1-1     By:  Shapiro                                          S.B. No. 1081
 1-2           (In the Senate - Filed March 5, 2001; March 6, 2001, read
 1-3     first time and referred to Committee on Education; March 14, 2001,
 1-4     rereferred to Committee on Intergovernmental Relations;
 1-5     April 2, 2001, reported adversely, with favorable Committee
 1-6     Substitute by the following vote:  Yeas 5, Nays 0; April 2, 2001,
 1-7     sent to printer.)
 1-8     COMMITTEE SUBSTITUTE FOR S.B. No. 1081                 By:  Shapiro
 1-9                            A BILL TO BE ENTITLED
1-10                                   AN ACT
1-11     relating to the powers and rights of a cultural educational
1-12     facilities finance corporation.
1-13           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-14           SECTION 1.  Section 4, Cultural Education Facilities Finance
1-15     Corporation Act (Article 1528m, Vernon's Texas Civil Statutes), is
1-16     amended to read as follows:
1-17           Sec. 4.  CREATION OF CORPORATIONS; POWERS; ISSUANCE OF BONDS.
1-18     (a)  A city or county may create a nonmember, nonstock, public,
1-19     cultural educational facilities finance corporation for the sole
1-20     purpose of acquiring, constructing, providing, improving,
1-21     financing, and refinancing cultural facilities for the public
1-22     purposes stated in this Act.
1-23           (b)  The corporation shall be created and organized in the
1-24     same manner and has the same powers, authority, and rights:
1-25                 (1)  with respect to cultural facilities and health
1-26     facilities that [as] a health facilities development corporation
1-27     has with respect to health facilities under Chapter 221, Health and
1-28     Safety Code; and
1-29                 (2)  with respect to educational facilities, housing
1-30     facilities, and other facilities incidental, subordinate, or
1-31     related to those facilities that a nonprofit corporation created
1-32     under Section 53.35(b), Education Code, or an authority created
1-33     under Section 53.11, Education Code, has under Chapter 53,
1-34     Education Code.
1-35           (c)  The powers of a corporation under Subsection (b)
1-36     include[, including] the power to acquire, purchase, lease,
1-37     mortgage, and convey property with respect to a [cultural]
1-38     facility;  borrow money by issuing bonds, notes, and other
1-39     obligations;  lend money for its corporate purposes;  invest and
1-40     reinvest its funds; and secure its bonds, notes, and obligations by
1-41     mortgaging, pledging, assigning, or otherwise encumbering its
1-42     property or assets.
1-43           (d)  Regardless of any provision in Chapter 221, Health and
1-44     Safety Code, or Chapter 53, Education Code, the authority of the
1-45     corporation may be exercised inside or outside the limits of the
1-46     city or county that created the corporation without the consent or
1-47     other action of any person that would otherwise be required under
1-48     Chapter 221, Health and Safety Code, or Chapter 53, Education Code,
1-49     unless the articles of incorporation or bylaws of the corporation
1-50     provide differently.  The authority of a corporation under this
1-51     section shall not preempt the police powers of any sponsoring
1-52     entity or any other laws regulating or empowering sponsoring
1-53     entities to regulate the activities of the corporation.
1-54           SECTION 2.  This Act takes effect immediately if it receives
1-55     a vote of two-thirds of all the members elected to each house, as
1-56     provided by Section 39, Article III, Texas Constitution.  If this
1-57     Act does not receive the vote necessary for immediate effect, this
1-58     Act takes effect September 1, 2001.
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