1-1 By: Armbrister S.B. No. 1759
1-2 (In the Senate - Filed March 14, 2001; March 15, 2001, read
1-3 first time and referred to Committee on Intergovernmental
1-4 Relations; April 19, 2001, reported favorably, as amended, by the
1-5 following vote: Yeas 7, Nays 0; April 19, 2001, sent to printer.)
1-6 COMMITTEE AMENDMENT NO. 1 By: Lindsay
1-7 Amend S.B. No. 1759 by deleting SECTIONs 13, 14, 15, and 16.
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the issuance and sale of and security and payment for
1-11 public securities.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Subsection (a), Section 1201.022, Government
1-14 Code, is amended to read as follows:
1-15 (a) A public security may be:
1-16 (1) issued singly or in a series;
1-17 (2) made payable in a specified amount or amounts or
1-18 installments to:
1-19 (A) the bearer;
1-20 (B) a registered or named person;
1-21 (C) the order of a registered or named person;
1-22 or
1-23 (D) a successor or assign of a registered or
1-24 named person; [and]
1-25 (3) issued to be sold:
1-26 (A) at a public or private sale; and
1-27 (B) under the terms determined by the governing
1-28 body of the issuer to be in the issuer's best interests; and
1-29 (4) issued with other specified characteristics, on
1-30 additional specified terms, or in a specified manner.
1-31 SECTION 2. Subchapter B, Chapter 1201, Government Code, is
1-32 amended by adding Section 1201.028 to read as follows:
1-33 Sec. 1201.028. SINGLE MEETING OF GOVERNING BODY SUFFICIENT.
1-34 Notwithstanding any other law, including a provision in a municipal
1-35 charter, the following actions taken at a meeting of the governing
1-36 body of an issuer are effective immediately and a subsequent
1-37 meeting is not required:
1-38 (1) a resolution, order, or ordinance calling an
1-39 election to:
1-40 (A) authorize the issuance and sale of a public
1-41 security; or
1-42 (B) approve the resources, revenue, or income of
1-43 the issuer that may be pledged as security for a public security;
1-44 (2) a resolution, order, or ordinance canvassing the
1-45 results of an election described by Subdivision (1); or
1-46 (3) a public security authorization.
1-47 SECTION 3. Section 1203.023, Government Code, is amended to
1-48 read as follows:
1-49 Sec. 1203.023. MAINTENANCE OF REGISTRAR RECORDS BY TRUST
1-50 COMPANY OR COMMERCIAL BANK. At the direction of the issuer, a [A]
1-51 trust company or a commercial bank acting as a registrar under this
1-52 chapter shall maintain the registrar records in this state.
1-53 SECTION 4. Section 1207.008, Government Code, is amended to
1-54 read as follows:
1-55 Sec. 1207.008. LIMITATION. (a) An issuer may not issue
1-56 refunding bonds if the aggregate amount of payments to be made
1-57 under the refunding bonds exceeds the aggregate amount of payments
1-58 that would have been made under the terms of the obligations being
1-59 refunded unless:
1-60 (1) the governing body of the issuer, in the
1-61 proceedings authorizing the issuance of the refunding bonds, finds
1-62 that the issuance is in the best interests of the issuer; and
1-63 (2) the maximum amount by which the aggregate amount
2-1 of payments to be made under the refunding bonds exceeds the
2-2 aggregate amount of payments that would have been made under the
2-3 terms of the obligations being refunded is specified in the
2-4 proceedings.
2-5 (b) An issuer is not required to comply with Subsection
2-6 (a)(2) if the governing body of the issuer determines and states in
2-7 the proceedings authorizing the issuance of the refunding bonds
2-8 that the manner in which the refunding is being executed does not
2-9 make it practicable to make the determination required by that
2-10 subsection.
