1-1                                   AN ACT
 1-2     relating to the functions of a municipal or county cultural
 1-3     education facilities finance corporation.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subsection (a), Section 2, Cultural Education
 1-6     Facilities Finance Corporation Act (Article 1528m, Vernon's Texas
 1-7     Civil Statutes), is amended to read as follows:
 1-8           (a)  The legislature finds that:
 1-9                 (1)  the health, education, and general welfare of the
1-10     people of this state require the development of new and expanded
1-11     cultural and community facilities for the purpose of:
1-12                       (A)  exhibition and promotion of and education
1-13     about the performing, dramatic, visual, and literary arts; the
1-14     culture and history of races, ethnic groups, and national heritage
1-15     groups; and history, natural history, and science;
1-16                       (B)  promotion of and education about health and
1-17     physical fitness, public health and safety, conservation and
1-18     preservation of the environment or natural resources, child care,
1-19     adoption, children's services, substance abuse counseling, family
1-20     counseling, and care of persons who are elderly or disabled;
1-21                       (C)  administering the provision and granting of
1-22     charitable services and grants in accomplishment of the purposes
1-23     described by Paragraph (B) of this subdivision;
1-24                       (D)  promotion of and education about activities
1-25     devoted to general cultural improvement, including scouting
 2-1     programs and programs by which agencies seek to provide facilities
 2-2     for retreats in urban or rural settings;
 2-3                       (E)  support of agencies devoted to the
 2-4     eradication, elimination, or amelioration of one or more diseases
 2-5     or afflictions affecting health or improving the condition of
 2-6     individuals or groups within a community; and
 2-7                       (F)  provision of public health and safety and
 2-8     charitable services to communities in times of catastrophe or
 2-9     disaster;
2-10                 (2)  the existence, development, and expansion of
2-11     cultural facilities are essential to the continuing education,
2-12     health, general welfare, and comfort of the citizens of this state;
2-13                 (3)  the means and measures authorized and the
2-14     assistance provided by this Act are in the public interest and
2-15     serve a public purpose in promoting the health, education, and
2-16     general welfare of the people of this state by securing and
2-17     maintaining cultural facilities and the resulting advancement of
2-18     culture and civilization;
2-19                 (4)  qualified cultural organizations in this state
2-20     have invested substantial funds in useful and beneficial cultural
2-21     facilities and have experienced difficulty in undertaking
2-22     additional projects because of the partial inadequacy of their own
2-23     funds or of funds potentially available from local subscription
2-24     sources and because of limitations of local financial institutions
2-25     in providing necessary financing for these facilities; and
2-26                 (5)  the enactment of this Act will:
 3-1                       (A)  secure for present and future generations
 3-2     the benefits and nurturance derived from these cultural facilities;
 3-3     and
 3-4                       (B)  enhance the public health and welfare of
 3-5     communities receiving the benefit of the cultural facilities.
 3-6           SECTION 2.  Subdivision (5), Section 3, Cultural Education
 3-7     Facilities Finance Corporation Act (Article 1528m, Vernon's Texas
 3-8     Civil Statutes), is amended to read as follows:
 3-9                 (5)  "Cultural facility" means:
3-10                       (A)  real property or an interest in real
3-11     property, including buildings and[,] improvements, or equipment,
3-12     furnishings, [land,] or other personal property that:
3-13                             (i)  is found by the board to be necessary
3-14     or convenient to finance, refinance, acquire, construct, enlarge,
3-15     remodel, renovate, improve, furnish, or equip for cultural
3-16     education or community benefit;
3-17                             (ii)  is made available for use by [or open
3-18     to] the general public, the user, or community groups; and
3-19                             (iii)  is used for a [the] purpose
3-20     described by Section 2(a)(1) of this Act; [of exhibition and
3-21     promotion of an education about the performing, dramatic, visual,
3-22     and literary arts, natural history, and science] and
3-23                       (B)  facilities incidental, subordinate, or
3-24     related to or appropriate in connection with property described by
3-25     Paragraph (A) of this subdivision [these facilities], located
3-26     within the state, regardless of the date of construction or
 4-1     acquisition [whether or not constructed or acquired before or after
 4-2     the effective date of this Act].
 4-3           SECTION 3.  The Cultural Education Facilities Finance
 4-4     Corporation Act (Article 1528m, Vernon's Texas Civil Statutes) is
 4-5     amended by adding Section 4A to read as follows:
 4-6           Sec. 4A.  LIMITATION ON CORPORATE PURPOSES.  (a)  A city or
 4-7     county that creates a corporation under this Act may limit the
 4-8     corporation's purposes in the proceedings directing the creation of
 4-9     the corporation by prohibiting the corporation from financing
4-10     particular types of cultural facilities, including a cultural
4-11     facility to be used for a purpose specified in the proceedings.
4-12           (b)  As a condition of providing financing, a corporation may
4-13     restrict a person receiving financing from using a cultural
4-14     facility for a particular purpose.
4-15           (c)  A restriction imposed by a city or county on a
4-16     corporation may be enforced by the governing body of the sponsoring
4-17     entity by injunction or mandamus.
4-18           (d)  A violation of a restriction by a corporation may not
4-19     impair the validity of the obligations incurred by the corporation.
4-20           SECTION 4.  Section 5, Cultural Education Facilities Finance
4-21     Corporation Act (Article 1528m, Vernon's Texas Civil Statutes), is
4-22     amended by adding Subsection (c) to read as follows:
4-23           (c)  Except as provided by this Act, a corporation formed
4-24     under this Act has the same rights and powers as a corporation
4-25     organized under the Texas Non-Profit Corporation Act (Article
4-26     1396-1.01 et seq., Vernon's Texas Civil Statutes).
 5-1           SECTION 5.  This Act takes effect immediately if it receives
 5-2     a vote of two-thirds of all the members elected to each house, as
 5-3     provided by Section 39, Article III, Texas Constitution.  If this
 5-4     Act does not receive the vote necessary for immediate effect, this
 5-5     Act takes effect September 1, 2001.
         _______________________________     _______________________________
             President of the Senate              Speaker of the House
               I hereby certify that S.B. No. 588 passed the Senate on
         March 1, 2001, by the following vote:  Yeas 29, Nays 0, one present
         not voting; and that the Senate concurred in House amendments on
         May 25, 2001, by the following vote:  Yeas 30, Nays 0, one present
         not voting.
                                             _______________________________
                                                 Secretary of the Senate
               I hereby certify that S.B. No. 588 passed the House, with
         amendments, on May 16, 2001, by the following vote:  Yeas 125,
         Nays 14, two present not voting.
                                             _______________________________
                                                Chief Clerk of the House
         Approved:
         _______________________________
                      Date
         _______________________________
                    Governor