CHAPTER 1232. TEXAS PUBLIC FINANCE AUTHORITY
GOVERNMENT CODE
TITLE 9. PUBLIC SECURITIES
SUBTITLE B. PROVISIONS APPLICABLE TO SECURITIES ISSUED BY STATE
GOVERNMENT
CHAPTER 1232. TEXAS PUBLIC FINANCE AUTHORITY
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1232.001. SHORT TITLE. This chapter may be cited as the
Texas Public Finance Authority Act.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.002. PURPOSE. The purpose of this chapter is to
provide a method of financing for:
(1) the acquisition or construction of buildings; and
(2) the purchase or lease of equipment by executive or judicial
branch state agencies.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 646, Sec. 1, eff.
Sept. 1, 2001.
Sec. 1232.003. DEFINITIONS. In this chapter:
(1) "Authority" means the Texas Public Finance Authority.
(2) "Board" means the board of directors of the authority.
(3) "Building" means:
(A) a structure used by a state agency to conduct state
business; and
(B) the major equipment or personal property related
functionally to a structure used by a state agency to conduct
state business.
(4) "Commission" means the Texas Building and Procurement
Commission.
(5) "Computer equipment" means a telecommunications device or
system, an automated information system, a computer on which an
information system is automated, and computer software.
(6) "Construction" means the erection, improvement, repair,
renovation, or remodeling of a building.
(7) "Equipment" means a fixed asset, other than land or a
building, used by a state agency to conduct state business. The
term includes computer equipment.
(8) "Obligation" means a bond, note, certificate of
participation, certificate of obligation, or interest in a
contract.
(9) "State agency" means a board, commission, department,
office, agency, institution of higher education, or other
governmental entity in the executive, judicial, or legislative
branch of state government.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1422, Sec. 1.01, eff.
Sept. 1, 2001.
Sec. 1232.004. STATE LEASE FUND ACCOUNT. (a) The state lease
fund account is an account in the general revenue fund and may be
used only for a purpose designated by law.
(b) The state lease fund account may be used to finance an
appropriation to the commission or a state agency or directly to
the authority on behalf of a state agency to pay required rents,
fees, and installments to the authority.
(c) After all obligations have been paid or provided for, the
legislature may transfer money deposited in the state lease fund
account to the Texas capital trust fund account for other
purposes.
(d) The amount in the state lease fund account that is in excess
of amounts needed for debt service and is unencumbered shall be
transferred at the end of each biennium to the undedicated
portion of the general revenue fund.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.005. APPLICATION OF STATE FUNDS REFORM ACT. All money
paid to the authority under this chapter is subject to Subchapter
F, Chapter 404.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER B. TEXAS PUBLIC FINANCE AUTHORITY
Sec. 1232.051. TEXAS PUBLIC FINANCE AUTHORITY. The Texas Public
Finance Authority is a public authority and a body politic and
corporate.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.052. COMPOSITION OF GOVERNING BOARD. (a) The
authority is governed by a board of directors composed of seven
members appointed by the governor with the advice and consent of
the senate.
(b) A person is not eligible for appointment as a member of the
board if the person or the person's spouse:
(1) is employed by or participates in the management of a
business entity or other organization receiving funds from the
authority;
(2) owns or controls, directly or indirectly, more than a 10
percent interest in a business entity or other organization
receiving funds from the authority; or
(3) uses or receives a substantial amount of tangible goods,
services, or funds from the authority, other than compensation or
reimbursement authorized by law for board membership, attendance,
or expenses.
(c) Appointments to the board shall be made without regard to
the race, color, disability, sex, religion, age, or national
origin of the appointees.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 646, Sec. 2, eff.
Sept. 1, 2001.
Sec. 1232.053. TERMS. Members of the board are appointed for
staggered terms of six years, with two or three members' terms
expiring February 1 of each odd-numbered year.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 646, Sec. 3, eff.
Sept. 1, 2001.
Sec. 1232.054. GROUNDS FOR REMOVAL. (a) It is a ground for
removal from the board that a member:
(1) violates a prohibition established by Section 1232.060;
(2) cannot because of illness or disability discharge the
member's duties for a substantial part of the term for which the
member is appointed; or
(3) is absent from more than half of the regularly scheduled
board meetings that the member is eligible to attend during a
calendar year unless the absence is excused by majority vote of
the board.
(b) The validity of an action of the board is not affected by
the fact that it is taken when a ground for removal of a board
member exists.
(c) If the executive director of the authority has knowledge
that a potential ground for removal exists, the executive
director shall notify the presiding officer of the board of the
potential ground. The presiding officer shall then notify the
governor and the attorney general that a potential ground for
removal exists. If the potential ground for removal involves the
presiding officer, the executive director shall notify the
assistant presiding officer, who shall notify the governor and
the attorney general that a potential ground for removal exists.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.055. BOARD MEMBER TRAINING. (a) To be eligible to
take office as a member of the board, a person appointed to the
board must complete at least one course of a training program
that complies with this section.
(b) The training program must provide information to the person
regarding:
(1) the enabling legislation that created the authority and the
board;
(2) the programs operated by the authority;
(3) the role and functions of the authority;
(4) the rules of the authority, with an emphasis on the rules
that relate to disciplinary and investigatory authority;
(5) the current budget for the authority;
(6) the results of the most recent formal audit of the
authority;
(7) the requirements of the:
(A) open meetings law, Chapter 551;
(B) public information law, Chapter 552; and
(C) administrative procedure law, Chapter 2001;
(8) the requirements of the conflict of interest laws and other
laws relating to public officials; and
(9) any applicable ethics policies adopted by the authority or
the Texas Ethics Commission.
