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. 6-4 COMMITTEE AMENDMENT NO. 1 6-5 Amend S.B. 1843 as follows: 6-6 (1) On page 3, lines 24-25 strike "or through the exercise 6-7 of the power of eminent domain,"; and 6-8 (2) On page 4, lines 7-18 after "entities." strike the 6-9 remaining language in Subsection (b). 6-10 Denny