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