CHAPTER 1401. BONDS FOR CERTAIN CRIMINAL JUSTICE OR MENTAL HEALTH AND MENTAL RETARDATION FACILITIES
GOVERNMENT CODE
TITLE 9. PUBLIC SECURITIES
SUBTITLE G. SPECIFIC AUTHORITY FOR STATE GOVERNMENT TO ISSUE
SECURITIES
CHAPTER 1401. BONDS FOR CERTAIN CRIMINAL JUSTICE OR MENTAL HEALTH
AND MENTAL RETARDATION FACILITIES
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 1401.001. DEFINITIONS. In this chapter:
(1) "Authority" means the Texas Public Finance Authority.
(2) "Board" means the board of directors of the authority.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1401.002. BOND REVIEW BOARD MEMBER IMMUNITY. A Bond Review
Board member is not liable for damages that result from
performing a function of the member under this chapter.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1401.003. LEGISLATIVE AUTHORITY. The authority may not
issue or sell a bond under this chapter for a project unless the
legislature has authorized the specific project by:
(1) this chapter;
(2) the General Appropriations Act; or
(3) Chapter 1232.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER B. BOND REVIEW BOARD OVERSIGHT
Sec. 1401.021. BOND REVIEW BOARD APPROVAL OF BOND ISSUANCE. The
authority may not issue a bond under this chapter unless the Bond
Review Board has reviewed and approved the issuance.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1401.022. BOND REVIEW BOARD APPROVAL OF PROJECT. The
proceeds of a bond issued under this chapter may not be used to
finance a project unless the Bond Review Board has reviewed and
approved the project.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER C. GENERAL OBLIGATION BONDS AND PROCEEDS
Sec. 1401.041. GENERAL OBLIGATION BONDS. (a) As provided by
Section 49-h( a), Article III, Texas Constitution, as that
section existed September 1, 1999, the authority may:
(1) issue general obligation bonds in an amount not to exceed
$500 million; and
(2) distribute the bond proceeds as provided by that section.
(b) As provided by Section 49-h(c), Article III, Texas
Constitution, as that section existed September 1, 1999, the
authority may:
(1) issue general obligation bonds in an amount not to exceed
$400 million; and
(2) distribute the bond proceeds to any appropriate agency to:
(A) acquire, construct, or equip a new facility; or
(B) make a major repair of or renovate a facility, corrections
institution, youth corrections institution, or mental health and
mental retardation institution.
(c) As provided by Section 49-h(d), Article III, Texas
Constitution, as that section existed September 1, 1999, the
authority may:
(1) issue general obligation bonds in an amount not to exceed
$1.055 billion and distribute the bond proceeds to any
appropriate agency to:
(A) acquire, construct, or equip a:
(i) new prison or substance abuse felony punishment facility to
confine criminals; or
(ii) youth corrections institution;
(B) make a major repair of or renovate a prison facility or
youth corrections institution; or
(C) acquire, make a major repair of, or renovate a facility for
use as a state prison, a substance abuse felony punishment
facility, or a facility in which a pilot program established as
provided by Section 614.011, Health and Safety Code, is
conducted;
(2) issue general obligation bonds in an amount not to exceed
$45 million and distribute the bond proceeds to any appropriate
agency to:
(A) acquire, construct, or equip a new mental health or mental
retardation facility, including a community-based mental health
or mental retardation facility; or
(B) make a major repair of or renovate a mental health or mental
retardation facility; and
(3) issue general obligation bonds in an amount not to exceed
$50 million and distribute the bond proceeds to any appropriate
agency to:
(A) acquire, construct, or equip a new youth corrections
facility; or
(B) make a major repair of or renovate a youth corrections
facility.
(d) As provided by Section 49-h(e), Article III, Texas
Constitution, as that section existed September 1, 1999, the
authority may:
(1) issue general obligation bonds in an amount not to exceed $1
billion; and
(2) distribute the bond proceeds as provided by that section.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999. Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.017, eff.
Sept. 1, 2001.
Sec. 1401.042. REFUNDING BONDS. The authority may issue a
general obligation bond authorized under Section 1401.041 to
refund a revenue bond issued under Subchapter D.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1401.043. REFINANCING CERTAIN OBLIGATIONS. (a) The
proceeds of a bond issued under Section 1401.041(a), (b), (c)(1),
or (d) may be used to refinance an existing obligation for a
purpose described by those subsections.
(b) The proceeds of a bond issued under Section 1401.041(c)(2)
may be used to refinance an existing obligation for a purpose
described by that subdivision.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1401.044. DISTRIBUTION OF PROCEEDS. The authority by rule
shall establish guidelines, criteria, and procedures for
distributions of general obligation bond proceeds.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1401.045. INTEREST AND SINKING FUND BALANCE REPORT. (a)
The authority shall report to the Legislative Budget Board and
the Governor's Office of Budget and Planning an accurate estimate
of interest and sinking fund balances available for payment of
debt service on general obligation bonds.
(b) The report must be made not later than January 1 of each
odd-numbered year.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER D. REVENUE BONDS AND PROCEEDS
Sec. 1401.061. REVENUE BONDS. (a) The authority may:
(1) issue revenue bonds; and
(2) distribute the bond proceeds to any appropriate agency to:
(A) acquire, construct, or equip a new facility; or
(B) make a major repair of or renovate a:
(i) facility;
(ii) corrections institution, including a facility authorized by
Section 495.001(a) or 495.021(a);
(iii) criminal justice facility for the Texas Department of
Criminal Justice;
(iv) youth corrections institution; or
(v) mental health and mental retardation institution.
(b) The bond proceeds may be used to refinance an existing
obligation for a purpose described by Subsection (a).
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1401.062. REVENUE BOND PROCEEDS. On issuing bonds under
Section 1401.061, the board shall:
(1) certify to the appropriate agency and to the comptroller
that the funds are available; and
(2) deposit the bond proceeds in the state treasury to the
account of the appropriate agency.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1401.063. INVESTMENT OF PROCEEDS. (a) With the board's
concurrence, the comptroller shall invest the unexpended revenue
bond proceeds and the investment income of those unexpended
proceeds in investments approved by law for the investment of
state funds.
(b) The investment income required for project costs, and not
required to be rebated to the federal government or used for debt
service, as determined by the board, shall be credited to the
appropriate agency. The investment income not required for
project costs, not required to be rebated to the federal
government, and not required for debt service shall be allocated
as provided by Section 404.071.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1401.064. PAYMENT OF PRINCIPAL OR INTEREST. The board may
provide that the principal of and interest on revenue bonds
issued under this subchapter be paid from any source of funds
lawfully available to the board.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1401.065. BOND REQUIREMENTS. Revenue bonds issued under
this subchapter are subject to Sections 1232.117 and 1232.118.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER E. REVENUE BOND PROJECTS
Sec. 1401.081. CONDITIONS FOR BEGINNING PROJECT. The
appropriate agency may begin an approved project financed under
Subchapter D after:
(1) the authority has certified that the authority has
authorized obligations in an amount sufficient to pay the
construction or purchase price of the project under an interim
construction finance agreement established by the authority in
accordance with Chapter 1371; or
(2) the following conditions are met:
(A) the revenue bond proceeds are deposited;
(B) the comptroller has certified that the funds are available;
(C) any reserve funds or capitalized interest certified to be
reasonably required by the authority has been transferred; and
(D) according to the authority's statement that specifies those
costs, the costs of issuance of the bonds have been paid.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1401.082. REVENUE BOND REPAYMENT AND LEASE AGREEMENT. (a)
In accordance with a lease agreement, the appropriate agency,
with money appropriated for the purpose, shall pay to the board
an amount the board determines to be sufficient to:
(1) pay the principal of and interest on the bonds issued under
Section 1401.061;
(2) maintain a reserve fund necessary to service the debt; and
(3) reimburse the authority for other costs and expenses
relating to:
(A) a project; or
(B) the outstanding bonds.
(b) For purposes of this section, a state agency may enter into
a lease agreement in the name of and on behalf of the state.
(c) A state agency shall include in its biennial appropriation
request an amount sufficient to pay the principal of and interest
on outstanding bonds issued under Section 1401.061 for the
agency.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1401.083. RIGHTS TO FINANCED PROPERTY. (a) Property
financed by the authority under Subchapter D does not become part
of other property to which it is attached or affixed or into
which it is incorporated, regardless of whether the other
property is real or personal.
(b) A state agency has the rights of a lessee in property
financed by the authority under Subchapter D. A person who claims
under or through the agency may not acquire any greater rights
with respect to the property.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER F. FINANCIAL PROVISIONS
Sec. 1401.101. EXEMPTION FROM TAXATION. A bond issued under
this chapter, any transaction related to the bond, and profits
made in the sale of the bond are exempt from taxation by this
state, a state agency, or a municipality or other political
subdivision of this state.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER G. MISCELLANEOUS PROVISIONS
Sec. 1401.121. TEXAS DEPARTMENT OF CRIMINAL JUSTICE MASTER PLAN.
(a) Unless the Texas Department of Criminal Justice has
submitted to the Bond Review Board a master plan for the
construction of corrections facilities, the proceeds of bonds
issued under this chapter may not be:
(1) distributed to the department; or
(2) used to finance a project of the correctional institutions
division of the department.
(b) The master plan must:
(1) be in the form, contain the information, and cover the
period prescribed by the Bond Review Board; and
(2) be revised annually.
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. 25.086, eff. September 1, 2009.