CHAPTER 223. HOSPITAL PROJECT FINANCING ACT
HEALTH AND SAFETY CODE
TITLE 4. HEALTH FACILITIES
SUBTITLE A. FINANCING, CONSTRUCTING, AND INSPECTING HEALTH
FACILITIES
CHAPTER 223. HOSPITAL PROJECT FINANCING ACT
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 223.001. SHORT TITLE. This chapter may be cited as the
Hospital Project Financing Act.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 223.002. DEFINITIONS. In this chapter:
(1) "Authority" means a public health authority, including a
hospital authority created under Chapter 262 or 264.
(2) "Bond" includes a note.
(3) "Issuer" means an authority, municipality, county, or
hospital district.
(4) "Hospital project" means existing or future real, personal,
or mixed property, or an interest in that property, other than a
nursing home licensed or required to be licensed under the
authority of this state, the financing, refinancing, acquiring,
providing, constructing, enlarging, remodeling, renovating,
improving, furnishing, or equipping of which is found by the
governing body of an issuer to be necessary for medical care,
research, training, or teaching in this state. A hospital project
may include one or more of the following properties if found by
the governing body of an issuer to be necessary or convenient for
the project:
(A) land, a building, equipment, machinery, furniture, a
facility, or an improvement;
(B) a structure suitable for use as:
(i) a hospital, clinic, health facility, extended care facility,
outpatient facility, rehabilitation or recreation facility,
pharmacy, medical laboratory, dental laboratory, physicians'
office building, or laundry or administrative facility or
building related to a health facility or system;
(ii) a multiunit housing facility for medical staff, nurses,
interns, other employees of a health facility or system, patients
of a health facility, or relatives of patients admitted for
treatment or care in a health facility;
(iii) a support facility related to a hospital project such as
an office building, parking lot or building, or maintenance,
safety, or utility facility, and related equipment; or
(iv) a medical or dental research facility, medical or dental
training facility, or another facility used in the education or
training of health care personnel;
(C) property or material used in the landscaping, equipping, or
furnishing of a hospital project and other similar items
necessary or convenient for the operation of a hospital project;
and
(D) any other structure, facility, or equipment related or
essential to the operation of a health facility or system.
(5) "Nonprofit organization" means:
(A) a nonprofit corporation established under the Texas
Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
Texas Civil Statutes); or
(B) an association, foundation, trust, cooperative, or similar
person no part of the net earnings of which is distributable to
any private shareholder or individual and that incurs a
contractual obligation with an issuer with respect to a hospital
project under this chapter.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 223.003. HOSPITAL PROJECT COSTS. (a) Hospital project
costs include costs related to:
(1) the acquisition of land, a right-of-way, an option to
purchase land, an easement, or another interest in land related
to a hospital project;
(2) the acquisition, construction, repair, renovation,
remodeling, or improvement of a structure to be used as or with a
hospital project;
(3) site preparation, including demolishing or removing a
structure the removal of which is necessary or incident to
providing a hospital project;
(4) expenses necessary or incident to planning, providing, or
determining the feasibility and practicability of a hospital
project, including architectural, engineering, legal, and related
services, plans and specifications, studios, surveys, and cost
and revenue estimates;
(5) machinery, equipment, furniture, and facilities necessary or
incident to the equipping of a hospital project for operation;
(6) financing charges and interest accruing before and during
construction, and after completion of construction for not more
than two years;
(7) the start-up of a hospital project during construction and
after completion of construction for not more than two years;
(8) hospital project financing, including:
(A) legal, accounting, and appraisal fees, expenses, and
disbursements;
(B) printing, engraving, and reproduction services; and
(C) an initial or acceptance fee of a trustee or paying agent;
(9) the provision of the hospital project by the issuer,
including:
(A) costs incurred directly or indirectly by the issuer;
(B) reimbursement of reasonable sums to the issuer for time
spent by its employees in providing the hospital project and its
financing; and
(C) the appraisal obtained under Section 223.011(d)(2); and
(10) the authorization, preparation, sale, issuance, and
delivery of bonds under this chapter, including:
(A) related fees, charges, and expenses;
(B) expenses and costs described by Section 223.029(b); and
(C) expenses incurred in carrying out a trust agreement relating
to hospital project bonds.
