By Cuellar H.B. No. 3316
Line and page numbers may not match official copy.
Bill not drafted by TLC or Senate E&E.
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to donations and other transfers of real or personal
1-3 property to institutions of higher education.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 272.001, Local Government Code, is
1-6 amended by amending Subsection (a) and adding Subsection (j) to
1-7 read as follows:
1-8 (a) Except for the types of land and interests covered by
1-9 Subsection (b), (g), (h), [or] (i), or (j) and except as provided
1-10 by Section 253.008, before land owned by a political subdivision of
1-11 the state may be sold or exchanged for other land, notice to the
1-12 general public of the offer of the land for sale or exchange must
1-13 be published in a newspaper of general circulation in either the
1-14 county in which the land is located or, if there is no such
1-15 newspaper, in an adjoining county. The notice must include a
1-16 description of the land, including its location, and the procedure
1-17 by which sealed bids to purchase the land or offers to exchange the
1-18 land may be submitted. The notice must be published on two
1-19 separate dates and the sale or exchange may not be made until after
1-20 the 14th day after the date of the second publication.
1-21 (j) A political subdivision may donate, exchange, convey,
2-1 sell or lease land and improvements, or any other interest in real
2-2 property, to an institution of higher education, as that term is
2-3 defined by Section 61.003, Education Code, to promote a public
2-4 purpose related to higher education. A political subdivision may
2-5 donate, exchange, convey, sell or lease the land for less than its
2-6 fair market value and without complying with the notice and bidding
2-7 requirements of Subsection (a).
2-8 SECTION 2. Article 5190.6, Revised Statutes, is amended by
2-9 amending Subsection 2(10), and adding Subsection 2(15) to read as
2-10 follows:
2-11 (10) "Project" shall mean the land, buildings,
2-12 equipment, facilities, and improvements (one or more) found by the
2-13 board of directors to be required or suitable for the promotion of
2-14 development and expansion of manufacturing and industrial
2-15 facilities, transportation facilities (including but not limited to
2-16 airports, ports, mass commuting facilities, and parking
2-17 facilities), sewage or solid waste disposal facilities, recycling
2-18 facilities, air or water pollution control facilities, facilities
2-19 for the furnishing of water to the general public, distribution
2-20 centers, [and] small warehouse facilities capable of serving as
2-21 decentralized storage and distribution centers, and facilities for
2-22 use by institutions of higher education, and for the promotion of
2-23 development or redevelopment and expansion, including costs of
2-24 administration and operation, of a military base closed or
2-25 realigned pursuant to recommendation of the Defense Closure and
3-1 Realignment Commission pursuant to the Defense Base Closure and
3-2 Realignment Act of 1990 (10 U.S.C. Section 2687 note) as amended,
3-3 and of facilities which are related to any of the foregoing, and in
3-4 furtherance of the public purposes of this Act, all as defined in
3-5 the rules of the department, irrespective of whether in existence
3-6 or required to be identified, acquired, or constructed thereafter.
3-7 As used in this Act, the term "development areas" shall mean any
3-8 area or areas of a city that the city finds and determines, after a
3-9 public hearing, should be developed in order to meet the
3-10 development objectives of the city. In addition, in blighted or
3-11 economically depressed areas, development areas, federally
3-12 designated empowerment zones and enterprise communities designated
3-13 under Section 1391, Internal Revenue Code of 1986, or federally
3-14 assisted new communities located within a home-rule city or a
3-15 federally designated economically depressed county of less than
3-16 50,000 persons according to the last federal decennial census, a
3-17 project may include the land, buildings, equipment, facilities, and
3-18 improvements (one or more) found by the board of directors to be
3-19 required or suitable for the promotion of commercial development
3-20 and expansion and in furtherance of the public purposes of this
3-21 Act, or for use by commercial enterprises, all as defined in the
3-22 rules of the department, irrespective of whether in existence or
3-23 required to be acquired or constructed thereafter. As used in this
3-24 Act, the term blighted or economically depressed areas shall mean
3-25 those areas and areas immediately adjacent thereto within a city
4-1 which by reason of the presence of a substantial number of
4-2 substandard, slum, deteriorated, or deteriorating structures, or
4-3 which suffer from a high relative rate of unemployment, or which
4-4 have been designated and included in a tax incremental district
4-5 created under Chapter 695, Acts of the 66th Legislature, Regular
4-6 Session, 1979 (Article 1066d, Vernon's Texas Civil Statutes), or
4-7 any combination of the foregoing, the city finds and determines,
4-8 after a hearing, substantially impair or arrest the sound growth of
4-9 the city, or constitute an economic or social liability and are a
4-10 menace to the public health, safety, or welfare in their present
4-11 condition and use. The department shall adopt guidelines that
4-12 describe the kinds of areas that may be considered to be blighted
4-13 or economically depressed. The city shall consider these
4-14 guidelines in making its findings and determinations. Notice of
4-15 the hearing at which the city considers establishment of a
4-16 development area or an economically depressed or blighted area
4-17 shall be posted at the city hall before the hearing.
4-18 "Federally assisted new communities" shall mean those
4-19 federally assisted areas which have received or will receive
4-20 assistance in the form of loan guarantees under Title X of the
4-21 National Housing Act and a portion of the federally assisted area
4-22 has received grants under Section 107(a)(1) of the Housing and
4-23 Community Development Act of 1974, as amended.
4-24 (15) "Institution of higher education" has the meaning
4-25 assigned by Section 61.003, Education Code.
5-1 SECTION 3. Article 5190.6, Revised Statutes, is amended by
5-2 amending Section 3 to read as follows:
5-3 Sec. 3. It is hereby found, determined, and declared:
5-4 (1) that the present and prospective right to gainful
5-5 employment and general welfare of the people of this state require
5-6 as a public purpose the promotion and development of new and
5-7 expanded business enterprises;
5-8 (2) that the existence, development, and expansion of
5-9 business, commerce, [and] industry, and higher education are
5-10 essential to the economic growth of the state and to the full
5-11 employment, welfare, and prosperity of its citizens;
5-12 (3) that the assistance provided by industrial
5-13 development corporations in promoting higher education
5-14 opportunities will encourage and foster the development and
5-15 diversification of the economy of the State and the elimination of
5-16 unemployment and underemployment in the State;
5-17 (4) that the means and measures authorized by this Act
5-18 and the assistance provided in this Act, especially with respect to
5-19 financing, are in the public interest and serve a public purpose of
5-20 the state in promoting the welfare of the citizens of the state
5-21 economically by the securing and retaining of business enterprises
5-22 and the resulting maintenance of a higher level of employment,
5-23 economic activity, and stability;
5-24 (5) that community industrial development corporations
5-25 in Texas have themselves invested substantial funds in successful
6-1 industrial development projects and have experienced difficulty in
6-2 undertaking such additional projects by reason of the partial
6-3 inadequacy of their own funds or funds potentially available from
6-4 local subscription sources and by reason of limitations of local
6-5 financial institutions in providing additional and sufficiently
6-6 sizable first mortgage loans; and
6-7 (6) that communities in this state are at a critical
6-8 disadvantage in competing with communities in other states for the
6-9 location or expansion of such enterprises by virtue of the
6-10 availability and prevalent use in all other states of financing and
6-11 other special incentives; therefore, the issuance of revenue bonds
6-12 by corporations on behalf of political subdivisions of the state as
6-13 hereinafter provided for the promotion and development of new and
6-14 expanded business enterprises to provide and encourage employment
6-15 and the public welfare is hereby declared to be in the public
6-16 interest and a public purpose.
6-17 This Act shall be liberally construed in conformity with the
6-18 intention of the legislature herein expressed.
6-19 SECTION 4. Article 5190.6, Revised Statutes, is amended by
6-20 amending Subsection 23(a) to read as follows:
6-21 Sec. 23. (a) The corporation shall have and exercise all of
6-22 the rights, powers, privileges, authority, and functions given by
6-23 the general laws of this state to nonprofit corporations
6-24 incorporated under the Texas Non-Profit Corporation Act, as amended
6-25 (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes); but to
7-1 the extent that the provisions of the general laws are in conflict
7-2 or inconsistent with this Act, this Act prevails. In addition, the
7-3 corporation shall have the following powers with respect to
7-4 projects together with all powers incidental thereto or necessary
7-5 for the performance of those hereinafter stated:
7-6 (1) to acquire, whether by construction, devise,
7-7 purchase, gift, lease, or otherwise or any one or more of such
7-8 methods and to construct, improve, maintain, equip, and furnish one
7-9 or more projects located within the state or within the coastal
7-10 waters of the state and within or partially within the limits of
7-11 the unit under whose auspices the corporation was created or within
7-12 the limits of a different unit where the governing body thereof
7-13 requests the corporation to exercise its powers therein;
7-14 (2) to lease to a user all or any part of any project
7-15 for such rentals and upon such terms and conditions as its board of
7-16 directors may deem advisable and not in conflict with the
7-17 provisions of this Act;
7-18 (3) to sell by installment payments or otherwise and
7-19 convey all or any part of any project to a user for such purchase
7-20 price and upon such terms and conditions as its board of directors
7-21 may deem advisable and not in conflict with the provisions of this
7-22 Act;
7-23 (4) to donate, exchange, convey, sell or lease land,
7-24 improvements, or any other interest in real property or
7-25 furnishings, fixtures or equipment, or personal property to an
8-1 institution of higher education for a legal purpose of the
8-2 institution upon such terms and conditions as the corporation's
8-3 board of directors may deem advisable that are not in conflict with
8-4 the provisions of this Act;
8-5 (5) to make secured or unsecured loans to a user for
8-6 the purpose of providing temporary or permanent financing or
8-7 refinancing of all or part of the cost of any project, including
8-8 the refunding of any outstanding obligations, mortgages, or
8-9 advances issued, made, or given by any person for the cost of a
8-10 project; and to charge and collect interest on such loans for such
8-11 loan payments and upon such terms and conditions as its board of
8-12 directors may deem advisable and not in conflict with the
8-13 provisions of this Act;
8-14 (6) [5] to issue bonds for the purpose of defraying
8-15 all or part of the cost of any project, whether or not the bonds
8-16 are exempt in whole or part from federal income taxation, to secure
8-17 the payment of such bonds as provided in this Act, and to sell
8-18 bonds at a price or prices determined by the board of directors or
8-19 to exchange bonds for property, labor, services, material, or
8-20 equipment comprising a project or incidental to the acquisition of
8-21 a project, and those bonds may bear interest at any rate or rates
8-22 determined by the board of directors, subject to the limitations
8-23 set forth in this Act;
8-24 (7) [6] as security for the payment of the principal
8-25 of and interest on any bonds issued and any agreements made in
9-1 connection therewith, to mortgage and pledge any or all of its
9-2 projects or any part or parts thereof, whether then owned or
9-3 thereafter acquired, and to assign any mortgage and repledge any
9-4 security conveyed to the corporation to secure any loan made by the
9-5 corporation and to pledge the revenues and receipts therefrom;
9-6 (8) [7] to sue and be sued, complain and defend, in
9-7 its corporate name;
9-8 (9) [8] to have a corporate seal and to use the same
9-9 by causing it or a facsimile thereof to be impressed on, affixed
9-10 to, or in any manner reproduced upon instruments of any nature
9-11 required to be executed by its proper officers;
9-12 (10) [9] to make and alter bylaws not inconsistent
9-13 with its articles of incorporation or with the laws of this state
9-14 with the approval of the unit under whose auspices the corporation
9-15 was created by resolution of the governing body for the
9-16 administration and regulation of the affairs of the corporation;
9-17 (11) [10] to cease its corporate activities and
9-18 terminate its existence by voluntary dissolution as provided
9-19 herein; and
9-20 (12) [11] whether included in the foregoing or not, to
9-21 have and exercise all powers necessary or appropriate to effect any
9-22 or all of the purposes for which the corporation is organized which
9-23 powers shall be subject at all times to the control of the
9-24 governing body of the unit under whose auspices the corporation was
9-25 created.
10-1 SECTION 5. Subchapter A, Chapter 130, Education Code, is
10-2 amended by adding Sec. 130.0021 to read as follows:
10-3 Sec. 130.0021. CONVEYANCE OF CERTAIN REAL PROPERTY. A
10-4 public junior college or a public junior college district may
10-5 donate, exchange, convey, sell or lease land, improvements, or any
10-6 other interest in any real property for less than the fair market
10-7 value of the interest if the donation, conveyance, exchange, sale
10-8 or lease is being made to a university system and the governing
10-9 board of the public junior college or the public junior college
10-10 district also finds that the donation, conveyance, exchange, sale
10-11 or lease of the interest promotes a public purpose related to
10-12 higher education within the service area of the public junior
10-13 college or the public junior college district.
10-14 SECTION 6. EMERGENCY. The importance of this legislation
10-15 and the crowded condition of the calendars in both houses create an
10-16 emergency and an imperative public necessity that the
10-17 constitutional rule requiring bills to be read on three several
10-18 days in each house be suspended, and this rule is hereby suspended,
10-19 and that this Act take effect and be in force from and after its
10-20 passage, and it is so enacted.