(c) A person appointed to the board is entitled to reimbursement
for travel expenses incurred in attending the training program,
as provided by the General Appropriations Act and as if the
person were a member of the board.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.056. OFFICERS; MEETINGS. (a) The governor shall
designate a member of the board as the presiding officer to serve
in that capacity at the pleasure of the governor. The board
biennially shall elect an assistant presiding officer from its
members.
(b) The board shall meet at least once in each calendar quarter
and shall meet at other times at the call of the presiding
officer or as prescribed by board rule.
(c) A subcommittee of the board, appointed by the board as
provided by Section 1371.053(c)(2), is not subject to Chapter 551
when it is acting to price and sell the obligations of the
authority in accordance with parameters for the issuance
established by the board.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.005(a),
eff. Sept. 1, 2001.
Sec. 1232.057. PUBLIC TESTIMONY AT BOARD MEETINGS. The board
shall develop and implement policies that provide the public with
a reasonable opportunity to appear before the board and to speak
on any issue under the jurisdiction of the authority.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.058. COMPENSATION AND EXPENSES. A board member is
entitled to:
(1) a per diem of $50, unless otherwise specified in the General
Appropriations Act, for each day the member performs functions as
a board member; and
(2) reimbursement for actual and necessary expenses that the
member incurs in performing board functions.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.059. STAFF; CONSULTANTS. (a) The board shall employ
persons and contract with consultants necessary for the board to
perform its functions.
(b) Employees of the authority are considered to be state
employees.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.060. CONFLICT OF INTEREST. (a) An officer, employee,
or paid consultant of a Texas trade association in the field of
public finance may not be a member of the board or an employee of
the authority who is exempt from the state's position
classification plan or is compensated at or above the amount
prescribed by the General Appropriations Act for step 1, salary
group A17, of the position classification salary schedule.
(b) A person who is the spouse of an officer, manager, or paid
consultant of a Texas trade association in the field of public
finance may not be a member of the board and may not be an
employee of the authority who is exempt from the state's position
classification plan or is compensated at or above the amount
prescribed by the General Appropriations Act for step 1, salary
group A17, of the position classification salary schedule.
(c) For the purposes of this section, a Texas trade association
is a nonprofit, cooperative, and voluntarily joined association
of business or professional competitors in this state designed to
assist its members and its industry or profession in dealing with
mutual business or professional problems and in promoting their
common interest.
(d) A person may not serve as a member of the board or act as
the general counsel to the board or the authority if the person
is required to register as a lobbyist under Chapter 305 because
of the person's activities for compensation on behalf of a
profession related to the operation of the authority.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.061. INFORMATION ON RESPONSIBILITIES OF BOARD MEMBERS
AND EMPLOYEES. The executive director of the authority or the
executive director's designee shall provide to members of the
board and to authority employees, as often as necessary,
information regarding their qualification for office or
employment under this chapter and their responsibilities under
applicable laws relating to standards of conduct for state
officers or employees.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.062. SEPARATION OF POLICYMAKING AND MANAGEMENT
RESPONSIBILITIES. The board shall develop and implement policies
that clearly separate the policymaking responsibilities of the
board and the management responsibilities of the executive
director and the staff of the authority.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.063. EQUAL EMPLOYMENT OPPORTUNITY. (a) The executive
director of the authority or the executive director's designee
shall prepare and maintain a written policy statement to assure
implementation of a program of equal employment opportunity under
which all personnel transactions are made without regard to race,
color, disability, sex, religion, age, or national origin. The
policy statement must include:
(1) personnel policies, including policies relating to
recruitment, evaluation, selection, appointment, training, and
promotion of personnel that are in compliance with requirements
of Chapter 21, Labor Code;
(2) a comprehensive analysis of the authority workforce that
meets federal and state guidelines;
(3) procedures by which a determination can be made about the
extent of underuse in the authority workforce of all persons for
whom federal or state guidelines encourage a more equitable
balance; and
(4) reasonable methods to appropriately address those areas of
underuse.
(b) A policy statement prepared under Subsection (a) must cover
an annual period, be updated annually and reviewed by the
Commission on Human Rights for compliance with Subsection (a)(1),
and be filed with the governor's office.
(c) The governor's office shall deliver a biennial report to the
legislature based on the information received under Subsection
(b). The report may be made separately or as a part of other
biennial reports made to the legislature.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.064. CAREER LADDER; EMPLOYEE PERFORMANCE EVALUATIONS.
(a) The executive director of the authority or the executive
director's designee shall develop an intra-agency career ladder
program that addresses opportunities for mobility and advancement
for employees within the authority. The program shall require
intra-agency posting of all positions concurrently with any
public posting.
(b) The executive director of the authority or the executive
director's designee shall develop a system of annual performance
evaluations that are based on documented employee performance.
All merit pay for authority employees must be based on the system
established under this subsection.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.065. COMPLIANCE WITH LAWS RELATING TO ACCESSIBILITY.
The authority shall comply with federal and state laws related to
program and facility accessibility.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.066. BOARD AUTHORITY. (a) The board's authority
under this chapter is limited to the financing of:
(1) the acquisition or construction of a building;
(2) the purchase or lease of equipment; or
(3) stranded costs of a municipal power agency.