(b) The listing of items of cost in Subsection (a) is not
inclusive of all hospital costs.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
SUBCHAPTER B. FINANCING HOSPITAL PROJECTS
Sec. 223.011. PROVIDING HOSPITAL PROJECTS. (a) An issuer
acting for itself or through a nonprofit organization may provide
one or more hospital projects by acquisition, construction, or
improvement. An acquisition may occur by purchase, devise, gift,
lease, or a combination of those methods.
(b) A hospital project must be located in this state and within
or partially within the issuer's boundaries, except that a
hospital project of a municipality may be located:
(1) outside the municipality's limits if it is within the
municipality's extraterritorial jurisdiction; or
(2) in another municipality if the governing body of the other
municipality consents to the former municipality's provision of
the project.
(c) An issuer may only acquire a hospital project from a
nonprofit organization that has been in existence and has
operated the hospital project for at least three years before the
date of acquisition by the issuer.
(d) An issuer must affirmatively find that the cost of an
acquired hospital project is not more than:
(1) the actual audited cost of the hospital project to the date
of acquisition; or
(2) the fair market value of the hospital project at the date of
acquisition as determined by an appraisal obtained by the issuer.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 223.012. TITLE TO PROJECTS. (a) An issuer may vest title
to a hospital project provided under this chapter in a nonprofit
organization.
(b) If the issuer vests the title in a nonprofit organization,
it may retain a mortgage interest in the hospital project. The
mortgage interest expires when all bonds of the issuer sold to
provide the hospital project are paid or provision has been made
for their final payment.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 223.013. CONTRACTS RELATING TO HOSPITAL PROJECT. (a) An
issuer may execute a contract, including a lease, with a
nonprofit organization with respect to a hospital project. A
contract may authorize the nonprofit organization to use,
operate, or acquire the hospital project on the terms, including
payment provisions, the issuer's governing body determines to be
advisable.
(b) A contract may include the sale of a hospital project to a
nonprofit organization, including a nonprofit organization using
the hospital project. The terms of the sale may include
installment payments. The sale must be fully consummated when all
bonds of the issuer issued to provide the hospital project are
paid or provision is made for their final payment if, during the
time the bonds or interest on the bonds remains unpaid, there is
no failure to make any payments owing under any lease or contract
at the time and in the manner as the payments come due.
(c) A contract under this chapter may be for the term agreed to
by the parties and may provide that the contract continues until
the bonds specified in the contract, or refunding or substitution
bonds issued in place of those bonds, are fully paid or provision
is made for their final payment.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 223.014. AUTHORITY OF ISSUER. An issuer has full and
complete authority relating to its bonds, a lease agreement in
which the issuer is a lessor, or a sale or other contract,
subject only to this chapter.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 223.015. OBLIGATIONS LIMITED. (a) The issuer may not
incur a financial obligation under this chapter that cannot be
paid from the proceeds of hospital project bonds, revenues
derived from operating a hospital project, or other revenues that
may be provided by a nonprofit organization in accordance with
this chapter.
(b) The legislature or an issuer may not make an appropriation
to pay any part of a cost of a hospital project or any operating
cost of a hospital project.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 223.016. EMINENT DOMAIN. (a) Under this chapter, an
issuer may not acquire by eminent domain a hospital project, or
any part of a hospital project, to be sold or leased under this
chapter.
(b) Land previously acquired by eminent domain by an issuer may
be sold or leased under this chapter if the governing body of the
issuer determines that:
(1) the use of the land will not interfere with the purpose for
which the land was originally acquired or that the land is no
longer needed for that purpose;
(2) at least seven years have elapsed since the date the land
was acquired by eminent domain; and
(3) the land was not acquired for park purposes or, if the land
was acquired for park purposes, the sale or lease of parkland has
been approved at an election held under Section 1502.055,
Government Code.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.250, eff. Sept.
1, 2001.
SUBCHAPTER C. HOSPITAL PROJECT BONDS
Sec. 223.021. ISSUANCE OF HOSPITAL PROJECT BONDS. (a) An
issuer may provide for the issuance of negotiable revenue bonds
or other evidences of indebtedness for paying hospital project
costs. The bonds may be issued subject only to the requirements
of this chapter.
(b) As the governing body of the issuer determines to be in the
best interest of the issuer, one or more series of bonds may be
issued for each hospital project, or more than one hospital
project may be combined in one or more series of bonds, but each
hospital project may be considered separately with respect to
Subsections (c), (d), and (e), and Sections 223.022-223.024.
(c) Before issuing bonds, the governing body of an issuer must
adopt a resolution:
(1) declaring its intention to issue bonds; and
(2) stating the maximum amount of bonds proposed to be issued,
the purpose for which the bonds are to be issued, and the
tentative date, time, and place at which the governing body
proposes to authorize the issuance of the bonds.
(d) Unless the governing body of the issuer orders an election
on the issuance of the bonds, a substantial copy of the
resolution shall be published three times in a newspaper of
general circulation in the territorial limits of the issuer. The
first publication must be made not earlier than the 45th day
before the tentative date stated in the resolution. The third
publication must be made not later than the 11th day before the
tentative date.
(e) Before authorizing the issuance of any bonds or ordering an
election on any matters authorized by this chapter, the issuer
must deposit with the chief administrative officer of the issuer
a complete description of any proposed hospital project,
including a detailed listing and explanation of projected costs,
the reasons for the hospital project, and the name of each owner
of the nonprofit organization for whom the hospital project is to
be constructed. The required description is public information.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 223.022. ELECTION ON BONDS. (a) The governing body of an
issuer shall order and hold an election on the question of the
issuance of hospital project bonds if at least five percent or
20,000 of the voters qualified to vote in an election held by the
issuer, whichever is less, file a written protest against the
issuance of the bonds before the close of business on the
business day before the tentative date in the resolution for the
authorization of the bonds.
(b) The issuer's governing body may order an election on its own
motion without the filing of a protest.
(c) In addition to the contents required by the Election Code,
the election order must specify the location of and the presiding
judge and alternate judge for each polling place.
(d) Notice of a bond election shall be published three times in
a newspaper of general circulation in the territorial limits of
the issuer. The first notice must be published not earlier than
the 45th day before the date set for the election, and the third
notice must be published not later than the 11th day before the
date set for the election.
(e) The election shall be conducted in accordance with the
general laws pertaining to bond elections in municipalities,
except as modified by this chapter.
(f) The ballot shall provide for voting for or against the
proposition: "The issuance of revenue bonds or notes or other
evidences of indebtedness for the hospital project or hospital
projects."
(g) The governing body shall declare whether a majority of the
voters voting in the election approve the proposition.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 223.023. ELECTION RESULTS. (a) If the proposition is
approved by a majority of the voters voting in the election, the
issuer may authorize the bonds.
(b) If the proposition is not approved, an election on the
issuing of revenue bonds for the hospital project that was the
subject of the election may not be ordered within six months
after that election, and bonds may not be issued for the hospital
project until a majority of the voters voting in an election held
for that purpose approve the issuance of the bonds.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 223.024. PROTEST NOT FILED. If a protest requiring an
election is not filed under Section 223.022(a) and an election is
not called under Section 223.022(b), the issuer may issue the
bonds under the resolution without an election for two years
after the tentative date specified in the resolution.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 223.025. LIMITATIONS ON BONDS. (a) Bonds issued in
accordance with this chapter are not general obligations or a
pledge of the faith and credit of this state, the issuer, or
another political subdivision of this state. The bonds are
payable solely from revenues of the hospital project for which
they are issued or from other revenues provided by a nonprofit
organization. Money of this state or a political subdivision of
this state from any source, including tax revenue, but excluding
revenue of the hospital project being financed with the bonds,
may not be used to pay the principal of, any redemption premium
for, or interest on revenue bonds or refunding bonds issued under
this chapter.
