By Wolens                                             H.B. No. 2628
         77R11793 JMG-D                           
                                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     (a)  A city or county may create a nonmember, nonstock, public,
1-10     cultural educational facilities finance corporation for the sole
1-11     purpose of acquiring, constructing, providing, improving,
1-12     financing, and refinancing cultural facilities for the public
1-13     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, or an authority created
1-24     under Section 53.11, Education Code, has under Chapter 53,
 2-1     Education Code.
 2-2           (c)  The powers of a corporation under Subsection (b)
 2-3     include[, including] the power to acquire, purchase, lease,
 2-4     mortgage, and convey property with respect to a [cultural]
 2-5     facility;  borrow money by issuing bonds, notes, and other
 2-6     obligations;  lend money for its corporate purposes;  invest and
 2-7     reinvest its funds; and secure its bonds, notes, and obligations by
 2-8     mortgaging, pledging, assigning, or otherwise encumbering its
 2-9     property or assets.
2-10           (d)  Regardless of any provision in Chapter 221, Health and
2-11     Safety Code, or Chapter 53, Education Code, the authority of the
2-12     corporation may be exercised inside or outside the limits of the
2-13     city or county that created the corporation without the consent or
2-14     other action of any person that would otherwise be required under
2-15     Chapter 221, Health and Safety Code, or Chapter 53, Education Code,
2-16     unless the articles of incorporation or bylaws of the corporation
2-17     provide differently.  The authority of a corporation under this
2-18     section shall not preempt the police powers of any sponsoring
2-19     entity or any other laws regulating or empowering sponsoring
2-20     entities to regulate the activities of the corporation.
2-21           SECTION 2.  This Act takes effect immediately if it receives
2-22     a vote of two-thirds of all the members elected to each house, as
2-23     provided by Section 39, Article III, Texas Constitution.  If this
2-24     Act does not receive the vote necessary for immediate effect, this
2-25     Act takes effect September 1, 2001.