(b) The board's authority does not affect the authority of the
commission or any other state agency.
(c) Buildings and equipment financed by the authority under this
chapter do not become part of other property to which they may be
attached or into which they may be incorporated, without regard
to whether the other property is real or personal.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.006(a),
eff. Sept. 1, 2001.
Sec. 1232.067. GENERAL POWERS. The board may:
(1) exercise, to the extent practicable, all powers given to a
corporation under the general laws of the state;
(2) have perpetual succession by its corporate name;
(3) sue and be sued in its corporate name;
(4) adopt a seal for use as the board considers appropriate;
(5) accept gifts; and
(6) adopt rules and perform all functions reasonably necessary
for the board to administer its functions prescribed by this
chapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.068. EMINENT DOMAIN. The authority may exercise the
power of eminent domain for the purposes set forth in this
chapter in connection with the acquisition or construction of a
building that is authorized as provided by Section 1232.108.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.069. ANNUAL FINANCIAL REPORT. The board, authority,
or executive director of the authority shall prepare annually a
complete and detailed written report accounting for all funds
received and disbursed by the authority during the preceding
fiscal year. The annual report must meet the reporting
requirements applicable to financial reporting provided in the
General Appropriations Act.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.070. INFORMATION ON COMPLAINTS. (a) The authority
shall keep a file about each written complaint filed with the
authority that the authority has authority to resolve. The
authority shall provide to the person filing the complaint and
the persons complained about the authority's policies and
procedures relating to complaint investigation and resolution.
The authority, at least quarterly and until final disposition of
the complaint, shall notify the person filing the complaint and
the persons complained about of the status of the complaint
unless the notice would jeopardize an undercover investigation.
(b) The authority shall keep information about each complaint
filed with the authority. The information must include:
(1) the date the complaint is received;
(2) the name of the complainant;
(3) the subject matter of the complaint;
(4) a record of all persons contacted in relation to the
complaint;
(5) a summary of the results of the review or investigation of
the complaint; and
(6) for complaints for which the authority took no action, an
explanation of the reason the complaint was closed without
action.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.071. RELATIONSHIP TO PREVIOUS BOARD. (a) The Texas
Public Finance Authority owns the property formerly owned by, and
is the successor to each lease or rental contract entered into
by, the Texas Public Building Authority created by Chapter 700,
Acts of the 68th Legislature, Regular Session, 1983.
(b) An obligation contracted or assumed by the Texas Public
Building Authority with respect to a property or contract
described by Subsection (a) is an obligation of the Texas Public
Finance Authority.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
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, 2011.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
928, Sec. 3.13, eff. June 15, 2007.
SUBCHAPTER C. OBLIGATIONS
Sec. 1232.101. ISSUANCE OF BONDS FOR CERTAIN STATE AGENCIES.
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, 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.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 646, Sec. 4, eff.
Sept. 1, 2001.
Amended by:
Acts 2007, 80th Leg., R.S., Ch.
1335, Sec. 13, eff. September 1, 2007.
Acts 2009, 81st Leg., R.S., Ch.
506, Sec. 1.18, eff. September 1, 2009.
Sec. 1232.102. ISSUANCE OF BONDS FOR STATE OFFICE BUILDINGS.
(a) The board may issue and sell bonds in the name of the
authority to finance the acquisition or construction of
buildings. After receiving a request described by Section
2166.452, the board may issue bonds in amounts not exceeding the
previously authorized amount of bonds plus five percent of the
acquisition cost of the property, as described in the request.
(b) The board shall promptly issue and sell bonds in the name of
the authority under this chapter to finance the acquisition or
construction of a building that has been authorized in accordance
with this chapter or under Section 2166.452 or 2166.453.
(c) The commission or other state agency involved in acquiring
or constructing a building financed by bonds issued under this
chapter shall accomplish its statutory authority as if the
building were financed by legislative appropriation. The board
and the commission or other state agency involved in the
acquisition or construction of a building shall adopt a
memorandum of understanding that defines the division of
authority between the board and the commission or other agency.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 646, Sec. 5, eff.
Sept. 1, 2001.
Sec. 1232.1025. ISSUANCE OF BONDS FOR MILITARY FACILITIES. (a)
The board may issue and sell bonds in the name of the authority
to finance the acquisition or construction of buildings to be
used as state military forces facilities.
(b) After receiving a request under Section 431.0292 or
431.0302(c), the board shall promptly issue and sell bonds in the
name of the authority to provide the requested financing.
(c) The adjutant general shall accomplish its statutory
authority as if the property or building were financed by
legislative appropriation. The board and the adjutant general
shall adopt a memorandum of understanding that defines the
division of authority between the board and adjutant general.
(d) On completion of the acquisition or construction, the
adjutant general shall lease the building from the authority.
Added by Acts 2007, 80th Leg., R.S., Ch.
1335, Sec. 14, eff. September 1, 2007.
Sec. 1232.103. ISSUANCE OF OBLIGATIONS FOR EQUIPMENT. (a) The
authority may issue and sell obligations for the financing of:
(1) a lease or other agreement that concerns equipment that an
executive or judicial branch state agency has purchased or leased
or intends to purchase or lease; or
(2) a package of agreements described by Subdivision (1) that
involves one or more state agencies.
