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A BILL TO BE ENTITLED
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AN ACT
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relating to the financing of educational and related facilities by |
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higher education facility authorities or nonprofit corporations |
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performing the functions of those authorities and to the governance |
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of certain higher education facility authorities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (b), Section 53.35, Education Code, |
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is amended to read as follows: |
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(b) In addition to or in lieu of establishing an authority |
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under the provisions of this chapter, the governing body of a city |
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or cities may request or order created one or more nonprofit |
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corporations to act on its behalf and as its duly constituted |
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authority and instrumentality to exercise the powers granted to an |
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authority under the provisions of Sections 53.33 and 53.34. If a |
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nonprofit corporation is created for such purposes or agrees to |
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such request, the directors thereof shall thereafter be appointed |
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and be subject to removal by the governing body of the city or |
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cities. In addition to the powers granted under, and subject to the |
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limitations provided by, Sections 53.33 and 53.34, the corporation |
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shall have all powers granted under the Texas Non-Profit |
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Corporation Act for the purpose of aiding institutions of higher |
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education in providing educational facilities and housing |
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facilities and facilities incidental, subordinate, or related |
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thereto or appropriate in connection therewith. In addition to |
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Sections 53.33 and 53.34 and the Texas Non-Profit Corporation Act, |
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as amended (Article 1396-1.01 et seq., Vernon's Texas Civil |
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Statutes), Sections 53.131, 53.14, 53.15, 53.31, 53.32, 53.331, |
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53.34, 53.35, 53.38, 53.40, and 53.41 of this code apply to and |
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govern such corporation and its procedures, bonds, and other |
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obligations. |
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SECTION 2. Section 53.40, Education Code, is amended to |
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read as follows: |
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Sec. 53.40. APPROVAL OF BONDS; REGISTRATION; |
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NEGOTIABILITY. (a) Bonds issued under this chapter and the record |
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relating to their issuance shall be submitted to the attorney |
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general, and if the attorney general [he] finds that they have been |
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issued in accordance with this chapter and constitute valid and |
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binding obligations of the authority and are secured as recited |
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therein, the attorney general [he] shall approve them, and they |
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shall be registered by the comptroller of public accounts, who |
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shall certify the registration thereon. Thereafter they are |
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incontestable. The bonds shall be negotiable and shall contain the |
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following provision: "The holder hereof shall never have the right |
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to demand payment thereof out of money raised or to be raised by |
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taxation." If the attorney general does not find that the bonds |
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have been issued in accordance with this chapter and constitute |
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valid and binding obligations of the authority and are secured as |
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recited therein, the attorney general may not approve the bonds, |
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and the bonds may not be registered by the comptroller. |
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(b) When bonds to be issued to benefit an institution of |
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higher education and the record relating to their issuance are |
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submitted to the attorney general, the authority shall deliver |
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notice of that action to the governor, the lieutenant governor, the |
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speaker of the house of representatives, and the Legislative Budget |
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Board. The notice must include the amount of the bonds to be issued |
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and a description of the facilities to be financed from the bond |
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proceeds. |
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SECTION 3. Subdivision (6), Section 53A.02, Education Code, |
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is amended to read as follows: |
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(6) "Educational facility" means a classroom |
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building, laboratory, science building, faculty or administrative |
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office building, or other facility used [exclusively] for the |
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conduct of the educational and administrative functions of an |
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institution of higher education. |
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SECTION 4. Subsection (c), Section 53A.14, Education Code, |
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is amended to read as follows: |
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(c) [No officer or employee of any such city is eligible for
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appointment as a director.] Directors are not entitled to |
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compensation for services but are entitled to reimbursement for |
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expenses incurred in performing such service. |
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SECTION 5. 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. |