By Hinojosa H.B. No. 1133
76R2447 MCK-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to abolishing the Texas Military Facilities Commission and
1-3 transferring its functions to the adjutant general.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 431.021, Government Code, is amended to
1-6 read as follows:
1-7 Sec. 431.021. DEFINITIONS [DEFINITION]. In this
1-8 subchapter:[,]
1-9 (1) "Bond" includes a debenture or other evidence of
1-10 indebtedness.
1-11 (2) "Department" ["department"] means the adjutant
1-12 general's department.
1-13 SECTION 2. Section 431.045(c), Government Code, is amended
1-14 to read as follows:
1-15 (c) The governing body of a county or municipality, on
1-16 behalf of the county or municipality, may donate to the adjutant
1-17 general [Texas Military Facilities Commission], or to a unit for
1-18 transfer to the adjutant general [that commission], land for use as
1-19 a site for an armory or other building suitable for use by a unit.
1-20 The donation may be in fee simple or otherwise.
1-21 SECTION 3. Sections 435.013, 435.014, 435.016, 435.021,
1-22 435.022, 435.023, 435.024, 435.025, 435.026, 435.041, 435.042,
1-23 435.043, 435.044, 435.045, 435.046, 435.048, and 435.027,
1-24 Government Code, are transferred to Subchapter B, Chapter 431,
2-1 Government Code, redesignated respectively as Sections 431.0291,
2-2 431.0292, 431.0293, 431.0301, 431.0302, 431.0303, 431.0304,
2-3 431.0305, 431.0306, 431.0351, 431.0352, 431.0353, 431.0354,
2-4 431.0355, 431.0356, 431.0357, and 431.0361, and amended to read as
2-5 follows:
2-6 Sec. 431.0291 [435.013]. GENERAL POWERS. (a) The adjutant
2-7 general [commission] is the exclusive authority for the
2-8 construction, repair, and maintenance of National Guard armories,
2-9 facilities, and improvements owned by the state located on
2-10 department [commission] property. The adjutant general
2-11 [commission] is a public authority and a body politic and corporate
2-12 and has all powers necessary for the acquisition, construction,
2-13 rental, control, maintenance, operation, and disposition of Texas
2-14 National Guard or Texas State Guard facilities and real property,
2-15 including all property and equipment necessary or useful in
2-16 connection with the facilities.
2-17 (b) The adjutant general [commission] may:
2-18 (1) sue and be sued;
2-19 (2) enter into contracts in connection with any matter
2-20 within the adjutant general's [its] purposes or duties; and
2-21 (3) have and use a corporate seal.
2-22 Sec. 431.0292 [435.014]. PUBLIC HEARINGS. The adjutant
2-23 general [commission] shall develop and implement policies that
2-24 provide the public with a reasonable opportunity to appear before
2-25 the adjutant general [commission] and to speak on any issue under
2-26 the jurisdiction of the adjutant general [commission].
2-27 Sec. 431.0293 [435.016]. FUNDS SUBJECT TO STATE FUNDS REFORM
3-1 ACT. All money paid to the adjutant general [commission] under
3-2 this chapter, except money directly related to bonds used to build,
3-3 renovate, or modify National Guard armories, is subject to
3-4 Subchapter F, Chapter 404.
3-5 Sec. 431.0301 [435.021]. ACQUISITION; MANAGEMENT; PLEDGE OF
3-6 RENTS, ISSUES, AND PROFITS. (a) The adjutant general
3-7 [commission] by gift, lease, or purchase may acquire real and
3-8 personal property, including leasehold estates in real property,
3-9 for use for any purpose the adjutant general [commission] considers
3-10 necessary in connection with the Texas National Guard or for the
3-11 use of units of the Texas National Guard.
3-12 (b) The adjutant general [commission] by gift, purchase, or
3-13 construction may acquire furniture and equipment suitable for
3-14 facility purposes.
3-15 (c) The adjutant general [commission] may hold, manage,
3-16 maintain, lease, or sell its property and may pledge all or part of
3-17 the rents, issues, and profits of the property.
3-18 Sec. 431.0302 [435.022]. CONSTRUCTION; FURNISHING AND
3-19 EQUIPMENT. (a) The adjutant general [commission] may construct
3-20 buildings on department [its] real property, whether held in fee
3-21 simple or otherwise. The adjutant general [commission] may furnish
3-22 and equip the buildings.
3-23 (b) The adjutant general [commission] may construct a
3-24 building on land comprising a state camp only on a site selected
3-25 and described by a board of officers. The adjutant general shall
3-26 select the officers from time to time for that purpose. The
3-27 officers shall select and describe the site promptly after request
4-1 by the [commission to the] adjutant general. The site may not
4-2 exceed 200,000 square feet. The officers shall certify the
4-3 description [to the commission] and furnish a copy of it to the
4-4 adjutant general, who shall preserve it in the adjutant general's
4-5 office. If the adjutant general [commission] constructs a building
4-6 on the site selected and described, the site becomes the property
4-7 of the adjutant general [commission] for all purposes of this
4-8 chapter as if the site had been acquired by gift to or purchase by
4-9 the adjutant general [commission].
4-10 Sec. 431.0303 [435.023]. LEASE OF PROPERTY. (a) [The
4-11 commission may execute and deliver a lease that leases to the state
4-12 a building, its site, and the equipment in it. The adjutant
4-13 general shall execute the lease for the state as provided by
4-14 Section 431.030. The commission shall determine a lawful term of
4-15 the lease and may renew the lease from time to time.]
4-16 [(b) The commission may make the annual rent charged the
4-17 state under the lease payable in installments. The amount of the
4-18 rent must be sufficient to:]
4-19 [(1) provide for the operation and maintenance of the
4-20 property;]
4-21 [(2) pay the interest on, provide for the retirement
4-22 of, and pay the expenses related to the issuance of, any bonds
4-23 issued to acquire, construct, or equip the property; and]
4-24 [(3) pay the commission's necessary expenses not
4-25 otherwise provided for.]
4-26 [(c)] The adjutant general [commission] may lease [the]
4-27 property to any person under terms the adjutant general
5-1 [commission] determines [if the state fails or refuses to:]
5-2 [(1) lease the property;]
5-3 [(2) renew an existing lease at the rent provided to
5-4 be paid; or]
5-5 [(3) pay the rent required in the lease].
5-6 (b) [(d)] The law requiring notice and competitive bids does
5-7 not apply to a lease under this section.
5-8 (c) [(e)] For the purposes of this section the term "lease"
5-9 includes "sublease."
5-10 Sec. 431.0304 [435.024]. TRANSFER TO STATE. When property
5-11 that the adjutant general [commission] owns is fully paid for and
5-12 free of liens, and all obligations incurred in connection with the
5-13 acquisition and construction of the property have been fully paid,
5-14 the adjutant general [commission] may donate and transfer the
5-15 property to the state by appropriate instruments of transfer. The
5-16 instruments of transfer shall be kept in the custody of the
5-17 [adjutant general's] department.
5-18 Sec. 431.0305 [435.025]. ADJUTANT GENERAL [COMMISSION]
5-19 PROPERTY. (a) When property that the adjutant general
5-20 [commission] owns is fully paid for and free of liens, and all
5-21 obligations incurred in connection with the acquisition and
5-22 construction of the property have been fully paid, the adjutant
5-23 general [commission] may properly dispose of the property if:
5-24 (1) the property is designated by [the commission and]
5-25 the adjutant general as surplus; and
5-26 (2) the disposal is in the best interests of the
5-27 adjutant general [commission] and the Texas National Guard and its
6-1 components or successors.
6-2 (b) [The commission may receive from the adjutant general a
6-3 state-owned national guard camp and all the land, improvements, and
6-4 personal property connected with it. The commission may:]
6-5 [(1) administer the property with its other property;
6-6 or]
6-7 [(2) properly dispose of the property if:]
6-8 [(A) the property is designated by the
6-9 commission and adjutant general as surplus; and]
6-10 [(B) the disposal is in the best interests of
6-11 the Texas National Guard and its components or successors.]
6-12 [(c)] To accomplish the purposes of Subsection (a)
6-13 [Subsections (a) and (b)], the adjutant general [commission] may
6-14 remove, dismantle, or sever any of the property or authorize its
6-15 removal, dismantling, or severance.
6-16 (c) [(d)] If property under this section is designated for
6-17 sale, the adjutant general [commission] shall sell it to the
6-18 highest bidder for cash. The adjutant general [commission] may
6-19 reject any or all bids.
6-20 (d) [(e)] If property under this section is designated for
6-21 exchange, the adjutant general [commission] may exchange the
6-22 property for one or more parcels of land equal to or exceeding the
6-23 value of the [commission-owned] property owned by the adjutant
6-24 general.
6-25 (e) A [(f) Except as provided by Subsection (g)(1), a]
6-26 sale, deed, or exchange made under this section must reserve to the
6-27 state a one-sixteenth mineral interest free of cost of production.
7-1 (f) [(g)] The adjutant general [commission] may:
7-2 (1) reconvey to the original grantor or donor all
7-3 rights, title, and interests, including mineral interests, to all
7-4 or part of the land conveyed by that person; and
7-5 (2) convey to the original grantor or donor, on a
7-6 negotiated basis at fair market value, improvements constructed on
7-7 the land reconveyed.
7-8 (g) [(h)] The adjutant general [commission] shall deposit
7-9 proceeds of sales under this section in the state treasury to the
7-10 credit of the adjutant general [commission] for the use and benefit
7-11 of the Texas National Guard or its components or successors.
7-12 Sec. 431.0306 [435.026]. TAX STATUS OF PROPERTY. Property
7-13 held by the adjutant general [commission] and rents, issues, and
7-14 profits of the property are exempt from taxation by the state, a
7-15 municipality, a county or other political subdivision, or a taxing
7-16 district of the state.
7-17 Sec. 431.0351 [435.041]. BORROWING MONEY; ISSUING AND
7-18 SELLING BONDS. (a) The adjutant general [commission] from time to
7-19 time may borrow money and may request the Texas Public Finance
7-20 Authority, on behalf of the adjutant general [commission], to issue
7-21 and sell fully negotiable bonds to acquire one or more building
7-22 sites or buildings or to construct, remodel, repair, or equip one
7-23 or more buildings.
7-24 (b) The Texas Public Finance Authority may sell the bonds in
7-25 any manner it determines to be in the best interest of the adjutant
7-26 general [commission], except that it may not sell a bond that has
7-27 not been approved by the attorney general and registered with the
8-1 comptroller. The Texas Public Finance Authority is subject to all
8-2 rights, duties, and conditions set forth in this subchapter with
8-3 respect to the issuance of bonds by the adjutant general
8-4 [commission], including the issuance of refunding bonds under
8-5 Section 431.0357 [435.048].
8-6 Sec. 431.0352 [435.042]. FORM. (a) [The bonds must be
8-7 signed by the commission's presiding officer and countersigned by
8-8 its treasurer. The commission's corporate seal must be affixed to
8-9 the bonds and attested by the commission's executive director. The
8-10 commission is not prohibited from issuing bonds signed or attested
8-11 by a commission officer because the officer ceased to be an officer
8-12 before the bonds were issued.]
8-13 [(b)] The bonds [commission] may be issued [issue bonds] in:
8-14 (1) fully registered form without interest coupons;
8-15 (2) coupon form registrable as to principal only; or
8-16 (3) bearer form with coupons attached.
8-17 (b) [(c) Coupons must be authenticated by the facsimile
8-18 signature of the commission's treasurer.]
8-19 [(d)] The bonds [commission] may be issued [issue bonds] in
8-20 series. All series of bonds issued under the same trust indenture
8-21 or trust agreement must rank equally without preference or priority
8-22 of one series over another.
8-23 Sec. 431.0353 [435.043]. SECURITY AND REPAYMENT. (a)
8-24 Except as provided by Subsection (b), the bonds must be secured by
8-25 a pledge of, and payable solely from, the rents, issues, and
8-26 profits of:
8-27 (1) all adjutant general [commission] property; or
9-1 (2) property the adjutant general [commission]
9-2 acquires or constructs, in whole or part, with the proceeds of the
9-3 sale of the bonds.
9-4 (b) Interest due not later than two years after the date
9-5 bonds or a series of bonds are issued and sold may be paid from the
9-6 proceeds of the sale of the bonds.
9-7 Sec. 431.0354 [435.044]. TAX STATUS OF BONDS. The bonds and
9-8 interest on the bonds are exempt from taxation, except inheritance
9-9 taxes, by the state, a municipality, a county or other political
9-10 subdivision, or a taxing district of the state.
9-11 Sec. 431.0355 [435.045]. SECURITY FOR DEPOSITS. The bonds
9-12 are eligible to secure deposits of public funds of the state and of
9-13 a municipality, county, school district, or other political
9-14 corporation or subdivision of the state. The bonds are lawful and
9-15 sufficient security for these deposits to the extent of their value
9-16 when accompanied by all unmatured coupons.
9-17 Sec. 431.0356 [435.046]. BONDS AS INVESTMENTS. The bonds
9-18 are legal and authorized investments for:
9-19 (1) a bank;
9-20 (2) a savings bank;
9-21 (3) a trust company;
9-22 (4) a savings and loan association;
9-23 (5) an insurance company;
9-24 (6) a fiduciary;
9-25 (7) a trustee;
9-26 (8) public funds of the state, including the permanent
9-27 school fund; and
10-1 (9) a sinking fund of a municipality, county, school
10-2 district, or other political corporation or subdivision of the
10-3 state.
10-4 Sec. 431.0357 [435.048]. REFUNDING BONDS. (a) The adjutant
10-5 general [commission] may request the Texas Public Finance Authority
10-6 to issue refunding bonds to refund any outstanding bonds that the
10-7 adjutant general [commission], or the Texas Public Finance
10-8 Authority on behalf of the adjutant general [commission], has
10-9 lawfully issued, and interest on the bonds. The Texas Public
10-10 Finance Authority may issue the refunding bonds in exchange or
10-11 substitution for outstanding bonds or may sell the refunding bonds
10-12 and use the proceeds to pay or redeem outstanding bonds.
10-13 (b) If refunding bonds are sold, they may be sold in an
10-14 amount necessary to:
10-15 (1) pay principal of, interest on, and premium, if
10-16 any, of the bonds being refunded;
10-17 (2) make a deposit in a reserve fund as provided in
10-18 the resolution authorizing the refunding bonds; and
10-19 (3) pay expenses incurred in the issuance, sale, and
10-20 delivery of the refunding bonds.
10-21 (c) Until refunding bond proceeds are needed for purposes
10-22 under Subsection (b), the adjutant general [commission] may invest
10-23 them in direct obligations of the United States, and may use or
10-24 pledge the income from the investments as provided in the
10-25 resolution authorizing the refunding bonds.
10-26 (d) In addition to the authority provided by this section,
10-27 the adjutant general [commission] may refund its outstanding bonds
11-1 according to applicable general law.
11-2 Sec. 431.0361 [435.027]. GRONER A. PITTS NATIONAL GUARD
11-3 ARMORY. The Texas National Guard armory located in Brownwood,
11-4 Texas, is named the Groner A. Pitts National Guard Armory in honor
11-5 of Groner A. Pitts.
11-6 SECTION 4. Sections 109.47(a) and (c), Education Code, are
11-7 amended to read as follows:
11-8 (a) The board may select and lease a portion of the campus
11-9 to the Texas National Guard for the purpose of erecting an armory
11-10 and other buildings suitable for use by the Texas National Guard.
11-11 The board may enter into a lease contract with the adjutant general
11-12 [Texas Military Facilities Commission] on terms which are suitable
11-13 and satisfactory to the board for a term of not more than 99 years.
11-14 (c) The board may permit the adjutant general [Texas
11-15 National Guard Armory Board] and the Texas National Guard and any
11-16 of its subdivisions ingress upon and egress from the campus for the
11-17 purpose of going to and from the armory and other buildings and the
11-18 drill ground.
11-19 SECTION 5. Section 9B(a), Texas Public Finance Authority Act
11-20 (Article 601d, Vernon's Texas Civil Statutes), is amended to read
11-21 as follows:
11-22 (a) With respect to all bonds authorized to be issued by the
11-23 adjutant general [Texas Military Facilities Commission], Texas
11-24 National Research Laboratory Commission, Parks and Wildlife
11-25 Department, the Texas Low-Level Radioactive Waste Disposal
11-26 Authority, and all institutions of higher education authorized to
11-27 issue bonds under Chapter 55, Education Code, the authority has the
12-1 exclusive authority to act on behalf of those entities in issuing
12-2 bonds on their behalf. In connection with those issuances and with
12-3 the issuance of refunding bonds on behalf of those entities, the
12-4 authority is subject to all rights, duties, and conditions
12-5 surrounding issuance previously applicable to the issuing entity
12-6 under the statute authorizing the issuance. All references in an
12-7 authorizing statute to the entity on whose behalf the bonds are
12-8 being issued apply equally to the authority in its capacity as
12-9 issuer on behalf of the entity.
12-10 SECTION 6. Sections 431.030, 435.001-435.012, 435.015,
12-11 435.017, and 435.047, Government Code, are repealed.
12-12 SECTION 7. (a) The Texas Military Facilities Commission is
12-13 abolished. All powers, duties, obligations, rights, contracts,
12-14 bonds, appropriations, records, real or personal property, and
12-15 personnel of the Texas Military Facilities Commission are
12-16 transferred to the adjutant general.
12-17 (b) A rule, policy, procedure, or decision of the Texas
12-18 Military Facilities Commission continues in effect as a rule,
12-19 policy, procedure, or decision of the adjutant general until
12-20 superseded by an act of the adjutant general.
12-21 (c) A reference in another law to the Texas Military
12-22 Facilities Commission means the adjutant general.
12-23 SECTION 8. This Act takes effect September 1, 1999.
12-24 SECTION 9. The importance of this legislation and the
12-25 crowded condition of the calendars in both houses create an
12-26 emergency and an imperative public necessity that the
12-27 constitutional rule requiring bills to be read on three several
13-1 days in each house be suspended, and this rule is hereby suspended.