(b) An obligation issued by the authority is payable under an
agreement that may be in the nature of:
(1) a lease under which the authority leases equipment from a
vendor for sublease to the commission or another state agency;
(2) a purchase by the authority of equipment and the lease of
that equipment to either:
(A) the commission for the benefit of a state agency; or
(B) a state agency other than the commission;
(3) a purchase by the authority of equipment and the sale of
that equipment to a state agency on an installment payment basis;
or
(4) any similar agreement.
(c) If an agreement is between the authority and a state agency
or between a vendor and a state agency, the commission shall
nevertheless perform its functions as purchasing agent for the
state, with the funds obtained under this section used solely to
finance the agreement. The board and the commission shall adopt a
memorandum of understanding that defines the division of
authority between the board and the commission.
(d) A state agency may enter into a type of agreement described
by this section to purchase or lease necessary equipment.
(e) If a law requires a state agency to obtain the approval of
another state agency or perform any other act before the agency
may purchase or lease computer equipment, those requirements must
be satisfied before the agency may enter into an agreement under
this chapter. The authority shall adopt rules so that computer
equipment may not be financed before the authority receives
written proof that the requirements have been satisfied.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.104. ISSUANCE OF OBLIGATIONS FOR ALTERNATIVE FUEL
PROJECTS. (a) If the authority determines that a project is
financially viable and sufficient revenue is or will be
available, the authority may issue and sell obligations the
proceeds of which shall be used for the financing of:
(1) the conversion of state agency vehicles and other sources of
substantial energy output to an alternative fuel under Subchapter
A, Chapter 2158;
(2) the construction, acquisition, or maintenance by the
commission of fueling stations supplying alternative fuels or
equipment enhancing the use of engine-driven technology to
support state agency vehicles and other energy applications that
use an alternative fuel;
(3) the conversion of school district motor vehicles and other
sources of substantial energy output to an alternative fuel;
(4) the construction, acquisition, or maintenance by a school
district of fueling stations supplying alternative fuels or
equipment enhancing the use of engine-driven technology to
support school district motor vehicles and other energy
applications that use an alternative fuel;
(5) the conversion of local mass transit authority or department
motor vehicles and other sources of substantial energy output to
an alternative fuel;
(6) the construction, acquisition, or maintenance of fueling
stations supplying alternative fuels or equipment enhancing the
use of engine-driven technology by a local mass transit authority
or department to support transit authority or department vehicles
and other energy applications that use an alternative fuel;
(7) the conversion of motor vehicles and other sources of
substantial energy output of a local government to an alternative
fuel;
(8) the conversion of motor vehicles and other sources of
substantial energy output of a hospital district or authority, a
housing authority, or a district or authority created under
Section 52, Article III, Texas Constitution, or Section 59,
Article XVI, Texas Constitution, to an alternative fuel;
(9) the construction, acquisition, or maintenance of fueling
stations supplying alternative fuels or equipment enhancing the
use of engine-driven technology to support motor vehicles and
other energy applications that use an alternative fuel by a
county, a municipality, or an entity described by Subdivision
(8); or
(10) a joint venture between the private sector and a state
agency or political subdivision that is required under law to use
an alternative fuel in the agency's or subdivision's vehicles or
other energy applications to:
(A) convert vehicles or other sources of substantial energy
output to an alternative fuel;
(B) develop fueling stations and resources for the supply of
alternative fuels and engine-driven applications;
(C) aid in the distribution of alternative fuels; and
(D) engage in other projects to facilitate the use of
alternative fuels.
(b) The board may provide for the payment of the principal of or
interest on an obligation issued under this section:
(1) by pledging all or a part of the revenue the state derives
from the sale of alternative fuel, alternative fuel equipment or
technology, or vehicles powered by an alternative fuel;
(2) by contracting with a political subdivision or a private
entity to pledge revenue the political subdivision or private
entity derives from the sale of alternative fuel, alternative
fuel equipment or technology, or vehicles powered by an
alternative fuel in an amount sufficient to ensure that the
obligations are paid;
(3) by pledging appropriated general revenues of the state or
other appropriated money in the state treasury; or
(4) from any other source of funds available to the board.
(c) The authority shall attempt to:
(1) include minority-owned businesses in the issuance and
underwriting of at least 20 percent of the obligations issued
under this section; and
(2) include women-owned businesses in the issuance and
underwriting of at least 10 percent of the obligations issued
under this section.
(d) Costs of administering the alternative fuel finance program
shall be considered a part of project costs and shall be funded
with proceeds of the obligations.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Amended by:
Acts 2005, 79th Leg., Ch.
864, Sec. 4, eff. September 1, 2005.
Sec. 1232.105. AGGREGATE LIMIT ON ISSUANCE OF OBLIGATIONS FOR
ALTERNATIVE FUEL PROJECTS. The authority may not issue and sell
more than $50 million in obligations for projects under Section
1232.104.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.106. EVALUATION OF APPLICATION FOR ASSISTANCE WITH
ALTERNATIVE FUEL PROJECTS. (a) The Alternative Fuels Council
shall evaluate an application by an eligible entity for the
financing under Section 1232.104 of the acquisition,
construction, or improvement of alternative fuels infrastructure
and shall determine whether the proposed project will increase
energy or cost savings to the applicant.
(b) The authority may not issue an obligation under Section
1232.104 unless the Alternative Fuels Council certifies that the
proposed project will increase energy or cost savings to the
applicant.
