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 that created the corporation if the city is located in a
2-14 county with a population of more than 400,000 or inside or outside
2-15 the limits of the county that created the corporation if the county
2-16 has a population of more than 400,000. The authority may be
2-17 exercised without the consent or other action of any person that
2-18 would otherwise be required under Chapter 221, Health and Safety
2-19 Code, or Chapter 53, Education Code, unless the articles of
2-20 incorporation or bylaws of the corporation provide differently.
2-21 The authority of a corporation under this section shall not preempt
2-22 the police powers of any sponsoring entity or any other laws
2-23 regulating or empowering sponsoring entities to regulate the
2-24 activities of the corporation.
2-25 SECTION 2. This Act takes effect immediately if it receives
2-26 a vote of two-thirds of all the members elected to each house, as
2-27 provided by Section 39, Article III, Texas Constitution. If this
3-1 Act does not receive the vote necessary for immediate effect, this
3-2 Act takes effect September 1, 2001.
_______________________________ _______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 2628 was passed by the House on April
20, 2001, by the following vote: Yeas 142, Nays 0, 2 present, not
voting; and that the House concurred in Senate amendments to H.B.
No. 2628 on May 17, 2001, by the following vote: Yeas 142, Nays 0,
1 present, not voting.
_______________________________
Chief Clerk of the House
I certify that H.B. No. 2628 was passed by the Senate, with
amendments, on May 15, 2001, by the following vote: Yeas 30, Nays
0, 1 present, not voting.
_______________________________
Secretary of the Senate
APPROVED: __________________________
Date
__________________________
Governor