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.