3          (b)  The financial transactions of the commission [board] are

 11-4    subject to audit by the state auditor in accordance with Chapter

 11-5    321[, Government Code].

 11-6          (c)  The executive director shall prepare annually [On or

 11-7    before January 1 of each year, the board shall make in writing to

 11-8    the governor and the presiding officer of each house of the

 11-9    legislature] a complete and detailed written report accounting for

11-10    all funds received and disbursed by the commission [board] during

11-11    the preceding fiscal year.  The annual report must meet the

11-12    reporting requirements applicable to financial reporting provided

11-13    in the General Appropriations Act.

11-14          Sec. 435.013.  General Powers.  (a)  The commission is the

11-15    exclusive authority for the construction, repair, and maintenance

11-16    of National Guard armories, facilities, and improvements owned by

11-17    the state located on commission property.  The commission [board]

11-18    is a public authority and a body politic and corporate and has all

11-19    powers necessary for the acquisition, construction, rental,

11-20    control, maintenance, [and] operation, and disposition of Texas

11-21    National Guard or Texas State Guard facilities and real property

11-22    [armories], including all property and equipment necessary or

11-23    useful in connection with the facilities [armories].

11-24          (b)  The commission [board] may:

11-25                (1)  sue and be sued;

11-26                (2)  enter into contracts in connection with any matter

11-27    within its purposes or duties; and

 12-1                (3)  have and use a corporate seal.

 12-2          Sec. 435.014.  PUBLIC HEARINGS.  The commission shall develop

 12-3    and implement policies that provide the public with a reasonable

 12-4    opportunity to appear before the commission and to speak on any

 12-5    issue under the jurisdiction of the commission.

 12-6          Sec. 435.015.  PUBLIC INTEREST INFORMATION AND COMPLAINTS.

 12-7    (a)  The commission shall prepare information of public interest

 12-8    describing the functions of the commission and the procedures by

 12-9    which complaints are filed with and resolved by the commission.

12-10    The commission shall make the information available to the public

12-11    and appropriate state agencies.

12-12          (b)  The commission by rule shall establish methods by which

12-13    consumers and service recipients are notified of the name, mailing

12-14    address, and telephone number of the commission for the purpose of

12-15    directing complaints to the commission relating to building

12-16    maintenance or agency performance.  The commission may provide for

12-17    that notification on a sign prominently displayed in each building

12-18    under the jurisdiction of the commission.

12-19          (c)  The commission shall keep a file about each written

12-20    complaint filed with the commission that the agency has authority

12-21    to resolve.  The commission shall provide to the person filing the

12-22    complaint and the persons or entities complained about the

12-23    commission's policies and procedures pertaining to complaint

12-24    investigation and resolution.  The commission, at least quarterly

12-25    and until final disposition of the complaint, shall notify the

12-26    person filing the complaint and the persons or entities complained

12-27    about of the status of the complaint unless the notice would

 13-1    jeopardize an undercover investigation.

 13-2          (d)  The commission shall keep information about each

 13-3    complaint filed with the commission.  The information shall

 13-4    include:

 13-5                (1)  the date the complaint is received;

 13-6                (2)  the name of the complainant;

 13-7                (3)  the subject matter of the complaint;

 13-8                (4)  a record of all persons contacted in relation to

 13-9    the complaint;

13-10                (5)  a summary of the results of the review or

13-11    investigation of the complaint; and

13-12                (6)  for complaints for which the agency took no

13-13    action, an explanation of the reason the complaint was closed

13-14    without action.

13-15          Sec. 435.016.  FUNDS SUBJECT TO STATE FUNDS REFORM ACT.  All

13-16    money paid to the commission under this chapter, except that money

13-17    directly related to bonds used to build, renovate, or modify

13-18    National Guard armories, is subject to Subchapter F, Chapter 404.

13-19          Sec. 435.017.  PROGRAM AND FACILITY ACCESSIBILITY.  The

13-20    commission shall comply with federal and state laws related to

13-21    program and facility accessibility.  The executive director shall

13-22    also prepare and maintain a written plan that describes how a

13-23    person who does not speak English can be provided reasonable access

13-24    to commission programs and services.

