AN ACT
1-1 relating to donations and other transfers of real or personal
1-2 property to institutions of higher education.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 272.001, Local Government Code, is
1-5 amended by amending Subsection (a) and adding Subsection (j) to
1-6 read as follows:
1-7 (a) Except for the types of land and interests covered by
1-8 Subsection (b), (g), (h), [or] (i), or (j) and except as provided
1-9 by Section 253.008, before land owned by a political subdivision of
1-10 the state may be sold or exchanged for other land, notice to the
1-11 general public of the offer of the land for sale or exchange must
1-12 be published in a newspaper of general circulation in either the
1-13 county in which the land is located or, if there is no such
1-14 newspaper, in an adjoining county. The notice must include a
1-15 description of the land, including its location, and the procedure
1-16 by which sealed bids to purchase the land or offers to exchange the
1-17 land may be submitted. The notice must be published on two
1-18 separate dates and the sale or exchange may not be made until after
1-19 the 14th day after the date of the second publication.
1-20 (j) A political subdivision may donate, exchange, convey,
1-21 sell, or lease land, improvements, or any other interest in real
1-22 property to an institution of higher education, as that term is
1-23 defined by Section 61.003, Education Code, to promote a public
1-24 purpose related to higher education. The political subdivision
2-1 shall determine the terms and conditions of the transaction so as
2-2 to effectuate and maintain the public purpose. A political
2-3 subdivision may donate, exchange, convey, sell, or lease the real
2-4 property interest for less than its fair market value and without
2-5 complying with the notice and bidding requirements of Subsection
2-6 (a).
2-7 SECTION 2. Section 2, Development Corporation Act of 1979
2-8 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
2-9 amending Subdivision (10) and adding Subdivision (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
2-26 Realignment Commission pursuant to the Defense Base Closure and
3-1 Realignment Act of 1990 (10 U.S.C. Section 2687 note) as amended,
3-2 and of facilities which are related to any of the foregoing, and in
3-3 furtherance of the public purposes of this Act, all as defined in
3-4 the rules of the department, irrespective of whether in existence
3-5 or required to be identified, acquired, or constructed thereafter.
3-6 As used in this Act, the term "development areas" shall mean any
3-7 area or areas of a city that the city finds and determines, after a
3-8 public hearing, should be developed in order to meet the
3-9 development objectives of the city. In addition, in blighted or
3-10 economically depressed areas, development areas, federally
3-11 designated empowerment zones and enterprise communities designated
3-12 under Section 1391, Internal Revenue Code of 1986, or federally
3-13 assisted new communities located within a home-rule city or a
3-14 federally designated economically depressed county of less than
3-15 50,000 persons according to the last federal decennial census, a
3-16 project may include the land, buildings, equipment, facilities, and
3-17 improvements (one or more) found by the board of directors to be
3-18 required or suitable for the promotion of commercial development
3-19 and expansion and in furtherance of the public purposes of this
3-20 Act, or for use by commercial enterprises, all as defined in the
3-21 rules of the department, irrespective of whether in existence or
3-22 required to be acquired or constructed thereafter. As used in this
3-23 Act, the term blighted or economically depressed areas shall mean
3-24 those areas and areas immediately adjacent thereto within a city
3-25 which by reason of the presence of a substantial number of
3-26 substandard, slum, deteriorated, or deteriorating structures, or
4-1 which suffer from a high relative rate of unemployment, or which
4-2 have been designated and included in a tax incremental district
4-3 created under Chapter 695, Acts of the 66th Legislature, Regular
4-4 Session, 1979 (Article 1066d, Vernon's Texas Civil Statutes), or
4-5 any combination of the foregoing, the city finds and determines,
4-6 after a hearing, substantially impair or arrest the sound growth of
4-7 the city, or constitute an economic or social liability and are a
4-8 menace to the public health, safety, or welfare in their present
4-9 condition and use. The department shall adopt guidelines that
4-10 describe the kinds of areas that may be considered to be blighted
4-11 or economically depressed. The city shall consider these
4-12 guidelines in making its findings and determinations. Notice of
4-13 the hearing at which the city considers establishment of a
4-14 development area or an economically depressed or blighted area
4-15 shall be posted at the city hall before the hearing.