(c) The Alternative Fuels Council by rule may adopt procedures
and standards for the evaluation of an application for the
financing of a proposed project under Section 1232.104.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.107. PURCHASE OF OBLIGATIONS FOR ALTERNATIVE FUEL
PROJECTS. (a) The authority may use the proceeds of obligations
issued under Section 1232.104 to purchase, at a price determined
by the authority, an obligation of an entity described by Section
1232.104(a) that evidences the entity's obligation to repay the
authority. Notwithstanding any other law, the authority may
acquire an obligation of an entity described by Section
1232.104(a) in a private sale as provided by resolution or order
of the governing body of the entity.
(b) An entity described by Section 1232.104(a) may borrow from
the authority by selling an obligation to the authority.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.1071. ISSUANCE OF OBLIGATIONS FOR FINANCING STRANDED
COSTS OF MUNICIPAL POWER AGENCY. (a) The authority may, either
directly or by means of a trust or trusts established by it,
issue obligations or other evidences of indebtedness for
financing stranded costs of a municipal power agency created by
concurrent resolution by its member cities on or before November
1, 1979, pursuant to Chapter 163, Utilities Code, or a
predecessor statute to that chapter. The stranded costs of the
municipal power agency are set forth as allocated to the member
cities in the "Potentially Strandable Investment (ECOM) Report:
1998 Update" issued by the Public Utility Commission of Texas.
(b) At the request of any member city of a municipal power
agency, the authority shall issue obligations or other evidences
of indebtedness in the amount of the requesting member city's
stranded costs, plus the sum of the costs described in
Subdivision (1) and the issuance costs, and shall make a grant of
the proceeds of the obligations or evidences of indebtedness to
the municipal power agency. A member city's request under this
subsection must include a statement of the payment terms for
recovering stranded costs. A grant of the proceeds of obligations
or evidences of indebtedness is subject to the following
conditions:
(1) the municipal power agency shall use the grant to reduce the
outstanding principal of the agency's debts allocable to stranded
costs of the requesting member city for federal income tax
purposes, whether by redemption, defeasance, or tender offer,
together with any interest expenses, call premium, tender
premium, or administrative expenses associated with the principal
payment; and
(2) the municipal power agency shall reduce the amount payable
by the requesting member city under its power sales contract with
the agency to reflect the reduced debt service on the agency's
debt as a result of the payments made under Subdivision (1).
(c) Obligations or evidences of indebtedness issued by the
authority under this section must be secured by nonbypassable
charges imposed by the authority on retail customers receiving
transmission and distribution services provided by the requesting
member city, which must be consistent with the stranded cost
recovery terms stated in the member city's request unless
otherwise approved by the member city. Obligations or evidences
of indebtedness issued by the authority under this section are
not a debt of this state, the municipal power agency, or any
member of the municipal power agency.
(d) The Public Utility Commission of Texas shall provide
necessary assistance to the authority to ensure the collection
and enforcement of the nonbypassable charges, whether directly or
by using the assistance and powers of the requesting member city.
(e) The authority and the Public Utility Commission of Texas
have all powers necessary to perform the duties and
responsibilities described by this section. This section shall be
interpreted broadly in a manner consistent with the most
cost-effective financing of stranded costs. To the extent
possible, obligations or evidences of indebtedness issued by the
authority under this section must be structured so that any
interest on the obligations or evidences of indebtedness is
excluded from gross income for federal income tax purposes. Any
interest on the obligations or evidences of indebtedness is not
subject to taxation by and may not be included as part of the
measurement of a tax by this state or a political subdivision of
this state.
Added by Acts 2001, 77th Leg., ch. 1420, Sec. 8.007(a), eff.
Sept. 1, 2001.
Sec. 1232.108. LEGISLATIVE AUTHORIZATION REQUIRED. Except as
permitted by Section 1232.109, 2166.452, or 2166.453, before the
board may issue and sell bonds, the legislature by the General
Appropriations Act or other law must have authorized:
(1) the specific project for which the bonds are to be issued
and sold; and
(2) the estimated cost of the project or the maximum amount of
bonded indebtedness that may be incurred by the issuance and sale
of bonds for the project.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.109. AUTHORIZATION TO PURCHASE CERTAIN REAL PROPERTY.
(a) Because there is a continued need to acquire real property
in or in the immediate vicinity of state office building
complexes for the continued operation of state government,
because prices and values of real property periodically
fluctuate, and because the state must be able to respond to
rapidly changing market conditions to acquire real property at
substantial savings to taxpayers, the commission may purchase and
renovate real property located, in whole or in part, within 1,000
feet of:
(1) the Capitol Complex in Travis County; or
(2) the John H. Winters Human Services Complex in Travis County.
(b) The commission may contract as necessary to accomplish the
purposes stated in Subsection (a). The estimated cost of the
project is $10 million. Before purchasing property under this
section, the commission must determine that the purchase would be
in the state's best interest.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.110. SPECIFIC PROJECTS. The board may issue bonds
under Section 1232.102 for the following projects:
Project
Estimated Cost
State Board of Insurance Building in Travis County;
facilities associated with relocation of the State Aircraft
Pooling Board (not to exceed an estimated amount of
$7,000,000); and the acquisition and development of acreage
at Robert Mueller Municipal Airport for a state complex
(not to exceed an estimated amount of $41,000,000)
$59,937,000
Laboratory and Office Facilities for the Texas Department
of Health
$42,300,000
Parking facilities for state officers and employees to be
built on state parking Lot 20 and for visitors to the
Capitol Complex to be built on state parking Lot 17
$29,500,000
Construction or purchase and renovation of a building or
buildings by the commission in Tarrant County
$10,000,000
Construction or purchase and renovation of a building or
buildings by the commission in Harris County
$20,000,000
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 646, Sec. 6, eff.
Sept. 1, 2001.
Sec. 1232.111. CERTAIN PROJECTS BY TEXAS DEPARTMENT OF
TRANSPORTATION. (a) The authority may issue and sell
obligations to finance one or more projects described by Section
201.1055(a), Transportation Code. Notwithstanding Section
1232.108(2), the estimated cost of the project must be specified
in the General Appropriations Act or other law.
(b) Any provision of this chapter that relates to the issuance
or sale of obligations to finance the acquisition or construction
of a building, including provisions relating to form, procedure,
repayment, actions that may be taken to ensure that the payment
of the principal of and interest on the obligations is continued
without interruption, and other relevant matters, applies to the
issuance or sale of obligations under this section to the extent
that the provision may be appropriately made applicable.
(c) The legislature may appropriate money from any available
source, including the state highway fund, to the Texas Department
of Transportation to make lease payments to the authority for
space occupied by the department in a building acquired or
constructed under Section 201.1055(a), Transportation Code.
Added by Acts 2005, 79th Leg., Ch.
281, Sec. 2.90, eff. June 14, 2005.
Sec. 1232.1115. CERTAIN CONSTRUCTION AND REPAIR PROJECTS AND
EQUIPMENT PURCHASES; GENERAL OBLIGATION BONDS. (a) The
authority has the exclusive power to issue general obligation
bonds under Section 50-f, Article III, Texas Constitution. The
board shall issue the bonds in a cumulative amount not to exceed
$850 million for:
(1) construction or repair projects in or outside Travis County
that are administered by or on behalf of a state agency listed in
Section 50-f, Article III, Texas Constitution, and authorized by
the legislature in accordance with Section 1232.108; or
(2) the purchase of needed equipment by or on behalf of such an
agency, and authorized by the legislature by the General
Appropriations Act or other law.
(b) The board shall provide for, issue, and sell the bonds in
accordance with Section 50-f, Article III, Texas Constitution,
and this chapter. Proceeds from the sale of the bonds shall be
invested as provided by this chapter.
(c) Proceeds from the sale of the bonds may be spent on an
authorized project or for the purchase of needed equipment only
in accordance with the legislative appropriation of the proceeds.
Added by Acts 2001, 77th Leg., ch. 565, Sec. 1, eff. Nov. 6,
2001.
Text of section effective on Passage of SJR 65.
Sec. 1232.1116. CERTAIN MAINTENANCE, IMPROVEMENT, REPAIR, AND
CONSTRUCTION PROJECTS; GENERAL OBLIGATION BONDS. (a) The
authority has the exclusive power to issue general obligation
bonds under Section 50-g, Article III, Texas Constitution. The
board shall issue the bonds in a cumulative amount not to exceed
$1 billion for:
(1) maintenance, improvement, repair, and construction projects
in or outside Travis County that are administered by or on behalf
of a state agency listed in Section 50-g, Article III, Texas
Constitution, and authorized by the legislature in accordance
with Section 1232.108; or
(2) the purchase of needed equipment by or on behalf of such an
agency, and authorized by the legislature by the General
Appropriations Act or other law.
(b) The board shall provide for, issue, and sell the bonds in
accordance with Section 50-g, Article III, Texas Constitution,
and this chapter. Proceeds from the sale of the bonds shall be
invested as provided by this chapter.
(c) Proceeds from the sale of the bonds may be spent on an
authorized project or for the purchase of needed equipment only
in accordance with the legislative appropriation of the proceeds.
Added by Acts 2007, 80th Leg., R.S., Ch.
1392, Sec. 1.
Sec. 1232.112. BOND REVIEW BOARD APPROVAL. (a) The authority
may not issue obligations until the Bond Review Board has
approved the issuance under Chapter 1231.
(b) The Bond Review Board may not approve a bond issue unless a
project analysis is submitted for approval as provided by Section
1232.114.
(c) Refunding obligations of the authority must be approved by
the Bond Review Board.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.113. OBLIGATION ISSUANCE ORIENTATION; INFORMATION TO
AND FROM CLIENT AGENCIES. (a) In this section, "client agency"
means a state agency on whose behalf the board may issue
obligations.
(b) The authority shall develop an orientation to the obligation
issuance process for the authority's client agencies.
(c) The orientation must include:
(1) information explaining the obligation issuance process in
plain language; and
(2) an orientation meeting to be held before the issuance
process begins.
(d) As part of the orientation, a client agency shall provide to
the authority:
(1) detailed information concerning the project for which
obligations are to be issued;
(2) a description of the legislative authority for the issuance
of the obligations; and
(3) the names of employees of the client agency who are
designated to work with the authority in connection with the
project.
(e) The authority shall prepare information of interest to the
authority's client agencies describing the functions of the
authority and the procedures by which complaints are filed with
and resolved by the authority. The authority shall make the
information available to its client agencies.