2-11 SECTION 5. Subsection (a), Section 1207.061, Government
2-12 Code, is amended to read as follows:
2-13 (a) An issuer may, in lieu of making a deposit with the
2-14 comptroller under Subchapter B, deposit an amount of money
2-15 sufficient to provide for the payment or redemption of the
2-16 obligations, including assumed obligations, to be refunded or to be
2-17 paid or redeemed in whole or in part without issuing refunding
2-18 bonds, directly with:
2-19 (1) a paying agent for any of the obligations to be
2-20 refunded, paid, or redeemed; [or]
2-21 (2) the trustee under a trust indenture, deed of
2-22 trust, or similar instrument providing security for the obligations
2-23 to be refunded, paid, or redeemed; or
2-24 (3) a trust company or commercial bank other than one
2-25 described by Subdivision (1) or (2) that:
2-26 (A) does not act as a depository for the issuer;
2-27 and
2-28 (B) is named in the proceedings of the issuer
2-29 authorizing execution of an agreement under Section 1207.062.
2-30 SECTION 6. Subsection (a), Section 1207.062, Government
2-31 Code, is amended to read as follows:
2-32 (a) An issuer may enter into an escrow or similar agreement
2-33 with a person described by Section 1207.061(a) [paying agent or
2-34 trustee] with respect to the safekeeping, investment,
2-35 administration, and disposition of a deposit made under Section
2-36 1207.061.
2-37 SECTION 7. Section 1207.063, Government Code, is amended to
2-38 read as follows:
2-39 Sec. 1207.063. DUTY TO COMPLY. A person described by
2-40 Section 1201.061(a) [paying agent or trustee] that enters into an
2-41 agreement under Section 1207.062 shall comply with each term of
2-42 that agreement and, from the deposited money and in the manner and
2-43 to the extent provided by the agreement, make available to any
2-44 other paying agent or trustee for an obligation of the same or a
2-45 different series of obligations to be refunded, paid, or redeemed,
2-46 the amounts required by the terms of the obligation to pay or
2-47 redeem the principal of and interest on the obligation when due.
2-48 SECTION 8. Subdivision (2), Section 1371.001, Government
2-49 Code, is amended to conform to Section 1, Chapter 1018, Acts of the
2-50 76th Legislature, Regular Session, 1999, to read as follows:
2-51 (2) "Eligible project" means:
2-52 (A) the acquisition or construction of or an
2-53 improvement, addition, or extension to a public works, including a
2-54 capital asset or facility incident and related to the operation,
2-55 maintenance, or administration of the public works, and:
2-56 (i) with respect to a property or a
2-57 facility for the generation of electric power and energy, fuel
2-58 acquisition or the development or transportation of power, energy,
2-59 or fuel;
2-60 (ii) with respect to a property or a
2-61 facility for a public transportation system:
2-62 (a) a building, terminal, garage,
2-63 shop, or other structure, rolling stock, equipment, or another
2-64 facility for mass public transportation; or
2-65 (b) a vehicle parking area or a
2-66 facility necessary or convenient for the beneficial use and access
2-67 of persons and vehicles to a station, terminal, yard, car, or bus,
2-68 or for the protection or environmental enhancement of a facility
2-69 for mass public transportation; and
3-1 (iii) with respect to a property or a
3-2 facility for a port facility, a wharf or dock, a warehouse, grain
3-3 elevator, or other storage facility, a bunkering facility,
3-4 port-related railroad or bridge, floating plant or facility,
3-5 lightering facility, cargo handling facility, towing facility, or
3-6 any other facility or aid incident to or useful in the operation of
3-7 a port facility;
3-8 (B) a causeway, bridge, tunnel, turnpike,
3-9 highway, or combination of those facilities, including:
3-10 (i) a necessary overpass, underpass,
3-11 interchange, entrance plaza, tollhouse, service station, approach,
3-12 fixture, accessory, or item of equipment, or a storage,
3-13 administration, or other necessary building; and
3-14 (ii) a property right or other interest
3-15 acquired in connection with those facilities;
3-16 (C) a public improvement owned by a county that
3-17 serves the purpose of attracting visitors and tourists to the
3-18 county, including a civic center, auditorium, exhibition hall,
3-19 coliseum, stadium, or parking area;
3-20 (D) a project for which there exists authorized
3-21 but unissued obligations approved by a majority of the voters of
3-22 the issuer, including obligations payable from ad valorem taxes;
3-23 [or]
3-24 (E) a project for which an issuer is authorized
3-25 to issue revenue bonds secured, in whole or in part, by revenue
3-26 derived from or related to student loans; or
3-27 (F) an approved venue project under Chapter 334
3-28 or 335, Local Government Code.
