1-1 By: Wolens (Senate Sponsor - Shapiro) H.B. No. 2628
1-2 (In the Senate - Received from the House April 23, 2001;
1-3 April 24, 2001, read first time and referred to Committee on
1-4 Intergovernmental Relations; May 7, 2001, reported adversely, with
1-5 favorable Committee Substitute by the following vote: Yeas 6, Nays
1-6 0; May 7, 2001, sent to printer.)
1-7 COMMITTEE SUBSTITUTE FOR H.B. No. 2628 By: Madla
1-8 A BILL TO BE ENTITLED
1-9 AN ACT
1-10 relating to the powers and rights of a cultural educational
1-11 facilities finance corporation.
1-12 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13 SECTION 1. Section 4, Cultural Education Facilities Finance
1-14 Corporation Act (Article 1528m, Vernon's Texas Civil Statutes), is
1-15 amended to read as follows:
1-16 Sec. 4. CREATION OF CORPORATIONS; POWERS; ISSUANCE OF BONDS.
1-17 (a) A city or county may create a nonmember, nonstock, public,
1-18 cultural educational facilities finance corporation for the sole
1-19 purpose of acquiring, constructing, providing, improving,
1-20 financing, and refinancing cultural facilities for the public
1-21 purposes stated in this Act.
1-22 (b) The corporation shall be created and organized in the
1-23 same manner and has the same powers, authority, and rights:
1-24 (1) with respect to cultural facilities and health
1-25 facilities that [as] a health facilities development corporation
1-26 has with respect to health facilities under Chapter 221, Health and
1-27 Safety Code; and
1-28 (2) with respect to educational facilities, housing
1-29 facilities, and other facilities incidental, subordinate, or
1-30 related to those facilities that a nonprofit corporation created
1-31 under Section 53.35(b), Education Code, or an authority created
1-32 under Section 53.11, Education Code, has under Chapter 53,
1-33 Education Code.
1-34 (c) The powers of a corporation under Subsection (b)
1-35 include[, including] the power to acquire, purchase, lease,
1-36 mortgage, and convey property with respect to a [cultural]
1-37 facility; borrow money by issuing bonds, notes, and other
1-38 obligations; lend money for its corporate purposes; invest and
1-39 reinvest its funds; and secure its bonds, notes, and obligations by
1-40 mortgaging, pledging, assigning, or otherwise encumbering its
1-41 property or assets.
1-42 (d) Regardless of any provision in Chapter 221, Health and
1-43 Safety Code, or Chapter 53, Education Code, the authority of the
1-44 corporation may be exercised inside or outside the limits of the
1-45 city that created the corporation if the city is located in a
1-46 county with a population of more than 400,000 or inside or outside
1-47 the limits of the county that created the corporation if the county
1-48 has a population of more than 400,000. The authority may be
1-49 exercised without the consent or other action of any person that
1-50 would otherwise be required under Chapter 221, Health and Safety
1-51 Code, or Chapter 53, Education Code, unless the articles of
1-52 incorporation or bylaws of the corporation provide differently.
1-53 The authority of a corporation under this section shall not preempt
1-54 the police powers of any sponsoring entity or any other laws
1-55 regulating or empowering sponsoring entities to regulate the
1-56 activities of the corporation.
1-57 SECTION 2. This Act takes effect immediately if it receives
1-58 a vote of two-thirds of all the members elected to each house, as
1-59 provided by Section 39, Article III, Texas Constitution. If this
1-60 Act does not receive the vote necessary for immediate effect, this
1-61 Act takes effect September 1, 2001.
1-62 * * * * *