4-16 "Federally assisted new communities" shall mean those
4-17 federally assisted areas which have received or will receive
4-18 assistance in the form of loan guarantees under Title X of the
4-19 National Housing Act and a portion of the federally assisted area
4-20 has received grants under Section 107(a)(1) of the Housing and
4-21 Community Development Act of 1974, as amended.
4-22 (15) "Institution of higher education" has the meaning
4-23 assigned by Section 61.003, Education Code.
4-24 SECTION 3. Section 3, Development Corporation Act of 1979
4-25 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to read
4-26 as follows:
5-1 Sec. 3. It is hereby found, determined, and declared:
5-2 (1) that the present and prospective right to gainful
5-3 employment and general welfare of the people of this state require
5-4 as a public purpose the promotion and development of new and
5-5 expanded business enterprises;
5-6 (2) that the existence, development, and expansion of
5-7 business, commerce, [and] industry, and higher education are
5-8 essential to the economic growth of the state and to the full
5-9 employment, welfare, and prosperity of its citizens;
5-10 (3) that the assistance provided by industrial
5-11 development corporations in promoting higher education
5-12 opportunities will encourage and foster the development and
5-13 diversification of the economy of the state and the elimination of
5-14 unemployment and underemployment in the state;
5-15 (4) that the means and measures authorized by this Act
5-16 and the assistance provided in this Act, especially with respect to
5-17 financing, are in the public interest and serve a public purpose of
5-18 the state in promoting the welfare of the citizens of the state
5-19 economically by the securing and retaining of business enterprises
5-20 and the resulting maintenance of a higher level of employment,
5-21 economic activity, and stability;
5-22 (5) [(4)] that community industrial development
5-23 corporations in Texas have themselves invested substantial funds in
5-24 successful industrial development projects and have experienced
5-25 difficulty in undertaking such additional projects by reason of the
5-26 partial inadequacy of their own funds or funds potentially
6-1 available from local subscription sources and by reason of
6-2 limitations of local financial institutions in providing additional
6-3 and sufficiently sizable first mortgage loans; and
6-4 (6) [(5)] that communities in this state are at a
6-5 critical disadvantage in competing with communities in other states
6-6 for the location or expansion of such enterprises by virtue of the
6-7 availability and prevalent use in all other states of financing and
6-8 other special incentives; therefore, the issuance of revenue bonds
6-9 by corporations on behalf of political subdivisions of the state as
6-10 hereinafter provided for the promotion and development of new and
6-11 expanded business enterprises to provide and encourage employment
6-12 and the public welfare is hereby declared to be in the public
6-13 interest and a public purpose.
6-14 This Act shall be liberally construed in conformity with the
6-15 intention of the legislature herein expressed.
6-16 SECTION 4. Subsection (a), Section 23, Development
6-17 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
6-18 Statutes), is amended to read as follows:
6-19 (a) The corporation shall have and exercise all of the
6-20 rights, powers, privileges, authority, and functions given by the
6-21 general laws of this state to nonprofit corporations incorporated
6-22 under the Texas Non-Profit Corporation Act, as amended (Article
6-23 1396-1.01 et seq., Vernon's Texas Civil Statutes); but to the
6-24 extent that the provisions of the general laws are in conflict or
6-25 inconsistent with this Act, this Act prevails. In addition, the
6-26 corporation shall have the following powers with respect to
7-1 projects together with all powers incidental thereto or necessary
7-2 for the performance of those hereinafter stated:
7-3 (1) to acquire, whether by construction, devise,
7-4 purchase, gift, lease, or otherwise or any one or more of such
7-5 methods and to construct, improve, maintain, equip, and furnish one
7-6 or more projects located within the state or within the coastal
7-7 waters of the state and within or partially within the limits of
7-8 the unit under whose auspices the corporation was created or within
7-9 the limits of a different unit where the governing body thereof
7-10 requests the corporation to exercise its powers therein;
7-11 (2) to lease to a user all or any part of any project
7-12 for such rentals and upon such terms and conditions as its board of
7-13 directors may deem advisable and not in conflict with the
7-14 provisions of this Act;
7-15 (3) to sell by installment payments or otherwise and
7-16 convey all or any part of any project to a user for such purchase
7-17 price and upon such terms and conditions as its board of directors