3-29 SECTION 9. Subdivision (4), Section 1371.001, Government
3-30 Code, is amended to conform to Section 1, Chapter 378, Acts of the
3-31 76th Legislature, Regular Session, 1999, Section 1, Chapter 984,
3-32 Acts of the 76th Legislature, Regular Session, 1999, and Section 1,
3-33 Chapter 1018, Acts of the 76th Legislature, Regular Session, 1999,
3-34 and further amended to read as follows:
3-35 (4) "Issuer" means:
3-36 (A) a home-rule municipality that:
3-37 (i) adopted its charter under Section 5,
3-38 Article XI, Texas Constitution;
3-39 (ii) has a population of 50,000 or more;
3-40 and
3-41 (iii) has outstanding long-term
3-42 indebtedness that is rated by a nationally recognized rating agency
3-43 for municipal securities in one of the four highest rating
3-44 categories for a long-term obligation;
3-45 (B) a conservation and reclamation district
3-46 created and organized as a river authority under Section 52,
3-47 Article III, or Section 59, Article XVI, Texas Constitution;
3-48 (C) a joint powers agency organized and
3-49 operating under Chapter 163, Utilities Code;
3-50 (D) a metropolitan rapid transit authority or
3-51 regional transportation authority created, organized, and operating
3-52 under Chapter 451 or 452, Transportation Code;
3-53 (E) a conservation and reclamation district
3-54 organized or operating as a navigation district under Section 52,
3-55 Article III, or Section 59, Article XVI, Texas Constitution;
3-56 (F) a district organized or operating under
3-57 Section 59, Article XVI, Texas Constitution, that has all or part
3-58 of two or more municipalities within its boundaries;
3-59 (G) a state agency, including a state
3-60 institution of higher education;
3-61 (H) a hospital authority created or operating
3-62 under Chapter 262 or 264, Health and Safety Code, in a county that:
3-63 (i) has a population of more than two
3-64 million; or
3-65 (ii) is included, in whole or in part, in
3-66 a standard metropolitan statistical area of this state that
3-67 includes a county with a population of more than 1.8 million;
3-68 (I) a hospital district in a county that has a
3-69 population of more than two million;
4-1 (J) a nonprofit corporation organized to
4-2 exercise the powers of a higher education authority under Section
4-3 53.47(e), Education Code; [or]
4-4 (K) [(J)] a county with a population of two
4-5 million or more;
4-6 (L) an independent school district that has an
4-7 average daily attendance of 50,000 or more as determined under
4-8 Section 42.005, Education Code;
4-9 (M) a municipality or county operating under
4-10 Chapter 334, Local Government Code; or
4-11 (N) a district created under Chapter 335, Local
4-12 Government Code.
4-13 SECTION 10. Section 1371.051, Government Code, is amended to
4-14 read as follows:
4-15 Sec. 1371.051. AUTHORITY TO ISSUE OBLIGATION. As authorized
4-16 and approved by the [The] governing body of an issuer, the
4-17 governing body may issue, sell, and deliver an obligation to:
4-18 (1) finance a project cost;
4-19 (2) [or to] refund an obligation issued in connection
4-20 with an eligible project; or
4-21 (3) finance all or part of a payment owed or to be
4-22 owed on:
4-23 (A) the establishment of an interest rate lock,
4-24 interest rate hedging agreement, or other credit agreement; or
4-25 (B) the settlement or termination, at maturity
4-26 or otherwise, of an interest rate lock, interest rate hedging
4-27 agreement, or other credit agreement, whether the settlement or
4-28 termination occurs:
4-29 (i) at the option of the issuer or the
4-30 other party to the credit agreement; or
4-31 (ii) by operation of the terms of the
4-32 credit agreement [as may be authorized and approved by the
4-33 governing body].
4-34 SECTION 11. Subchapter B, Chapter 1371, Government Code, is
4-35 amended by adding Section 1371.0521 to read as follows:
4-36 Sec. 1371.0521. INDEPENDENT SCHOOL DISTRICT OBLIGATION. An
4-37 independent school district may not issue an obligation under this
4-38 chapter unless the obligation is authorized in accordance with
4-39 Section 45.003, Education Code.
4-40 SECTION 12. Subsection (c), Section 1502.055, Government
4-41 Code, is amended to read as follows:
4-42 (c) This section does not apply to the sale of an
4-43 unencumbered natural gas system owned by a municipality with a
4-44 population of more than 100,000 [1.2 million].
4-45 SECTION 13. Subchapter C, Chapter 271, Local Government
4-46 Code, is amended by adding Section 271.0521 to read as follows:
4-47 Sec. 271.0521. SALES AND USE TAX AS AVAILABLE REVENUE SOURCE
4-48 IN MUNICIPALITIES WITH POPULATION OF 50,000 OR MORE. (a) This
4-49 section applies only to a municipality with a population of 50,000
4-50 or more.
4-51 (b) Instead of or in addition to any other method of payment
4-52 provided by this subchapter, a municipality may issue certificates
4-53 under this subchapter to be paid from and secured by:
4-54 (1) a municipal sales and use tax imposed under
4-55 Chapter 321, Tax Code, for a project for which there exists
4-56 authorized but unissued obligations approved by a majority of the
4-57 voters of the municipality, including obligations payable from ad
4-58 valorem taxes;
4-59 (2) a municipal sales and use tax imposed under
4-60 Section 4A, Development Corporation Act of 1979 (Article 5190.6,
4-61 Vernon's Texas Civil Statutes), if the certificates are issued in
4-62 connection with a municipally owned project to which that section
4-63 applies that has been approved by a majority of the voters of the
4-64 municipality; and
4-65 (3) a municipal sales and use tax imposed under
4-66 Section 4B, Development Corporation Act of 1979 (Article 5190.6,
4-67 Vernon's Texas Civil Statutes), if the certificates are issued in
4-68 connection with a municipally owned project to which that section
4-69 applies that has been approved by a majority of the voters of the
5-1 municipality.
5-2 SECTION 14. Section 321.506, Tax Code, is amended to read as
5-3 follows:
5-4 Sec. 321.506. USE OF TAX REVENUE BY MUNICIPALITY. Except as
5-5 provided by Section 321.507 of this code or Section 271.0521, Local
5-6 Government Code, the money received by a municipality under this
5-7 chapter is for the use and benefit of the municipality and may be
5-8 used for any purpose for which the general funds of the
5-9 municipality may be used, except that a municipality may not pledge
5-10 the revenue received under this chapter to the payment of bonds or
5-11 other indebtedness.
5-12 SECTION 15. Subsection (e), Section 4A, Development
5-13 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
5-14 Statutes), is amended to read as follows:
5-15 (e) The Municipal Sales and Use Tax Act (Chapter 321, Tax
5-16 Code) governs an election to authorize the imposition of the sales
5-17 and use tax under this section and governs the imposition,
5-18 computation, administration, governance, abolition, and use of the
5-19 tax except as inconsistent with this section or as provided by
5-20 Section 271.0521, Local Government Code. The tax imposed under
5-21 this section takes effect as provided by Section 321.102(a), Tax
5-22 Code.
5-23 SECTION 16. Subsection (g), Section 4B, Development
5-24 Corporation Act of 1979 (Article 5190.6, Vernon's Texas Civil
5-25 Statutes), is amended to read as follows:
5-26 (g) On receipt of the proceeds of the sales and use tax
5-27 imposed under this section from the comptroller, the eligible city
5-28 shall deliver the proceeds to the corporation. Tax proceeds may be
5-29 used [to]:
5-30 (1) to pay the costs of projects of the types added to
5-31 the definition of that term by Subsection (a) of this section;
5-32 [or]
5-33 (2) to pay the principal of, interest on, and other
5-34 costs relating to bonds or other obligations issued by the
5-35 corporation to pay the costs of the projects or to refund bonds or
5-36 other obligations issued to pay the costs of projects; or
5-37 (3) as provided by Section 271.0521, Local Government
5-38 Code, to secure and pay certificates of obligation issued by the
5-39 municipality in connection with the projects.
