Texas Laws - Government Code
GOVERNMENT CODE
TITLE 9. PUBLIC SECURITIES

SUBTITLE H. SPECIFIC AUTHORITY FOR MORE THAN ONE TYPE OF LOCAL GOVERNMENT TO ISSUE SECURITIES (77055)(1-click HTML)

CHAPTER 1431. ANTICIPATION NOTES (77056)(1-click HTML)
Sec. 1431.001. DEFINITIONS. (77057)(1-click HTML)

In this chapter: (77058)

(1) "Anticipation note" means a note issued under this chapter. (77059)

(2) "Eligible countywide district" means a flood control district or a hospital district the boundaries of which are substantially coterminous with the boundaries of a county with a population of three million or more or a hospital district created in a county with a population of more than 800,000 that was not included in the boundaries of a hospital district before September 1, 2003. (77060)

(3) "Eligible school district" means an independent school district that has an average daily attendance of 190,000 or more as determined under Section 42.005, Education Code. (77061)

(4) "Governing body" means the commissioners court of a county or the governing body of a municipality, eligible school district, or eligible countywide district authorized to issue anticipation notes on behalf of an issuer. (77062)

(5) "Issuer" means a county, municipality, eligible school district, or eligible countywide district issuing an anticipation note. (77063)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. Amended by Acts 2001, 77th Leg., ch. 1183, Sec. 1, eff. Sept. 1, 2001. (77064)

Amended by: (77065)

Acts 2007, 80th Leg., R.S., Ch. 164 (S.B. 1107), Sec. 2, eff. September 1, 2007. (77066)

Sec. 1431.002. AUTHORITY TO ISSUE ANTICIPATION NOTES. (77067)(1-click HTML)

(a) The commissioners court of a county by order, on the recommendation of the county auditor or the county budget officer, as applicable, or the governing body of an eligible countywide district may authorize the issuance of an anticipation note. (77068)

(b) The governing body of a municipality by ordinance may authorize the issuance of an anticipation note. (77069)

(c) The governing body of an eligible school district by order may authorize the issuance of an anticipation note. (77070)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. Amended by Acts 2001, 77th Leg., ch. 1183, Sec. 2, eff. Sept. 1, 2001. (77071)

Sec. 1431.003. ADDITIONAL AUTHORITY OF COUNTIES AND CERTAIN MUNICIPALITIES. (77072)(1-click HTML)

(a) This section applies only to an issuer that is: (77073)

(1) a county; (77074)

(2) a municipality with a population of 80,000 or more; (77075)

(3) an eligible school district; or (77076)

(4) an eligible countywide district. (77077)

(b) Notwithstanding anything in this chapter to the contrary, the governing body may exercise the authority granted to the governing body of an issuer with regard to issuance of obligations under Chapter 1371, except that the prohibition in that chapter on the repayment of an obligation with ad valorem taxes does not apply to an issuer exercising the authority granted by this section. (77078)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. Amended by Acts 2001, 77th Leg., ch. 1183, Sec. 3, eff. Sept. 1, 2001. (77079)

Sec. 1431.004. USES OF ANTICIPATION NOTE PROCEEDS. (77080)(1-click HTML)

(a) An issuer, other than an eligible school district, may use the proceeds of an anticipation note to pay: (77081)

(1) a contractual obligation incurred or to be incurred for: (77082)

(A) the construction of a public work; (77083)

(B) the purchase of materials, supplies, equipment, machinery, buildings, lands, and rights-of-way for the issuer's authorized needs and purposes; or (77084)

(C) a professional service, including a service by a tax appraisal engineer, engineer, architect, attorney, mapmaker, auditor, financial advisor, or fiscal agent; (77085)

(2) operating or current expenses; or (77086)

(3) the issuer's cumulative cash flow deficit. (77087)

(b) The governing body of an eligible school district may use the proceeds of an anticipation note to pay an obligation incurred or to be incurred for: (77088)

(1) a purpose described by Subsection(a)(1)(C), (2), or (3); or (77089)

(2) the purchase of materials, supplies, equipment, or machinery for an issuer's authorized needs and purposes. (77090)

(c) For the purposes of this section, the cumulative cash flow deficit is the amount by which the sum of an issuer's anticipated expenditures and cash reserve reasonably required to pay unanticipated expenditures exceeds the amount of the issuer's cash, marketable securities, and money in an account that may be used to pay an issuer's anticipated expenditures, other than: (77091)

(1) money in an account the use of which is subject to legislative or judicial action or that is subject to a legislative, judicial, or contractual requirement that the account be reimbursed; or (77092)

(2) the proceeds of an anticipation note. (77093)

(d) For the purposes of Subsection (c), an amount equal to one month's anticipated expenditures is presumed to be reasonably required as a cash reserve. (77094)

(e) An issuer, other than an eligible school district, may use the proceeds of an anticipation note or other obligation issued under Section 1431.015: (77095)

(1) for purposes described by Subsection (a); or (77096)

(2) to pay for: (77097)

(A) employee salaries; (77098)

(B) the lease of materials, supplies, equipment, machinery, buildings, lands, and rights-of-way for the issuer's authorized needs and purposes; (77099)

(C) the demolition of dangerous structures or the restoration of historic structures; (77100)

(D) economic development grants made under Chapter 380, Local Government Code; or (77101)

(E) the accomplishment of any other purpose the issuer considers necessary in relation to preserving or protecting the public health and safety. (77102)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. Amended by Acts 2001, 77th Leg., ch. 1183, Sec. 4, eff. Sept. 1, 2001. (77103)

Amended by: (77104)

Acts 2007, 80th Leg., R.S., Ch. 929 (H.B. 3270), Sec. 1, eff. June 15, 2007. (77105)

Sec. 1431.005. GENERAL LIMITATION. (77106)(1-click HTML)

An issuer may not use proceeds of an anticipation note to repay interfund or other borrowing that occurred earlier than 24 months before the date of the ordinance or order authorizing the issuance of the note. (77107)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77108)

Sec. 1431.006. LIMITATION ON NOTES TO PAY EXPENSES. (77109)(1-click HTML)

(a) Anticipation notes issued for the purposes described by Section 1431.004(a)(2) may not, in the fiscal year in which the attorney general approves the notes: (77110)

(1) for a municipality, exceed 75 percent of the revenue or taxes anticipated to be collected in that year; (77111)

(2) for a county or an eligible countywide district, exceed 50 percent of the revenue or taxes anticipated to be collected in that year; or (77112)

(3) for an eligible school district, exceed 75 percent of the income of the district for the fiscal year preceding that year. (77113)

