2005 Texas Local Government Code CHAPTER 293. COUNTY BUILDING AUTHORITY ACT

LOCAL GOVERNMENT CODE

CHAPTER 293. COUNTY BUILDING AUTHORITY ACT

SUBCHAPTER A. GENERAL PROVISIONS


	§ 293.001. SHORT TITLE.  This chapter may be cited as the 
County Building Authority Act.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 293.002. DEFINITIONS.  In this chapter:                                   
		(1)  "Authority" means a county building authority 
created under this chapter.
		(2)  "Bond resolution" means a resolution of a board 
authorizing the issuance of bonds.
		(3)  "Board" means the board of directors of an 
authority.                  
		(4)  "Project" means the property acquired and building 
constructed by an authority.
		(5)  "Trust indenture" means an instrument pledging 
revenue of property or creating a mortgage lien on property to 
secure bonds issued under this chapter.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 293.003. COUNTIES SUBJECT TO CHAPTER.  This chapter 
applies only to a county that:
		(1)  has a population of more than 600,000;  and                              
		(2)  owns and uses, together with other structures, a 
courthouse that is more than 30 years old and that has not been 
completely renovated or remodeled during the preceding 30 years.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 293.004. COUNTY BUILDING STUDY COMMITTEE.  (a) The 
commissioners court of the county by order shall create a county 
building study committee if the commissioners court determines that 
doing so is in the best interest of the county and its residents.
	(b)  The committee consists of five members, with one 
appointed by the county judge and one appointed by each county 
commissioner.
	(c)  The committee may:                                                        
		(1)  study the need for a new or expanded county 
building and the possibility of including in the building devices 
and characteristics to protect life and property in modern warfare;
		(2)  make preliminary plans and surveys concerning the 
requirements, costs, and feasibility of the project;  and
		(3)  make recommendations to the commissioners court.                         
	(d)  The county may pay the cost of the study, which may not 
exceed $25,000. 