13-25          Sec. 435.021.  Acquisition; Management; Pledge of Rents,

13-26    Issues, and Profits.  (a)  The commission [board] by gift, lease,

13-27    or purchase may acquire real and personal property, including

 14-1    leasehold estates in real property, for use for any purpose the

 14-2    commission [board] considers necessary in connection with the Texas

 14-3    National Guard or for the use of units of the Texas National Guard.

 14-4          (b)  The commission [board] by gift, purchase, or

 14-5    construction may acquire furniture and equipment suitable for

 14-6    facility [armory] purposes.

 14-7          (c)  The commission [board] may hold, manage, [and] maintain,

 14-8    lease, or sell its property and may pledge all or part of the

 14-9    rents, issues, and profits of the property.

14-10          Sec. 435.022.  Construction; Furnishing and Equipment.  (a)

14-11    The commission [board] may construct buildings on its real

14-12    property, whether held in fee simple or otherwise.  The commission

14-13    [board] may furnish and equip the buildings.

14-14          (b)  The commission [board] may construct a building on land

14-15    comprising a state camp only on a site selected and described by a

14-16    board of officers.  The adjutant general shall select the officers

14-17    from time to time for that purpose.  The officers shall select and

14-18    describe the site promptly after request by the commission [board]

14-19    to the adjutant general.  The site may not exceed 200,000 square

14-20    feet.  The officers shall certify the description to the commission

14-21    [board] and furnish a copy of it to the adjutant general, who shall

14-22    preserve it in the adjutant general's office.  If the commission

14-23    [board] constructs a building on the site selected and described,

14-24    the site becomes the property of the commission [board] for all

14-25    purposes of this chapter as if the site had been acquired by gift

14-26    to or purchase by the commission [board].

14-27          Sec. 435.023.  Lease of Property.  (a)  The commission

 15-1    [board] may execute and deliver a lease that leases to the state a

 15-2    building, its site, and the equipment in it.  The adjutant general

 15-3    shall execute the lease for the state as provided by Section

 15-4    431.030.  The commission [board] shall determine a lawful term of

 15-5    the lease and may renew the lease from time to time.

 15-6          (b)  The commission [board] may make the annual rent charged

 15-7    the state under the lease payable in installments.  The amount of

 15-8    the rent must be sufficient to:

 15-9                (1)  provide for the operation and maintenance of the

15-10    property;

15-11                (2)  pay the interest on, provide for the retirement

15-12    of, and pay the expenses related to the issuance of, any bonds

15-13    issued to acquire, construct, or equip the property; and

15-14                (3)  pay the commission's [board's] necessary expenses

15-15    not otherwise provided for.

15-16          (c)  The commission [board] may lease the property to any

15-17    person under terms the commission [board] determines if the state

15-18    fails or refuses to:

15-19                (1)  lease the property;

15-20                (2)  renew an existing lease at the rent provided to be

15-21    paid; or

15-22                (3)  pay the rent required in the lease.

15-23          (d)  The law requiring notice and competitive bids does not

15-24    apply to a lease under this section.

15-25          (e)  For the purposes of this section the term "lease"

15-26    includes "sublease."

15-27          Sec. 435.024.  Transfer to State.  When property that the

 16-1    commission [board] owns is fully paid for and free of liens, and

 16-2    all obligations incurred in connection with the acquisition and

 16-3    construction of the property have been fully paid, the commission

 16-4    [board] may donate and transfer the property to the state by

 16-5    appropriate instruments of transfer.  The instruments of transfer

 16-6    shall be kept in the custody of the adjutant general's department.

 16-7          Sec. 435.025.  COMMISSION [TEXAS NATIONAL GUARD] PROPERTY.

 16-8    (a)  When property that the commission owns is fully paid for and

 16-9    free of liens, and all obligations incurred in connection with the

16-10    acquisition and construction of the property have been fully paid,

16-11    the commission may properly dispose of the property if:

16-12                (1)  the property is designated by the commission and

16-13    the adjutant general as surplus; and

16-14                (2)  the disposal is in the best interests of the

16-15    commission and the Texas National Guard and its components or

16-16    successors.

