S.B. No. 2240
 
 
 
 
AN ACT
  relating to the financing of educational and related facilities by
  higher education facility authorities or nonprofit corporations
  performing the functions of those authorities and to the governance
  of certain higher education facility authorities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subsection (b), Section 53.35, Education Code,
  is amended to read as follows:
         (b)  In addition to or in lieu of establishing an authority
  under the provisions of this chapter, the governing body of a city
  or cities may request or order created one or more nonprofit
  corporations to act on its behalf and as its duly constituted
  authority and instrumentality to exercise the powers granted to an
  authority under the provisions of Sections 53.33 and 53.34. If a
  nonprofit corporation is created for such purposes or agrees to
  such request, the directors thereof shall thereafter be appointed
  and be subject to removal by the governing body of the city or
  cities. In addition to the powers granted under, and subject to the
  limitations provided by, Sections 53.33 and 53.34, the corporation
  shall have all powers granted under the Texas Non-Profit
  Corporation Act for the purpose of aiding institutions of higher
  education in providing educational facilities and housing
  facilities and facilities incidental, subordinate, or related
  thereto or appropriate in connection therewith. In addition to
  Sections 53.33 and 53.34 and the Texas Non-Profit Corporation Act,
  as amended (Article 1396-1.01 et seq., Vernon's Texas Civil
  Statutes), Sections 53.131, 53.14, 53.15, 53.31, 53.32, 53.331,
  53.34, 53.35, 53.38, 53.40, and 53.41 of this code apply to and
  govern such corporation and its procedures, bonds, and other
  obligations.
         SECTION 2.  Section 53.40, Education Code, is amended to
  read as follows:
         Sec. 53.40.  APPROVAL OF BONDS; REGISTRATION;
  NEGOTIABILITY. (a)  Bonds issued under this chapter and the record
  relating to their issuance shall be submitted to the attorney
  general, and if the attorney general [he] finds that they have been
  issued in accordance with this chapter and constitute valid and
  binding obligations of the authority and are secured as recited
  therein, the attorney general [he] shall approve them, and they
  shall be registered by the comptroller of public accounts, who
  shall certify the registration thereon. Thereafter they are
  incontestable. The bonds shall be negotiable and shall contain the
  following provision: "The holder hereof shall never have the right
  to demand payment thereof out of money raised or to be raised by
  taxation." If the attorney general does not find that the bonds
  have been issued in accordance with this chapter and constitute
  valid and binding obligations of the authority and are secured as
  recited therein, the attorney general may not approve the bonds,
  and the bonds may not be registered by the comptroller.
         (b)  When bonds to be issued to benefit an institution of
  higher education and the record relating to their issuance are
  submitted to the attorney general, the authority shall deliver
  notice of that action to the governor, the lieutenant governor, the
  speaker of the house of representatives, and the Legislative Budget
  Board. The notice must include the amount of the bonds to be issued
  and a description of the facilities to be financed from the bond
  proceeds.
         SECTION 3.  Subdivision (6), Section 53A.02, Education Code,
  is amended to read as follows:
               (6)  "Educational facility" means a classroom
  building, laboratory, science building, faculty or administrative
  office building, or other facility used [exclusively] for the
  conduct of the educational and administrative functions of an
  institution of higher education.
         SECTION 4.  Subsection (c), Section 53A.14, Education Code,
  is amended to read as follows:
         (c)  [No officer or employee of any such city is eligible for
  appointment as a director.]  Directors are not entitled to
  compensation for services but are entitled to reimbursement for
  expenses incurred in performing such service.
         SECTION 5.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution. If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2009.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 2240 passed the Senate on
  May 12, 2009, by the following vote:  Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 2240 passed the House on
  May 27, 2009, by the following vote:  Yeas 144, Nays 4, one
  present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor