AN ACT
1-1 relating to the sale or transfer of property by certain
1-2 governmental entities.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Chapter 272, Local Government Code, is amended by
1-5 adding Section 272.004 to read as follows:
1-6 Sec. 272.004. TRANSFERS OF PROPERTY BY CERTAIN POLITICAL
1-7 SUBDIVISIONS. (a) In this section, "political subdivision" has
1-8 the same meaning as the term "issuer" under Section 1(1), Chapter
1-9 656, Acts of the 68th Legislature, Regular Session, 1983 (Article
1-10 717q, Vernon's Texas Civil Statutes).
1-11 (b) A political subdivision may sell, lease as a lessee or
1-12 lessor, or otherwise transfer property in the same manner as the
1-13 subregional board of a regional transportation authority under
1-14 Sections 452.108(d) and (e), Transportation Code.
1-15 (c) A sale, lease, or other transfer of property under this
1-16 section must be approved by a majority of the voters voting at an
1-17 election held within the boundaries of the political subdivision if
1-18 the agreement:
1-19 (1) involves the levy by the political subdivision of
1-20 a tax in an amount sufficient to make payments due under the
1-21 agreement; and
1-22 (2) is executed on or after September 1, 1999.
1-23 SECTION 2. Subsection (d), Section 452.108, Transportation
1-24 Code, is amended to read as follows:
2-1 (d) To provide tax benefits to another party that are
2-2 available with respect to property under the laws of a foreign
2-3 country or to encourage private investment with a transportation
2-4 authority in the United States, and notwithstanding any other
2-5 provision of this chapter, an authority consisting of one subregion
2-6 governed by a subregional board created under Subchapter O may
2-7 enter into and execute, as it considers appropriate, contracts,
2-8 agreements, notes, security agreements, conveyances, bills of sale,
2-9 deeds, leases as lessee or lessor, and currency hedges, swap
2-10 transactions, or agreements relating to foreign and domestic
2-11 currency. The agreements or instruments may have the terms,
2-12 maturities, duration, provisions as to governing law, indemnities,
2-13 and other provisions that are approved by the subregional board.
2-14 In connection with any transaction authorized by this subsection,
2-15 the authority may [shall] deposit in trust, escrow, or similar
2-16 arrangement cash or lawful investments securities, or may [shall]
2-17 enter into one or more payment agreements, financial guarantees, or
2-18 insurance contracts with counterparties having either a corporate
2-19 credit or debt rating in any form, a claims-paying ability, or a
2-20 rating for financial strength of "AA" or better by Moody's
2-21 Investors Service, Inc. or by Standard & Poor's Corporation or of
2-22 "A (Class XII)" or better by Best's rating system, that by their
2-23 terms, including interest to be earned on the cash or securities,
2-24 or payment obligations, are sufficient in amount to pay when due
2-25 all amounts required to be paid by the authority as rent over the
2-26 full term of the transaction plus any optional purchase price or
3-1 other obligation due under the transaction. [A certification in
3-2 advance by an independent financial expert, banker, or certified
3-3 public accountant, who is not an employee of the authority,
3-4 certifying compliance with this requirement constitutes conclusive
3-5 evidence of compliance.]
3-6 SECTION 3. The change in law made by this Act applies only
3-7 to the sale, lease, or other transfer of property on or after the
3-8 effective date of this Act. The sale, lease, or other transfer of
3-9 property before the effective date of this Act is governed by the
3-10 law in effect immediately before the effective date, and that law
3-11 is continued in effect for that purpose.
3-12 SECTION 4. The importance of this legislation and the
3-13 crowded condition of the calendars in both houses create an
3-14 emergency and an imperative public necessity that the
3-15 constitutional rule requiring bills to be read on three several
3-16 days in each house be suspended, and this rule is hereby suspended,
3-17 and that this Act take effect and be in force from and after its
3-18 passage, and it is so enacted.
S.B. No. 1520
________________________________ ________________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1520 passed the Senate on
May 10, 1999, by the following vote: Yeas 30, Nays 0;
May 28, 1999, Senate refused to concur in House amendment and
requested appointment of Conference Committee; May 29, 1999, House
granted request of the Senate; May 30, 1999, Senate adopted
Conference Committee Report by the following vote: Yeas 30,
Nays 0.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1520 passed the House, with
amendment, on May 25, 1999, by the following vote: Yeas 145,
Nays 0, two present not voting; May 29, 1999, House granted request
of the Senate for appointment of Conference Committee;
May 30, 1999, House adopted Conference Committee Report by a
non-record vote.
_______________________________
Chief Clerk of the House
Approved:
________________________________
Date
________________________________
Governor