2005 Texas Government Code CHAPTER 435. TEXAS MILITARY FACILITIES COMMISSION

GOVERNMENT CODE

CHAPTER 435. TEXAS MILITARY FACILITIES COMMISSION

SUBCHAPTER A. COMPOSITION AND ADMINISTRATION


	§ 435.001. DEFINITIONS.  In this subchapter:                                
		(1)  "Bond" includes a debenture or other evidence of 
indebtedness.         
		(2)  "Commission " means the Texas Military Facilities 
Commission.          

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.


	§ 435.002. COMMISSION.  The Texas Military Facilities 
Commission is an agency of the state.

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.


	§ 435.003. APPLICATION OF SUNSET ACT.  The Texas Military 
Facilities Commission is subject to Chapter 325 (Texas Sunset Act). 
Unless continued in existence as provided by that chapter, the 
commission is abolished and this chapter expires September 1, 2009.

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1991, 72nd Leg., 1st C.S., ch. 17, § 3.06, eff. Nov. 12, 
1991;  Acts 1995, 74th Leg., ch. 76, § 5.95(50), (83), eff. Sept. 
1, 1995;  Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.


	§ 435.004. COMPOSITION.  (a) The commission is composed 
of:               
		(1)  one senior officer of the Texas National Guard who 
is appointed by the governor with the advice and consent of the 
senate from a list submitted by the adjutant general and who must be 
actively serving in the Texas National Guard at the time of 
appointment;  and
		(2)  six members of the general public who are 
appointed by the governor with the advice and consent of the senate, 
who must not be actively serving in the Texas National Guard while 
serving as members of the commission, and two of whom must have 
experience in architecture, civil engineering, or construction 
management.
	(b)  Appointments to the commission shall be made without 
regard to the race, color, disability, sex, religion, age, or 
national origin of the appointees.
	(c)  A person is not eligible for appointment as a public 
member of the commission 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 
commission;
		(2)  owns or controls, directly or indirectly, more 
than a 10 percent interest in a business entity or other 
organization receiving funds from the commission;  or
		(3)  uses or receives a substantial amount of tangible 
goods, services, or funds from the commission, other than 
compensation or reimbursement authorized by law for commission 
membership, attendance, or expenses.
	(d)  A person may not serve as a member of the commission if 
the person holds another office or position of honor, trust, or 
profit under the state or federal government, except as a member of 
the Texas National Guard.

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997;  Acts 
2003, 78th Leg., ch. 1170, § 28.01, eff. Sept. 1, 2003.


	§ 435.0043. CONFLICTS OF INTERESTS.  (a) An officer, 
employee, or paid consultant of a Texas trade association in a field 
related to the operation of the commission may not be a member of 
the commission or an employee of the commission 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 17, 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 a field related to 
the operation of the commission may not be a member of the 
commission and may not be an employee of the commission 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 17, 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 in this state designed to assist its members and its 
industry or profession in dealing with mutual problems and in 
promoting their common interest.
	(d)  A person may not serve as a member of the commission or 
act as the general counsel to the commission 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 commission.

Added by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.          


	§ 435.0044. PRESIDING OFFICER.  The governor shall 
designate a member of the commission as the presiding officer of the 
commission to serve in that capacity at the pleasure of the 
governor.

Added by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.          


	§ 435.0045. COMMISSION MEMBER TRAINING.  (a) Before a 
member of the commission may assume the member's duties and before 
the member may be confirmed by the senate, the member must complete 
at least one course of the training program established under this 
section.
	(b)  A training program established under this section shall 
provide information to the member regarding:
		(1)  the enabling legislation that created the 
commission;                  
		(2)  the programs operated by the commission;                                 
		(3)  the role and functions of the commission;                                
		(4)  the rules of the commission with an emphasis on the 
rules that relate to disciplinary and investigatory authority;
		(5)  the current budget for the commission;                                   
		(6)  the results of the most recent formal audit of the 
commission;         
		(7)  the requirements of the:                                                 
			(A)  open meetings law, Chapter 551;                                         
			(B)  open records 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 
commission or the Texas Ethics Commission.

Added by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.          


	§ 435.005. VACANCY;  INABILITY TO SERVE.  (a) If a member 
of the commission who is a senior officer of the Texas National 
Guard retires from active service with the Texas National Guard, 
the member's position on the commission becomes vacant.  That 
vacancy on the commission is filled for the unexpired term in the 
same manner in which the position was originally filled.
	(b)  If a member of the commission who is a senior officer of 
the Texas National Guard is unable to serve as a commission member 
because of induction into federal service of the member or the 
member's military unit, the governor shall fill the position in the 
same manner in which the position was originally filled, and the 
member's successor on the commission serves for the period of the 
induction into federal service.  The successor shall qualify as a 
member of the commission.