16-17          (b)  The commission [board] may receive from the adjutant

16-18    general a state-owned national guard camp and all the land,

16-19    improvements, and personal property connected with it.  The

16-20    commission [board] may:

16-21                (1)  administer the property with its other property;

16-22    or

16-23                (2)  properly dispose of the property if:

16-24                      (A)  the property is designated by the commission

16-25    [board] and adjutant general as surplus; and

16-26                      (B)  the disposal is in the best interests of the

16-27    Texas National Guard and [or] its components or successors.

 17-1          (c) [(b)]  To accomplish the purposes of Subsections

 17-2    [Subsection] (a) and (b), the commission [board] may remove,

 17-3    dismantle, or sever any of the property or authorize its removal,

 17-4    dismantling, or severance.

 17-5          (d) [(c)]  If property under this section is designated for

 17-6    sale, the commission [board] shall sell it to the highest bidder

 17-7    for cash.   The board may reject any or all bids.

 17-8          (e)  If property under this section is designated for

 17-9    exchange, the commission may exchange the property for one or more

17-10    parcels of land equal to or exceeding the value of the

17-11    commission-owned property.

17-12          (f)  A [(d)  Except as provided by Subsection (e)(1), a]

17-13    sale, [or] deed, or exchange made under this section must reserve

17-14    to the state a one-sixteenth mineral interest free of cost of

17-15    production.

17-16          (g) [(e)]  The commission [board] may:

17-17                (1)  reconvey to the original grantor or donor all

17-18    rights, title, and interests, including mineral interests, to all

17-19    or part of the land conveyed by that person; and

17-20                (2)  convey to the original grantor or donor, on a

17-21    negotiated basis at fair market value, improvements constructed on

17-22    the land reconveyed.

17-23          (h) [(f)]  The commission [board] shall deposit proceeds of

17-24    sales under this section in the state treasury to the credit of the

17-25    commission [board] for the use and benefit of the Texas National

17-26    Guard or its components or successors.

17-27          Sec. 435.026.  Tax Status of Property.  Property held by the

 18-1    commission [board] and rents, issues, and profits of the property

 18-2    are exempt from taxation by the state, a municipality, a county or

 18-3    other political subdivision, or a taxing district of the state.

 18-4          Sec. 435.041.  Borrowing Money; Issuing and Selling Bonds.

 18-5    (a)  The commission [board] from time to time may borrow money and

 18-6    may request the Texas Public Finance Authority, on behalf of the

 18-7    commission [board], to issue and sell fully negotiable bonds to

 18-8    acquire one or more building sites or buildings or to construct,

 18-9    remodel, repair, or equip one or more buildings.

18-10          (b)  The Texas Public Finance Authority may sell the bonds in

18-11    any manner it determines to be in the best interest of the

18-12    commission [board], except that it may not sell a bond that has not

18-13    been approved by the attorney general and registered with the

18-14    comptroller.  The Texas Public Finance Authority is subject to all

18-15    rights, duties, and conditions set forth in this subchapter with

18-16    respect to the issuance of bonds by the commission [board],

18-17    including the issuance of refunding bonds under Section 435.048.

18-18          Sec. 435.042.  Form.  (a)  The bonds must be signed by the

18-19    commission's presiding officer [board's chairman] and countersigned

18-20    by its treasurer.  The commission's [board's] corporate seal must

18-21    be affixed to the bonds and attested by the commission's [board's]

18-22    executive director [secretary].  The commission [board] is not

18-23    prohibited from issuing bonds signed or attested by a commission

18-24    [board] officer because the officer ceased to be an officer before

18-25    the bonds were issued.

18-26          (b)  The commission [board] may issue bonds in:

18-27                (1)  fully registered form without interest coupons;

 19-1                (2)  coupon form registrable as to principal only; or

 19-2                (3)  bearer form with coupons attached.

 19-3          (c)  Coupons must be authenticated by the facsimile signature

 19-4    of the commission's [board's] treasurer.

 19-5          (d)  The commission [board] may issue bonds in series.  All

 19-6    series of bonds issued under the same trust indenture or trust

 19-7    agreement must rank equally without preference or priority of one

 19-8    series over another.

 19-9          Sec. 435.043.  Security and Repayment.  (a)  Except as

19-10    provided by Subsection (b), the bonds must be secured by a pledge

19-11    of, and payable solely from, the rents, issues, and profits of:

19-12                (1)  all commission [board] property; or

19-13                (2)  property the commission [board] acquires or

19-14    constructs, in whole or part, with the proceeds of the sale of the

19-15    bonds.

