By: Shapiro  S.B. No. 1736
         (In the Senate - Filed March 9, 2007; March 21, 2007, read
  first time and referred to Subcommittee on Emerging Technologies
  and Economic Development; April 19, 2007, reported adversely, with
  favorable Committee Substitute from Committee on Business and
  Commerce by the following vote:  Yeas 8, Nays 0; April 19, 2007,
  sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1736 By:  Janek
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the powers, duties, and financing of cultural education
  facilities finance corporations.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subdivision (5), Section 3, Cultural Education
  Facilities Finance Corporation Act (Article 1528m, Vernon's Texas
  Civil Statutes), is amended to read as follows:
               (5)  "Cultural facility" means any capital expenditure
  by a user. The term includes:
                     (A)  real property or an interest in real
  property, including buildings and improvements, or equipment,
  furnishings, or other personal property that:
                           (i)  is found by the board to be necessary or
  convenient to finance, refinance, acquire, construct, enlarge,
  remodel, renovate, improve, furnish, or equip for cultural
  education or community benefit;
                           (ii)  is made available for use by the
  general public, the user, or community groups; and
                           (iii)  is used for a purpose described by
  Section 2(a)(1) of this Act; [and]
                     (B)  a facility in which any of the following
  entities engage in any activity in which the entity is permitted to
  engage:
               (1)  a nonprofit corporation exempt from the state
  franchise tax under Section 171.063, Tax Code;
               (2)  an organization described in Section 11.18, Tax
  Code; or
               (3)  an organization described in Section 501(c)(3),
  Internal Revenue Code of 1986; and
                     (C)  facilities incidental, subordinate, or
  related to or appropriate in connection with property described by
  Paragraph (A) or (B) of this subdivision, located within the state,
  regardless of the date of construction or acquisition.
         SECTION 2.  Subsection (b), Section 4, Cultural Education
  Facilities Finance Corporation Act (Article 1528m, Vernon's Texas
  Civil Statutes), is amended to read as follows:
         (b)  The corporation shall be created and organized in the
  same manner as a health facilities development corporation under
  Chapter 221, Health and Safety Code, and has the same powers,
  authority, and rights:
               (1)  with respect to cultural facilities and health
  facilities that a health facilities development corporation has
  with respect to health facilities under Chapter 221, Health and
  Safety Code; and
               (2)  with respect to educational facilities, housing
  facilities, and other facilities incidental, subordinate, or
  related to those facilities that a nonprofit corporation created
  under Section 53.35(b), Education Code, or an authority created
  under Section 53.11, Education Code, has under Chapter 53,
  Education Code.
         SECTION 3.  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.
 
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