82R9387 KJM-D

By: Whitmire, Hegar S.B. No. 654

A BILL TO BE ENTITLED

AN ACT

relating to the continuation and functions of the Texas Public Finance Authority.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 1232.072, Government Code, is amended to read as follows:

Sec. 1232.072. SUNSET PROVISION. The Texas Public Finance Authority is subject to Chapter 325 (Texas Sunset Act). Unless continued in existence as provided by that chapter, the authority is abolished and this chapter expires September 1, 2023 [2011].

SECTION 2. Subchapter B, Chapter 1232, Government Code, is amended by adding Section 1232.073 to read as follows:

Sec. 1232.073. NEGOTIATED RULEMAKING AND ALTERNATIVE DISPUTE RESOLUTION. (a) The board shall develop and implement a policy to encourage the use of:

(1) negotiated rulemaking procedures under Chapter 2008 for the adoption of authority rules; and

(2) appropriate alternative dispute resolution procedures under Chapter 2009 to assist in the resolution of internal and external disputes under the authority's jurisdiction.

(b) The authority's procedures relating to alternative dispute resolution must conform, to the extent possible, to any model guidelines issued by the State Office of Administrative Hearings for the use of alternative dispute resolution by state agencies.

(c) The authority shall:

(1) coordinate the implementation of the policy adopted under Subsection (a);

(2) provide training as needed to implement the procedures for negotiated rulemaking or alternative dispute resolution; and

(3) collect data concerning the effectiveness of those procedures.

SECTION 3. Section 1232.101, Government Code, is amended to read as follows:

Sec. 1232.101. ISSUANCE OF BONDS FOR CERTAIN STATE AGENCIES. (a) With respect to all bonds authorized to be issued by or on behalf of the adjutant general's department, Parks and Wildlife Department, Texas Agricultural Finance Authority, Texas Low-Level Radioactive Waste Disposal Authority, Texas State Technical College System [Stephen F. Austin State University], Midwestern State University, and Texas Southern University, the authority has the exclusive authority to act on behalf of those entities in issuing bonds on their behalf. In connection with those issuances and with the issuance of refunding bonds on behalf of those entities, the authority is subject to all rights, duties, and conditions surrounding issuance previously applicable to the issuing entity under the statute authorizing the issuance. A reference in an authorizing statute to the entity on whose behalf the bonds are being issued applies equally to the authority in its capacity as issuer on behalf of the entity.

(b) Except as provided by Subsection (a), the authority may, under an agreement entered into with a general academic teaching institution as defined by Section 61.003, Education Code, act on behalf of a general academic teaching institution in issuing bonds on the institution's behalf. In connection with those issuances and with the issuance of refunding bonds on behalf of those institutions, the authority is subject to all rights, duties, and conditions surrounding issuance previously applicable to the issuing institution under the statute authorizing the issuance. A reference in an authorizing statute to the institution on whose behalf the bonds are being issued applies equally to the authority in its capacity as issuer on behalf of the institution. An agreement under this subsection may provide for reimbursement to the authority for costs incurred in issuing bonds under the agreement.

SECTION 4. Subchapter C, Chapter 1232, Government Code, is amended by adding Section 1232.1221 to read as follows:

Sec. 1232.1221. COMMENCEMENT OF CERTAIN MULTIYEAR CANCER-RELATED PROJECTS. A multiyear project for which funds are granted by the Cancer Prevention and Research Institute of Texas Oversight Committee as authorized by Section 102.257, Health and Safety Code, may begin after:

(1) the authority has certified that obligations in an amount sufficient to pay the money needed to fund the project have been authorized for issuance by the authority and approved by the Bond Review Board; or

(2) the proceeds have been deposited into the state treasury and:

(A) the comptroller has certified that the proceeds are available;

(B) the reserve funds and capitalized interest, as certified by the authority as reasonably required, have been paid; and

(C) the costs of issuing the obligations, as certified by the authority, have been paid.

SECTION 5. Section 55.13(c), Education Code, is amended to read as follows:

(c) Notwithstanding any other provision of this section, with respect to all bonds authorized to be issued by Midwestern State University, Texas State Technical College System [Stephen F. Austin State University], or Texas Southern University, the Texas Public Finance Authority shall exercise the authority of a board to issue bonds on behalf of those institutions, in the manner provided by this subchapter, including the authority to issue refunding bonds under Section 55.19. In connection with the issuance of bonds under this chapter, the Texas Public Finance Authority has all the rights and duties granted or assigned to and is subject to the same conditions as a board under this chapter.

SECTION 6. Section 102.257, Health and Safety Code, is amended to read as follows:

Sec. 102.257. MULTIYEAR PROJECTS. The oversight committee may grant funds for a multiyear project. The oversight committee must specify the total amount of [All the] money approved [needed] to fund the [a] multiyear project. The total amount specified is considered for purposes of this subchapter to have been [must be] awarded in the state fiscal year that the project is approved by the research and prevention programs committee. The institute shall distribute only the money that will be expended during that fiscal year. The remaining money shall be [maintained in an escrow account to be] distributed by the institute as the money is needed in each subsequent fiscal year [years of the project].

SECTION 7. (a) The changes in law made by this Act apply only to a grant of funds for a multiyear project by the Cancer Prevention and Research Institute of Texas Oversight Committee as authorized by Section 102.257, Health and Safety Code, as amended by this Act, made on or after September 1, 2011. A grant of funds for a multiyear project made before that date is governed by the law in effect on the date the grant was made, and the former law is continued in effect for that purpose.

(b) The changes in law made by this Act to Section 55.13, Education Code, and Section 1232.101, Government Code, apply only to bonds authorized after the effective date of this Act. Bonds authorized before that date are governed by the law in effect on the date the bonds were authorized, and the former law is continued in effect for that purpose.

SECTION 8. This Act takes effect September 1, 2011.