81R12171 JRH-F
By: Weber H.B. No. 4016
A BILL TO BE ENTITLED
AN ACT
relating to the authorization of certain municipalities and
counties to issue public securities for the financing of permanent
improvements for use by an institution of higher education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 1434.001, Government Code, is amended to
read as follows:
Sec. 1434.001. APPLICABILITY OF CHAPTER. This chapter
applies only to:
(1) a home-rule municipality with a population of
25,000 or more that has an [a general academic teaching]
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 educational services within
the municipality by the institution of higher education; or
(2) a county within which a municipality described by
Subdivision (1) is located.
SECTION 2. Section 1434.002, Government Code, is amended to
read as follows:
Sec. 1434.002. DEFINITIONS. In this chapter:
(1) "Agreement" includes a lease, contract, or
lease-purchase agreement.
(2) [(1)] "Institution of higher education" means:
(A) an institution of higher education as defined
by Section 61.003, Education Code, other than a public junior
college; or
(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.
(3) [(2)] "Public security" has the meaning assigned
by Section 1201.002.
(4) [(3)] "Recognized accrediting agency" has the
meaning assigned by Section 61.003, Education Code.
SECTION 3. Section 1434.003, Government Code, is amended to
read as follows:
Sec. 1434.003. LEGISLATIVE FINDING. The legislature finds:
(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
(2) that those benefits and enhancements constitute
public purposes for counties and municipalities [encourage the
development and diversification of the economy of this state and
the elimination of unemployment and underemployment in this state].
SECTION 4. Section 1434.051, Government Code, is amended by
adding Subsection (a-1) to read as follows:
(a-1) A municipality that has entered into an agreement
described by Section 1434.001(1) may:
(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;
(2) impose ad valorem taxes to pay the principal of and
interest on those securities and to provide a sinking fund; and
(3) pledge any portion of the revenues received in
connection with the agreement to secure payment of any portion of
the public securities issued to acquire, construct, or improve
land, buildings, or other permanent improvements for use by an
institution of higher education.
SECTION 5. Any notice published by a municipality
indicating the intent of the municipality to issue certificates of
obligation in accordance with Subchapter C, Chapter 271, Local
Government Code, for a purpose authorized by this Act is effective
in accordance with its terms without regard to whether the notice
was published before the effective date of this Act.
SECTION 6. 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, 2009.