(b) This section does not apply to an anticipation note or other obligation issued under Section 1431.015. (77114)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. Amended by Acts 2001, 77th Leg., ch. 1183, Sec. 5, eff. Sept. 1, 2001. (77115)

Amended by: (77116)

Acts 2007, 80th Leg., R.S., Ch. 929 (H.B. 3270), Sec. 2, eff. June 15, 2007. (77117)

Sec. 1431.007. GENERAL SOURCES OF PAYMENT. (77118)(1-click HTML)

(a) Except as provided by Subsection (b), a governing body may: (77119)

(1) provide that anticipation notes be paid from and secured by revenue, taxes, a combination of revenue and taxes, or the proceeds of bonds to be issued by the issuer; and (77120)

(2) pledge to the payment of anticipation notes revenue, taxes, a combination of revenue and taxes, or the proceeds of bonds to be issued by the issuer. (77121)

(b) The governing body of a flood control district operating as a conservation and reclamation district that issues anticipation notes for one or more purposes described in Section 1431.004(a)(1) may: (77122)

(1) provide that the anticipation notes be paid from and secured by revenue or the proceeds of bonds to be issued by the issuer; and (77123)

(2) pledge to the payment of the anticipation notes revenues or the proceeds of bonds to be issued by the issuer. (77124)

(c) A governing body issuing an anticipation note or other obligation under Section 1431.015 may: (77125)

(1) provide that the anticipation note or other obligation be paid from and secured by any revenue, including sales taxes, other taxes, a combination of nontax and tax revenue, the proceeds of bonds to be issued by the issuer, and reimbursements or other funds to be received from the Federal Emergency Management Agency or any other state or federal agency reimbursing or providing funds to the issuer for costs incurred as a result of the emergency; and (77126)

(2) pledge to the payment of the anticipation note or other obligation any revenue, including sales taxes, other taxes, a combination of nontax and tax revenue, the proceeds of bonds to be issued by the issuer, and reimbursements or other funds to be received from the Federal Emergency Management Agency or any other state or federal agency reimbursing or providing funds to the issuer for costs incurred as a result of the emergency. (77127)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. Amended by Acts 2001, 77th Leg., ch. 1183, Sec. 6, eff. Sept. 1, 2001; Acts 2003, 78th Leg., ch. 270, Sec. 2, eff. June 18, 2003. (77128)

Amended by: (77129)

Acts 2007, 80th Leg., R.S., Ch. 929 (H.B. 3270), Sec. 3, eff. June 15, 2007. (77130)

Sec. 1431.008. AD VALOREM TAXES AS SOURCE OF PAYMENT. (77131)(1-click HTML)

(a) A governing body may not issue anticipation notes that are payable from bonds secured by an ad valorem tax unless the proposition authorizing the issuance of the bonds: (77132)

(1) is approved by a majority of the votes cast in an election held by the issuer; and (77133)

(2) states that anticipation notes may be issued. (77134)

(b) A governing body that pledges to the payment of anticipation notes an ad valorem tax to be imposed in a subsequent fiscal year shall impose the tax in the ordinance or order that authorizes the issuance of the notes. (77135)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77136)

Sec. 1431.009. MATURITY. (77137)(1-click HTML)

(a) Except as provided by Subsection (b) or (e), an anticipation note issued for a purpose described by Section 1431.004(a)(1) or (b)(2) must mature before the seventh anniversary of the date that the attorney general approves the note. (77138)

(b) An anticipation note issued by a county with a population of three million or more, an eligible countywide district, or an eligible school district for a purpose described by Section 1431.004(a)(1) or (b)(2) must mature before the 15th anniversary of the date that the attorney general approves the note. (77139)

(c) Except as provided by Subsection (e), an anticipation note issued for a purpose described by Section 1431.004(a)(2) or (3) must mature before the first anniversary of the date that the attorney general approves the note. (77140)

(d) A bond issued under Chapter 1207 to refund an anticipation note issued by a county, municipality, or eligible countywide district for a purpose described by Section 1431.004(a)(1) or by an eligible school district for a purpose described by Section 1431.004(a)(1)(C) or (b)(2) is subject to the limitation on maturity provided by Section 1207.006 and not the limitation provided by Subsection (a). (77141)

(e) An anticipation note or other obligation issued under Section 1431.015 for any authorized purpose must mature before the 10th anniversary of the date the attorney general approves the note or other obligation. (77142)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. Amended by Acts 2001, 77th Leg., ch. 1183, Sec. 7, eff. Sept. 1, 2001. (77143)

Amended by: (77144)

Acts 2007, 80th Leg., R.S., Ch. 929 (H.B. 3270), Sec. 4, eff. June 15, 2007. (77145)

Sec. 1431.010. SALE OF NOTES. (77146)(1-click HTML)

A governing body may sell an anticipation note at public or private sale for cash. (77147)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77148)

Sec. 1431.011. ATTORNEY GENERAL APPROVAL OF CERTAIN NOTES. (77149)(1-click HTML)

Chapter 1371 governs approval by the attorney general of anticipation notes issued under Section 1431.003. (77150)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77151)

Sec. 1431.012. RESTRICTION ON CERTAIN CONTRACTS PAYABLE FROM PROCEEDS OF NOTES. (77152)(1-click HTML)

(a) Except as provided by Subsection (b), a county must comply with the competitive bidding requirements of Subchapter C, Chapter 271, Local Government Code, in connection with a contract to be paid from the proceeds of anticipation notes issued for a purpose described by Section 1431.004(a)(1)(A). (77153)

(b) Competitive bidding requirements do not apply to an anticipation note or other obligation issued under Section 1431.015 for any authorized purpose. (77154)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77155)

Amended by: (77156)

Acts 2007, 80th Leg., R.S., Ch. 929 (H.B. 3270), Sec. 5, eff. June 15, 2007. (77157)

Sec. 1431.013. CONFLICT WITH OTHER LAWS. (77158)(1-click HTML)

If there is a conflict between this chapter and another statute: (77159)

(1) an issuer may act under either; and (77160)

(2) the governing body is not required to specify the law under which the action is taken. (77161)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77162)

Sec. 1431.014. CERTAIN NOTES FOR RURAL ECONOMIC DEVELOPMENT. (77163)(1-click HTML)

(a) Notwithstanding any other provision of this chapter, an issuer participating in a rural economic development program established by the Texas Agricultural Finance Authority may sell to the authority an anticipation note issued for a purpose described by Section 1431.004(a)(1), provided that the note matures before the 30th anniversary of the date the note is issued. (77164)

