80R5628 ESH-F
 
  By: Dutton H.B. No. 1400
 
 
 
   
 
 
A BILL TO BE ENTITLED
AN ACT
relating to the issuance by a corporation established by the Texas
Public Finance Authority of revenue bonds for open-enrollment
charter school facilities.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Sections 53.351(a), (c), (d), and (e), Education
Code, are amended to read as follows:
       (a)  The Texas Public Finance Authority shall establish a
nonprofit corporation to act [issue revenue bonds] on behalf of the
state, as its duly constituted authority and instrumentality, to
issue revenue bonds for authorized open-enrollment charter schools
for the acquisition, construction, repair, or renovation of
educational facilities of those schools.
       (c)  The corporation has all powers granted under the Texas
Non-Profit Corporation Act (Article 1396-1.01 et seq., Vernon's
Texas Civil Statutes), or granted to a nonprofit corporation under
the Business Organizations Code, for the purpose of aiding
authorized open-enrollment charter schools in providing
educational facilities. In addition, Sections 53.131, 53.15,
53.31, 53.32, 53.331, 53.34, 53.35, 53.38, 53.40, and 53.41
[53.36(a), and 53.37-53.42] apply to and govern the corporation and
its procedures and bonds. The corporation may exercise the powers
granted to the governing body of an issuer with regard to the
issuance of obligations and the execution of credit agreements
under Chapter 1371, Government Code.
       (d)  The corporation shall adopt rules governing the
issuance of bonds under this section [on behalf of an authorized
open-enrollment charter school].
       (e)  The comptroller shall establish a fund dedicated to the
credit enhancement of bonds issued by any issuer under this
subchapter for any open-enrollment charter school [section]. The
fund may receive donations. The corporation may also use the money
held under this subsection to provide loans or other credit support
for the obligations of any open-enrollment charter school issued by
any issuer in any manner not inconsistent with the Texas Non-Profit
Corporation Act (Article 1396-1.01, Vernon's Texas Civil
Statutes), or the provisions of the Business Organizations Code
governing nonprofit corporations. The obligation of the fund is
limited to an amount equal to the balance of the fund.
       SECTION 2.  This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution.  If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2007.