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    

SUBCHAPTER B. CREATION AND OPERATION


	§ 293.021. ELECTION;  COUNTY BUILDING AUTHORITY.  (a) 
After reviewing and considering the recommendations of the county 
building study committee, the commissioners court may call an 
election at which the qualified voters of the county are entitled to 
vote for or against the proposition:  the construction, 
acquisition, improvement, equipping, and furnishing of a county 
building and the issuance of negotiable revenue bonds to provide 
funds for this purpose.
	(b)  If a majority of the qualified voters of the county vote 
for the proposition, a county building authority is created.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 293.022. PURPOSES OF AUTHORITY.  The purposes of the 
authority are to construct, acquire, improve, equip, furnish, 
maintain, and operate a county building adequate to meet the 
county's needs.  In planning the building, the authority may 
consider the anticipated population and economic growth of the 
county and the demands that this growth will create for space for 
county activities.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 293.023. BOARD OF DIRECTORS.  (a) The authority is 
governed by a board composed of five directors.  The county judge 
appoints one director and each county commissioner appoints one.  A 
county officer or employee is not eligible for appointment as a 
director.
	(b)  The term of office of a director expires on December 31 
not more than two years after the date that the director's term 
began.  The directors may provide for staggered terms, in which case 
the directors shall draw lots to determine which directors' terms 
expire in which year.
	(c)  If a vacancy occurs in the office of a director by death, 
resignation, or expiration of a term, the person holding the office 
of the county officer who originally appointed the vacating 
director shall appoint a person to fill the vacancy.
	(d)  The board shall elect one member as president and one 
member as vice-president.  The board shall select a secretary and a 
treasurer who may or may not be members.  The offices of secretary 
and treasurer may be combined into one office.  The board may elect 
other officers as authorized by the bylaws of the authority.
	(e)  A majority of the board is a quorum.  The board may act 
by a majority vote of directors present if a quorum is present.
	(f)  A director may not receive compensation for services on 
the board but is entitled to reimbursement for expenses incurred in 
performing the services.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 293.024. EMPLOYEES.  (a) The board may employ:                            
		(1)  a manager or executive director of properties;                           
		(2)  legal counsel;  and                                                      
		(3)  other employees, experts, and agents that the 
board considers necessary.
	(b)  The board may delegate to the manager the power to 
employ and discharge employees.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 293.025. COMPTROLLER.  (a) The county auditor shall 
appoint a comptroller for the authority, subject to the approval of 
the board and the commissioners court.  The comptroller shall:
		(1)  work under the direction of the county auditor;                          
		(2)  institute budget, purchasing, and fiscal 
procedures that conform to accepted business and accounting 
practices;  and
		(3)  make quarterly reports to the commissioners court.                       
	(b)  The county auditor shall fix the comptroller's salary, 
subject to approval of the board and commissioners court, and the 
authority shall pay the salary.
	(c)  The comptroller's employment may be terminated by an act 
of the county auditor and a majority vote of the board and 
commissioners court.
	(d)  Before the beginning of each fiscal year the 
comptroller, under the direction of the board, shall prepare the 
authority's budget for the following fiscal year and submit it to 
the commissioners court.  Within 15 days after the date the budget 
is submitted, the commissioners court may approve or revise the 
budget.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 293.026. POWERS OF AUTHORITY.  (a) The authority may:                     
		(1)  construct, enlarge, furnish, and equip a building 
to be used primarily as a county courthouse, subject to the approval 
of the commissioners court;
		(2)  sue or be sued, implead or be impleaded, and 
complain or defend in court;
		(3)  adopt, use, and alter a corporate seal;                                  
		(4)  make bylaws for the management and regulation of 
its affairs;          
		(5)  make contracts and execute instruments necessary 
or convenient for conducting its business;
		(6)  acquire, purchase, hold, and use land necessary 
for carrying out its purposes;
		(7)  lease land or an interest in land from the county 
for a term of not more than 99 years at nominal rent or annual rent 
determined by contract with the county;
		(8)  lease real or personal property or an interest in 
such property to the county for a term of not more than 99 years at 
nominal rent or annual rent determined by contract with the county;
		(9)  lease real or personal property or an interest in 
such property to a person other than a county for a term of not more 
than 40 years at an annual rent determined by contract with the 
person;
		(10)  borrow money and accept grants from, and enter 
into contracts, leases, or other transactions with, federal 
agencies;
		(11)  invest the proceeds of its bonds, until the money 
is needed, in direct obligations of or obligations unconditionally 
guaranteed by the United States government, to the extent 
authorized in the bond resolution or trust indenture;
		(12)  fix, alter, charge, and collect rates, rentals, 
and other charges for services of the authority or use of facilities 
of the authority or project;
		(13)  exercise the power of eminent domain to the 
extent, in the manner, and under the laws applicable to counties, 
for the purpose of acquiring property needed for a purpose 
authorized by this chapter;  and
		(14)  do anything necessary or convenient to accomplish 
the purposes of the authority or carry out a power granted to the 
authority by statute.
	(b)  A lease under Subsection (a)(9) may not impair the 
authority's obligations under the bond resolution or trust 
indenture.  On notice specified in the contract, a lessee under such 
a lease shall surrender possession of the property to the authority 
if and to the extent that the county requires use of the property.
	(c)  The power provided by Subsection (a)(10) is not subject 
to the limitations relating to other powers granted under this 
section.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 293.027. OPERATION OF AUTHORITY.  (a) The property of 
the authority must be held and operated only for governmental and 
public purposes, for the use and benefit of the public, and without 
private profit.  The property of the authority is exempt from 
taxation.
	(b)  The authority shall charge rent, impose charges, and use 
its sources of revenue to generate revenue sufficient to:
		(1)  pay the expenses related to ownership, operation, 
and upkeep of the authority's property;
		(2)  pay interest on the authority's bonds as it becomes 
due;               
		(3)  create a sinking fund to pay the authority's bonds 
as they come due;  and
		(4)  create and maintain a bond reserve fund and other 
funds as provided in the bond resolution or trust indenture.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 293.028. DEPOSITORY.  The authority may:                                  
		(1)  select a depository as provided by law for 
selection of a county depository;  or
		(2)  award a depository contract to the same depository 
used by the county on the same terms applicable to the county.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 293.029. INVESTMENT OF FUNDS.  The investment of and 
security for authority funds is governed, to the extent applicable, 
by the law governing investment of and security for a county's 
funds.  The bond resolution or trust indenture may provide further 
restrictions on the investment.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 293.030. LAW AFFECTING CERTAIN CONTRACTS.  The board, 
in connection with a contract for construction or for purchase of 
equipment and material that requires expenditure or payment of 
$2,000 or more, shall comply with Subchapter C, Chapter 262.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 293.031. UNDERGROUND SHELTER.  The authority may 
include a civil defense shelter in underground facilities 
constructed under this chapter.  In connection with this shelter 
the authority may:
		(1)  cooperate with the federal civil defense 
administrator and state civil defense officers;  and
		(2)  contract as necessary to participate in federal or 
state assistance in construction and operation of the shelter.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 293.032. POWER OF COUNTY.  (a) A county may acquire and 
sell or lease to the authority land that the commissioners court 
determines is needed for the project.  The sale or lease may be for 
the consideration that the commissioners court, after considering 
that the project is for the primary benefit of the county, 
determines is reasonable.
	(b)  The county may:                                                           
		(1)  lease property from the authority as is necessary 
or convenient and as is in the best interest of the county;
		(2)  pay the authority, at a bank designated by the 
authority, an annual rent determined by the lease;  and
		(3)  levy a tax sufficient to pay the rent as it comes 
due.                 
	(c)  Without limitation by Subsections (a) and (b), a county 
may do all things necessary or convenient to accomplish the 
objectives of this chapter.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 293.033. PROVISION OF FACILITIES BY COUNTY.  This 
chapter does not alter the authority of the commissioners court to 
provide county facilities that the commissioners court considers 
necessary for the convenience of the people in populated areas.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 293.034. TRANSFER OF ASSETS TO COUNTY;  
DISSOLUTION.  On payment of all of its indebtedness, the authority 
shall convey all of its assets to the county, without cost to the 
county.  On this conveyance, the authority is dissolved.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    

