By: Armbrister S.B. No. 1759
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 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. Section 1201.022(a), Government Code, is amended
1-6 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
2-1 amended by adding Section 1201.028 to read as follows:
2-2 Sec. 1201.028. SINGLE MEETING OF GOVERNING BODY SUFFICIENT.
2-3 Notwithstanding any other law, including a provision in a municipal
2-4 charter, the following actions taken at a meeting of the governing
2-5 body of an issuer are effective immediately and a subsequent
2-6 meeting is not required:
2-7 (1) a resolution, order, or ordinance calling an
2-8 election to:
2-9 (A) authorize the issuance and sale of a public
2-10 security; or
2-11 (B) approve the resources, revenue, or income of
2-12 the issuer that may be pledged as security for a public security;
2-13 (2) a resolution, order, or ordinance canvassing the
2-14 results of an election described by Subdivision (1); or
2-15 (3) a public security authorization.
2-16 SECTION 3. Section 1203.023, Government Code, is amended to
2-17 read as follows:
2-18 Sec. 1203.023. MAINTENANCE OF REGISTRAR RECORDS BY TRUST
2-19 COMPANY OR COMMERCIAL BANK. At the direction of the issuer, a [A]
2-20 trust company or a commercial bank acting as a registrar under this
2-21 chapter shall maintain the registrar records in this state.
2-22 SECTION 4. Section 1207.008, Government Code, is amended to
2-23 read as follows:
2-24 Sec. 1207.008. LIMITATION. (a) An issuer may not issue
2-25 refunding bonds if the aggregate amount of payments to be made
2-26 under the refunding bonds exceeds the aggregate amount of payments
3-1 that would have been made under the terms of the obligations being
3-2 refunded unless:
3-3 (1) the governing body of the issuer, in the
3-4 proceedings authorizing the issuance of the refunding bonds, finds
3-5 that the issuance is in the best interests of the issuer; and
3-6 (2) the maximum amount by which the aggregate amount
3-7 of payments to be made under the refunding bonds exceeds the
3-8 aggregate amount of payments that would have been made under the
3-9 terms of the obligations being refunded is specified in the
3-10 proceedings.
3-11 (b) An issuer is not required to comply with Subsection
3-12 (a)(2) if the governing body of the issuer determines and states in
3-13 the proceedings authorizing the issuance of the refunding bonds
3-14 that the manner in which the refunding is being executed does not
3-15 make it practicable to make the determination required by that
3-16 subsection.
3-17 SECTION 5. Section 1207.061(a), Government Code, is amended
3-18 to read as follows:
3-19 (a) An issuer may, in lieu of making a deposit with the
3-20 comptroller under Subchapter B, deposit an amount of money
3-21 sufficient to provide for the payment or redemption of the
3-22 obligations, including assumed obligations, to be refunded or to be
3-23 paid or redeemed in whole or in part without issuing refunding
3-24 bonds, directly with:
3-25 (1) a paying agent for any of the obligations to be
3-26 refunded, paid, or redeemed; [or]
4-1 (2) the trustee under a trust indenture, deed of
4-2 trust, or similar instrument providing security for the obligations
4-3 to be refunded, paid, or redeemed; or
4-4 (3) a trust company or commercial bank other than one
4-5 described by Subdivision (1) or (2) that:
4-6 (A) does not act as a depository for the issuer;
4-7 and
4-8 (B) is named in the proceedings of the issuer
4-9 authorizing execution of an agreement under Section 1207.062.
4-10 SECTION 6. Section 1207.062(a), Government Code, is amended
4-11 to read as follows:
4-12 (a) An issuer may enter into an escrow or similar agreement
4-13 with a person described by Section 1207.061(a) [paying agent or
4-14 trustee] with respect to the safekeeping, investment,
4-15 administration, and disposition of a deposit made under Section
4-16 1207.061.
4-17 SECTION 7. Section 1207.063, Government Code, is amended to
4-18 read as follows:
4-19 Sec. 1207.063. DUTY TO COMPLY. A person described by
4-20 Section 1201.061(a) [paying agent or trustee] that enters into an
4-21 agreement under Section 1207.062 shall comply with each term of
4-22 that agreement and, from the deposited money and in the manner and
4-23 to the extent provided by the agreement, make available to any
4-24 other paying agent or trustee for an obligation of the same or a
4-25 different series of obligations to be refunded, paid, or redeemed,
4-26 the amounts required by the terms of the obligation to pay or
5-1 redeem the principal of and interest on the obligation when due.