(b) Anticipation notes issued by a single issuer under this section in an aggregate original principal amount of not more than $500,000 are not subject to the approval requirements of Section 1431.011 or Chapter 1202. (77165)

(c) An issuer may issue anticipation notes under this section for the same purpose not more than once in any 12-month period. (77166)

Added by Acts 2001, 77th Leg., ch. 152, Sec. 1, eff. May 16, 2001. (77167)

Sec. 1431.015. CERTAIN NOTES OR OTHER OBLIGATIONS FOR EMERGENCY FINANCING. (77168)(1-click HTML)

(a) In this section, "emergency" means the occurrence of widespread or severe damage, injury, or loss of life or property affecting an area in the jurisdiction of an issuer and resulting from a hurricane or tropical storm, including wind damage, fire damage, damage from wave action, or flood damage resulting from the hurricane or tropical storm. (77169)

(b) Notwithstanding any other provision of this chapter, an issuer located within 70 miles of the Gulf of Mexico or of a bay or inlet of the gulf may authorize the issuance of an anticipation note or other obligation in the event of an emergency. (77170)

(c) The issuer shall deliver to the attorney general, in accordance with Section 1431.017, a transcript of proceedings related to the issuance of an anticipation note or other obligation issued under this section. However, before delivery of an anticipation note or other obligation issued under this section: (77171)

(1) the governor must have issued an executive order or proclamation under Chapter 418 declaring a state of disaster and designating the area affected by the emergency; (77172)

(2) the governing body acting through its presiding officer under Chapter 418 must have declared a local state of disaster designating the area affected by the emergency; or (77173)

(3) the governor must have proclaimed under Chapter 433 a state of emergency designating the area affected by the emergency. (77174)

Added by Acts 2007, 80th Leg., R.S., Ch. 929 (H.B. 3270), Sec. 6, eff. June 15, 2007. (77175)

Sec. 1431.016. CONFLICTS WITH MUNICIPAL CHARTER. (77176)(1-click HTML)

To the extent of a conflict between a municipal charter and any provision of this chapter relating to an anticipation note or other obligation issued under Section 1431.015, this chapter controls. (77177)

Added by Acts 2007, 80th Leg., R.S., Ch. 929 (H.B. 3270), Sec. 6, eff. June 15, 2007. (77178)

Sec. 1431.017. ATTORNEY GENERAL REVIEW. (77179)(1-click HTML)

Following authorization of an anticipation note or other obligation under Section 1431.015, the issuer shall submit to the attorney general a transcript of proceedings related to issuance of the anticipation note or other obligation and provide preliminary approval and fulfill other requirements relating to the issuance of the anticipation note or other obligation. On the occurrence of an emergency affecting the issuer, the attorney general shall expeditiously review and approve delivery of the anticipation note or other obligation subject to the issuer's compliance with preliminary approval requirements. (77180)

Added by Acts 2007, 80th Leg., R.S., Ch. 929 (H.B. 3270), Sec. 6, eff. June 15, 2007. (77181)

CHAPTER 1432. BONDS FOR LOCAL GOVERNMENT SPORTS CENTERS (77182)(1-click HTML)
Sec. 1432.001. APPLICABILITY OF CHAPTER. (77183)(1-click HTML)

(a) This chapter applies only to a local government that has all or most of its territory located in a county with a population of more than 1.3 million. (77184)

(b) Two or more local governments may act jointly under this chapter if: (77185)

(1) each local government is individually authorized to act under this chapter; (77186)

(2) all or most of the territory of each local government is located in the same county or in adjacent counties; and (77187)

(3) the local governments act jointly to perform each official act. (77188)

(c) Local governments acting jointly may perform any act that a single local government may perform under this chapter. (77189)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. Amended by Acts 2001, 77th Leg., ch. 669, Sec. 24, eff. Sept. 1, 2001. (77190)

Sec. 1432.002. DEFINITIONS. (77191)(1-click HTML)

In this chapter: (77192)

(1) "Bond authorization" means an ordinance of the governing body of a municipality, a resolution of the board of trustees of an independent school district, or an order of the commissioners court of a county that authorizes the issuance of bonds. (77193)

(2) "Local government" means a county, a municipality, or an independent school district. (77194)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77195)

Sec. 1432.003. AUTHORITY FOR SPORTS CENTERS. (77196)(1-click HTML)

(a) A local government may construct, acquire, lease, improve, enlarge, and operate one or more facilities used for sporting activities or events, including auxiliary facilities such as parking areas or restaurants. (77197)

(b) A local government may contract with any public or private entity, including a coliseum advisory board or similar body, to perform any function authorized under this chapter other than an official governmental act that must be performed by the governing body of a local government. (77198)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77199)

Sec. 1432.004. AUTHORITY TO ISSUE REVENUE BONDS. (77200)(1-click HTML)

The governing body of a local government may issue revenue bonds for a purpose authorized by Section 1432.003. (77201)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77202)

Sec. 1432.005. PLEDGE OF REVENUE. (77203)(1-click HTML)

A local government may pledge all or part of the revenue, income, or receipts from a facility authorized by this chapter to the payment of bonds, including principal, interest, and any other amounts required or permitted in connection with the bonds. (77204)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77205)

Sec. 1432.006. ADDITIONAL SECURITY. (77206)(1-click HTML)

(a) Bonds issued under this chapter may be additionally secured by: (77207)

(1) an encumbrance on any real property relating to a facility authorized by this chapter owned or to be acquired by the local government; (77208)

(2) an encumbrance on any personal property appurtenant to that real property; or (77209)

(3) a pledge of any portion of any grant, donation, revenue, or income received or to be received from the United States or any other public or private source. (77210)

(b) The governing body of the local government may authorize the execution of a trust indenture, mortgage, deed of trust, or other instrument as evidence of the encumbrance. (77211)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77212)

Sec. 1432.007. BONDS NOT PAYABLE FROM TAXES. (77213)(1-click HTML)

A holder of a bond issued under this chapter is not entitled to demand payment of the bond from money raised by taxation. (77214)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77215)

Sec. 1432.008. MATURITY. (77216)(1-click HTML)

A bond issued under this chapter must mature not later than 40 years after its date. (77217)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77218)

Sec. 1432.009. ADDITIONAL BONDS. (77219)(1-click HTML)

The bond authorization may provide for the subsequent issuance of additional parity bonds or subordinate lien bonds under terms specified in the authorization. (77220)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77221)

Sec. 1432.010. SALE OF BONDS. (77222)(1-click HTML)

A local government may sell bonds issued under this chapter in the manner and under the terms provided by the bond authorization. (77223)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77224)

