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A BILL TO BE ENTITLED
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AN ACT
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relating to the authorization of certain municipalities and |
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counties to issue public securities for the financing of permanent |
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improvements for use by an institution of higher education. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 1434.001, Government Code, is amended to |
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read as follows: |
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Sec. 1434.001. APPLICABILITY OF CHAPTER. This chapter |
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applies only to: |
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(1) a home-rule municipality with a population of |
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25,000 or more that has an [a general academic teaching] |
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institution of higher education located within its boundaries or |
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has entered into an agreement with an institution of higher |
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education relating to the provision of educational services within |
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the municipality by the institution of higher education; or |
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(2) a county within which a municipality described by |
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Subdivision (1) is located. |
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SECTION 2. Section 1434.002, Government Code, is amended to |
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read as follows: |
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Sec. 1434.002. DEFINITIONS. In this chapter: |
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(1) "Agreement" includes a lease, contract, or |
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lease-purchase agreement. |
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(2) [(1)] "Institution of higher education" means: |
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(A) an institution of higher education as defined |
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by Section 61.003, Education Code, other than a public junior |
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college; or |
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(B) a private, nonprofit institution of higher |
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education that is accredited by the recognized accrediting agency |
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and is located and authorized to operate in this state, other than a |
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private institution of higher education operated exclusively for |
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sectarian purposes. |
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(3) [(2)] "Public security" has the meaning assigned |
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by Section 1201.002. |
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(4) [(3)] "Recognized accrediting agency" has the |
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meaning assigned by Section 61.003, Education Code. |
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SECTION 3. Section 1434.003, Government Code, is amended to |
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read as follows: |
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Sec. 1434.003. LEGISLATIVE FINDING. The legislature finds: |
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(1) that the assistance provided by counties and |
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municipalities in promoting and providing higher education |
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opportunities for residents of this state will benefit and enhance |
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the general welfare of their residents by providing new and |
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alternative higher education resources and enhanced access to those |
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resources, improving and enhancing the educational opportunities |
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of their residents, and allowing the completion of certificate |
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programs, degree programs, and other higher education programs |
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locally; and |
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(2) that those benefits and enhancements constitute |
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public purposes for counties and municipalities [encourage the
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development and diversification of the economy of this state and
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the elimination of unemployment and underemployment in this state]. |
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SECTION 4. Section 1434.051, Government Code, is amended by |
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adding Subsection (a-1) to read as follows: |
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(a-1) A municipality that has entered into an agreement |
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described by Section 1434.001(1) may: |
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(1) issue public securities, including certificates |
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of obligation, to acquire, construct, or improve land, buildings, |
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or other permanent improvements for use by an institution of higher |
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education located within a county to which this chapter applies; |
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(2) impose ad valorem taxes to pay the principal of and |
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interest on those securities and to provide a sinking fund; and |
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(3) pledge any portion of the revenues received in |
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connection with the agreement to secure payment of any portion of |
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the public securities issued to acquire, construct, or improve |
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land, buildings, or other permanent improvements for use by an |
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institution of higher education. |
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SECTION 5. Any notice published by a municipality |
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indicating the intent of the municipality to issue certificates of |
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obligation in accordance with Subchapter C, Chapter 271, Local |
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Government Code, for a purpose authorized by this Act is effective |
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in accordance with its terms without regard to whether the notice |
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was published before the effective date of this Act. |
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SECTION 6. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |