By: Harris S.B. No. 1843
A BILL TO BE ENTITLED
AN ACT
1-1 relating to authorizing certain public entities to join together to
1-2 finance, construct, acquire, operate, and maintain public
1-3 facilities; authorizing the issuance of bonds and granting the
1-4 power of eminent domain.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subtitle C, Title 12, Local Government Code, is
1-7 amended by adding Chapter 396 to read as follows:
1-8 CHAPTER 396. JOINT OWNERSHIP OF PUBLIC FACILITIES
1-9 Sec. 396.001. PURPOSE. The purpose of this chapter is to
1-10 clarify and make definite and secure the right and authority of
1-11 public entities to join together as co-tenants or co-owners in the
1-12 planning, financing, acquisition, construction, ownership,
1-13 operation, and maintenance of public facilities as a means of
1-14 achieving economies of scale and making more efficient use of
1-15 public resources.
1-16 Sec. 396.002. DEFINITIONS. In this chapter:
1-17 (1) "Public entity" means an incorporated city or
1-18 town, a county, or an independent school district or a public
1-19 corporation acting on behalf of such entities.
1-20 (2) "Public facility" means an administrative
1-21 facility, public safety facility, parks and recreational facility,
1-22 maintenance and service center facility, library facility,
1-23 communications facility, water treatment and storage facility,
2-1 judicial facility, emergency medical service facility, detention
2-2 facility, or any other similar facility necessary or incident to
2-3 providing public services or public accommodations.
2-4 Sec. 396.003. AGREEMENTS BY PUBLIC ENTITIES. (a) Two or
2-5 more public entities are authorized to join together to finance,
2-6 acquire, construct, operate, and maintain public facilities and to
2-7 enter into agreements for the planning, financing, acquisition,
2-8 construction, ownership, operation, and maintenance of such public
2-9 facilities so that the same, or an undivided interest in the
2-10 facilities, will be jointly owned in co-tenancy or co-ownership
2-11 with such ownership interests as may be approved by the governing
2-12 bodies of the public entities and provided in an agreement approved
2-13 and authorized by the governing bodies.
2-14 (b) In connection with such jointly owned and operated
2-15 public facilities, each public entity entering into an agreement
2-16 under this section shall owe all of the duties and shall have and
2-17 be entitled to all of the rights, powers, liabilities, privileges,
2-18 and exemptions attributable to the undivided interest which it
2-19 would have with respect to an entire interest in public facilities
2-20 planned, financed, acquired, constructed, owned, operated, and
2-21 maintained by it alone.
2-22 (c) Any agreement by and between public entities relating to
2-23 the joint financing, acquisition, construction, operation, and
2-24 maintenance of public facilities executed pursuant to the
2-25 provisions of this section may be submitted to the attorney general
3-1 in connection with any proceedings submitted for approval for the
3-2 issuance of bonds or other obligations issued by the public
3-3 entities to finance the costs of constructing or acquiring such
3-4 public facilities, and when approved as to legality by the attorney
3-5 general, the agreement shall be incontestable.
3-6 (d) In an agreement entered into under this section, the
3-7 governing bodies of the public entities may delegate to one or more
3-8 officials of the public entities such powers and authority with
3-9 respect to the planning, design, construction, acquisition,
3-10 operation, and maintenance of the jointly owned public facilities
3-11 as the governing bodies deem appropriate.
3-12 Sec. 396.004. POWERS OF PARTICIPATING ENTITIES. (a) Each
3-13 public entity entering into an agreement under Section 396.003
3-14 shall have the right and power to use its means and assets in
3-15 planning, acquiring, constructing, owning, operating, and
3-16 maintaining its undivided interest and share in the public
3-17 facilities and to issue bonds and other securities to raise funds
3-18 for those purposes in the same way and to the same extent and
3-19 subject to all of the conditions which would apply if the undivided
3-20 interest of the entity were an entire interest in the public
3-21 facility.
3-22 (b) A public entity entering into an agreement under Section
3-23 396.003 shall have the right and power to acquire, for the use and
3-24 benefit of all participating public entities, by purchase or
3-25 through the exercise of the power of eminent domain, lands,
4-1 easements, and properties for the purpose of jointly owned public
4-2 facilities and shall have the power to transfer or convey such
4-3 lands, easements, and properties, or interests therein, or
4-4 otherwise to cause such lands, easements, and properties, or
4-5 interests therein, to become vested in other participating public
4-6 entities to the extent and in the manner agreed between the
4-7 participating public entities. In all cases in which a
4-8 participating public entity exercises the right and power of
4-9 eminent domain conferred by this subsection, it shall be controlled
4-10 by the law governing the condemnation of property by incorporated
4-11 cities and towns in this state, and the right and power of eminent
4-12 domain conferred by this subsection shall include the right and
4-13 power to take the fee title in land so condemned, except that no
4-14 participating public entity has the right or power to take by the
4-15 exercise of the power of eminent domain any public facilities, or
4-16 interest in any public facilities, belonging to any other entity,
4-17 or the power to take land or any interest in land by the exercise
4-18 of the power of eminent domain.
4-19 (c) Each participating public entity shall have the right
4-20 and power to enter into contracts for specialized insurance
4-21 appertaining to property and risks in connection with and incident
4-22 to the ownership, operation, and maintenance of the public
4-23 facilities, in addition to the usual forms of available insurance.
4-24 Each participating public entity shall be authorized to enter into
4-25 contracts for insurance for the use and benefit of each of the
5-1 other participating public entities as though the insurance were
5-2 for its sole benefit and to cause the rights of the other
5-3 participating public entities to be protected under such contracts
5-4 according to their respective undivided interests or entitlement
5-5 under applicable agreements between the participating public
5-6 entities.
5-7 (d) Nothing in this section shall be construed to limit the
5-8 scope and application of Section 396.003.
5-9 Sec. 396.005. ADDITIONAL AUTHORITY OF CHAPTER. The powers
5-10 and authority granted to public entities by this chapter shall be
5-11 in addition to and in substitution for any powers and authority
5-12 granted to public entities under the laws of this state, and the
5-13 exercise by any public entities of the powers and authority granted
5-14 by this chapter and the performance or effectuation of any
5-15 agreements entered into pursuant to the provisions of this chapter
5-16 shall be deemed to constitute additional public purposes of such
5-17 public entities, including the power to issue bonds, notes, or
5-18 other obligations for the accomplishment of such purposes,
5-19 notwithstanding the existence of any express or implied limitations
5-20 of the powers, authority, or purposes under any other laws or
5-21 charter provisions.
5-22 SECTION 2. The importance of this legislation and the
5-23 crowded condition of the calendars in both houses create an
5-24 emergency and an imperative public necessity that the
5-25 constitutional rule requiring bills to be read on three several
6-1 days in each house be suspended, and this rule is hereby suspended,
6-2 and that this Act take effect and be in force from and after its
6-3 passage, and it is so enacted.