S.B. No. 1952

	AN ACT
	relating to the authorization of certain municipalities and
	counties to issue public securities for the financing of permanent
	improvements for use by an institution of higher education.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 1434.001, Government Code, is amended to
	read as follows:
	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 [a general academic teaching]
	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.
	SECTION 2.  Section 1434.002, Government Code, is amended to
	read as follows:
	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) [(2)]  "Public security" has the meaning assigned
	by Section 1201.002.
	(4) [(3)]  "Recognized accrediting agency" has the
	meaning assigned by Section 61.003, Education Code.
	SECTION 3.  Section 1434.003, Government Code, is amended to
	read as follows:
	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 [encourage the
	development and diversification of the economy of this state and
	the elimination of unemployment and underemployment in this state].
	SECTION 4.  Section 1434.051, Government Code, is amended by
	adding Subsection (a-1) to read as follows:
	(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.
	SECTION 5.  Any notice published by a municipality
	indicating the intent of the municipality to issue certificates of
	obligation in accordance with Subchapter C, Chapter 271, Local
	Government Code, for a purpose authorized by this Act is effective
	in accordance with its terms without regard to whether the notice
	was published before the effective date of this Act.
	SECTION 6.  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. 1952 passed the Senate on
	April 16, 2009, by the following vote:  Yeas 31, Nays 0.
	______________________________
	Secretary of the Senate
	I hereby certify that S.B. No. 1952 passed the House on
	May 15, 2009, by the following vote:  Yeas 144, Nays 0, one
	present not voting.
	______________________________
	Chief Clerk of the House
	Approved:
	______________________________
	Date
	______________________________
	Governor