5-2 SECTION 8. Section 1371.001(2), Government Code, is amended
5-3 to conform to Section 1, Chapter 1018, Acts of the 76th
5-4 Legislature, Regular Session, 1999, to read as follows:
5-5 (2) "Eligible project" means:
5-6 (A) the acquisition or construction of or an
5-7 improvement, addition, or extension to a public works, including a
5-8 capital asset or facility incident and related to the operation,
5-9 maintenance, or administration of the public works, and:
5-10 (i) with respect to a property or a
5-11 facility for the generation of electric power and energy, fuel
5-12 acquisition or the development or transportation of power, energy,
5-13 or fuel;
5-14 (ii) with respect to a property or a
5-15 facility for a public transportation system:
5-16 (a) a building, terminal, garage,
5-17 shop, or other structure, rolling stock, equipment, or another
5-18 facility for mass public transportation; or
5-19 (b) a vehicle parking area or a
5-20 facility necessary or convenient for the beneficial use and access
5-21 of persons and vehicles to a station, terminal, yard, car, or bus,
5-22 or for the protection or environmental enhancement of a facility
5-23 for mass public transportation; and
5-24 (iii) with respect to a property or a
5-25 facility for a port facility, a wharf or dock, a warehouse, grain
5-26 elevator, or other storage facility, a bunkering facility,
6-1 port-related railroad or bridge, floating plant or facility,
6-2 lightering facility, cargo handling facility, towing facility, or
6-3 any other facility or aid incident to or useful in the operation of
6-4 a port facility;
6-5 (B) a causeway, bridge, tunnel, turnpike,
6-6 highway, or combination of those facilities, including:
6-7 (i) a necessary overpass, underpass,
6-8 interchange, entrance plaza, tollhouse, service station, approach,
6-9 fixture, accessory, or item of equipment, or a storage,
6-10 administration, or other necessary building; and
6-11 (ii) a property right or other interest
6-12 acquired in connection with those facilities;
6-13 (C) a public improvement owned by a county that
6-14 serves the purpose of attracting visitors and tourists to the
6-15 county, including a civic center, auditorium, exhibition hall,
6-16 coliseum, stadium, or parking area;
6-17 (D) a project for which there exists authorized
6-18 but unissued obligations approved by a majority of the voters of
6-19 the issuer, including obligations payable from ad valorem taxes;
6-20 [or]
6-21 (E) a project for which an issuer is authorized
6-22 to issue revenue bonds secured, in whole or in part, by revenue
6-23 derived from or related to student loans; or
6-24 (F) an approved venue project under Chapter 334
6-25 or 335, Local Government Code.
6-26 SECTION 9. Section 1371.001(4), Government Code, is amended
7-1 to conform to Section 1, Chapter 378, Acts of the 76th Legislature,
7-2 Regular Session, 1999, Section 1, Chapter 984, Acts of the 76th
7-3 Legislature, Regular Session, 1999, and Section 1, Chapter 1018,
7-4 Acts of the 76th Legislature, Regular Session, 1999, and further
7-5 amended to read as follows:
7-6 (4) "Issuer" means:
7-7 (A) a home-rule municipality that:
7-8 (i) adopted its charter under Section 5,
7-9 Article XI, Texas Constitution;
7-10 (ii) has a population of 50,000 or more;
7-11 and
7-12 (iii) has outstanding long-term
7-13 indebtedness that is rated by a nationally recognized rating agency
7-14 for municipal securities in one of the four highest rating
7-15 categories for a long-term obligation;
7-16 (B) a conservation and reclamation district
7-17 created and organized as a river authority under Section 52,
7-18 Article III, or Section 59, Article XVI, Texas Constitution;
7-19 (C) a joint powers agency organized and
7-20 operating under Chapter 163, Utilities Code;
7-21 (D) a metropolitan rapid transit authority or
7-22 regional transportation authority created, organized, and operating
7-23 under Chapter 451 or 452, Transportation Code;
7-24 (E) a conservation and reclamation district
7-25 organized or operating as a navigation district under Section 52,
7-26 Article III, or Section 59, Article XVI, Texas Constitution;
8-1 (F) a district organized or operating under
8-2 Section 59, Article XVI, Texas Constitution, that has all or part
8-3 of two or more municipalities within its boundaries;
8-4 (G) a state agency, including a state
8-5 institution of higher education;
8-6 (H) a hospital authority created or operating
8-7 under Chapter 262 or 264, Health and Safety Code, in a county that:
8-8 (i) has a population of more than two
8-9 million; or
8-10 (ii) is included, in whole or in part, in
8-11 a standard metropolitan statistical area of this state that
8-12 includes a county with a population of more than 1.8 million;
8-13 (I) a hospital district in a county that has a
8-14 population of more than two million;
8-15 (J) a nonprofit corporation organized to
8-16 exercise the powers of a higher education authority under Section
8-17 53.47(e), Education Code; [or]
8-18 (K) [(J)] a county with a population of two
8-19 million or more;
8-20 (L) an independent school district that has an
8-21 average daily attendance of 50,000 or more as determined under
8-22 Section 42.005, Education Code;
8-23 (M) a municipality or county operating under
8-24 Chapter 334, Local Government Code; or
8-25 (N) a district created under Chapter 335, Local
8-26 Government Code.
9-1 SECTION 10. Section 1371.051, Government Code, is amended to
9-2 read as follows:
9-3 Sec. 1371.051. AUTHORITY TO ISSUE OBLIGATION. As authorized
9-4 and approved by the [The] governing body of an issuer, the
9-5 governing body may issue, sell, and deliver an obligation to:
9-6 (1) finance a project cost;
9-7 (2) [or to] refund an obligation issued in connection
9-8 with an eligible project; or
9-9 (3) finance all or part of a payment owed or to be
9-10 owed on:
9-11 (A) the establishment of an interest rate lock,
9-12 interest rate hedging agreement, or other credit agreement; or
9-13 (B) the settlement or termination, at maturity
9-14 or otherwise, of an interest rate lock, interest rate hedging
9-15 agreement, or other credit agreement, whether the settlement or
9-16 termination occurs:
9-17 (i) at the option of the issuer or the
9-18 other party to the credit agreement; or
9-19 (ii) by operation of the terms of the
9-20 credit agreement [as may be authorized and approved by the
9-21 governing body].
9-22 SECTION 11. Subchapter B, Chapter 1371, Government Code, is
9-23 amended by adding Section 1371.0521 to read as follows:
9-24 Sec. 1371.0521. INDEPENDENT SCHOOL DISTRICT OBLIGATION. An
9-25 independent school district may not issue an obligation under this
9-26 chapter unless the obligation is authorized in accordance with
10-1 Section 45.003, Education Code.
10-2 SECTION 12. Section 1502.055(c), Government Code, is amended
10-3 to read as follows:
10-4 (c) This section does not apply to the sale of an
10-5 unencumbered natural gas system owned by a municipality with a
10-6 population of more than 100,000 [1.2 million].
10-7 SECTION 13. Subchapter C, Chapter 271, Local Government
10-8 Code, is amended by adding Section 271.0521 to read as follows:
10-9 Sec. 271.0521. SALES AND USE TAX AS AVAILABLE REVENUE SOURCE
10-10 IN MUNICIPALITIES WITH POPULATION OF 50,000 OR MORE. (a) This
10-11 section applies only to a municipality with a population of 50,000
10-12 or more.
10-13 (b) Instead of or in addition to any other method of payment
10-14 provided by this subchapter, a municipality may issue certificates
10-15 under this subchapter to be paid from and secured by:
10-16 (1) a municipal sales and use tax imposed under
10-17 Chapter 321, Tax Code, for a project for which there exists
10-18 authorized but unissued obligations approved by a majority of the
10-19 voters of the municipality, including obligations payable from ad
10-20 valorem taxes;
10-21 (2) a municipal sales and use tax imposed under
10-22 Section 4A, Development Corporation Act of 1979 (Article 5190.6,
10-23 Vernon's Texas Civil Statutes), if the certificates are issued in
10-24 connection with a municipally owned project to which that section
10-25 applies that has been approved by a majority of the voters of the
10-26 municipality; and
11-1 (3) a municipal sales and use tax imposed under
11-2 Section 4B, Development Corporation Act of 1979 (Article 5190.6,
11-3 Vernon's Texas Civil Statutes), if the certificates are issued in
11-4 connection with a municipally owned project to which that section
11-5 applies that has been approved by a majority of the voters of the
11-6 municipality.
11-7 SECTION 14. Section 321.506, Tax Code, is amended to read as
11-8 follows:
11-9 Sec. 321.506. USE OF TAX REVENUE BY MUNICIPALITY. Except as
11-10 provided by Section 321.507 of this code or Section 271.0521, Local
11-11 Government Code, the money received by a municipality under this
11-12 chapter is for the use and benefit of the municipality and may be
11-13 used for any purpose for which the general funds of the
11-14 municipality may be used, except that a municipality may not pledge
11-15 the revenue received under this chapter to the payment of bonds or
11-16 other indebtedness.
11-17 SECTION 15. Section 4A(e), Development Corporation Act of
11-18 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
11-19 read as follows:
11-20 (e) The Municipal Sales and Use Tax Act (Chapter 321, Tax
11-21 Code) governs an election to authorize the imposition of the sales
11-22 and use tax under this section and governs the imposition,
11-23 computation, administration, governance, abolition, and use of the
11-24 tax except as inconsistent with this section or as provided by
11-25 Section 271.0521, Local Government Code. The tax imposed under
11-26 this section takes effect as provided by Section 321.102(a), Tax
12-1 Code.
12-2 SECTION 16. Section 4B(g), Development Corporation Act of
12-3 1979 (Article 5190.6, Vernon's Texas Civil Statutes), is amended to
12-4 read as follows:
12-5 (g) On receipt of the proceeds of the sales and use tax
12-6 imposed under this section from the comptroller, the eligible city
12-7 shall deliver the proceeds to the corporation. Tax proceeds may be
12-8 used [to]:
12-9 (1) to pay the costs of projects of the types added to
12-10 the definition of that term by Subsection (a) of this section;
12-11 [or]
12-12 (2) to pay the principal of, interest on, and other
12-13 costs relating to bonds or other obligations issued by the
12-14 corporation to pay the costs of the projects or to refund bonds or
12-15 other obligations issued to pay the costs of projects; or
12-16 (3) as provided by Section 271.0521, Local Government
12-17 Code, to secure and pay certificates of obligation issued by the
12-18 municipality in connection with the projects.
12-19 SECTION 17. Section 55.16, Education Code, is amended to
12-20 read as follows:
12-21 Sec. 55.16. BOARD RESPONSIBILITY. (a) Each board shall be
12-22 authorized to fix and collect rentals, rates, and charges from
12-23 students and others for the occupancy, services, use, and/or
12-24 availability of all or any of its property, buildings, structures,
12-25 activities, operations, or other facilities as provided by this
12-26 section.
13-1 (b) Unless it is expressly provided by law that specified
13-2 funds under the control of a board are not considered revenue
13-3 funds, a provision in this title or another law that limits the
13-4 purpose for which funds under the control of the board may be spent
13-5 does not impair a board's ability to pledge and use all revenue
13-6 funds under the board's control to secure and pay obligations of
13-7 the board under this chapter or other law.
13-8 (c) A board shall fix each rental, rate, charge, or fee that
13-9 the board has authority under this title to fix in an amount
13-10 determined to be necessary to pay or provide, for each activity or
13-11 service, all associated capital costs, including debt service,
13-12 operation and maintenance costs, including associated overhead
13-13 costs of a system or institution, and prudent reserves. Except as
13-14 otherwise provided by Subsection (e), this section does not
13-15 authorize a board to impose a rental, rate, charge, or fee at an
13-16 amount exceeding a limit imposed by another provision of this
13-17 title.
13-18 (d) For billing and reporting purposes, a board shall
13-19 accumulate all mandatory fees or charges provided for by this
13-20 section or Chapter 54 as a separate facilities and services charge.
13-21 (e) [, in such amounts and in such manner as may be
13-22 determined by the board.] If bonds have been or are issued
13-23 pursuant to this title, or secured or to be secured by a pledge of
13-24 part or all of the board's revenue funds, and if, at the time of
13-25 authorizing the issuance of the bonds, (1) the estimated maximum
13-26 amount per semester hour of such pledged revenue funds (based on
14-1 then current enrollment and conditions) during any future semester
14-2 necessary to provide for the payment of the principal of and
14-3 interest on the bonds when due, together with (2) the aggregate
14-4 amount of all such pledged revenue funds which were levied on a
14-5 semester hour basis for the then current semester to pay the
14-6 principal of and interest on all previously issued bonds, do not
14-7 exceed the amount permitted by this title, then any necessary fees,
14-8 tuition, rentals, rates, or other charges constituting revenue
14-9 funds shall be levied and collected when and to the extent required
14-10 by the resolution authorizing the issuance of the bonds in any
14-11 amount required to provide revenue funds sufficient for the payment
14-12 of the principal of and interest on the bonds, regardless of any
14-13 other provision or limitation provided by this title.
14-14 (f) [(b)] A board is not required to charge students
14-15 enrolled in different degree programs at the institution the same
14-16 rentals, rates, charges, and fees under this section.
14-17 SECTION 18. (a) All acts and proceedings of each governing
14-18 board, as defined by Section 55.01, Education Code, and as used in
14-19 Chapter 130, Education Code, relating to the establishment and
14-20 collection of rates, rentals, charges, and fees are validated as of
14-21 the dates they occurred.
14-22 (b) The provisions of this section do not apply to an act or
14-23 proceeding that on September 1, 2001:
14-24 (1) is involved in litigation if the litigation
14-25 ultimately results in the act or proceeding being held invalid by a
14-26 final judgment of a court; or
15-1 (2) has been held invalid by a final judgment of a
15-2 court.
15-3 SECTION 19. This Act takes effect September 1, 2001.