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Amend CSHB 3459 by adding the following appropriately
numbered SECTIONS and renumbering the other SECTIONS of the bill
accordingly:
SECTION ____. Section 53.02, Education Code, is amended by
adding Subdivision (14) to read as follows:
(14) "Borrower" means any of the following entities
that is the recipient of a loan made under Section 53.34:
(A) an institution of higher education;
(B) a nonprofit corporation incorporated by and
under the exclusive control of an institution of higher education;
(C) an accredited primary or secondary school; or
(D) an accredited charter school.
SECTION ____. Section 53.33, Education Code, is amended to
read as follows:
Sec. 53.33. LIMITED POWER TO ACQUIRE, OWN, AND OPERATE
EDUCATIONAL AND HOUSING FACILITIES[: CONSTRUCTION, ACQUISITION,
ETC]. (a) An [The] authority or a nonprofit instrumentality
created under Section 53.35(b) may acquire, own, hold title to,
lease, or operate an educational facility or housing facility or
any facility incidental, subordinate, or related to or appropriate
in connection with an educational facility or housing facility, but
only if:
(1) the facility is or will be located within the
corporate limits of the city that created the authority or
nonprofit instrumentality;
(2) the governing body of an institution of higher
education officially requests the authority or nonprofit
instrumentality to acquire and own the facility for the benefit of
the institution of higher education;
(3) the institution of higher education officially
agrees to accept, and has authority to receive legal title to, the
facility not later than the date on which any bonds or other
obligations issued to acquire the facility are paid in full; and
(4) the ownership of the facility by the authority or
the nonprofit instrumentality is approved by official action of the
governing body of:
(A) the city that created the authority or
nonprofit instrumentality;
(B) the school district in which the facility is
or will be located; and
(C) the county in which the facility is or will be
located.
(b) An authority or instrumentality that exercises the
powers granted by Subsection (a) may contract for the operation of
the facility by public or private entities or persons on the terms
and conditions set forth in a contract relating to the operation of
the facility.
(c) The changes in law made by the amendment of this section
by the 78th Legislature at the 2003 Regular Session do not affect
the acquisition, ownership, construction, or improvement of a
facility, or the acquisition and ownership of land that were
approved by official action of the authority or nonprofit corporate
instrumentality before March 15, 2003, and the law in effect
immediately before the effective date of the amendment of this
section by the 78th Legislature at the 2003 Regular Session is
continued in effect for that purpose [by purchase, purchase
contract, or lease, may construct, or may enlarge, extend, repair,
renovate, or otherwise improve educational facilities or housing
facilities. It may acquire land for those purposes, furnish and
equip the facilities, and provide by contract, lease, or otherwise
for the operation and maintenance of the facilities. The
facilities need not be located within the city limits of the city or
cities].
SECTION ____. Section 53.34, Education Code, is amended to
read as follows:
Sec. 53.34. REVENUE BONDS. (a) An [The] authority or a
nonprofit instrumentality created under Section 53.35(b),
including an authority or nonprofit instrumentality authorized to
own facilities under Section 53.33(a), may issue and execute
revenue bonds or other obligations to loan or otherwise provide
funds to a borrower if:
(1) the governing body of the borrower by official
action requests the issuer of the bonds or other obligations to loan
the proceeds under this subsection;
(2) the purpose of the loan is to enable the borrower
to acquire, construct, enlarge, extend, repair, renovate, or
otherwise improve an educational facility or housing facility or
any facility incidental, subordinate, or related to or appropriate
in connection with an educational facility or housing facility, or
for acquiring land to be used for those purposes, or to create
operating and debt service reserves for and to pay issuance costs
related to the bonds or other obligations; and
(3) under the terms of the loan, and unless a mortgage
lien granted to secure the loan is in default, the ownership of the
facility is required to be at all times under the exclusive control,
and held for the exclusive benefit, of the borrower [for any of its
purposes].
(b) In issuing revenue bonds or other obligations under this
chapter, the issuer of the bonds or other obligations [authority]
is considered to be acting on behalf of the [any] city by which it
was created.
