1-1 AN ACT
1-2 relating to the issuance and sale of and security and payment for
1-3 public securities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subsection (a), Section 1201.022, Government
1-6 Code, is amended to read as follows:
1-7 (a) A public security may be:
1-8 (1) issued singly or in a series;
1-9 (2) made payable in a specified amount or amounts or
1-10 installments to:
1-11 (A) the bearer;
1-12 (B) a registered or named person;
1-13 (C) the order of a registered or named person;
1-14 or
1-15 (D) a successor or assign of a registered or
1-16 named person; [and]
1-17 (3) issued to be sold:
1-18 (A) at a public or private sale; and
1-19 (B) under the terms determined by the governing
1-20 body of the issuer to be in the issuer's best interests; and
1-21 (4) issued with other specified characteristics, on
1-22 additional specified terms, or in a specified manner.
1-23 SECTION 2. Subchapter B, Chapter 1201, Government Code, is
1-24 amended by adding Section 1201.028 to read as follows:
1-25 Sec. 1201.028. SINGLE MEETING OF GOVERNING BODY SUFFICIENT.
2-1 Notwithstanding any other law, including a provision in a municipal
2-2 charter, the following actions taken at a meeting of the governing
2-3 body of an issuer are effective immediately and a subsequent
2-4 meeting is not required:
2-5 (1) a resolution, order, or ordinance calling an
2-6 election to:
2-7 (A) authorize the issuance and sale of a public
2-8 security; or
2-9 (B) approve the resources, revenue, or income of
2-10 the issuer that may be pledged as security for a public security;
2-11 (2) a resolution, order, or ordinance canvassing the
2-12 results of an election described by Subdivision (1); or
2-13 (3) a public security authorization.
2-14 SECTION 3. Section 1203.023, Government Code, is amended to
2-15 read as follows:
2-16 Sec. 1203.023. MAINTENANCE OF REGISTRAR RECORDS BY TRUST
2-17 COMPANY OR COMMERCIAL BANK. At the direction of the issuer, a [A]
2-18 trust company or a commercial bank acting as a registrar under this
2-19 chapter shall maintain the registrar records in this state.
2-20 SECTION 4. Section 1207.008, Government Code, is amended to
2-21 read as follows:
2-22 Sec. 1207.008. LIMITATION. (a) An issuer may not issue
2-23 refunding bonds if the aggregate amount of payments to be made
2-24 under the refunding bonds exceeds the aggregate amount of payments
2-25 that would have been made under the terms of the obligations being
2-26 refunded unless:
3-1 (1) the governing body of the issuer, in the
3-2 proceedings authorizing the issuance of the refunding bonds, finds
3-3 that the issuance is in the best interests of the issuer; and
3-4 (2) the maximum amount by which the aggregate amount
3-5 of payments to be made under the refunding bonds exceeds the
3-6 aggregate amount of payments that would have been made under the
3-7 terms of the obligations being refunded is specified in the
3-8 proceedings.
3-9 (b) An issuer is not required to comply with Subsection
3-10 (a)(2) if the governing body of the issuer determines and states in
3-11 the proceedings authorizing the issuance of the refunding bonds
3-12 that the manner in which the refunding is being executed does not
3-13 make it practicable to make the determination required by that
3-14 subsection.
3-15 SECTION 5. Subsection (a), Section 1207.061, Government
3-16 Code, is amended to read as follows:
3-17 (a) An issuer may, in lieu of making a deposit with the
3-18 comptroller under Subchapter B, deposit an amount of money
3-19 sufficient to provide for the payment or redemption of the
3-20 obligations, including assumed obligations, to be refunded or to be
3-21 paid or redeemed in whole or in part without issuing refunding
3-22 bonds, directly with:
3-23 (1) a paying agent for any of the obligations to be
3-24 refunded, paid, or redeemed; [or]
3-25 (2) the trustee under a trust indenture, deed of
3-26 trust, or similar instrument providing security for the obligations
4-1 to be refunded, paid, or redeemed; or
4-2 (3) a trust company or commercial bank other than one
4-3 described by Subdivision (1) or (2) that:
4-4 (A) does not act as a depository for the issuer;
4-5 and
4-6 (B) is named in the proceedings of the issuer
4-7 authorizing execution of an agreement under Section 1207.062.
4-8 SECTION 6. Subsection (a), Section 1207.062, Government
4-9 Code, is amended to read as follows:
4-10 (a) An issuer may enter into an escrow or similar agreement
4-11 with a person described by Section 1207.061(a) [paying agent or
4-12 trustee] with respect to the safekeeping, investment,
4-13 administration, and disposition of a deposit made under Section
4-14 1207.061.
4-15 SECTION 7. Section 1207.063, Government Code, is amended to
4-16 read as follows:
4-17 Sec. 1207.063. DUTY TO COMPLY. A person described by
4-18 Section 1201.061(a) [paying agent or trustee] that enters into an
4-19 agreement under Section 1207.062 shall comply with each term of
4-20 that agreement and, from the deposited money and in the manner and
4-21 to the extent provided by the agreement, make available to any
4-22 other paying agent or trustee for an obligation of the same or a
4-23 different series of obligations to be refunded, paid, or redeemed,
4-24 the amounts required by the terms of the obligation to pay or
4-25 redeem the principal of and interest on the obligation when due.
4-26 SECTION 8. Subdivision (2), Section 1371.001, Government
5-1 Code, is amended to conform to Section 1, Chapter 1018, Acts of the
5-2 76th Legislature, Regular Session, 1999, to read as follows:
5-3 (2) "Eligible project" means:
5-4 (A) the acquisition or construction of or an
5-5 improvement, addition, or extension to a public works, including a
5-6 capital asset or facility incident and related to the operation,
5-7 maintenance, or administration of the public works, and:
5-8 (i) with respect to a property or a
5-9 facility for the generation of electric power and energy, fuel
5-10 acquisition or the development or transportation of power, energy,
5-11 or fuel;
5-12 (ii) with respect to a property or a
5-13 facility for a public transportation system:
5-14 (a) a building, terminal, garage,
5-15 shop, or other structure, rolling stock, equipment, or another
5-16 facility for mass public transportation; or
5-17 (b) a vehicle parking area or a
5-18 facility necessary or convenient for the beneficial use and access
5-19 of persons and vehicles to a station, terminal, yard, car, or bus,
5-20 or for the protection or environmental enhancement of a facility
5-21 for mass public transportation; and
5-22 (iii) with respect to a property or a
5-23 facility for a port facility, a wharf or dock, a warehouse, grain
5-24 elevator, or other storage facility, a bunkering facility,
5-25 port-related railroad or bridge, floating plant or facility,
5-26 lightering facility, cargo handling facility, towing facility, or
6-1 any other facility or aid incident to or useful in the operation of
6-2 a port facility;
6-3 (B) a causeway, bridge, tunnel, turnpike,
6-4 highway, or combination of those facilities, including:
6-5 (i) a necessary overpass, underpass,
6-6 interchange, entrance plaza, tollhouse, service station, approach,
6-7 fixture, accessory, or item of equipment, or a storage,
6-8 administration, or other necessary building; and
6-9 (ii) a property right or other interest
6-10 acquired in connection with those facilities;
6-11 (C) a public improvement owned by a county that
6-12 serves the purpose of attracting visitors and tourists to the
6-13 county, including a civic center, auditorium, exhibition hall,
6-14 coliseum, stadium, or parking area;
6-15 (D) a project for which there exists authorized
6-16 but unissued obligations approved by a majority of the voters of
6-17 the issuer, including obligations payable from ad valorem taxes;
6-18 [or]
6-19 (E) a project for which an issuer is authorized
6-20 to issue revenue bonds secured, in whole or in part, by revenue
6-21 derived from or related to student loans; or
6-22 (F) an approved venue project under Chapter 334
6-23 or 335, Local Government Code.
