1-1     By:  Harris                                           S.B. No. 1843

 1-2           (In the Senate - Filed March 14, 1997; March 24, 1997, read

 1-3     first time and referred to Committee on Intergovernmental

 1-4     Relations; April 18, 1997, reported adversely, with favorable

 1-5     Committee Substitute by the following vote:  Yeas 9, Nays 0;

 1-6     April 18, 1997, sent to printer.)

 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 1843                    By:  Cain

 1-8                            A BILL TO BE ENTITLED

 1-9                                   AN ACT

1-10     relating to authorizing certain public entities to join together to

1-11     finance, construct, acquire, operate, and maintain public

1-12     facilities; authorizing the issuance of bonds and granting the

1-13     power of eminent domain.

1-14           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-15           SECTION 1.  Subtitle C, Title 12, Local Government Code, is

1-16     amended by adding Chapter 396 to read as follows:

1-17             CHAPTER 396.  JOINT OWNERSHIP OF PUBLIC FACILITIES

1-18           Sec. 396.001.  PURPOSE.  The purpose of this chapter is to

1-19     clarify and make definite and secure the right and authority of

1-20     public entities to join together as co-tenants or co-owners in the

1-21     planning, financing, acquisition, construction, ownership,

1-22     operation, and maintenance of public facilities as a means of

1-23     achieving economies of scale and making more efficient use of

1-24     public resources.

1-25           Sec. 396.002.  DEFINITIONS.  In this chapter:

1-26                 (1)  "Public entity" means an incorporated city or

1-27     town, a county, or an independent school district or a public

1-28     corporation acting on behalf of such entities.

1-29                 (2)  "Public facility" means an administrative

1-30     facility, public safety facility, parks and recreational facility,

1-31     maintenance and service center facility, library facility,

1-32     communications facility, water treatment and storage facility,

1-33     judicial facility, emergency medical service facility, detention

1-34     facility, or any other similar facility necessary or incident to

1-35     providing public services or public accommodations.

1-36           Sec. 396.003.  AGREEMENTS BY PUBLIC ENTITIES.  (a)  Two or

1-37     more public entities are authorized to join together to finance,

1-38     acquire, construct, operate, and maintain public facilities and to

1-39     enter into agreements for the planning, financing, acquisition,

1-40     construction, ownership, operation, and maintenance of such public

1-41     facilities so that the same, or an undivided interest in the

1-42     facilities, will be jointly owned in co-tenancy or co-ownership

1-43     with such ownership interests as may be approved by the governing

1-44     bodies of the public entities and provided in an agreement approved

1-45     and authorized by the governing bodies.

1-46           (b)  In connection with such jointly owned and operated

1-47     public facilities, each public entity entering into an agreement

1-48     under this section shall owe all of the duties and shall have and

1-49     be entitled to all of the rights, powers, liabilities, privileges,

1-50     and exemptions attributable to the undivided interest which it

1-51     would have with respect to an entire interest in public facilities

1-52     planned, financed, acquired, constructed, owned, operated, and

1-53     maintained by it alone.

1-54           (c)  Any agreement by and between public entities relating to

1-55     the joint financing, acquisition, construction, operation, and

1-56     maintenance of public facilities executed pursuant to the

1-57     provisions of this section may be submitted to the attorney general

1-58     in connection with any proceedings submitted for approval for the

1-59     issuance of bonds or other obligations issued by the public

1-60     entities to finance the costs of constructing or acquiring such

1-61     public facilities, and when approved as to legality by the attorney

1-62     general, the agreement shall be incontestable.

1-63           (d)  In an agreement entered into under this section, the

1-64     governing bodies of the public entities may delegate to one or more

 2-1     officials of the public entities such powers and authority with

 2-2     respect to the planning, design, construction, acquisition,

 2-3     operation, and maintenance of the jointly owned public facilities

 2-4     as the governing bodies deem appropriate.

 2-5           Sec. 396.004.  POWERS OF PARTICIPATING ENTITIES.  (a)  Each

 2-6     public entity entering into an agreement under Section 396.003

 2-7     shall have the right and power to use its means and assets in

 2-8     planning, acquiring, constructing, owning, operating, and

 2-9     maintaining its undivided interest and share in the public

2-10     facilities and to issue bonds and other securities to raise funds

2-11     for those purposes in the same way and to the same extent and

2-12     subject to all of the conditions which would apply if the undivided

2-13     interest of the entity were an entire interest in the public

2-14     facility.

2-15           (b)  A public entity entering into an agreement under Section

2-16     396.003 shall have the right and power to acquire, for the use and

2-17     benefit of all participating public entities, by purchase or

2-18     through the exercise of the power of eminent domain, lands,

2-19     easements, and properties for the purpose of jointly owned public

2-20     facilities and shall have the power to transfer or convey such

2-21     lands, easements, and properties, or interests therein, or

2-22     otherwise to cause such lands, easements, and properties, or

2-23     interests therein, to become vested in other participating public

2-24     entities to the extent and in the manner agreed between the

2-25     participating public entities.  In all cases in which a

2-26     participating public entity exercises the right and power of

2-27     eminent domain conferred by this subsection, it shall be controlled

2-28     by the law governing the condemnation of property by incorporated

2-29     cities and towns in this state, and the right and power of eminent

2-30     domain conferred by this subsection shall include the right and

2-31     power to take the fee title in land so condemned, except that no

2-32     participating public entity has the right or power to take by the

2-33     exercise of the power of eminent domain any public facilities, or

2-34     interest in any public facilities, belonging to any other entity,

2-35     or the power to take land or any interest in land by the exercise

2-36     of the power of eminent domain.

2-37           (c)  Each participating public entity shall have the right

2-38     and power to enter into contracts for specialized insurance

2-39     appertaining to property and risks in connection with and incident

2-40     to the ownership, operation, and maintenance of the public

2-41     facilities, in addition to the usual forms of available insurance.

2-42     Each participating public entity shall be authorized to enter into

2-43     contracts for insurance for the use and benefit of each of the

2-44     other participating public entities as though the insurance were

2-45     for its sole benefit and to cause the rights of the other

2-46     participating public entities to be protected under such contracts

2-47     according to their respective undivided interests or entitlement

2-48     under applicable agreements between the participating public

2-49     entities.

2-50           (d)  Nothing in this section shall be construed to limit the

2-51     scope and application of Section 396.003.

2-52           Sec. 396.005.  ADDITIONAL AUTHORITY OF CHAPTER.  The powers

2-53     and authority granted to public entities by this chapter shall be

2-54     in addition to and in substitution for any powers and authority

2-55     granted to public entities under the laws of this state, and the

2-56     exercise by any public entities of the powers and authority granted

2-57     by this chapter and the performance or effectuation of any

2-58     agreements entered into pursuant to the provisions of this chapter

2-59     shall be deemed to constitute additional public purposes of such

2-60     public entities, including the power to issue bonds, notes, or

2-61     other obligations for the accomplishment of such purposes,

2-62     notwithstanding the existence of any express or implied limitations

2-63     of the powers, authority, or purposes under any other laws or

2-64     charter provisions.

2-65           SECTION 2.  The importance of this legislation and the

2-66     crowded condition of the calendars in both houses create an

2-67     emergency and an imperative public necessity that the

2-68     constitutional rule requiring bills to be read on three several

2-69     days in each house be suspended, and this rule is hereby suspended,

 3-1     and that this Act take effect and be in force from and after its

 3-2     passage, and it is so enacted.

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