19-16          (b)  Interest due not later than two years after the date

19-17    bonds or a series of bonds are issued and sold may be paid from the

19-18    proceeds of the sale of the bonds.

19-19          Sec. 435.047.  Trust Deeds and Trust Agreements.  (a)  The

19-20    commission [board] may from time to time execute and deliver trust

19-21    deeds and trust agreements.  The trustee under a trust deed or

19-22    trust agreement must be a bank or trust company authorized by the

19-23    laws of this state or the United States to accept and execute

19-24    trusts in this state, or an individual selected by the commission

19-25    [board].  The commission [board] shall select the trustee on the

19-26    basis of written competitive bids.

19-27          (b)  The trust deed or trust agreement must be signed in the

 20-1    name and on behalf of the commission [board] by the commission's

 20-2    presiding officer [board's chairman] and countersigned by the

 20-3    commission's [board's] treasurer.  The corporate seal of the

 20-4    commission [board] must be affixed to the trust deed or agreement

 20-5    and attested by the commission's [board's] executive director

 20-6    [secretary].

 20-7          (c)  The trust deed or trust agreement may contain provisions

 20-8    approved by the commission [board] for the protection and

 20-9    enforcement of the rights and remedies of the trustee and the

20-10    holders of the bonds, including provisions for the acceleration of

20-11    the maturity of the bonds on default by the commission [board] on

20-12    the bonds or the trust deed or trust agreement under which they

20-13    were issued.  The trust deed or trust agreement must equally secure

20-14    all bonds issued under it.  The trust deed or trust agreement may

20-15    limit or place conditions on the commission's [board's] right to

20-16    issue additional bonds.

20-17          (d)  If a bank or trust company is named as trustee, the

20-18    trust deed or trust agreement may provide for deposit with and

20-19    disbursement by the trustee of proceeds of the bonds issued under

20-20    or secured by the trust deed or trust agreement and rents, issues,

20-21    and profits of all property acquired or constructed from those

20-22    proceeds.

20-23          Sec. 435.048.  Refunding Bonds.  (a)  The commission [board]

20-24    may request the Texas Public Finance Authority to issue refunding

20-25    bonds to refund any outstanding bonds that the commission [board],

20-26    or the Texas Public Finance Authority on behalf of the commission

20-27    [board], has lawfully issued, and interest on the bonds.  The Texas

 21-1    Public Finance Authority may issue the refunding bonds in exchange

 21-2    or substitution for outstanding bonds or may sell the refunding

 21-3    bonds and use the proceeds to pay or redeem outstanding bonds.

 21-4          (b)  If refunding bonds are sold, they may be sold in an

 21-5    amount necessary to:

 21-6                (1)  pay principal of, interest on, and premium, if

 21-7    any, of the bonds being refunded;

 21-8                (2)  make a deposit in a reserve fund as provided in

 21-9    the resolution authorizing the refunding bonds; and

21-10                (3)  pay expenses incurred in the issuance, sale, and

21-11    delivery of the refunding bonds.

21-12          (c)  Until refunding bond proceeds are needed for purposes

21-13    under Subsection (b), the commission [board] may invest them in

21-14    direct obligations of the United States, and may use or pledge the

21-15    income from the investments as provided in the resolution

21-16    authorizing the refunding bonds.

21-17          (d)  In addition to the authority provided by this section,

21-18    the commission [board] may refund its outstanding bonds according

21-19    to applicable general law.

21-20          SECTION 3.  Section 109.47(a), Education Code, is amended to

21-21    read as follows:

21-22          (a)  The board may select and lease a portion of the campus

21-23    to the Texas National Guard for the purpose of erecting an armory

21-24    and other buildings suitable for use by the Texas National Guard.

21-25    The board may enter into a lease contract with the Texas Military

21-26    Facilities Commission [National Guard Armory Board] on terms which

21-27    are suitable and satisfactory to the board for a term of not more

 22-1    than 99 years.

 22-2          SECTION 4.  Sections 431.030(a), (b), and (c), Government

 22-3    Code, are amended to read as follows:

 22-4          (a)  Except as provided by Subsection (b), the adjutant

 22-5    general, for and on behalf of the state, may lease from the Texas

 22-6    Military Facilities Commission [National Guard Armory Board] a

 22-7    building, its site, and the equipment in it, as provided by Section

 22-8    435.023, for use as an armory or for another proper purpose.  The

 22-9    adjutant general may renew the lease.

22-10          (b)  If adequate facilities for armory purposes are available

22-11    for rental from the Texas Military Facilities Commission [National

22-12    Guard Armory Board] in or about a municipality, the adjutant

22-13    general may not lease property in or about the municipality for

22-14    those purposes from a person other than the commission [board].

22-15          (c)  If all or part of a state-owned Texas National Guard

22-16    camp and the land, improvements, buildings, facilities,

22-17    installations, and personal property connected with the camp are

22-18    designated by the adjutant general as surplus or are in excess of

22-19    the needs of the Texas National Guard or its successors or

22-20    components, the adjutant general, for and on behalf of the state,

22-21    may transfer the property to the Texas Military Facilities

22-22    Commission [National Guard Armory Board] for administration, sale,

22-23    or other proper disposal.  Before declaring property as surplus and

22-24    transferring it to the commission [board], the adjutant general may

22-25    remove, sever, dismantle, or exchange all or part of the property

22-26    for the use and benefit of the Texas National Guard or its

22-27    successors.

 23-1          SECTION 5.  Section 431.045(c), Government Code, is amended

 23-2    to read as follows:

 23-3          (c)  The governing body of a county or municipality, on

 23-4    behalf of the county or municipality, may donate to the Texas

 23-5    Military Facilities Commission [National Guard Armory Board], or to

 23-6    a unit for transfer to that commission [board], land for use as a

 23-7    site for an armory or other building suitable for use by a unit.

 23-8    The donation may be in fee simple or otherwise.

 23-9          SECTION 6.  Section 9B(a), Texas Public Finance Authority Act

23-10    (Article 601d, Vernon's Texas Civil Statutes), is amended to read

23-11    as follows:

23-12          (a)  With respect to all bonds authorized to be issued by the

23-13    Texas Military Facilities Commission [National Guard Armory Board],

23-14    Texas National Research Laboratory Commission, Parks and Wildlife

23-15    Department, and all institutions of higher education authorized to

23-16    issue bonds under Chapter 55, Education Code, the authority has the

23-17    exclusive authority to act on behalf of those entities in issuing

23-18    bonds on their behalf.  In connection with those issuances and with

23-19    the issuance of refunding bonds on behalf of those entities, the

23-20    authority is subject to all rights, duties, and conditions

23-21    surrounding issuance previously applicable to the issuing entity

23-22    under the statute authorizing the issuance.  All references in an

23-23    authorizing statute to the entity on whose behalf the bonds are

23-24    being issued apply equally to the authority in its capacity as

23-25    issuer on behalf of the entity.

23-26          SECTION 7.  (a)  The name of the Texas National Guard Armory

23-27    Board is changed to the Texas Military Facilities Commission.  A

 24-1    reference in law to the board means the commission.

 24-2          (b)  Before using new stationery or other supplies printed

 24-3    with the name Texas Military Facilities Commission, the commission

 24-4    shall use all stationery and other supplies that are printed with

 24-5    the commission's former name and that are in its possession on the

 24-6    effective date of this Act.

 24-7          SECTION 8.  The changes in law made by this Act relating to

 24-8    the qualifications of, and the prohibitions applying to, members of

 24-9    the Texas Military Facilities Commission do not affect the

24-10    entitlement of a member of the commission serving immediately

24-11    before the effective date of this Act to continue to carry out the

24-12    functions of the commission for the remainder of the member's term.

24-13    The changes in law apply only to a member appointed on or after

24-14    September 1, 1997.  This Act does not prohibit a person who is a

24-15    member of the commission on September 1, 1997, from being

24-16    reappointed to the commission if the person has the qualifications

24-17    required for a member under Chapter 435, Government Code, as

24-18    amended by this Act.

24-19          SECTION 9.  This Act takes effect September 1, 1997.

24-20          SECTION 10.  The importance of this legislation and the

24-21    crowded condition of the calendars in both houses create an

24-22    emergency and an imperative public necessity that the

24-23    constitutional rule requiring bills to be read on three several

24-24    days in each house be suspended, and this rule is hereby suspended.