Sec. 1432.011. REVIEW AND APPROVAL OF CONTRACTS RELATING TO BONDS. (77225)(1-click HTML)

(a) If bonds issued under this chapter state that they are secured by a pledge of revenue or rents from a contract, including a lease contract, a copy of the contract and the proceedings related to it must be submitted to the attorney general. (77226)

(b) If the attorney general finds that the bonds have been authorized and the contract has been made in accordance with law, the attorney general shall approve the contract. (77227)

(c) After the bonds are approved and registered as provided by Chapter 1202 and the contract is approved under Subsection (b), the contract is incontestable in a court or other forum for any reason and is a valid and binding obligation for all purposes in accordance with its terms. (77228)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77229)

Sec. 1432.012. CHARGES. (77230)(1-click HTML)

(a) The governing body of a local government may impose and collect charges for the use or availability of a facility authorized by this chapter. (77231)

(b) A local government shall impose and collect pledged charges in an amount that will be at least sufficient, with any other pledged resources, to provide for the payment of: (77232)

(1) the principal of, interest on, and any other amounts required in connection with the bonds; and (77233)

(2) to the extent required by the bond authorization: (77234)

(A) expenses incurred in connection with the bonds; and (77235)

(B) operation, maintenance, and other expenses incurred in connection with the facility. (77236)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77237)

Sec. 1432.013. REFUNDING BONDS. (77238)(1-click HTML)

(a) A local government may refund or otherwise refinance bonds issued under this chapter by issuing refunding bonds under any terms provided by a bond authorization. (77239)

(b) All appropriate provisions of this chapter apply to the refunding bonds. The refunding bonds shall be issued in the manner provided by this chapter for other bonds. (77240)

(c) The refunding bonds may be sold and delivered in amounts sufficient to pay the principal of and interest and any redemption premium on the bonds to be refunded, at maturity or on any redemption date. (77241)

(d) The refunding bonds may be issued to be exchanged for the bonds to be refunded by them. In that case, the comptroller shall register the refunding bonds and deliver them to the holder of the bonds to be refunded as provided by the bond authorization. The exchange may be made in one delivery or in installment deliveries. (77242)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77243)

Sec. 1432.014. PUBLIC PURPOSE. (77244)(1-click HTML)

The acquisition, construction, improvement, enlargement, equipment, operation, and maintenance of a facility authorized by this chapter is a public purpose and a proper function of a local government. (77245)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77246)

Sec. 1432.015. CONFLICT OR INCONSISTENCY WITH OTHER LAW. (77247)(1-click HTML)

When bonds are issued under this subchapter, to the extent of any conflict or inconsistency between this chapter and another law, this chapter controls. (77248)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77249)

CHAPTER 1433. BONDS FOR DEVELOPMENT OF EMPLOYMENT, INDUSTRIAL, AND HEALTH RESOURCES (77250)(1-click HTML)
Sec. 1433.001. SHORT TITLE. (77251)(1-click HTML)

This chapter may be cited as the Act for Development of Employment, Industrial, and Health Resources. (77252)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77253)

Sec. 1433.002. DEFINITIONS. (77254)(1-click HTML)

In this chapter: (77255)

(1) "Department" means the Texas Department of Economic Development. (77256)

(2) "District" means a conservation and reclamation district established under Section 59, Article XVI, or Section 52, Article III, Texas Constitution. (77257)

(3) "Governing body" means the commissioners court of a county or the governing body of a municipality or district. (77258)

(4) "Industrial project" means the land, buildings, equipment, facilities, and improvements found by the governing body to be required or suitable for the promotion of industrial development and for use by manufacturing or industrial enterprise, regardless of whether the land, buildings, equipment, facilities, and improvements are in existence when or are to be acquired or constructed after the finding is made. (77259)

(5) "Issuer" means a municipality, county, or district. (77260)

(6) "Medical project" means the land, buildings, equipment, facilities, and improvements found by the governing body to be required for public health, research, and medical facilities located in this state, regardless of whether the land, buildings, equipment, facilities, and improvements are in existence when or are to be acquired or constructed after the finding is made. (77261)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77262)

Sec. 1433.003. APPLICABILITY OF CHAPTER TO MUNICIPALITIES. (77263)(1-click HTML)

This chapter applies to a municipality only if the municipality: (77264)

(1) has the power to impose an ad valorem tax of not less than $1.50 on each $100 valuation of taxable property in the municipality; or (77265)

(2) is a home-rule municipality. (77266)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77267)

Sec. 1433.004. COST OF PROJECT. (77268)(1-click HTML)

For purposes of this chapter, the cost of an industrial project or medical project is: (77269)

(1) the cost of acquisitions for the project, including the cost of the acquisition of all land, rights-of-way, property rights, easements, and interests acquired for the construction; (77270)

(2) the cost of all machinery and equipment; (77271)

(3) financing charges; (77272)

(4) interest accruing before and during construction and until the first anniversary of the date on which the construction is completed; (77273)

(5) the cost of estimates, including estimates of revenue, engineering and legal services, plans, specifications, surveys, and other expenses necessary or incident to determining the feasibility and practicability of constructing the project; (77274)

(6) administrative expenses; and (77275)

(7) other expenses that are necessary or incident to the acquisition of the project, the financing of the acquisition, and the placing of the project in operation. (77276)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77277)

Sec. 1433.005. ULTIMATE LESSEE. (77278)(1-click HTML)

For purposes of this chapter, an ultimate lessee is the person, firm, corporation, or company that leases an industrial project or medical project from the lessee of the project. (77279)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77280)

Sec. 1433.006. CORRECTION OF INVALID PROCEDURES. (77281)(1-click HTML)

If a court holds that any procedure under this chapter violates the constitution of this state or the United States, the issuer by resolution may provide an alternative procedure that conforms with the constitution. (77282)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77283)

Sec. 1433.007. RELOCATION OR ALTERATION EXPENSE. (77284)(1-click HTML)

If a municipality, county, district, or other political subdivision, in the exercise of a power under this chapter, including the power of relocation, makes necessary the relocation or rerouting of, or alteration of the construction of, a highway, railroad, electric transmission line, telegraph or telephone property or facility, or pipeline, the relocation or rerouting or alteration of construction must be accomplished at the sole expense of the political subdivision. In this section, "sole expense" means the actual cost of the relocation or rerouting or alteration of construction to provide comparable replacement without enhancement of the facility, after deduction of the net salvage value derived from the old facility. (77285)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77286)

Sec. 1433.008. USE OF STATE MONEY. (77287)(1-click HTML)

(a) The legislature may not appropriate money to pay all or a part of the obligation of an issuer under this chapter. (77288)

(b) The department shall pay any expense it incurs under this chapter from money appropriated to the department. (77289)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77290)

SUBCHAPTER B. POWERS OF ISSUER (77291)(1-click HTML)
Sec. 1433.021. ACQUISITION OF PROJECT; DISPOSITION. (77292)(1-click HTML)

(a) An issuer may acquire, by construction, purchase, devise, gift, or lease or by more than one of those methods, an industrial project or medical project that is located in this state and at least a part of which is located within the issuer's territorial limits. (77293)

(b) For an issuer that is a municipality, an industrial project or medical project may be located outside the municipality's territorial limits if the project is within the municipality's extraterritorial jurisdiction as determined under Subchapter B, Chapter 42, Local Government Code. (77294)

(c) An issuer may sell and convey all or any part of property acquired under this section and make an order relating to the sale or conveyance that the issuer considers conducive to the best interest of the issuer. (77295)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77296)

Sec. 1433.022. LIMITATIONS ON ACQUISITIONS. (77297)(1-click HTML)

(a) An issuer may not acquire an industrial project, or any part of an industrial project, by eminent domain. (77298)

(b) Land previously acquired by an issuer by eminent domain may be sold, leased, or otherwise used in accordance with this chapter, if the governing body determines that: (77299)

(1) the use will not interfere with the purpose for which that land was originally acquired or that the land is no longer needed for that purpose; (77300)

(2) at least seven years have elapsed since the land was acquired by eminent domain; and (77301)

(3) the land was not acquired for park purposes unless the sale or lease of that land has been approved at an election held under Section 1502.055. (77302)

(c) An issuer may not acquire or construct an industrial project or medical project for an individual, firm, partnership, or corporation, or make or authorize a lease to an individual, firm, partnership, or corporation if the effect of the lease of that project is to remove the lessee's business from existing facilities in this state. (77303)

(d) An issuer may not issue bonds to acquire existing facilities for the purpose of leasing those facilities to the industrial concern from which the facilities are acquired or to another person controlled by the industrial concern. (77304)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. Amended by Acts 1999, 76th Leg., ch. 1064, Sec. 31, eff. Sept. 1, 1999. (77305)

Sec. 1433.023. AUTHORITY TO ISSUE REVENUE BONDS. (77306)(1-click HTML)

(a) Except as provided by Subsection (b), an issuer may issue revenue bonds to pay all or a part of the cost of acquiring, constructing, enlarging, or improving an industrial project, including a project in an enterprise zone designated under Chapter 2303, or a medical project. (77307)

(b) A district may not authorize revenue bonds for a medical project. (77308)

(c) An issuer may secure the payment of the bonds as provided by this chapter. (77309)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77310)

Sec. 1433.024. LEASE OF PROJECT. (77311)(1-click HTML)

(a) An issuer may, in accordance with this chapter, lease any or all of the issuer's industrial projects and medical projects. (77312)

(b) An issuer may lease property under this chapter only to a corporation organized under the Texas Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's Texas Civil Statutes). (77313)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77314)

Sec. 1433.025. ADVERTISING FOR CERTAIN CONTRACTS; PERFORMANCE AND PAYMENT BONDS. (77315)(1-click HTML)

(a) A contract for construction or purchase under this chapter involving the expenditure of more than $2,000 may be made only after advertising in the manner provided by Chapter 252, Local Government Code, or Subchapter C, Chapter 262, Local Government Code, as applicable. (77316)

(b) The provisions of Chapter 2253 relating to performance and payment bonds apply to construction contracts let by the issuer. (77317)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77318)

Sec. 1433.026. PROHIBITED OPERATIONS. (77319)(1-click HTML)

An issuer may not operate an industrial project as a business or in any manner other than as the lessor of the project. (77320)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77321)

SUBCHAPTER C. PROCEDURE FOR ISSUING BONDS (77322)(1-click HTML)
Sec. 1433.041. DEPARTMENT APPROVAL OF LEASE; APPEAL. (77323)(1-click HTML)

(a) An issuer may not begin proceedings to authorize bonds under Section 1433.044 or 1433.061 until the department has given tentative approval to the suggested contents of the lease agreement, and if a lessee is allowed to sublease, the department has tentatively approved the financial responsibility of the ultimate lessee. The department shall investigate a proposed acquisition of existing facilities for compliance with Section 1433.022(d) before tentatively approving an industrial project or medical project. (77324)

(b) The department may not give final approval to any agreement unless the department affirmatively finds that the lessee and ultimate lessee have the business experience, financial resources, and responsibility to provide reasonable assurance that all bonds and interest on the bonds to be paid from or because of that agreement will be paid as they become due. (77325)

(c) The attorney general may not approve bonds to be issued under this chapter until the department has given final approval to the lease agreement and may not approve the bonds if the provisions for security and payment of lease payments do not conform with this chapter. (77326)

(d) An issuer may appeal any adverse ruling or decision of the department under this section to a district court in Travis County. The substantial evidence rule applies to an appeal under this subsection. (77327)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77328)

Sec. 1433.042. REGULATION OF LEASES. (77329)(1-click HTML)

The department by rule shall adopt minimum standards for lease agreements and guidelines relating to financial responsibilities of the lessee and any ultimate lessee. (77330)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77331)

Sec. 1433.043. ISSUER'S AUTHORITY. (77332)(1-click HTML)

(a) An issuer may issue bonds under this chapter without obtaining the consent of any department, division, commission, board, bureau, or agency of the state, other than the attorney general under Chapter 1202 or the department, and without any proceedings or satisfying any condition precedent other than the proceedings and conditions required by: (77333)

(1) this chapter; (77334)

(2) Subchapter B or D, Chapter 1201; or (77335)

(3) Chapter 1204. (77336)

(b) Except as provided by this chapter or by department rule, each governing body has complete authority with respect to bonds and lease agreements governed by this chapter. (77337)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77338)

Sec. 1433.044. BOND RESOLUTION; CALLING ELECTION; PUBLICATION OF RESOLUTION. (77339)(1-click HTML)

(a) Before issuing bonds under this chapter, a governing body shall adopt a resolution declaring its intention to issue the bonds. (77340)

(b) The resolution must specify: (77341)

(1) the amount of bonds proposed to be issued; (77342)

(2) the purpose for which the bonds are to be issued; and (77343)

(3) the date on which the governing body proposes to authorize the issuance of the bonds. (77344)

(c) The governing body may call an election on the issuance of the bonds. (77345)

