1-1 By: Zaffirini S.B. No. 1289
1-2 (In the Senate - Filed March 11, 1999; March 15, 1999, read
1-3 first time and referred to Committee on Education; April 12, 1999,
1-4 reported adversely, with favorable Committee Substitute by the
1-5 following vote: Yeas 5, Nays 0; April 12, 1999, sent to printer.)
1-6 COMMITTEE SUBSTITUTE FOR S.B. No. 1289 By: Zaffirini
1-7 A BILL TO BE ENTITLED
1-8 AN ACT
1-9 relating to donations and other transfers of real or personal
1-10 property to institutions of higher education.
1-11 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-12 SECTION 1. Section 272.001, Local Government Code, is
1-13 amended by amending Subsection (a) and adding Subsection (j) to
1-14 read as follows:
1-15 (a) Except for the types of land and interests covered by
1-16 Subsection (b), (g), (h), [or] (i), or (j) and except as provided
1-17 by Section 253.008, before land owned by a political subdivision of
1-18 the state may be sold or exchanged for other land, notice to the
1-19 general public of the offer of the land for sale or exchange must
1-20 be published in a newspaper of general circulation in either the
1-21 county in which the land is located or, if there is no such
1-22 newspaper, in an adjoining county. The notice must include a
1-23 description of the land, including its location, and the procedure
1-24 by which sealed bids to purchase the land or offers to exchange the
1-25 land may be submitted. The notice must be published on two
1-26 separate dates and the sale or exchange may not be made until after
1-27 the 14th day after the date of the second publication.
1-28 (j) A political subdivision may donate, exchange, convey,
1-29 sell, or lease land, improvements, or any other interest in real
1-30 property to an institution of higher education, as that term is
1-31 defined by Section 61.003, Education Code, to promote a public
1-32 purpose related to higher education. The political subdivision
1-33 shall determine the terms and conditions of the transaction so as
1-34 to effectuate and maintain the public purpose. A political
1-35 subdivision may donate, exchange, convey, sell, or lease the real
1-36 property interest for less than its fair market value and without
1-37 complying with the notice and bidding requirements of Subsection
1-38 (a).
1-39 SECTION 2. Section 2, Development Corporation Act of 1979
1-40 (Article 5190.6, Vernon's Texas Civil Statutes), is amended by
1-41 amending Subdivision (10) and adding Subdivision (15) to read as
1-42 follows:
1-43 (10) "Project" shall mean the land, buildings,
1-44 equipment, facilities, and improvements (one or more) found by the
1-45 board of directors to be required or suitable for the promotion of
1-46 development and expansion of manufacturing and industrial
1-47 facilities, transportation facilities (including but not limited to
1-48 airports, ports, mass commuting facilities, and parking
1-49 facilities), sewage or solid waste disposal facilities, recycling
1-50 facilities, air or water pollution control facilities, facilities
1-51 for the furnishing of water to the general public, distribution
1-52 centers, [and] small warehouse facilities capable of serving as
1-53 decentralized storage and distribution centers, and facilities for
1-54 use by institutions of higher education, and for the promotion of
1-55 development or redevelopment and expansion, including costs of
1-56 administration and operation, of a military base closed or
1-57 realigned pursuant to recommendation of the Defense Closure and
1-58 Realignment Commission pursuant to the Defense Base Closure and
1-59 Realignment Act of 1990 (10 U.S.C. Section 2687 note) as amended,
1-60 and of facilities which are related to any of the foregoing, and in
1-61 furtherance of the public purposes of this Act, all as defined in
1-62 the rules of the department, irrespective of whether in existence
1-63 or required to be identified, acquired, or constructed thereafter.
1-64 As used in this Act, the term "development areas" shall mean any
2-1 area or areas of a city that the city finds and determines, after a
2-2 public hearing, should be developed in order to meet the
2-3 development objectives of the city. In addition, in blighted or
2-4 economically depressed areas, development areas, federally
2-5 designated empowerment zones and enterprise communities designated
2-6 under Section 1391, Internal Revenue Code of 1986, or federally
2-7 assisted new communities located within a home-rule city or a
2-8 federally designated economically depressed county of less than
2-9 50,000 persons according to the last federal decennial census, a
2-10 project may include the land, buildings, equipment, facilities, and
2-11 improvements (one or more) found by the board of directors to be
2-12 required or suitable for the promotion of commercial development
2-13 and expansion and in furtherance of the public purposes of this
2-14 Act, or for use by commercial enterprises, all as defined in the
2-15 rules of the department, irrespective of whether in existence or
2-16 required to be acquired or constructed thereafter. As used in this
2-17 Act, the term blighted or economically depressed areas shall mean
2-18 those areas and areas immediately adjacent thereto within a city
2-19 which by reason of the presence of a substantial number of
2-20 substandard, slum, deteriorated, or deteriorating structures, or
2-21 which suffer from a high relative rate of unemployment, or which
2-22 have been designated and included in a tax incremental district
2-23 created under Chapter 695, Acts of the 66th Legislature, Regular
2-24 Session, 1979 (Article 1066d, Vernon's Texas Civil Statutes), or
2-25 any combination of the foregoing, the city finds and determines,
2-26 after a hearing, substantially impair or arrest the sound growth of
2-27 the city, or constitute an economic or social liability and are a
2-28 menace to the public health, safety, or welfare in their present
2-29 condition and use. The department shall adopt guidelines that
2-30 describe the kinds of areas that may be considered to be blighted
2-31 or economically depressed. The city shall consider these
2-32 guidelines in making its findings and determinations. Notice of
2-33 the hearing at which the city considers establishment of a
2-34 development area or an economically depressed or blighted area
2-35 shall be posted at the city hall before the hearing.
2-36 "Federally assisted new communities" shall mean those
2-37 federally assisted areas which have received or will receive
2-38 assistance in the form of loan guarantees under Title X of the
2-39 National Housing Act and a portion of the federally assisted area
2-40 has received grants under Section 107(a)(1) of the Housing and
2-41 Community Development Act of 1974, as amended.
2-42 (15) "Institution of higher education" has the meaning
2-43 assigned by Section 61.003, Education Code.
2-44 SECTION 3. Section 3, Development Corporation Act of 1979
2-45 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to read
2-46 as follows:
2-47 Sec. 3. It is hereby found, determined, and declared:
2-48 (1) that the present and prospective right to gainful
2-49 employment and general welfare of the people of this state require
2-50 as a public purpose the promotion and development of new and
2-51 expanded business enterprises;
2-52 (2) that the existence, development, and expansion of
2-53 business, commerce, [and] industry, and higher education are
2-54 essential to the economic growth of the state and to the full
2-55 employment, welfare, and prosperity of its citizens;
2-56 (3) that the assistance provided by industrial
2-57 development corporations in promoting higher education
2-58 opportunities will encourage and foster the development and
2-59 diversification of the economy of the state and the elimination of
2-60 unemployment and underemployment in the state;
2-61 (4) that the means and measures authorized by this Act
2-62 and the assistance provided in this Act, especially with respect to
2-63 financing, are in the public interest and serve a public purpose of
2-64 the state in promoting the welfare of the citizens of the state
2-65 economically by the securing and retaining of business enterprises
2-66 and the resulting maintenance of a higher level of employment,
2-67 economic activity, and stability;
2-68 (5) [(4)] that community industrial development
2-69 corporations in Texas have themselves invested substantial funds in
3-1 successful industrial development projects and have experienced
3-2 difficulty in undertaking such additional projects by reason of the
3-3 partial inadequacy of their own funds or funds potentially
3-4 available from local subscription sources and by reason of
3-5 limitations of local financial institutions in providing additional
3-6 and sufficiently sizable first mortgage loans; and
3-7 (6) [(5)] that communities in this state are at a
3-8 critical disadvantage in competing with communities in other states
3-9 for the location or expansion of such enterprises by virtue of the
3-10 availability and prevalent use in all other states of financing and
3-11 other special incentives; therefore, the issuance of revenue bonds
3-12 by corporations on behalf of political subdivisions of the state as
3-13 hereinafter provided for the promotion and development of new and
3-14 expanded business enterprises to provide and encourage employment
3-15 and the public welfare is hereby declared to be in the public
3-16 interest and a public purpose.
3-17 This Act shall be liberally construed in conformity with the
3-18 intention of the legislature herein expressed.