SUBCHAPTER C. FUNDING


	§ 293.051. REVENUE BONDS.  (a) The authority may issue 
negotiable revenue bonds to provide funds to carry out its 
purposes.
	(b)  The bonds must:                                                           
		(1)  be authorized by a board resolution;                                     
		(2)  be authorized by an election that is:                                    
			(A)  called by a resolution of the board;                                    
			(B)  held throughout the authority;  and                                     
			(C)  called, held, and publicized in the manner 
provided by Chapter 1251, Government Code;
		(3)  be signed by the board president or vice-president 
and countersigned by the board secretary, either by actual or 
printed facsimile signature;
		(4)  include the authority seal;                                              
		(5)  mature serially or otherwise in 40 years or less;                        
		(6)  be payable from and secured by a pledge of net 
revenues from ownership or operation of authority property;  and
		(7)  be sold at a price and under terms that the board 
considers the most advantageous and the most reasonably obtainable.
	(c)  The bonds may:                                                            
		(1)  be secured, in addition to the security prescribed 
in Subsection (b)(6), by a mortgage or deed of trust on authority 
real or personal property;
		(2)  bear interest at a rate not to exceed the interest 
rate prescribed by Chapter 1204, Government Code;
		(3)  be made callable before maturity at the times and 
prices prescribed in the bond resolution;  and
		(4)  be made registrable as to principal, interest, or 
both.                

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 2001, 77th Leg., ch. 1420, § 8.308, eff. Sept. 1, 2001.


	§ 293.052. JUNIOR LIEN BONDS;  PARITY BONDS.  (a) The 
authority may issue bonds constituting a junior lien on net 
revenues or property of the authority unless prohibited by the bond 
resolution or trust indenture.
	(b)  The authority may issue parity bonds under conditions 
specified in the bond resolution or trust indenture.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 293.053. EXAMINATION AND APPROVAL.  (a) After the 
authority authorizes bonds, including refunding bonds, it shall 
submit the bonds and the record relating to their issuance to the 
attorney general.  If the bonds purport to be secured by a pledge of 
proceeds of an existing lease with the county or another 
governmental agency, a copy of the lease contract and the 
proceedings of the governmental authority authorizing the lease 
shall also be submitted.
	(b)  The attorney general shall examine the submitted 
documents and shall approve the bonds and the lease contract, if 
any, if they are determined to be valid.  On approval of the 
attorney general, the comptroller of public accounts shall register 
the bonds.
	(c)  On approval and registration of the bonds under this 
section, the bonds and the lease contract, if any, are valid, 
binding, and incontestable.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 293.054. LEGAL AND AUTHORIZED INVESTMENTS.  (a) 
Authority bonds are legal and authorized investments for a bank, 
savings bank, trust company, savings and loan association, 
insurance company, fiduciary, trustee, or guardian, or a sinking 
fund of a municipality, county, school district, or political 
subdivision of the state.
	(b)  Authority bonds may secure deposits of public funds of 
the state, a municipality, a county, a school district, or another 
political corporation or subdivision of the state.  The bonds may 
provide this security in an amount up to their value, if all 
unmatured coupons, if any, are attached.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.                    


	§ 293.055. REFUNDING BONDS.  (a) The authority may issue 
bonds for the purpose of refunding outstanding bonds.  Refunding 
bonds may be issued in the manner provided by this chapter for the 
issuance of other bonds, except that an election is not required.
	(b)  The comptroller may exchange the refunding bonds for the 
outstanding bonds or the authority may sell the refunding bonds and 
apply the proceeds according to Subchapter B or C, Chapter 1207, 
Government Code. 

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.  Amended 
by Acts 2001, 77th Leg., ch. 1420, § 8.309, eff. Sept. 1, 2001.


	§ 293.056. INITIAL INTEREST.  The board may set aside the 
following money from the proceeds from the sale of bonds:
		(1)  money necessary to pay interest on the bonds for 
not more than two years;  and
		(2)  money that the board estimates to be necessary to 
pay the authority's operating expenses for its first year of 
operation.

Acts 1987, 70th Leg., ch. 149, § 1, eff. Sept. 1, 1987.