5-40 SECTION 17. Section 55.16, Education Code, is amended to
5-41 read as follows:
5-42 Sec. 55.16. BOARD RESPONSIBILITY. (a) Each board shall be
5-43 authorized to fix and collect rentals, rates, and charges from
5-44 students and others for the occupancy, services, use, and/or
5-45 availability of all or any of its property, buildings, structures,
5-46 activities, operations, or other facilities as provided by this
5-47 section.
5-48 (b) Unless it is expressly provided by law that specified
5-49 funds under the control of a board are not considered revenue
5-50 funds, a provision in this title or another law that limits the
5-51 purpose for which funds under the control of the board may be spent
5-52 does not impair a board's ability to pledge and use all revenue
5-53 funds under the board's control to secure and pay obligations of
5-54 the board under this chapter or other law.
5-55 (c) A board shall fix each rental, rate, charge, or fee that
5-56 the board has authority under this title to fix in an amount
5-57 determined to be necessary to pay or provide, for each activity or
5-58 service, all associated capital costs, including debt service,
5-59 operation and maintenance costs, including associated overhead
5-60 costs of a system or institution, and prudent reserves. Except as
5-61 otherwise provided by Subsection (e), this section does not
5-62 authorize a board to impose a rental, rate, charge, or fee at an
5-63 amount exceeding a limit imposed by another provision of this
5-64 title.
5-65 (d) For billing and reporting purposes, a board shall
5-66 accumulate all mandatory fees or charges provided for by this
5-67 section or Chapter 54 as a separate facilities and services charge.
5-68 (e) [, in such amounts and in such manner as may be
5-69 determined by the board.] If bonds have been or are issued
6-1 pursuant to this title, or secured or to be secured by a pledge of
6-2 part or all of the board's revenue funds, and if, at the time of
6-3 authorizing the issuance of the bonds, (1) the estimated maximum
6-4 amount per semester hour of such pledged revenue funds (based on
6-5 then current enrollment and conditions) during any future semester
6-6 necessary to provide for the payment of the principal of and
6-7 interest on the bonds when due, together with (2) the aggregate
6-8 amount of all such pledged revenue funds which were levied on a
6-9 semester hour basis for the then current semester to pay the
6-10 principal of and interest on all previously issued bonds, do not
6-11 exceed the amount permitted by this title, then any necessary fees,
6-12 tuition, rentals, rates, or other charges constituting revenue
6-13 funds shall be levied and collected when and to the extent required
6-14 by the resolution authorizing the issuance of the bonds in any
6-15 amount required to provide revenue funds sufficient for the payment
6-16 of the principal of and interest on the bonds, regardless of any
6-17 other provision or limitation provided by this title.
6-18 (f) [(b)] A board is not required to charge students
6-19 enrolled in different degree programs at the institution the same
6-20 rentals, rates, charges, and fees under this section.
6-21 SECTION 18. (a) All acts and proceedings of each governing
6-22 board, as defined by Section 55.01, Education Code, and as used in
6-23 Chapter 130, Education Code, relating to the establishment and
6-24 collection of rates, rentals, charges, and fees are validated as of
6-25 the dates they occurred.
6-26 (b) The provisions of this section do not apply to an act or
6-27 proceeding that on September 1, 2001:
6-28 (1) is involved in litigation, if the litigation
6-29 ultimately results in the act or proceeding being held invalid by a
6-30 final judgment of a court; or
6-31 (2) has been held invalid by a final judgment of a
6-32 court.
6-33 SECTION 19. This Act takes effect September 1, 2001.
6-34 * * * * *