(f) The board by rule shall establish methods by which client
agencies are notified of the name, mailing address, and telephone
number of the authority for the purpose of directing complaints
to the authority. The board may provide for that notification on
a form provided to a client agency during the orientation.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.114. PROJECT ANALYSIS. (a) When the authority
submits its application for approval of a bond issue to the Bond
Review Board, the agency or institution that will use the project
to be financed by the bonds shall submit to the Bond Review Board
a project analysis of the project. The project analysis must be
in the form required for a project analysis requested from the
commission under Sections 2166.151-2166.155.
(b) This section does not apply to a minor renovation, repair,
or construction project at a facility operated by the Texas
Department of Criminal Justice for the imprisonment of
individuals convicted of felonies other than state jail felonies,
as defined by the department in cooperation with the commission.
Instead of submitting a project analysis, the department may
substitute the master plan required to be submitted by Section
1401.121 if the master plan contains information substantially
equivalent to the information required to be in a project
analysis under Sections 2166.151-2166.155.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
87, Sec. 25.085, eff. September 1, 2009.
Sec. 1232.115. EXPENSES INCLUDED IN PRINCIPAL AMOUNT. (a) The
principal amount of obligations may include amounts required to
pay required reserve funds, capitalized interest, the authority's
administrative costs, issuing expenses, and other expenses
associated with the authority's issuance and sale of the
obligations.
(b) The principal amount of obligations issued to finance the
purchase of computer equipment that is the subject of a
contingent appropriation under Subchapter B, Chapter 317, must be
sufficient to cover any payments of principal and interest that
must occur during the remainder of the biennium after the
obligations are issued.
(c) Because of the expenses specified by Subsection (a) and
because the cost estimates for acquisition, construction, repair,
or renovation of a project cannot be finally determined at the
time the project is authorized for financing, the principal
amount of any issuance of obligations may be an amount not to
exceed 150 percent of the amount of the estimated cost for the
project being financed.
(d) Costs and expenses authorized by this section may not be
included in the principal amount unless the board finds that
those costs and expenses are necessary and reasonable at the time
the obligations are issued.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.008, eff.
Sept. 1, 2001.
Sec. 1232.116. MANNER OF REPAYMENT. (a) The board may provide
for the payment of the principal of and interest on obligations
issued under this chapter:
(1) by pledging all or part of the revenue derived from:
(A) leasing a building or equipment to a state agency either
directly or through the commission; or
(B) selling equipment on an installment basis to a state agency
either directly or through the commission; or
(2) from any other funds lawfully available to the board.
(b) From funds appropriated for paying rental charges or making
installment payments on buildings or equipment, the commission or
an occupying or using state agency shall pay to the board a
rental or make installment payments on the buildings or
equipment.
(c) The board shall determine the amount of the rental or
installment payments. The amount must be sufficient to:
(1) pay the principal of and interest on the obligations;
(2) maintain any reserve fund required for servicing the
obligations; and
(3) reimburse the authority for other costs incurred by it with
respect to the obligations.
(d) When the commission or another state agency is required by
Subsection (b) to pay a rental to the authority and the
commission or other state agency depends on receiving a rental
from an occupying or using state agency to pay the authority, the
commission or other state agency shall set the rental in an
amount that is sufficient to pay the rental required by the
board.
(e) In addition to other sources of repayment provided by this
section, the legislature by law may direct that money in the
Texas capital trust fund account be used to pay the principal of
and interest on bonds issued under this chapter for the
acquisition or construction of a building.
(f) The legislature may require the deposit into the Texas
capital trust fund account of all or part of the proceeds of a
transaction concerning a building.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.117. STATE DEBT NOT CREATED. (a) An obligation
issued under this chapter is not a debt of the state or any state
agency, political corporation, or political subdivision of the
state and is not a pledge of the faith and credit of any of them.
A bond is payable solely from revenue as provided by this
chapter.
(b) An obligation issued under this chapter must contain on its
face a statement to the effect that:
(1) neither the state nor a state agency, political corporation,
or political subdivision of the state is obligated to pay the
principal of or interest on the obligation except as provided by
this chapter; and
(2) neither the faith and credit nor the taxing power of the
state or any state agency, political corporation, or political
subdivision of the state is pledged to the payment of the
principal of or interest on the obligation.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.118. ORDER OR RESOLUTION AUTHORIZING ISSUANCE OF
OBLIGATIONS. (a) An order or resolution of the board
authorizing the issuance of obligations, including refunding
obligations, may provide for the flow of funds and the
establishment and maintenance of the interest and sinking fund,
the reserve fund, and other funds.
(b) The order or resolution may:
(1) prohibit the issuance of additional obligations payable from
the pledged revenues; or
(2) preserve the right of the board to issue additional
obligations that are on a parity with or subordinate to the lien
and pledge on the revenue being used to support the obligations
being issued pursuant to the order or resolution.
(c) The order or resolution may contain any other provision or
covenant determined by the board.
(d) The board may make covenants with respect to the
obligations, the pledged revenues, and the operation and
maintenance of the buildings or equipment financed under this
chapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.119. ADOPTION AND EXECUTION OF INSTRUMENTS. The board
may adopt and have executed any other proceeding or instrument
necessary and convenient in the issuance of obligations.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.1191. DELEGATION OF AUTHORITY. (a) The board may
delegate authority to negotiate contracts required for issuance
of obligations to one or more of its employees or members.