(d) If an election is not called under Subsection (c), the governing body shall publish the resolution once a week for at least two consecutive weeks in at least one newspaper of general circulation in the territorial limits of the issuer. The first publication must be not less than 14 days before the date specified in the resolution for the authorization of the bonds. (77346)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77347)

Sec. 1433.045. PROTEST. (77348)(1-click HTML)

(a) If at least 10 percent of the registered voters of the issuer file a written protest against the issuance of the bonds on or before the date specified for the authorization of the bonds, the governing body shall hold an election on the issuance of the bonds. (77349)

(b) If a written protest is not filed, the bonds may be issued without an election at any time before the second anniversary of the date specified in the resolution. (77350)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77351)

Sec. 1433.046. ELECTION ORDER. (77352)(1-click HTML)

In addition to the requirements provided by Chapter 3, Election Code, an order calling an election under this subchapter must include the location of each polling place and the election judges and clerks appointed for each polling place. (77353)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77354)

Sec. 1433.047. NOTICE OF ELECTION. (77355)(1-click HTML)

Notice of an election under this subchapter shall be published once a week for at least two consecutive weeks, in at least one newspaper of general circulation within the territorial limits of the issuer. The first publication must be not less than 14 days before the date of the election. (77356)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77357)

Sec. 1433.048. BALLOT PROPOSITION; ELECTION PROCEDURES. (77358)(1-click HTML)

(a) The ballot for an election held under this subchapter shall be printed to permit voting for or against the proposition: "The issuance of revenue bonds for the (medical project or industrial project)." (77359)

(b) The election shall be conducted in accordance with the general laws of this state relating to general elections, except as modified by this chapter. (77360)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77361)

Sec. 1433.049. RESULTS OF ELECTION. (77362)(1-click HTML)

(a) Within 10 days after the election, or as soon after that as possible, the governing body of the issuer shall convene and canvass the returns of the election. (77363)

(b) If a majority of the voters voting in a bond election vote in favor of the proposition, the governing body shall find and declare that the results favor the proposition, and subject to Section 1433.041, the governing body may proceed with the authorization of the bonds. (77364)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77365)

SUBCHAPTER D. BONDS (77366)(1-click HTML)
Sec. 1433.061. ISSUANCE OF BONDS. (77367)(1-click HTML)

(a) A series of bonds may be issued for each industrial project or medical project. Any projects may be combined in a single series of bonds if the governing body considers the combination to be in the best interest of the issuer, but each project shall be considered separately with respect to this subsection and Subchapter C. (77368)

(b) Bonds must be issued and delivered before the third anniversary of the later of the date of the tentative approval of the department or the date of the final judgment of any litigation affecting the validity of the bonds or the provision made for their payment. This subsection does not prohibit the department from conditioning its approval of an industrial project or medical project on the completion of the financing of the project within a shorter period. (77369)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77370)

Sec. 1433.062. MONEY USED TO PAY BONDS; PROHIBITION ON CERTAIN OBLIGATIONS. (77371)(1-click HTML)

(a) The principal of and the interest on bonds authorized under this chapter are payable only from the money provided for that payment and from the revenue of the industrial project or medical project for which the bonds were authorized. (77372)

(b) An issuer may not incur financial obligations that cannot be paid from revenue from the lease of an industrial project or medical project. (77373)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77374)

Sec. 1433.063. BONDS NOT DEBT OF STATE OR ISSUER. (77375)(1-click HTML)

(a) A bond issued under this chapter is not a debt or a pledge of the faith and credit of this state, the issuer, or any other political subdivision or agency of this state. (77376)

(b) A bond issued under this chapter must contain on its face a statement that: (77377)

(1) this state, the issuer, or any other political subdivision or agency of this state is not obligated to pay the principal of or the interest on the bond except from revenue of the industrial project or medical project for which the bond is issued; and (77378)

(2) the faith and credit and the taxing power of this state, the issuer, or any other political subdivision or agency of this state are not pledged to the payment of the principal of or the interest on the bond. (77379)

(c) Each bond issued under this chapter must contain substantially the following language: "No pecuniary obligation is or may be imposed on the issuer of this bond in the event of a failure to pay all or part of the principal or interest on the bond, except that the issuer is obligated to apply rental income it receives from the (industrial project or medical project) to those purposes." (77380)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77381)

Sec. 1433.064. MATURITY. (77382)(1-click HTML)

A bond issued under this chapter must mature not later than 40 years after its date. (77383)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77384)

Sec. 1433.065. SALE OF BONDS. (77385)(1-click HTML)

Bonds issued under this chapter shall be sold to the highest bidder for cash and may not be exchanged for property. (77386)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77387)

Sec. 1433.066. INTERIM RECEIPTS; TEMPORARY BONDS. (77388)(1-click HTML)

Before the preparation of definitive bonds, an issuer may, under the restrictions applicable to the definitive bonds, issue interim receipts or temporary bonds, with or without coupons, exchangeable for definitive bonds when the definitive bonds are executed and available for delivery. (77389)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77390)

Sec. 1433.067. USE OF BOND PROCEEDS. (77391)(1-click HTML)

The proceeds of the bonds of each issue may be used only for the payment of the cost of the industrial project or medical project for which the bonds were issued, and shall be disbursed in the manner and under any restrictions provided in the resolution authorizing the issuance of the bonds or in the trust agreement securing the bonds. Any proceeds of the bonds of an issue that exceed the cost of the project for which the bonds were issued shall be deposited to the credit of the sinking fund for those bonds. (77392)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77393)

Sec. 1433.068. REFUNDING BONDS. (77394)(1-click HTML)

(a) An issuer by resolution may provide for the issuance of revenue refunding bonds to: (77395)

(1) refund any outstanding bonds issued under this chapter; and (77396)

(2) construct improvements, extensions, or enlargements to the industrial project or medical project in connection with which the bonds being refunded were issued. (77397)

(b) An issuer may issue revenue refunding bonds in exchange for outstanding bonds, notwithstanding Section 1433.065, or the issuer may use the proceeds from the sale of the revenue refunding bonds to redeem outstanding bonds. (77398)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77399)

Sec. 1433.069. EXEMPTIONS FROM TAXATION AND SECURITIES ACT. (77400)(1-click HTML)

(a) A bond issued under this chapter and the issuance and transfer of the bond, including any profit made in the sale of the bond, are exempt from taxation by this state or by a political subdivision of this state. (77401)

(b) A bond issued under this chapter and any coupon representing interest on the bond are exempt securities under The Securities Act (Article 581-1 et seq., Vernon's Texas Civil Statutes). (77402)

(c) A lease agreement under this chapter is not a security under The Securities Act (Article 581-1 et seq., Vernon's Texas Civil Statutes). (77403)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77404)