(b) Each revenue bond must state on its face that:
(1) this state, the issuer, or any political subdivision of this
state is not obligated to pay the principal of, any redemption
premium for, or interest on the bonds except from the revenues
pledged for that purpose; and
(2) the faith, credit, or the taxing power of this state, the
issuer, or any political subdivision of this state is not pledged
to the payment of the principal of, any redemption premium for,
or interest on the bonds.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 223.026. FORM AND TERM OF BONDS. (a) The issuer shall
determine the form of the bonds, the date of the bond issue, the
price and interest rate of the bonds, and the maturity for the
bonds, which may not be more than 40 years after its date.
(b) The issuer may:
(1) make the bonds redeemable before maturity and determine the
prices and conditions for early redemption;
(2) determine:
(A) the interest coupons to be attached to the bonds;
(B) the denominations of the bonds; and
(C) the places of payment of the bonds' principal, any
redemption premium, and interest;
(3) issue the bonds in coupon or in registered form, or both;
(4) make the bonds payable to a specific person;
(5) provide for the registration of coupon bonds as to principal
or as to principal and interest; and
(6) provide for the conversion of coupon bonds into registered
bonds without coupons and for the reconversion into coupon bonds
of any registered bonds without coupons.
(c) If the duty of conversion or reconversion of a bond is
imposed on a trustee in a trust agreement, the substituted bonds
need not be reapproved by the attorney general, and the bonds
remain incontestable.
(d) The issuer may provide for execution of the bonds and any
coupons using a facsimile signature under Chapter 618, Government
Code. If the signature or a facsimile signature of a person who
has been an officer appears on a bond or coupon, the signature or
facsimile signature is valid and sufficient for all purposes,
regardless of whether the person is an officer when the bonds are
delivered.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Amended by Acts 2001, 77th Leg., ch. 1420, Sec. 8.251, eff. Sept.
1, 2001.
Sec. 223.027. DEDICATED REPAYMENT REVENUE. The principal of,
any redemption premium for, and interest on hospital project
bonds are payable from and secured, as specified by the
resolution of the governing body or in any trust agreement or
other instrument securing the bonds, by a pledge of all or part
of the revenues of the issuer to be derived from:
(1) the ownership, operation, lease, use, mortgage, or sale of
the hospital project for which the bonds have been issued; or
(2) other revenues provided by a nonprofit organization.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 223.028. SECURITY FOR BONDS. (a) Bonds issued under this
chapter may be secured by a trust agreement between the issuer
and a trust company or bank having the powers of a trust company
in this state.
(b) A trust agreement may pledge or assign lease income,
contract payments, fees, or other charges to be received from a
nonprofit organization. The governing body of the issuer may
secure the bonds additionally by a mortgage, a deed of trust
lien, or other security interest on a designated hospital project
vesting in the trustee the power to sell the hospital project for
the payment of the indebtedness, the power to operate the
hospital project, and any other power for the further security of
the bonds.
(c) The trust agreement may:
(1) evidence a pledge of all or any part of the revenue of the
issuer from the ownership, operation, lease, use, mortgage, or
sale of a hospital project for the payment of principal of, any
redemption premium for, and interest on the bonds when due and
payable;
(2) provide for the creation and maintenance of reserves;
(3) set forth the rights and remedies of the bondholders and of
the trustee;
(4) restrict the individual right of action by bondholders as is
customary in trust agreements securing bonds and debentures of
corporations;
(5) contain provisions the issuer considers reasonable and
proper for the security of the bondholders; and
(6) provide for the issuance of bonds to replace lost, stolen,
or mutilated bonds.
