By Wolens                                             H.B. No. 2628
         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.