1-1     By:  Lindsay                                           S.B. No. 588
 1-2           (In the Senate - Filed February 7, 2001; February 8, 2001,
 1-3     read first time and referred to Committee on Intergovernmental
 1-4     Relations; February 21, 2001, reported favorably, as amended, by
 1-5     the following vote:  Yeas 7, Nays 0; February 21, 2001, sent to
 1-6     printer.)
 1-7     COMMITTEE AMENDMENT NO. 1                              By:  Lindsay
 1-8     Amend S.B. No. 588 as follows:
 1-9           In SECTION 2 of the bill, page 2, line 17, after the word
1-10     "public", insert ", the user,".
1-11                            A BILL TO BE ENTITLED
1-12                                   AN ACT
1-13     relating to the functions of a municipal or county cultural
1-14     education facilities finance corporation.
1-15           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-16           SECTION 1.  Subsection (a), Section 2, Cultural Education
1-17     Facilities Finance Corporation Act (Article 1528m, Vernon's Texas
1-18     Civil Statutes), is amended to read as follows:
1-19           (a)  The legislature finds that:
1-20                 (1)  the health, education, and general welfare of the
1-21     people of this state require the development of new and expanded
1-22     cultural and community facilities for the purpose of:
1-23                       (A)  exhibition and promotion of and education
1-24     about the performing, dramatic, visual, and literary arts; the
1-25     culture and history of races, ethnic groups, religious groups, and
1-26     national heritage groups; and history, natural history, and
1-27     science;
1-28                       (B)  promotion of and education about health and
1-29     physical fitness, public health and safety, child care, adoption,
1-30     children's services, substance abuse counseling, family counseling,
1-31     and care of persons who are elderly or disabled;
1-32                       (C)  administering the provision and granting of
1-33     charitable services and grants in accomplishment of the purposes
1-34     described by Paragraph (B) of this subdivision;
1-35                       (D)  promotion of and education about activities
1-36     devoted to general cultural improvement, including scouting
1-37     programs and programs by which agencies seek to provide facilities
1-38     for retreats in urban or rural settings;
1-39                       (E)  support of agencies devoted to the
1-40     eradication, elimination, or amelioration of one or more diseases
1-41     or afflictions affecting health or improving the condition of
1-42     individuals or groups within a community; and
1-43                       (F)  provision of public health and safety and
1-44     charitable services to communities in times of catastrophe or
1-45     disaster;
1-46                 (2)  the existence, development, and expansion of
1-47     cultural facilities are essential to the continuing education,
1-48     health, general welfare, and comfort of the citizens of this state;
1-49                 (3)  the means and measures authorized and the
1-50     assistance provided by this Act are in the public interest and
1-51     serve a public purpose in promoting the health, education, and
1-52     general welfare of the people of this state by securing and
1-53     maintaining cultural facilities and the resulting advancement of
1-54     culture and civilization;
1-55                 (4)  qualified cultural organizations in this state
1-56     have invested substantial funds in useful and beneficial cultural
1-57     facilities and have experienced difficulty in undertaking
1-58     additional projects because of the partial inadequacy of their own
1-59     funds or of funds potentially available from local subscription
1-60     sources and because of limitations of local financial institutions
1-61     in providing necessary financing for these facilities; and
1-62                 (5)  the enactment of this Act will:
1-63                       (A)  secure for present and future generations
 2-1     the benefits and nurturance derived from these cultural facilities;
 2-2     and
 2-3                       (B)  enhance the public health and welfare of
 2-4     communities receiving the benefit of the cultural facilities.
 2-5           SECTION 2.  Subdivision (5), Section 3, Cultural Education
 2-6     Facilities Finance Corporation Act (Article 1528m, Vernon's Texas
 2-7     Civil Statutes), is amended to read as follows:
 2-8                 (5)  "Cultural facility" means:
 2-9                       (A)  real property or an interest in real
2-10     property, including buildings and[,] improvements, or equipment,
2-11     furnishings, [land,] or other personal property that:
2-12                             (i)  is found by the board to be necessary
2-13     or convenient to finance, refinance, acquire, construct, enlarge,
2-14     remodel, renovate, improve, furnish, or equip for cultural
2-15     education or community benefit;
2-16                             (ii)  is made available for use by [or open
2-17     to] the general public or community groups; and
2-18                             (iii)  is used for a [the] purpose
2-19     described by Section 2(a)(1) of this Act; [of exhibition and
2-20     promotion of an education about the performing, dramatic, visual,
2-21     and literary arts, natural history, and science] and
2-22                       (B)  facilities incidental, subordinate, or
2-23     related to or appropriate in connection with property described by
2-24     Paragraph (A) of this subdivision [these facilities], located
2-25     within the state, regardless of the date of construction or
2-26     acquisition [whether or not constructed or acquired before or after
2-27     the effective date of this Act].
2-28           SECTION 3.  The Cultural Education Facilities Finance
2-29     Corporation Act (Article 1528m, Vernon's Texas Civil Statutes) is
2-30     amended by adding Section 4A to read as follows:
2-31           Sec. 4A.  LIMITATION ON CORPORATE PURPOSES.  (a)  A city or
2-32     county that creates a corporation under this Act may limit the
2-33     corporation's purposes in the proceedings directing the creation of
2-34     the corporation by prohibiting the corporation from financing
2-35     particular types of cultural facilities, including a cultural
2-36     facility to be used for a purpose specified in the proceedings.
2-37           (b)  As a condition of providing financing, a corporation may
2-38     restrict a person receiving financing from using a cultural
2-39     facility for a particular purpose.
2-40           (c)  A restriction imposed by a city or county on a
2-41     corporation may be enforced by the governing body of the sponsoring
2-42     entity by injunction or mandamus.
2-43           (d)  A violation of a restriction by a corporation may not
2-44     impair the validity of the obligations incurred by the corporation.
2-45           SECTION 4.  Section 5, Cultural Education Facilities Finance
2-46     Corporation Act (Article 1528m, Vernon's Texas Civil Statutes), is
2-47     amended by adding Subsection (c) to read as follows:
2-48           (c)  Except as provided by this Act, a corporation formed
2-49     under this Act has the same rights and powers as a corporation
2-50     organized under the Texas Non-Profit Corporation Act (Article
2-51     1396-1.01 et seq., Vernon's Texas Civil Statutes).
2-52           SECTION 5.  This Act takes effect immediately if it receives
2-53     a vote of two-thirds of all the members elected to each house, as
2-54     provided by Section 39, Article III, Texas Constitution.  If this
2-55     Act does not receive the vote necessary for immediate effect, this
2-56     Act takes effect September 1, 2001.
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