(d) A trust agreement or resolution providing for the issuance
of bonds may provide for protecting and enforcing the rights and
remedies of the bondholders as reasonable and proper, including
covenants setting forth the duties of the issuer and the
nonprofit organization in relation to:
(1) the acquisition of property and the construction,
improvement, maintenance, repair, operation, and insurance of the
hospital project in connection with which the bonds are issued;
and
(2) the custody, safeguarding, and application of all money.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 223.029. USE OF PROCEEDS. (a) The proceeds of the bonds
may be:
(1) used only for the payment of hospital project costs for
which the bonds are issued; and
(2) disbursed in the manner and subject to the restrictions
provided in the resolution authorizing the issuance or in the
trust agreement securing the bonds.
(b) The issuer shall be paid, from the proceeds of its bonds,
money in the amount equal to:
(1) the issuer's actual expenditures for financing, legal,
printing, and other expenses incurred in issuing, selling, and
delivering the bonds; and
(2) the compensation paid to the issuer's employees for the time
the employees spent on activities related to the issuance, sale,
and delivery of the bonds.
(c) If the amount of proceeds exceeds the cost of the hospital
project for which the bonds are issued, the excess shall be
deposited to the credit of the sinking fund for the bonds.
(d) The governing body of the issuer may provide for a bond
reserve fund in the resolution authorizing the bonds or an
instrument securing the bonds and may set aside amounts from the
proceeds for payments into the reserve fund.
(e) Proceeds from the sale of bonds may be invested in:
(1) direct, indirect, or guaranteed obligations of the United
States that mature in a manner specified by the resolution
authorizing the bonds or another instrument securing the bonds;
or
(2) certificates of deposit of a bank or trust company if the
deposits are secured by obligations described by Subdivision (1).
(f) The issuer's governing body may designate a trust company or
a bank with trust powers to act as depository for proceeds of
bonds or revenues from a lease or other contract. The bank or
trust company shall furnish indemnifying bonds or pledge
securities as required by the issuer to secure the deposits.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 223.030. TEMPORARY OBLIGATIONS. (a) Before the issuance
of definitive bonds, the issuer may issue interim receipts or
temporary bonds, with or without coupons, exchangeable for
definitive bonds when those bonds are executed and are available
for delivery.
(b) The term of an interim receipt or temporary bond may not be
more than two years.
(c) The issuer shall submit the interim receipts or temporary
bonds to the attorney general in accordance with Section 223.031.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 223.031. EXAMINATION OF BONDS. (a) After issuance of the
bonds is authorized and before delivery of the bonds to their
purchasers, the bonds and the proceedings authorizing their
issuance and securing the bonds shall be presented to the
attorney general for examination.
(b) If the bonds state that they are secured by a pledge of all
or part of the revenues of the issuer to be derived from a lease
or other contract, the contract shall also be submitted to the
attorney general.
(c) If the attorney general finds that the bonds have been
authorized in accordance with state law and any contract securing
the bonds has been made in accordance with state law, the
attorney general shall approve the bonds and contract.
(d) The comptroller shall register the bonds when they are
approved. After approval and registration, the bonds and contract
submitted with the bonds are valid and binding obligations
according to their terms and are incontestable.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 223.032. REFUNDING BONDS. (a) An issuer by resolution may
authorize the issuance of revenue bonds to refund:
(1) outstanding bonds or other evidences of indebtedness that
have been issued to provide a hospital project; or
(2) outstanding obligations, mortgages, or advances issued,
made, or given by a nonprofit organization for the cost of a
hospital project.
(b) The amounts refunded may include the principal of and any
redemption premium for the bonds or other evidences of
indebtedness, and any interest accruing to the date of
redemption.
(c) The bonds or other evidences of indebtedness to be refunded
need not have been issued under this chapter and need not have
been originally issued by the issuer of the refunding bonds.
(d) This subchapter governs the issuance of refunding bonds, the
maturities and other details of the bonds, the rights of the
bondholders, and rights, duties, and obligations of the refunding
bond issuer.
(e) The issuer may issue the refunding bonds in exchange or
substitution for outstanding bonds or other evidences of
indebtedness or may sell the refunding bonds and use the proceeds
for paying or redeeming outstanding bonds or other evidences of
indebtedness.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 223.033. ENFORCEMENT OF AGREEMENTS. (a) An agreement made
under this chapter may provide, in the event of default in the
payment of the principal of, interest on, or any redemption
premium for bonds subject to the agreement or in the performance
of an agreement contained in the proceedings, mortgage, or
instruments relating to the bonds, for enforcement of the payment
or performance by:
(1) mandamus; or
(2) the appointment of a receiver in equity with power to charge
and collect rates, rents, or contract payments and to apply the
revenues from the hospital project in accordance with the
resolution, mortgage, or instruments.
(b) A mortgage to secure hospital project bonds may provide for
foreclosure and the sale of the property secured by the mortgage
on default in the mortgage payment or the violation of an
agreement contained in the mortgage. The foreclosure and sale may
occur under proceedings in equity or in any other manner
permitted by law. The mortgage may provide that a trustee under
the mortgage or the holder of any of the bonds secured by the
mortgage may be the purchaser at a foreclosure sale if the
trustee or bondholder is the highest bidder.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 223.034. MEMBERSHIP OF GOVERNING BODY NOT SUBJECT TO
CHANGE. The resolution authorizing the issuance of hospital
project bonds, the trust agreement securing the bonds, or any
other agreement relating to the bonds may not prescribe the
method of selecting or the term of office of any member of the
issuer's governing body.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 223.035. BONDS TAX EXEMPT. The bonds issued under this
chapter, their transfer, and interest from the bonds, including
profit made from their sale, are exempt from taxation by this
state and a municipality or other political subdivision of the
state.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 223.036. BONDS AS SECURITIES. (a) Bonds issued under this
chapter and any interest coupons are investment securities under
Chapter 8, Business & Commerce Code, and are exempt
securities under The Securities Act (Article 581-1 et seq.,
Vernon's Texas Civil Statutes).
(b) A lease agreement, sales agreement, or other contract under
this chapter is not a security under The Securities Act.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 223.037. BONDS AS INVESTMENTS. (a) Unless the bonds
issued under this chapter are ineligible for investments in
accordance with the criteria established in other statutes,
rulings, or regulations of this state or the United States, the
bonds are legal and authorized investments for:
(1) a bank;
(2) a savings bank;
(3) a trust company;
(4) a savings and loan association;
(5) an insurance company;
(6) a fiduciary;
(7) a trustee or guardian; and
(8) a sinking fund of a municipality, county, school district,
or other political corporation or subdivision of this state.
(b) The bonds may secure the deposits of public funds of this
state or a municipality, county, school district, or other
political corporation or subdivision of this state. The bonds are
lawful and sufficient security for those deposits at their face
value if accompanied by all appurtenant unmatured coupons.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.
Sec. 223.038. COST OF CERTAIN REQUIRED ALTERATIONS. The
relocation, raising, lowering, rerouting, changing of grade, or
altering of construction of a highway, railroad, electric
transmission line, telegraph or telephone property or facility,
or pipeline made necessary by the actions of an issuer shall be
accomplished at the sole expense of the issuer or nonprofit
organization, which shall pay the cost of the required activity
as necessary to provide comparable replacement, minus the net
salvage value of any replaced facility. The issuer shall pay that
amount from the proceeds of the bonds.
Acts 1989, 71st Leg., ch. 678, Sec. 1, eff. Sept. 1, 1989.