6-24 SECTION 9. Subdivision (4), Section 1371.001, Government
6-25 Code, is amended to conform to Section 1, Chapter 378, Acts of the
6-26 76th Legislature, Regular Session, 1999, Section 1, Chapter 984,
7-1 Acts of the 76th Legislature, Regular Session, 1999, and Section 1,
7-2 Chapter 1018, Acts of the 76th Legislature, Regular Session, 1999,
7-3 and further amended to read as follows:
7-4 (4) "Issuer" means:
7-5 (A) a home-rule municipality that:
7-6 (i) adopted its charter under Section 5,
7-7 Article XI, Texas Constitution;
7-8 (ii) has a population of 50,000 or more;
7-9 and
7-10 (iii) has outstanding long-term
7-11 indebtedness that is rated by a nationally recognized rating agency
7-12 for municipal securities in one of the four highest rating
7-13 categories for a long-term obligation;
7-14 (B) a conservation and reclamation district
7-15 created and organized as a river authority under Section 52,
7-16 Article III, or Section 59, Article XVI, Texas Constitution;
7-17 (C) a joint powers agency organized and
7-18 operating under Chapter 163, Utilities Code;
7-19 (D) a metropolitan rapid transit authority or
7-20 regional transportation authority created, organized, and operating
7-21 under Chapter 451 or 452, Transportation Code;
7-22 (E) a conservation and reclamation district
7-23 organized or operating as a navigation district under Section 52,
7-24 Article III, or Section 59, Article XVI, Texas Constitution;
7-25 (F) a district organized or operating under
7-26 Section 59, Article XVI, Texas Constitution, that has all or part
8-1 of two or more municipalities within its boundaries;
8-2 (G) a state agency, including a state
8-3 institution of higher education;
8-4 (H) a hospital authority created or operating
8-5 under Chapter 262 or 264, Health and Safety Code, in a county that:
8-6 (i) has a population of more than two
8-7 million; or
8-8 (ii) is included, in whole or in part, in
8-9 a standard metropolitan statistical area of this state that
8-10 includes a county with a population of more than 1.8 million;
8-11 (I) a hospital district in a county that has a
8-12 population of more than two million;
8-13 (J) a nonprofit corporation organized to
8-14 exercise the powers of a higher education authority under Section
8-15 53.47(e), Education Code; [or]
8-16 (K) [(J)] a county with a population of two
8-17 million or more;
8-18 (L) an independent school district that has an
8-19 average daily attendance of 50,000 or more as determined under
8-20 Section 42.005, Education Code;
8-21 (M) a municipality or county operating under
8-22 Chapter 334, Local Government Code; or
8-23 (N) a district created under Chapter 335, Local
8-24 Government Code.
8-25 SECTION 10. Section 1371.051, Government Code, is amended to
8-26 read as follows:
9-1 Sec. 1371.051. AUTHORITY TO ISSUE OBLIGATION. As authorized
9-2 and approved by the [The] governing body of an issuer, the
9-3 governing body may issue, sell, and deliver an obligation to:
9-4 (1) finance a project cost;
9-5 (2) [or to] refund an obligation issued in connection
9-6 with an eligible project; or
9-7 (3) finance all or part of a payment owed or to be
9-8 owed on:
9-9 (A) the establishment of an interest rate lock,
9-10 interest rate hedging agreement, or other credit agreement; or
9-11 (B) the settlement or termination, at maturity
9-12 or otherwise, of an interest rate lock, interest rate hedging
9-13 agreement, or other credit agreement, whether the settlement or
9-14 termination occurs:
9-15 (i) at the option of the issuer or the
9-16 other party to the credit agreement; or
9-17 (ii) by operation of the terms of the
9-18 credit agreement [as may be authorized and approved by the
9-19 governing body].
9-20 SECTION 11. Subchapter B, Chapter 1371, Government Code, is
9-21 amended by adding Section 1371.0521 to read as follows:
9-22 Sec. 1371.0521. INDEPENDENT SCHOOL DISTRICT OBLIGATION. An
9-23 independent school district may not issue an obligation under this
9-24 chapter unless the obligation is authorized in accordance with
9-25 Section 45.003, Education Code.
9-26 SECTION 12. Subsection (c), Section 1502.055, Government
10-1 Code, is amended to read as follows:
10-2 (c) This section does not apply to the sale of an
10-3 unencumbered natural gas system owned by a municipality with a
10-4 population of more than 100,000 [1.2 million].
10-5 SECTION 13. Section 55.16, Education Code, is amended to
10-6 read as follows:
10-7 Sec. 55.16. BOARD RESPONSIBILITY. (a) Each board shall be
10-8 authorized to fix and collect rentals, rates, and charges from
10-9 students and others for the occupancy, services, use, and/or
10-10 availability of all or any of its property, buildings, structures,
10-11 activities, operations, or other facilities as provided by this
10-12 section.
10-13 (b) Unless it is expressly provided by law that specified
10-14 funds under the control of a board are not considered revenue
10-15 funds, a provision in this title or another law that limits the
10-16 purpose for which funds under the control of the board may be spent
10-17 does not impair a board's ability to pledge and use all revenue
10-18 funds under the board's control to secure and pay obligations of
10-19 the board under this chapter or other law.
10-20 (c) A board shall fix each rental, rate, charge, or fee that
10-21 the board has authority under this title to fix in an amount
10-22 determined to be necessary to pay or provide, for each activity or
10-23 service, all associated capital costs, including debt service,
10-24 operation and maintenance costs, including associated overhead
10-25 costs of a system or institution, and prudent reserves. Except as
10-26 otherwise provided by Subsection (e), this section does not
11-1 authorize a board to impose a rental, rate, charge, or fee at an
11-2 amount exceeding a limit imposed by another provision of this
11-3 title.
11-4 (d) For billing and reporting purposes, a board shall
11-5 accumulate all mandatory fees or charges provided for by this
11-6 section or Chapter 54 as a separate facilities and services charge.
11-7 (e) [, in such amounts and in such manner as may be
11-8 determined by the board.] If bonds have been or are issued
11-9 pursuant to this title, or secured or to be secured by a pledge of
11-10 part or all of the board's revenue funds, and if, at the time of
11-11 authorizing the issuance of the bonds, (1) the estimated maximum
11-12 amount per semester hour of such pledged revenue funds (based on
11-13 then current enrollment and conditions) during any future semester
11-14 necessary to provide for the payment of the principal of and
11-15 interest on the bonds when due, together with (2) the aggregate
11-16 amount of all such pledged revenue funds which were levied on a
11-17 semester hour basis for the then current semester to pay the
11-18 principal of and interest on all previously issued bonds, do not
11-19 exceed the amount permitted by this title, then any necessary fees,
11-20 tuition, rentals, rates, or other charges constituting revenue
11-21 funds shall be levied and collected when and to the extent required
11-22 by the resolution authorizing the issuance of the bonds in any
11-23 amount required to provide revenue funds sufficient for the payment
11-24 of the principal of and interest on the bonds, regardless of any
11-25 other provision or limitation provided by this title.
11-26 (f) [(b)] A board is not required to charge students
12-1 enrolled in different degree programs at the institution the same
12-2 rentals, rates, charges, and fees under this section.
12-3 SECTION 14. (a) All acts and proceedings of each governing
12-4 board, as defined by Section 55.01, Education Code, and as used in
12-5 Chapter 130, Education Code, relating to the establishment and
12-6 collection of rates, rentals, charges, and fees are validated as of
12-7 the dates they occurred.
12-8 (b) The provisions of this section do not apply to an act or
12-9 proceeding that on September 1, 2001:
12-10 (1) is involved in litigation, if the litigation
12-11 ultimately results in the act or proceeding being held invalid by a
12-12 final judgment of a court; or
12-13 (2) has been held invalid by a final judgment of a
12-14 court.
12-15 SECTION 15. This Act takes effect September 1, 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1759 passed the Senate on
April 26, 2001, by the following vote: Yeas 30, Nays 0, one
present, not voting.
_______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1759 passed the House on
May 23, 2001, by a non-record vote.
_______________________________
Chief Clerk of the House
Approved:
_______________________________
Date
_______________________________
Governor