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78R8993 JSA-D
By: Crownover H.B. No. 3331
A BILL TO BE ENTITLED
AN ACT
relating to the authority of a higher education authority or
nonprofit organization exercising the powers of a higher education
authority to acquire, construct, improve, or finance facilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 53.33, Education Code, is amended to
read as follows:
Sec. 53.33. FACILITIES: CONSTRUCTION, ACQUISITION, AND
IMPROVEMENT [ETC]. (a) An [The] authority may acquire 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.
(b) Except as provided by Subsection (c), the [The]
facilities must [need not] be located within a [the] city that
created the authority [limits of the city or cities].
(c) An authority may acquire or construct a facility for a
private institution of higher education outside the city or cities
that created the authority or acquire land for that purpose, or may
improve an existing facility located outside the city or cities
that created the authority for a private institution of higher
education, if:
(1) the governing body of the institution of higher
education formally requests the authority to acquire, construct, or
improve the facility on its behalf;
(2) the acquisition, construction, or improvement of
the facility is approved by official action of the governing body of
each county, city, and school district in which the facility or
proposed facility is located;
(3) the purpose of the facility is to provide
educational or housing facilities to students, faculty, or staff of
the institution of higher education;
(4) the facility is required by contract to be
transferred to the institution of higher education, or to a
nonprofit corporation incorporated by and under the exclusive
control of the institution acting on behalf of the institution, as
soon as practicable after acquisition, construction, or
improvement; and
(5) the facility and any revenue from the facility,
less expenses and costs approved by the institution of higher
education, including revenue to pay the principal of and interest
on bonds under this chapter, are at all times under the exclusive
control of and held for the exclusive benefit of the institution of
higher education, or of a nonprofit corporation incorporated by and
under the exclusive control of the institution and acting on its
behalf.
(d) If a city or cities acting under Section 53.35 authorize
a nonprofit corporation to exercise the powers of an authority
under this section, to the extent that this section conflicts with
the powers of the nonprofit corporation under the Texas Non-Profit
Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil
Statutes), this section controls.
(e) The change in law made to this section by the 78th
Legislature at the 2003 Regular Session relating to the power of an
authority to acquire, construct, or improve a facility located
outside the city or cities that created the authority does not
affect:
(1) the validity of powers exercised under this
chapter, including the issuance of bonds but not including the
power to improve a facility, by an authority with respect to
facilities acquired or constructed or land acquired under this
chapter before the effective date of the change in law, or for which
the authority has expended $25,000 or more to acquire or construct
before the effective date of the change in law; or
(2) the acquisition, construction, or improvement of a
facility or the acquisition of land approved by official action of
the authority before March 15, 2003.
SECTION 2. Subchapter C, Chapter 53, Education Code, is
amended by adding Section 53.332 to read as follows:
Sec. 53.332. NOTICE TO LOCAL GOVERNMENTS OF FISCAL IMPACT
OF AUTHORITY ACTION. (a) An authority shall provide notice to each
political subdivision of this state in which the authority proposes
to acquire, construct, or improve a facility or to acquire land for
the construction of a facility.
(b) The notice must be delivered in writing to the presiding
officer of the governing body of each political subdivision not
later than the 30th day after the date the board of the authority
takes any official action relating to an action described by
Subsection (a).
(c) The notice must include at least the following
information:
(1) the nature of the official action taken by the
authority;
(2) the planned dates for acquisition, construction,
or improvement of the facility or for the acquisition of land for
construction of the facility;
(3) an estimate of the market value of the facility
when the proposed acquisition, construction, or improvement is
complete; and
(4) a statement that the facility will be exempt from
ad valorem taxation while owned by the authority or an institution
of higher education if used for educational purposes.
(d) If the acquisition, construction, or improvement of the
facility requires the approval of counties, cities, and school
districts under Section 53.33(c)(2), the notice must:
(1) include a statement that the proposed action is
subject to the approval of each county, city, and school district in
which the facility is or will be located;
(2) name each of those counties, cities, and school
districts; and
(3) state whether any of those entities has approved
the proposed action as of the date the notice is prepared.
(e) The authority shall provide to each political
subdivision receiving the notice any additional information
requested by any of the political subdivisions, not later than the
30th day after the date of the request, that relates to the
political subdivision's efforts to estimate the fiscal impact of
the proposed action of the authority on the political subdivision.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2003.