(b) The negotiation of a contract described by Subsection (a),
including oral discussions with contractors, is not considered to
be a meeting or a deliberation.
Added by Acts 2001, 77th Leg., ch. 1420, Sec. 8.009(a), eff.
Sept. 1, 2001.
Sec. 1232.120. EXEMPTION FROM TAXATION. An obligation issued by
the board, any transaction relating to the obligation, and
profits made from the sale of the obligation are exempt from
taxation by this state or by a municipality or other political
subdivision of this state.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.121. CERTIFICATION AND DEPOSIT OF PROCEEDS OF
OBLIGATIONS. (a) After issuing obligations, the board shall
certify to the commission or the appropriate state agency and to
the comptroller that the proceeds from the issuance are
available. The board shall deposit the proceeds in the state
treasury.
(b) The proceeds shall be credited to the account of the state
agency that is responsible under an agreement for making rental
or installment payments to the authority.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.122. COMMENCEMENT OF CONSTRUCTION, PURCHASE, OR LEASE.
The acquisition or construction of a building or the purchase or
lease of equipment may begin after:
(1) the authority has certified that obligations in an amount
sufficient to pay the construction or purchase price of 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.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.010(a),
eff. Sept. 1, 2001.
Sec. 1232.123. INVESTMENT OF BOND PROCEEDS. (a) With the
board's concurrence, the comptroller shall invest the unexpended
bond proceeds and investment income on bond proceeds in
investments approved by law for the investment of state funds.
(b) Investment income that the board determines is needed to
finance the acquisition, construction, purchase, or lease of
buildings or equipment and that is not required to be rebated to
the federal government shall be credited to the account of the
appropriate state agency.
(c) Investment income that the board determines is not needed to
finance the acquisition, construction, purchase, or lease of
buildings or equipment and that is not required to be rebated to
the federal government shall be credited to and accounted for in
the state lease fund account.
(d) Notwithstanding Section 404.071, the interest earned on the
investment income that is deposited in the state lease fund
account shall be credited to and accounted for in that account.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.124. PREFERENCE FOR TEXAS BUSINESSES. If the
authority contracts with a private entity to issue bonds under
this chapter, the authority shall consider contracting with:
(1) an entity that has a place of business in this state; and
(2) a historically underutilized business as defined by Section
2161.001.
Added by Acts 2007, 80th Leg., R.S., Ch.
991, Sec. 6, eff. September 1, 2007.
SUBCHAPTER D. LEASE AND CONVEYANCE OF PROPERTY BY AUTHORITY
Sec. 1232.201. RENT AND FEES. (a) The commission or the
appropriate state agency shall establish schedules necessary to
properly charge occupying state agencies for the expenses
incurred in financing the acquisition or construction of
buildings in accordance with this chapter.
(b) An occupying state agency shall, when the payments are due,
pay to the commission, the appropriate state agency, or directly
into the state lease fund account the amount determined by the
commission. Instead of payments by an occupying state agency, the
legislature may appropriate money on the agency's behalf directly
to the state lease fund account.
(c) Payments received by the commission or another state agency
under this section shall be deposited to the credit of the state
lease fund account.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.202. CONTRACTS CONTINGENT ON LEGISLATIVE
APPROPRIATIONS. (a) Each lease or installment sale contract
entered into under this chapter is contingent on the
legislature's appropriation of sufficient funds.
(b) The board may act as necessary to ensure that the payment of
the principal of and interest on obligations is continued without
interruption if:
(1) sufficient appropriated funds are unavailable;
(2) the commission or another state agency fails to pay a rental
or installment; or
(3) the commission or another state agency fails to renew a
lease contract.
(c) Permissible actions under Subsection (b) include:
(1) the re-leasing or subleasing of buildings or equipment to
any entity; and
(2) the repossession and resale of equipment to any entity.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.203. LEASE OF SPACE FOR CHILD CARE FACILITY. (a) The
commission, when acting under Chapter 663, is not an occupying
state agency for purposes of Section 1232.201.
(b) The commission or the appropriate state agency shall include
in the schedules developed under Section 1232.201(a) the method
of charging state agencies that occupy all or part of a building
to which Section 1232.201 applies for the space in the building
that is used for a child-care facility under Chapters 663, 2165,
and 2166.
(c) An occupying agency's share shall be determined at least in
part on the ratio of the number of the occupying agency's
employees who work in the building to the total number of state
employees who work in the building.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 761, Sec. 6, eff.
Sept. 1, 2001.
Sec. 1232.204. LEASING PREFERENCE. A building owned by the
authority is considered state-owned space for the purposes of:
(1) Section 2165.107; and
(2) child-care facility sites located in state-owned buildings
under Chapters 663, 2165, and 2166.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.205. LEASE OF SPACE TO OUTSIDE ENTITIES. The board
may lease all or part of a building, the acquisition or
construction of which was financed under this chapter, to any
person if the building cannot be leased to the commission or
another state agency.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1232.206. PROPERTY CONVEYANCE. (a) When the principal of
and interest on obligations relating to equipment or a building
financed under this chapter are fully paid and the equipment or
building is free of all liens, the board shall certify to the
commission or the appropriate state agency that rentals,
payments, or installments are no longer required to pay the
principal of and interest on the obligations.
(b) When making the certification required by Subsection (a),
the board shall, if necessary and for $1, convey the title of the
equipment or building, including any real property, to the
commission or the appropriate state agency.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.