SUBCHAPTER E. AGREEMENTS RELATING TO BONDS (77405)(1-click HTML)
Sec. 1433.101. SECURITY FOR BOND; TRUST AGREEMENT. (77406)(1-click HTML)

(a) A bond issued under this chapter may be secured by a trust agreement between the issuer and a trust company or a bank having the powers of a trust company in this state. (77407)

(b) A trust agreement may: (77408)

(1) assign the lease revenue to be received from the lessee or the ultimate lessee of the industrial project or medical project for which the bond proceeds are used; or (77409)

(2) pledge the lease revenue for the payment of principal of and interest on the bond as they become due and payable and may provide for the creation and maintenance of reserves for that purpose. (77410)

(c) A trust agreement or a resolution providing for the issuance of the bonds may contain provisions for protecting and enforcing the rights and remedies of the bondholders, including covenants that state the duties of the issuer or lessee relating to: (77411)

(1) the acquisition of property for the industrial project or medical project in connection with which the bonds were authorized; (77412)

(2) the construction, improvement, maintenance, repair, operation, and insurance of the project; and (77413)

(3) the custody, protection, and application of all money related to the project. (77414)

(d) An issuer may require a bank or trust company incorporated under the laws of this state that acts as depository of the proceeds of the bonds or of revenue of the issuer to furnish indemnifying bonds or to pledge securities. (77415)

(e) A trust agreement may state the rights and remedies of the bondholders and of the trustee, and may restrict the individual right of action by bondholders as is customary in trust agreements or trust indentures securing bonds and debentures of corporations. A trust agreement may contain additional provisions for the security of the bondholders. (77416)

(f) All expenses incurred in carrying out a trust agreement may be treated as a part of the cost of the operation of the industrial project or medical project. (77417)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77418)

Sec. 1433.102. DEFAULT IN LEASE AGREEMENT OR MORTGAGE; ENFORCEMENT. (77419)(1-click HTML)

(a) An agreement relating to an industrial project or medical project between the issuer and the lessee or between a lessee and ultimate lessee must be for the benefit of the issuer. The agreement must provide that, in the event of a default in the payment of the principal of or the interest on the bonds or in the performance of any agreement contained in a proceeding, mortgage, or instrument, the payment or performance may be enforced by mandamus or by the appointment of a receiver with the power to charge rents and to apply the revenue from the project in accordance with the resolution, mortgage, or instrument. (77420)

(b) A mortgage to secure bonds issued under this chapter may also provide that, in the event of a default in the payment of the mortgage or a violation of an agreement contained in the mortgage, the mortgage may be foreclosed and the property securing the bonds may be sold in any manner permitted by law. The mortgage may provide that a trustee under the mortgage or the holder of any of the bonds secured by the mortgage may purchase the property at a foreclosure sale if the person is the highest bidder. (77421)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77422)

Sec. 1433.103. PURCHASE OPTION. (77423)(1-click HTML)

(a) An issuer may grant a lessee or ultimate lessee an option to purchase all or a part of an industrial project or medical project when all bonds of the issuer delivered to provide those facilities have been paid or provision has been made for their final payment, if, while the bonds or interest on the bonds remains unpaid, the lease rentals are paid in the manner required and when the rentals become due. (77424)

(b) For purposes of this section, a payment is considered to be paid in the manner required and when it becomes due if no event of default is declared and the payment is made within 15 calendar days of the date it is scheduled to become due. (77425)

(c) This section is the exclusive authority to convey or grant an option to purchase an industrial project or medical project. (77426)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77427)

CHAPTER 1434. COUNTY AND MUNICIPAL HIGHER EDUCATION IMPROVEMENT BONDS (77428)(1-click HTML)
Sec. 1434.001. APPLICABILITY OF CHAPTER. (77429)(1-click HTML)

This chapter applies only to: (77430)

(1) a home-rule municipality with a population of 25,000 or more that has an institution of higher education located within its boundaries or has entered into an agreement with an institution of higher education relating to the provision of services in furtherance of the completion of certificate programs, degree programs, or other higher education programs within the municipality by the institution of higher education; or (77431)

(2) a county within which a municipality described by Subdivision (1) is located. (77432)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77433)

Amended by: (77434)

Acts 2009, 81st Leg., R.S., Ch. 237 (S.B. 1952), Sec. 1, eff. May 27, 2009. (77435)

Sec. 1434.002. DEFINITIONS. (77436)(1-click HTML)

In this chapter: (77437)

(1) "Agreement" includes a lease, contract, or lease-purchase agreement. (77438)

(2) "Institution of higher education" means: (77439)

(A) an institution of higher education as defined by Section 61.003, Education Code, other than a public junior college; or (77440)

(B) a private, nonprofit institution of higher education that is accredited by the recognized accrediting agency and is located and authorized to operate in this state, other than a private institution of higher education operated exclusively for sectarian purposes. (77441)

(3) "Public security" has the meaning assigned by Section 1201.002. (77442)

(4) "Recognized accrediting agency" has the meaning assigned by Section 61.003, Education Code. (77443)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77444)

Amended by: (77445)

Acts 2009, 81st Leg., R.S., Ch. 237 (S.B. 1952), Sec. 2, eff. May 27, 2009. (77446)

Sec. 1434.003. LEGISLATIVE FINDING. (77447)(1-click HTML)

The legislature finds: (77448)

(1) that the assistance provided by counties and municipalities in promoting and providing higher education opportunities for residents of this state will benefit and enhance the general welfare of their residents by providing new and alternative higher education resources and enhanced access to those resources, improving and enhancing the educational opportunities of their residents, and allowing the completion of certificate programs, degree programs, and other higher education programs locally; and (77449)

(2) that those benefits and enhancements constitute public purposes for counties and municipalities. (77450)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77451)

Amended by: (77452)

Acts 2009, 81st Leg., R.S., Ch. 237 (S.B. 1952), Sec. 3, eff. May 27, 2009. (77453)

SUBCHAPTER B. ISSUANCE OF BONDS (77454)(1-click HTML)
Sec. 1434.051. FINANCING OF PERMANENT IMPROVEMENTS BY COUNTY OR MUNICIPALITY. (77455)(1-click HTML)

(a) A county or a municipality may: (77456)

(1) issue public securities, including certificates of obligation, to acquire, construct, or improve land, buildings, or other permanent improvements for use by an institution of higher education located within a county to which this chapter applies; and (77457)

(2) impose ad valorem taxes to pay the principal of and interest on those securities and to provide a sinking fund. (77458)

(a-1) A municipality that has entered into an agreement described by Section 1434.001(1) may: (77459)

(1) issue public securities, including certificates of obligation, to acquire, construct, or improve land, buildings, or other permanent improvements for use by an institution of higher education; (77460)

(2) impose ad valorem taxes to pay and secure payment of the principal of and interest on those securities and to provide a sinking fund; and (77461)

(3) pledge those taxes, any portion of the revenues received in connection with the agreement, or any combination of the taxes and revenue to secure payment of any portion of the public securities issued to acquire, construct, or improve the land, buildings, or other permanent improvements for use by the institution of higher education. (77462)

(b) The county or municipality shall: (77463)

(1) issue any public securities and impose the taxes in accordance with the applicable provisions of Subtitles A, C, D, and E; and (77464)

(2) if the securities are certificates of obligation, issue any certificates and impose the taxes in accordance with Subchapter C, Chapter 271, Local Government Code. (77465)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77466)

Amended by: (77467)

Acts 2009, 81st Leg., R.S., Ch. 237 (S.B. 1952), Sec. 4, eff. May 27, 2009. (77468)

Sec. 1434.052. JOINT FINANCING BY COUNTY AND MUNICIPALITY. (77469)(1-click HTML)

(a) A county and a municipality may jointly issue public securities and impose ad valorem taxes for a purpose described by Section 1434.051. (77470)

(b) The commissioners court of the county and the governing body of the municipality shall determine the appropriate proportion of the ad valorem taxes to be imposed by the county and by the municipality. (77471)

(c) A public security proposition that is submitted must distinctly specify the proportion of ad valorem taxes to be imposed by the county and by the municipality. (77472)

(d) The county and municipality shall issue the public securities and impose the taxes in accordance with the applicable provisions of Subtitles A, C, D, and E. (77473)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77474)

Sec. 1434.053. LIMIT ON TAXES. (77475)(1-click HTML)

The only limits on the amount of taxes that may be imposed to pay the principal of and interest on public securities, including certificates of obligation, issued under this chapter are those provided by the Texas Constitution. (77476)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77477)

SUBCHAPTER C. DONATION OR USE OF PERMANENT IMPROVEMENTS (77478)(1-click HTML)
Sec. 1434.101. DONATION OF PERMANENT IMPROVEMENTS. (77479)(1-click HTML)

(a) A county or municipality may donate to a general academic teaching institution a permanent improvement acquired, constructed, or improved by the county, by the municipality, or by the county and the municipality jointly. (77480)

(b) The donation is not subject to any law of this state governing the disposition of property owned by a county or municipality. (77481)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77482)

Sec. 1434.102. USE OF PERMANENT IMPROVEMENTS. (77483)(1-click HTML)

(a) A municipality may allow a state four-year institution of higher education or a university system to use land or buildings acquired by the municipality. (77484)

(b) This section does not apply to an institution of higher education that is supported in any way by revenue from a local tax base. (77485)

(c) A use under this section is a municipal purpose and a public use for the municipality. (77486)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77487)

CHAPTER 1435. BONDS FOR PARKS AND FAIRGROUND FACILITIES IN CERTAIN MUNICIPALITIES AND COUNTIES (77488)(1-click HTML)
Sec. 1435.001. APPLICABILITY OF CHAPTER; JOINT MUNICIPAL AND COUNTY ACTION. (77489)(1-click HTML)

(a) This chapter applies only to: (77490)

(1) a municipality with a population greater than 550,000; (77491)

(2) a county with a population greater than 550,000; or (77492)

(3) a municipality described by Subdivision (1) and a county described by Subdivision (2) acting together. (77493)

(b) A provision of this chapter that applies to a municipality or county also applies to a municipality and county acting together. (77494)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77495)

Sec. 1435.002. DEFINITION. (77496)(1-click HTML)

In this chapter, "park facility" means a building, improvement, or structure owned by a municipality or county and used in a municipal or county park or fairground for exhibits, concessions, or entertainment. (77497)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77498)

Sec. 1435.003. AUTHORITY FOR PARK FACILITIES. (77499)(1-click HTML)

A municipality or county may: (77500)

(1) construct, acquire, repair, improve, or enlarge a park facility; or (77501)

(2) acquire additional land, if needed, for a park facility. (77502)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77503)

Sec. 1435.004. LEASE OR CONTRACT FOR OPERATION OF PARK FACILITIES. (77504)(1-click HTML)

A municipality or county may enter a lease or contract for the operation of one or more of its park facilities. (77505)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77506)

SUBCHAPTER B. BONDS (77507)(1-click HTML)
Sec. 1435.051. AUTHORITY TO ISSUE REVENUE BONDS. (77508)(1-click HTML)

(a) To obtain money for a purpose described by Section 1435.003, the governing body of a municipality or county may, without an election, issue revenue bonds payable from and secured by a pledge of the net revenue from one or more of its park facilities or from leases of or contracts for the operation of the park facilities. (77509)

(b) A bond issued under this chapter must state on its face substantially the following: "The holder of this bond is not entitled to demand payment of this bond out of money raised by taxation." (77510)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77511)

Sec. 1435.052. MATURITY. (77512)(1-click HTML)

A bond issued under this chapter must mature within 40 years. (77513)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77514)

Sec. 1435.053. DUTY OF GOVERNING BODY. (77515)(1-click HTML)

While the bonds are outstanding, the governing body of the municipality or county shall: (77516)

(1) enforce each lease or contract entered under Section 1435.004 and impose adequate fees, charges, and rentals to assure payment of the principal of and interest on the bonds as they become due; and (77517)

(2) establish and maintain the funds as provided by the ordinance authorizing the issuance of the bonds. (77518)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77519)

Sec. 1435.054. EXECUTION OF BONDS. (77520)(1-click HTML)

The bonds shall be executed as provided by law for municipal bonds. (77521)

Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1, 1999. (77522)

  

Our Mission
Objective

Our mission is to provide citizens free access to the laws and codes of their state utilizing a unique search engine that matches clients with qualified legal professionals who can help with specific issues.

Our goal is to do this in a manner that promotes open government and freedom of information, while providing attorneys with valuable tools to connect with qualified prospects in need of professional services.

Ignorance Is No Excuse
Your Right To Know The Law

All citizens have a right to have access to the laws that govern them. Citizen awareness and participation in government is fundamental to ensuring a sound democracy.

Although unfettered access to the law is a fundamental right to all citizens, there is no substitute for experienced legal counsel.

We do not recommend self-representation. We do, however, recognize that in an age where people routinely research legal matters online using everything from a smartphone to their xbox, both attorneys and clients alike can benefit from this resource.