S.B. No. 2240
AN ACT
relating to the financing of educational and related facilities by
higher education facility authorities or nonprofit corporations
performing the functions of those authorities and to the governance
of certain higher education facility authorities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subsection (b), Section 53.35, Education Code,
is amended to read as follows:
(b) In addition to or in lieu of establishing an authority
under the provisions of this chapter, the governing body of a city
or cities may request or order created one or more nonprofit
corporations to act on its behalf and as its duly constituted
authority and instrumentality to exercise the powers granted to an
authority under the provisions of Sections 53.33 and 53.34. If a
nonprofit corporation is created for such purposes or agrees to
such request, the directors thereof shall thereafter be appointed
and be subject to removal by the governing body of the city or
cities. In addition to the powers granted under, and subject to the
limitations provided by, Sections 53.33 and 53.34, the corporation
shall have all powers granted under the Texas Non-Profit
Corporation Act for the purpose of aiding institutions of higher
education in providing educational facilities and housing
facilities and facilities incidental, subordinate, or related
thereto or appropriate in connection therewith. In addition to
Sections 53.33 and 53.34 and the Texas Non-Profit Corporation Act,
as amended (Article 1396-1.01 et seq., Vernon's Texas Civil
Statutes), Sections 53.131, 53.14, 53.15, 53.31, 53.32, 53.331,
53.34, 53.35, 53.38, 53.40, and 53.41 of this code apply to and
govern such corporation and its procedures, bonds, and other
obligations.
SECTION 2. Section 53.40, Education Code, is amended to
read as follows:
Sec. 53.40. APPROVAL OF BONDS; REGISTRATION;
NEGOTIABILITY. (a) Bonds issued under this chapter and the record
relating to their issuance shall be submitted to the attorney
general, and if the attorney general [he] finds that they have been
issued in accordance with this chapter and constitute valid and
binding obligations of the authority and are secured as recited
therein, the attorney general [he] shall approve them, and they
shall be registered by the comptroller of public accounts, who
shall certify the registration thereon. Thereafter they are
incontestable. The bonds shall be negotiable and shall contain the
following provision: "The holder hereof shall never have the right
to demand payment thereof out of money raised or to be raised by
taxation." If the attorney general does not find that the bonds
have been issued in accordance with this chapter and constitute
valid and binding obligations of the authority and are secured as
recited therein, the attorney general may not approve the bonds,
and the bonds may not be registered by the comptroller.
(b) When bonds to be issued to benefit an institution of
higher education and the record relating to their issuance are
submitted to the attorney general, the authority shall deliver
notice of that action to the governor, the lieutenant governor, the
speaker of the house of representatives, and the Legislative Budget
Board. The notice must include the amount of the bonds to be issued
and a description of the facilities to be financed from the bond
proceeds.
SECTION 3. Subdivision (6), Section 53A.02, Education Code,
is amended to read as follows:
(6) "Educational facility" means a classroom
building, laboratory, science building, faculty or administrative
office building, or other facility used [exclusively] for the
conduct of the educational and administrative functions of an
institution of higher education.
SECTION 4. Subsection (c), Section 53A.14, Education Code,
is amended to read as follows:
(c) [No officer or employee of any such city is eligible for
appointment as a director.] Directors are not entitled to
compensation for services but are entitled to reimbursement for
expenses incurred in performing such service.
SECTION 5. 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.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 2240 passed the Senate on
May 12, 2009, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 2240 passed the House on
May 27, 2009, by the following vote: Yeas 144, Nays 4, one
present not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor