By Garcia H.B. No. 2516
77R7380 JMG-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the powers and rights of a cultural educational
1-3 facilities finance corporation.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 4, Cultural Education Facilities Finance
1-6 Corporation Act (Article 1528m, Vernon's Texas Civil Statutes), is
1-7 amended to read as follows:
1-8 Sec. 4. CREATION OF CORPORATIONS; POWERS; ISSUANCE OF BONDS;
1-9 TAX EXEMPTION. (a) A city or county may create a nonmember,
1-10 nonstock, public, cultural educational facilities finance
1-11 corporation for the sole purpose of acquiring, constructing,
1-12 providing, improving, financing, and refinancing cultural
1-13 facilities for the public purposes stated in this Act.
1-14 (b) The corporation shall be created and organized in the
1-15 same manner and has the same powers, authority, and rights:
1-16 (1) with respect to cultural facilities and health
1-17 facilities that [as] a health facilities development corporation
1-18 has with respect to health facilities under Chapter 221, Health and
1-19 Safety Code; and
1-20 (2) with respect to educational facilities, housing
1-21 facilities, and other facilities incidental, subordinate, or
1-22 related to those facilities that a nonprofit corporation created
1-23 under Section 53.35(b), Education Code, has under Chapter 53,
1-24 Education Code.
2-1 (c) The powers of a corporation under Subsection (b)
2-2 include[, including] the power to acquire, purchase, lease,
2-3 mortgage, and convey property with respect to a [cultural]
2-4 facility; borrow money by issuing bonds, notes, and other
2-5 obligations; lend money for its corporate purposes; invest and
2-6 reinvest its funds; and secure its bonds, notes, and obligations by
2-7 mortgaging, pledging, assigning, or otherwise encumbering its
2-8 property or assets.
2-9 (d) Property owned by the corporation, property owned by a
2-10 nonprofit corporation or limited liability company whose sole
2-11 member is the corporation, the income from the property, all bonds
2-12 issued by the corporation, the income from the bonds, and the
2-13 transfer of the bonds are exempt, as public property used for
2-14 public purposes, from all taxes imposed by this state or any
2-15 political subdivision of this state.
2-16 (e) Regardless of any provision in Chapter 221, Health and
2-17 Safety Code, the authority of the corporation may be exercised
2-18 outside the limits of the city or county that created the
2-19 corporation without the consent of that city or county unless the
2-20 articles of incorporation or bylaws of the corporation provide
2-21 differently.
2-22 SECTION 2. This Act takes effect immediately if it receives
2-23 a vote of two-thirds of all the members elected to each house, as
2-24 provided by Section 39, Article III, Texas Constitution. If this
2-25 Act does not receive the vote necessary for immediate effect, this
2-26 Act takes effect September 1, 2001.