(c) Bonds or other obligations issued under Subsection (a)
[(b) The bonds] shall be payable from and secured by a pledge of
the revenues, income, [all or any part of the gross or net revenue
to be derived from the operation of the facility or facilities and
any other revenue] or assets pledged for the purpose by the
borrower. The bonds or other obligations may be additionally
secured by a mortgage, [or] deed of trust, [on real property of the
authority] or [by a] chattel mortgage on real or [its] personal
property, or on [by] both real and personal property, if granted by
the borrower.
(d) A facility financed with the proceeds of a loan or loans
made to a borrower under Subsection (a) is not required to be
located within the corporate limits of the city that created the
issuer of the bonds or other obligations.
(e) An authority or a nonprofit instrumentality that is
authorized to acquire and own educational facilities and housing
facilities under Section 53.33(a) may issue and execute revenue
bonds and other obligations for the purpose of acquiring, owning,
and operating the educational and housing facilities, to create
operating reserves for the facilities, and to create debt service
reserves for and to pay issuance costs related to the bonds or other
obligations.
(f) Bonds or other obligations issued under Subsection (e)
shall be payable from and secured by a pledge of all or any part of
the gross or net revenues to be derived from the operation of the
educational facilities and housing facilities being acquired and
any other revenues, income, or assets, including the revenues and
income of the educational facilities or housing facilities
previously acquired or subsequently to be acquired. The bonds or
other obligations may be additionally secured by a mortgage, deed
of trust, or chattel mortgage on real or personal property, or on
both real and personal property, if granted by the authority or
nonprofit instrumentality issuing the bonds or other obligations.
(g) The changes in law made by the amendment of this section
by the 78th Legislature at the 2003 Regular Session affect and apply
only to transactions involving bonds or other obligations that are
issued or executed under this chapter on or after March 15, 2003.
Bonds or other obligations that are issued or executed under this
chapter before March 15, 2003, are governed by the law in effect
immediately before the amendment of this section by the 78th
Legislature at the 2003 Regular Session, and that former law is
continued in effect for that purpose.
SECTION ____. Section 53.35(b), Education Code, is amended
to read as follows:
(b) In addition to or in lieu of establishing an authority
under the provisions of this chapter, the governing body of a city
or cities may request or order created one or more nonprofit
corporations to act on its behalf and as its duly constituted
authority and instrumentality to exercise the powers granted to an
authority under the provisions of Sections [Section] 53.33 and
53.34[, Texas Education Code]. If a nonprofit corporation is
created for such purposes or agrees to such request, the directors
thereof shall thereafter be appointed and be subject to removal by
the governing body of the city or cities. In addition to the powers
[of lease or acquisition of facilities] granted under, and subject
to the limitations provided by, Sections [Section] 53.33 and 53.34,
the corporation shall have all powers granted under the Texas
Non-Profit Corporation Act for the purpose of aiding institutions
of higher education in providing educational facilities and housing
facilities and facilities incidental, subordinate, or related
thereto or appropriate in connection therewith. In addition to
Sections [the provisions of Section] 53.33 and 53.34 and the Texas
Non-Profit Corporation Act, as amended (Article 1396-1.01,
Vernon's Texas Civil Statutes), Sections 53.131, 53.14, 53.15,
53.31, 53.32, 53.331, 53.34, 53.35, 53.38, and 53.41 of this code[,
Texas Education Code, shall] apply to and govern such corporation
and its procedures, [and] bonds, and other obligations.
SECTION ____. Section 53.48, Education Code, is amended to
read as follows:
Sec. 53.48. BONDS FOR ACCREDITED PRIMARY OR SECONDARY
SCHOOLS. In the same manner that a corporation may issue and
execute bonds or other obligations under this chapter for an
institution of higher education, a corporation created under
Section 53.35(b) may issue and execute bonds or other obligations
to finance or refinance educational facilities or housing
facilities to be used by an accredited primary or secondary school
or by an authorized charter school.