CHAPTER 1434. COUNTY AND MUNICIPAL HIGHER EDUCATION IMPROVEMENT BONDS
GOVERNMENT CODE
TITLE 9. PUBLIC SECURITIES
SUBTITLE H. SPECIFIC AUTHORITY FOR MORE THAN ONE TYPE OF LOCAL
GOVERNMENT TO ISSUE SECURITIES
CHAPTER 1434. COUNTY AND MUNICIPAL HIGHER EDUCATION IMPROVEMENT
BONDS
SUBCHAPTER A. GENERAL PROVISIONS
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 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
(2) a county within which a municipality described by
Subdivision (1) is located.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
237, Sec. 1, eff. May 27, 2009.
Sec. 1434.002. DEFINITIONS. In this chapter:
(1) "Agreement" includes a lease, contract, or lease-purchase
agreement.
(2) "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) "Public security" has the meaning assigned by Section
1201.002.
(4) "Recognized accrediting agency" has the meaning assigned by
Section 61.003, Education Code.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
237, Sec. 2, eff. May 27, 2009.
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.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
237, Sec. 3, eff. May 27, 2009.
SUBCHAPTER B. ISSUANCE OF BONDS
Sec. 1434.051. FINANCING OF PERMANENT IMPROVEMENTS BY COUNTY OR
MUNICIPALITY. (a) A county or a municipality 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;
and
(2) impose ad valorem taxes to pay the principal of and interest
on those securities and to provide a sinking fund.
(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;
(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
(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.
(b) The county or municipality shall:
(1) issue any public securities and impose the taxes in
accordance with the applicable provisions of Subtitles A, C, D,
and E; and
(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.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Amended by:
Acts 2009, 81st Leg., R.S., Ch.
237, Sec. 4, eff. May 27, 2009.
Sec. 1434.052. JOINT FINANCING BY COUNTY AND MUNICIPALITY. (a)
A county and a municipality may jointly issue public securities
and impose ad valorem taxes for a purpose described by Section
1434.051.
(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.
(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.
(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.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1434.053. LIMIT ON TAXES. 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.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1434.054. PROJECT APPROVAL BY TEXAS HIGHER EDUCATION
COORDINATING BOARD. (a) Before public securities are issued
under this chapter, the Texas Higher Education Coordinating Board
or its successor agency must review the project to be acquired,
constructed, or improved. The board or its successor agency shall
conduct hearings to review the project in accordance with Chapter
61, Education Code.
(b) Public securities may not be issued under this chapter
unless the board or its successor agency approves the
acquisition, construction, or improvement of the project to be
financed through the issuance of the public securities.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
SUBCHAPTER C. DONATION OR USE OF PERMANENT IMPROVEMENTS
Sec. 1434.101. DONATION OF PERMANENT IMPROVEMENTS. (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.
(b) The donation is not subject to any law of this state
governing the disposition of property owned by a county or
municipality.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.
Sec. 1434.102. USE OF PERMANENT IMPROVEMENTS. (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.
(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.
(c) A use under this section is a municipal purpose and a public
use for the municipality.
Added by Acts 1999, 76th Leg., ch. 227, Sec. 1, eff. Sept. 1,
1999.