3-19 SECTION 4. Subsection (a), Section 23, Development
3-20 Corporation Act of 1979 (Article 5190.6 Vernon's Texas Civil
3-21 Statutes), is amended to read as follows:
3-22 (a) The corporation shall have and exercise all of the
3-23 rights, powers, privileges, authority, and functions given by the
3-24 general laws of this state to nonprofit corporations incorporated
3-25 under the Texas Non-Profit Corporation Act, as amended (Article
3-26 1396-1.01 et seq., Vernon's Texas Civil Statutes); but to the
3-27 extent that the provisions of the general laws are in conflict or
3-28 inconsistent with this Act, this Act prevails. In addition, the
3-29 corporation shall have the following powers with respect to
3-30 projects together with all powers incidental thereto or necessary
3-31 for the performance of those hereinafter stated:
3-32 (1) to acquire, whether by construction, devise,
3-33 purchase, gift, lease, or otherwise or any one or more of such
3-34 methods and to construct, improve, maintain, equip, and furnish one
3-35 or more projects located within the state or within the coastal
3-36 waters of the state and within or partially within the limits of
3-37 the unit under whose auspices the corporation was created or within
3-38 the limits of a different unit where the governing body thereof
3-39 requests the corporation to exercise its powers therein;
3-40 (2) to lease to a user all or any part of any project
3-41 for such rentals and upon such terms and conditions as its board of
3-42 directors may deem advisable and not in conflict with the
3-43 provisions of this Act;
3-44 (3) to sell by installment payments or otherwise and
3-45 convey all or any part of any project to a user for such purchase
3-46 price and upon such terms and conditions as its board of directors
3-47 may deem advisable and not in conflict with the provisions of this
3-48 Act;
3-49 (4) to donate, exchange, convey, sell, or lease land,
3-50 improvements, or any other interest in real property or
3-51 furnishings, fixtures or equipment, or personal property to an
3-52 institution of higher education for a legal purpose of the
3-53 institution upon such terms and conditions as the corporation's
3-54 board of directors may deem advisable that are not in conflict with
3-55 the provisions of this Act;
3-56 (5) to make secured or unsecured loans to a user for
3-57 the purpose of providing temporary or permanent financing or
3-58 refinancing of all or part of the cost of any project, including
3-59 the refunding of any outstanding obligations, mortgages, or
3-60 advances issued, made, or given by any person for the cost of a
3-61 project; and to charge and collect interest on such loans for such
3-62 loan payments and upon such terms and conditions as its board of
3-63 directors may deem advisable and not in conflict with the
3-64 provisions of this Act;
3-65 (6) [(5)] to issue bonds for the purpose of defraying
3-66 all or part of the cost of any project, whether or not the bonds
3-67 are exempt in whole or part from federal income taxation, to secure
3-68 the payment of such bonds as provided in this Act, and to sell
3-69 bonds at a price or prices determined by the board of directors or
4-1 to exchange bonds for property, labor, services, material, or
4-2 equipment comprising a project or incidental to the acquisition of
4-3 a project, and those bonds may bear interest at any rate or rates
4-4 determined by the board of directors, subject to the limitations
4-5 set forth in this Act;
4-6 (7) [(6)] as security for the payment of the principal
4-7 of and interest on any bonds issued and any agreements made in
4-8 connection therewith, to mortgage and pledge any or all of its
4-9 projects or any part or parts thereof, whether then owned or
4-10 thereafter acquired, and to assign any mortgage and repledge any
4-11 security conveyed to the corporation to secure any loan made by the
4-12 corporation and to pledge the revenues and receipts therefrom;
4-13 (8) [(7)] to sue and be sued, complain and defend, in
4-14 its corporate name;
4-15 (9) [(8)] to have a corporate seal and to use the same
4-16 by causing it or a facsimile thereof to be impressed on, affixed
4-17 to, or in any manner reproduced upon instruments of any nature
4-18 required to be executed by its proper officers;
4-19 (10) [(9)] to make and alter bylaws not inconsistent
4-20 with its articles of incorporation or with the laws of this state
4-21 with the approval of the unit under whose auspices the corporation
4-22 was created by resolution of the governing body for the
4-23 administration and regulation of the affairs of the corporation;
4-24 (11) [(10)] to cease its corporate activities and
4-25 terminate its existence by voluntary dissolution as provided
4-26 herein; and
4-27 (12) [(11)] whether included in the foregoing or not,
4-28 to have and exercise all powers necessary or appropriate to effect
4-29 any or all of the purposes for which the corporation is organized
4-30 which powers shall be subject at all times to the control of the
4-31 governing body of the unit under whose auspices the corporation was
4-32 created.
4-33 SECTION 5. Subchapter A, Chapter 130, Education Code, is
4-34 amended by adding Section 130.0021 to read as follows:
4-35 Sec. 130.0021. CONVEYANCE OF CERTAIN REAL PROPERTY. A
4-36 public junior college or a public junior college district may
4-37 donate, exchange, convey, sell, or lease land, improvements, or any
4-38 other interest in any real property for less than the fair market
4-39 value of the real property interest if the donation, conveyance,
4-40 exchange, sale, or lease is being made to a university system and
4-41 the governing board of the public junior college or the public
4-42 junior college district also finds that the donation, conveyance,
4-43 exchange, sale, or lease of the interest promotes a public purpose
4-44 related to higher education within the service area of the public
4-45 junior college or the public junior college district.
4-46 SECTION 6. The importance of this legislation and the
4-47 crowded condition of the calendars in both houses create an
4-48 emergency and an imperative public necessity that the
4-49 constitutional rule requiring bills to be read on three several
4-50 days in each house be suspended, and this rule is hereby suspended,
4-51 and that this Act take effect and be in force from and after its
4-52 passage, and it is so enacted.
4-53 * * * * *