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.


	§ 435.006. REMOVAL.  (a) It is a ground for removal from 
the commission if a member:
		(1)  does not have at the time of appointment the 
qualifications required by Sections 435.004(a) and (c);
		(2)  does not maintain during service on the commission 
the qualifications required by Sections 435.004(a) and (c);
		(3)  violates a prohibition established by Section 
435.004(d) or 435.0043;  
		(4)  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
		(5)  is absent from more than half of the regularly 
scheduled commission meetings that the member is eligible to attend 
during a calendar year.
	(b)  The validity of an action of the commission is not 
affected by the fact that it is taken when a ground for removal of a 
commission member exists.
	(c)  If the executive director has knowledge that a potential 
ground for removal exists, the executive director shall notify the 
presiding officer of the commission 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 next highest officer of the 
commission, who shall notify the governor and the attorney general 
that a potential ground for removal exists.

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.


	§ 435.007. TERM AND OFFICERS.  (a) The term of office of a 
commission member is six years without regard to the organizational 
structure of the Texas National Guard.
	(b)  The commission annually shall elect a treasurer from 
among its members. 

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.


	§ 435.008. PER DIEM AND EXPENSES.  (a) A member is 
entitled to a per diem as set by legislative appropriation for each 
day that the member engages in the business of the commission.
	(b)  A member is entitled to reimbursement for meals, 
lodging, transportation expenses, and incidental expenses as 
provided by the General Appropriations Act.

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997;  Acts 
2005, 79th Leg., ch. 621, § 1, eff. Sept. 1, 2005.


	§ 435.009. PERSONNEL.  (a) The commission may employ an 
executive director and other officials, counsel, agents, and 
employees as necessary to carry out the commission's purposes and 
duties, and may prescribe their duties and fix their compensation.
	(b)  The executive director 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 commission. The program shall require intra-agency 
posting of all positions concurrently with any public posting.
	(c)  The executive director 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 commission employees must be based on the system established 
under this subsection.
	(d)  The executive director or the executive director's 
designee shall provide to members of the commission and to agency 
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.
	(e)  The commission shall develop and implement policies 
that clearly separate the policymaking responsibilities of the 
commission and the management responsibilities of the executive 
director and the staff of the commission.

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.


	§ 435.0095. EQUAL EMPLOYMENT OPPORTUNITY POLICY 
STATEMENT.  (a) The executive director 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 commission 
workforce that meets federal and state laws, rules, and regulations 
and instructions directly promulgated from those laws, rules, and 
regulations;
		(3)  procedures by which a determination can be made 
about the extent of underuse in the commission workforce of all 
persons for whom federal or state laws, rules, and regulations and 
instructions directly promulgated from those laws, rules, and 
regulations 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 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.          


	§ 435.010. HEADQUARTERS.  The commission shall maintain a 
headquarters in Travis County.

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.


	§ 435.011. RULES;  ACTIONS OF THE COMMISSION.  (a) The 
commission may adopt necessary rules for carrying out its business 
and may adopt reasonable methods to accomplish its purposes.  This 
chapter shall be construed liberally to effect those purposes.
	(b)  The commission shall act by resolution adopted at a 
meeting held according to its rules.

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.


	§ 435.012. RECORDS;  AUDIT;  REPORT.  (a) The commission 
shall keep accurate minutes of its meetings and shall keep accurate 
records and books of account that conform with approved methods of 
accounting and that clearly reflect the income and expenses of the 
commission and all transactions in relation to its property.
	(b)  The financial transactions of the commission are 
subject to audit by the state auditor in accordance with Chapter 
321.
	(c)  The executive director shall prepare annually a 
complete and detailed written report accounting for all funds 
received and disbursed by the commission during the preceding 
fiscal year.  The annual report must meet the reporting 
requirements applicable to financial reporting provided in the 
General Appropriations Act.

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1989, 71st Leg., ch. 584, § 25, eff. Sept. 1, 1989;  Acts 
1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.


	§ 435.013. GENERAL POWERS.  (a) The commission is the 
exclusive authority for the construction, repair, and maintenance 
of National Guard armories, facilities, and improvements owned by 
the state located on commission property.  The commission is a 
public authority and a body politic and corporate and has all powers 
necessary for the acquisition, construction, rental, control, 
maintenance, operation, and disposition of Texas National Guard or 
Texas State Guard facilities and real property, including all 
property and equipment necessary or useful in connection with the 
facilities.
	(b)  The commission may:                                                       
		(1)  sue and be sued;                                                         
		(2)  enter into contracts in connection with any matter 
within its purposes or duties;  and
		(3)  have and use a corporate seal.                                           

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.


	§ 435.014. PUBLIC HEARINGS.  The commission shall develop 
and implement policies that provide the public with a reasonable 
opportunity to appear before the commission and to speak on any 
issue under the jurisdiction of the commission.

Added by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.          


	§ 435.015. PUBLIC INTEREST INFORMATION AND 
COMPLAINTS.  (a) The commission shall prepare information of 
public interest describing the functions of the commission and the 
procedures by which complaints are filed with and resolved by the 
commission.  The commission shall make the information available to 
the public and appropriate state agencies.
	(b)  The commission by rule shall establish methods by which 
consumers and service recipients are notified of the name, mailing 
address, and telephone number of the commission for the purpose of 
directing complaints to the commission relating to building 
maintenance or agency performance.  The commission may provide for 
that notification on a sign prominently displayed in each building 
under the jurisdiction of the commission.
	(c)  The commission shall keep a file about each written 
complaint filed with the commission that the agency has authority 
to resolve.  The commission shall provide to the person filing the 
complaint and the persons or entities complained about the 
commission's policies and procedures pertaining to complaint 
investigation and resolution.  The commission, at least quarterly 
and until final disposition of the complaint, shall notify the 
person filing the complaint and the persons or entities complained 
about of the status of the complaint unless the notice would 
jeopardize an undercover investigation.
	(d)  The commission shall keep information about each 
complaint filed with the commission.  The information shall 
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 agency took no 
action, an explanation of the reason the complaint was closed 
without action.

Added by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.          


	§ 435.016. FUNDS SUBJECT TO STATE FUNDS REFORM ACT.  All 
money paid to the commission under this chapter, except money 
directly related to bonds used to build, renovate, or modify 
National Guard armories, is subject to Subchapter F, Chapter 404.

Added by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.          


	§ 435.017. PROGRAM AND FACILITY ACCESSIBILITY.  The 
commission shall comply with federal and state laws related to 
program and facility accessibility.  The executive director shall 
also prepare and maintain a written plan that describes how a person 
who does not speak English can be provided reasonable access to 
commission programs and services.

Added by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.          

SUBCHAPTER B. PROPERTY TRANSACTIONS AND MANAGEMENT


	§ 435.021. ACQUISITION;  MANAGEMENT;  PLEDGE OF RENTS, 
ISSUES, AND PROFITS.  (a) The commission by gift, lease, or 
purchase may acquire real and personal property, including 
leasehold estates in real property, for use for any purpose the 
commission considers necessary in connection with the Texas 
National Guard or for the use of units of the Texas National Guard.
	(b)  The commission by gift, purchase, or construction may 
acquire furniture and equipment suitable for facility purposes.
	(c)  The commission may hold, manage, maintain, lease, or 
sell its property and may pledge all or part of the rents, issues, 
and profits of the property.

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.


	§ 435.022. CONSTRUCTION;  FURNISHING AND EQUIPMENT.  (a) 
The commission may construct buildings on its real property, 
whether held in fee simple or otherwise.  The commission may furnish 
and equip the buildings.
	(b)  The commission may construct a building on land 
comprising a state camp only on a site selected and described by a 
board of officers.  The adjutant general shall select the officers 
from time to time for that purpose.  The officers shall select and 
describe the site promptly after request by the commission to the 
adjutant general.  The site may not exceed 200,000 square feet.  The 
officers shall certify the description to the commission and 
furnish a copy of it to the adjutant general, who shall preserve it 
in the adjutant general's office.  If the commission constructs a 
building on the site selected and described, the site becomes the 
property of the commission for all purposes of this chapter as if 
the site had been acquired by gift to or purchase by the commission.

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.


	§ 435.023. LEASE OF PROPERTY.  (a) The commission may 
execute and deliver a lease that leases to the state a building, its 
site, and the equipment in it.  The adjutant general shall execute 
the lease for the state as provided by Section 431.030.  The 
commission shall determine a lawful term of the lease and may renew 
the lease from time to time.
	(b)  The commission may make the annual rent charged the 
state under the lease payable in installments.  The amount of the 
rent must be sufficient to:
		(1)  provide for the operation and maintenance of the 
property;             
		(2)  pay the interest on, provide for the retirement 
of, and pay the expenses related to the issuance of, any bonds 
issued to acquire, construct, or equip the property;  and
		(3)  pay the commission's necessary expenses not 
otherwise provided for.    
	(c)  The commission may lease the property to any person 
under terms the commission determines if the state fails or refuses 
to:
		(1)  lease the property;                                                      
		(2)  renew an existing lease at the rent provided to be 
paid;  or           
		(3)  pay the rent required in the lease.                                      
	(d)  The law requiring notice and competitive bids does not 
apply to a lease under this section.
	(e)  For the purposes of this section the term "lease" 
includes "sublease."  

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.


	§ 435.024. TRANSFER TO STATE.  When property that the 
commission owns is fully paid for and free of liens, and all 
obligations incurred in connection with the acquisition and 
construction of the property have been fully paid, the commission 
may donate and transfer the property to the state by appropriate 
instruments of transfer.  The instruments of transfer shall be kept 
in the custody of the adjutant general's department.

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.


	§ 435.025. COMMISSION PROPERTY.  (a) When property that 
the commission owns is fully paid for and free of liens, and all 
obligations incurred in connection with the acquisition and 
construction of the property have been fully paid, the commission 
may properly dispose of the property if:
		(1)  the property is designated by the commission and 
the adjutant general as surplus;  and
		(2)  the disposal is in the best interests of the 
commission and the Texas National Guard and its components or 
successors.
	(b)  The commission may receive from the adjutant general a 
state-owned national guard camp and all the land, improvements, and 
personal property connected with it.  The commission may:
		(1)  administer the property with its other property;  
or                   
		(2)  properly dispose of the property if:                                     
			(A)  the property is designated by the commission 
and adjutant general as surplus;  and
			(B)  the disposal is in the best interests of the 
Texas National Guard and its components or successors.
	(c)  To accomplish the purposes of Subsections (a) and (b), 
the commission may remove, dismantle, or sever any of the property 
or authorize its removal, dismantling, or severance.
	(d)  If property under this section is designated for sale, 
the commission shall sell it to the highest bidder for cash.  The 
commission may reject any or all bids.
	(e)  If property under this section is designated for 
exchange, the commission may exchange the property for one or more 
parcels of land equal to or exceeding the value of the 
commission-owned property.
	(f)  Except as provided by Subsection (g)(1), a sale, deed, 
or exchange made under this section must reserve to the state a 
one-sixteenth mineral interest free of cost of production.
	(g)  The commission may:                                                       
		(1)  reconvey to the original grantor or donor all 
rights, title, and interests, including mineral interests, to all 
or part of the land conveyed by that person;  and
		(2)  convey to the original grantor or donor, on a 
negotiated basis at fair market value, improvements constructed on 
the land reconveyed.
	(h)  The commission shall deposit proceeds of sales under 
this section in the state treasury to the credit of the commission 
for the use and benefit of the Texas National Guard or its 
components or successors.

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.


	§ 435.026. TAX STATUS OF PROPERTY.  Property held by the 
commission and rents, issues, and profits of the property are 
exempt from taxation by the state, a municipality, a county or other 
political subdivision, or a taxing district of the state.

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.


	§ 435.027. GRONER A. PITTS NATIONAL GUARD ARMORY.  The 
Texas National Guard armory located in Brownwood, Texas, is named 
the Groner A. Pitts National Guard Armory in honor of Groner A. 
Pitts.

Added by Acts 1993, 73rd Leg., ch. 906, § 1.18, eff. June 19, 
1993.      

SUBCHAPTER C. FINANCING


	§ 435.041. BORROWING MONEY;  ISSUING AND SELLING 
BONDS.  (a) The commission from time to time may borrow money and 
may request the Texas Public Finance Authority, on behalf of the 
commission, to issue and sell fully negotiable bonds to acquire one 
or more building sites or buildings or to construct, remodel, 
repair, or equip one or more buildings.
	(b)  The Texas Public Finance Authority may sell the bonds in 
any manner it determines to be in the best interest of the 
commission, except that it may not sell a bond that has not been 
approved by the attorney general and registered with the 
comptroller.  The Texas Public Finance Authority is subject to all 
rights, duties, and conditions set forth in this subchapter with 
respect to the issuance of bonds by the commission, including the 
issuance of refunding bonds under Section 435.048.

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1991, 72nd Leg., 1st C.S., ch. 4, § 14.04, eff. Jan. 1, 
1992;  Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.


	§ 435.042. FORM.  (a) The bonds must be signed by the 
commission's presiding officer and countersigned by its treasurer.  
The commission's corporate seal must be affixed to the bonds and 
attested by the commission's executive director. The commission is 
not prohibited from issuing bonds signed or attested by a 
commission officer because the officer ceased to be an officer 
before the bonds were issued.
	(b)  The commission may issue bonds in:                                        
		(1)  fully registered form without interest coupons;                          
		(2)  coupon form registrable as to principal only;  or                        
		(3)  bearer form with coupons attached.                                       
	(c)  Coupons must be authenticated by the facsimile 
signature of the commission's treasurer.
	(d)  The commission may issue bonds in series.  All series of 
bonds issued under the same trust indenture or trust agreement must 
rank equally without preference or priority of one series over 
another.

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.


	§ 435.043. SECURITY AND REPAYMENT.  (a) Except as 
provided by Subsection (b), the bonds must be secured by a pledge 
of, and payable solely from, the rents, issues, and profits of:
		(1)  all commission property;  or                                             
		(2)  property the commission acquires or constructs, in 
whole or part, with the proceeds of the sale of the bonds.
	(b)  Interest due not later than two years after the date 
bonds or a series of bonds are issued and sold may be paid from the 
proceeds of the sale of the bonds.

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.


	§ 435.044. TAX STATUS OF BONDS.  The bonds and interest on 
the bonds are exempt from taxation, except inheritance taxes, by 
the state, a municipality, a county or other political subdivision, 
or a taxing district of the state.

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.                    


	§ 435.045. SECURITY FOR DEPOSITS.  The bonds are eligible 
to secure deposits of public funds of the state and of a 
municipality, county, school district, or other political 
corporation or subdivision of the state.  The bonds are lawful and 
sufficient security for these deposits to the extent of their value 
when accompanied by all unmatured coupons.

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.                    


	§ 435.046. BONDS AS INVESTMENTS.  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;                                                               
		(8)  public funds of the state, including the permanent 
school fund;  and   
		(9)  a sinking fund of a municipality, county, school 
district, or other political corporation or subdivision of the 
state.

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.                    


	§ 435.047. TRUST DEEDS AND TRUST AGREEMENTS.  (a) The 
commission may from time to time execute and deliver trust deeds and 
trust agreements.  The trustee under a trust deed or trust agreement 
must be a bank or trust company authorized by the laws of this state 
or the United States to accept and execute trusts in this state, or 
an individual selected by the commission. The commission shall 
select the trustee on the basis of written competitive bids.
	(b)  The trust deed or trust agreement must be signed in the 
name and on behalf of the commission by the commission's presiding 
officer and countersigned by the commission's treasurer.  The 
corporate seal of the commission must be affixed to the trust deed 
or agreement and attested by the commission's executive director.
	(c)  The trust deed or trust agreement may contain provisions 
approved by the commission for the protection and enforcement of 
the rights and remedies of the trustee and the holders of the bonds, 
including provisions for the acceleration of the maturity of the 
bonds on default by the commission on the bonds or the trust deed or 
trust agreement under which they were issued.  The trust deed or 
trust agreement must equally secure all bonds issued under it.  The 
trust deed or trust agreement may limit or place conditions on the 
commission's right to issue additional bonds.
	(d)  If a bank or trust company is named as trustee, the trust 
deed or trust agreement may provide for deposit with and 
disbursement by the trustee of proceeds of the bonds issued under or 
secured by the trust deed or trust agreement and rents, issues, and 
profits of all property acquired or constructed from those 
proceeds.

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.


	§ 435.048. REFUNDING BONDS.  (a) The commission may 
request the Texas Public Finance Authority to issue refunding bonds 
to refund any outstanding bonds that the commission, or the Texas 
Public Finance Authority on behalf of the commission, has lawfully 
issued, and interest on the bonds.  The Texas Public Finance 
Authority may issue the refunding bonds in exchange or substitution 
for outstanding bonds or may sell the refunding bonds and use the 
proceeds to pay or redeem outstanding bonds.
	(b)  If refunding bonds are sold, they may be sold in an 
amount necessary to:
		(1)  pay principal of, interest on, and premium, if 
any, of the bonds being refunded;
		(2)  make a deposit in a reserve fund as provided in the 
resolution authorizing the refunding bonds;  and
		(3)  pay expenses incurred in the issuance, sale, and 
delivery of the refunding bonds.
	(c)  Until refunding bond proceeds are needed for purposes 
under Subsection (b), the commission may invest them in direct 
obligations of the United States, and may use or pledge the income 
from the investments as provided in the resolution authorizing the 
refunding bonds.
	(d)  In addition to the authority provided by this section, 
the commission may refund its outstanding bonds according to 
applicable general law.

Acts 1987, 70th Leg., ch. 147, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 1991, 72nd Leg., 1st C.S., ch. 4, § 14.05, eff. Jan. 1, 
1992;  Acts 1997, 75th Leg., ch. 1168, § 2, eff. Sept. 1, 1997.