7-18 may deem advisable and not in conflict with the provisions of this
7-19 Act;
7-20 (4) to donate, exchange, convey, sell, or lease land,
7-21 improvements, or any other interest in real property or
7-22 furnishings, fixtures or equipment, or personal property to an
7-23 institution of higher education for a legal purpose of the
7-24 institution upon such terms and conditions as the corporation's
7-25 board of directors may deem advisable that are not in conflict with
7-26 the provisions of this Act;
8-1 (5) to make secured or unsecured loans to a user for
8-2 the purpose of providing temporary or permanent financing or
8-3 refinancing of all or part of the cost of any project, including
8-4 the refunding of any outstanding obligations, mortgages, or
8-5 advances issued, made, or given by any person for the cost of a
8-6 project; and to charge and collect interest on such loans for such
8-7 loan payments and upon such terms and conditions as its board of
8-8 directors may deem advisable and not in conflict with the
8-9 provisions of this Act;
8-10 (6) [(5)] to issue bonds for the purpose of defraying
8-11 all or part of the cost of any project, whether or not the bonds
8-12 are exempt in whole or part from federal income taxation, to secure
8-13 the payment of such bonds as provided in this Act, and to sell
8-14 bonds at a price or prices determined by the board of directors or
8-15 to exchange bonds for property, labor, services, material, or
8-16 equipment comprising a project or incidental to the acquisition of
8-17 a project, and those bonds may bear interest at any rate or rates
8-18 determined by the board of directors, subject to the limitations
8-19 set forth in this Act;
8-20 (7) [(6)] as security for the payment of the principal
8-21 of and interest on any bonds issued and any agreements made in
8-22 connection therewith, to mortgage and pledge any or all of its
8-23 projects or any part or parts thereof, whether then owned or
8-24 thereafter acquired, and to assign any mortgage and repledge any
8-25 security conveyed to the corporation to secure any loan made by the
8-26 corporation and to pledge the revenues and receipts therefrom;
9-1 (8) [(7)] to sue and be sued, complain and defend, in
9-2 its corporate name;
9-3 (9) [(8)] to have a corporate seal and to use the same
9-4 by causing it or a facsimile thereof to be impressed on, affixed
9-5 to, or in any manner reproduced upon instruments of any nature
9-6 required to be executed by its proper officers;
9-7 (10) [(9)] to make and alter bylaws not inconsistent
9-8 with its articles of incorporation or with the laws of this state
9-9 with the approval of the unit under whose auspices the corporation
9-10 was created by resolution of the governing body for the
9-11 administration and regulation of the affairs of the corporation;
9-12 (11) [(10)] to cease its corporate activities and
9-13 terminate its existence by voluntary dissolution as provided
9-14 herein; and
9-15 (12) [(11)] whether included in the foregoing or not,
9-16 to have and exercise all powers necessary or appropriate to effect
9-17 any or all of the purposes for which the corporation is organized
9-18 which powers shall be subject at all times to the control of the
9-19 governing body of the unit under whose auspices the corporation was
9-20 created.
9-21 SECTION 5. Subchapter A, Chapter 130, Education Code, is
9-22 amended by adding Section 130.0021 to read as follows:
9-23 Sec. 130.0021. CONVEYANCE OF CERTAIN REAL PROPERTY. A
9-24 public junior college or a public junior college district may
9-25 donate, exchange, convey, sell, or lease land, improvements, or any
9-26 other interest in any real property for less than the fair market
10-1 value of the real property interest if the donation, conveyance,
10-2 exchange, sale, or lease is being made to a university system and
10-3 the governing board of the public junior college or the public
10-4 junior college district also finds that the donation, conveyance,
10-5 exchange, sale, or lease of the interest promotes a public purpose
10-6 related to higher education within the service area of the public
10-7 junior college or the public junior college district.
10-8 SECTION 6. The importance of this legislation and the
10-9 crowded condition of the calendars in both houses create an
10-10 emergency and an imperative public necessity that the
10-11 constitutional rule requiring bills to be read on three several
10-12 days in each house be suspended, and this rule is hereby suspended,
10-13 and that this Act take effect and be in force from and after its
10-14 passage, and it is so enacted.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1289 passed the Senate on
April 19, 1999, by the following vote: Yeas 30, Nays 0.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1289 passed the House on
May 11, 1999, by the following vote: Yeas 148, Nays 0, one present
not voting.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor