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A BILL TO BE ENTITLED
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AN ACT
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relating to the powers, duties, and financing of certain facilities |
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finance corporations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 2(a), Cultural Education Facilities |
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Finance Corporation Act (Article 1528m, Vernon's Texas Civil |
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Statutes), is amended to read as follows: |
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(a) The legislature finds that: |
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(1) the health, education, and general welfare of the |
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people of this state require the development of new and expanded |
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cultural and community facilities for the purpose of: |
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(A) exhibition and promotion of and education |
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about the performing, dramatic, visual, and literary arts; the |
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culture and history of races, ethnic groups, and national heritage |
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groups; and history, natural history, and science; |
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(B) promotion of and education about health and |
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physical fitness, public health and safety, conservation and |
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preservation of the environment or natural resources, child care, |
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adoption, children's services, substance abuse counseling, family |
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counseling, and care of persons who are elderly or disabled; |
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(C) administering the provision and granting of |
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charitable services and grants in accomplishment of the purposes |
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described by Paragraph (B) of this subdivision; |
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(D) promotion of and education about activities |
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devoted to general cultural improvement, including scouting |
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programs and programs by which agencies seek to provide facilities |
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for retreats in urban or rural settings; |
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(E) support of agencies devoted to the |
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eradication, elimination, or amelioration of one or more diseases |
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or afflictions affecting health or improving the condition of |
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individuals or groups within a community; and |
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(F) provision of public health and safety and |
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charitable services to communities in times of catastrophe or |
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disaster; |
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(2) the existence, development, and expansion of |
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cultural facilities are essential to the continuing education, |
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health, general welfare, and comfort of the citizens of this state; |
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(3) the means and measures authorized and the |
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assistance provided by this Act are in the public interest and serve |
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a public purpose in promoting the health, education, and general |
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welfare of the people of this state by securing and maintaining |
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cultural facilities and the resulting advancement of culture and |
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civilization; |
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(4) qualified cultural organizations in this state |
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have invested substantial funds in useful and beneficial cultural |
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facilities and have experienced difficulty in undertaking |
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additional projects because of the partial inadequacy of their own |
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funds or of funds potentially available from local subscription |
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sources and because of limitations of local financial institutions |
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in providing necessary financing for these facilities; |
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(5) qualified nonprofit corporations in this state |
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have invested substantial funds in useful and beneficial cultural |
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facilities and have experienced difficulty in undertaking |
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additional projects because of the inadequacy of their own funds or |
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of funds potentially available from local subscription sources and |
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because of limitations of local financial institutions in providing |
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necessary financing for these facilities; and |
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(6) [(5)] the enactment of this Act will: |
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(A) secure for present and future generations the |
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benefits and nurturance derived from these cultural facilities; and |
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(B) enhance the public health and welfare of |
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communities receiving the benefit of the cultural facilities. |
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SECTION 2. Section 3(5), Cultural Education Facilities |
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Finance Corporation Act (Article 1528m, Vernon's Texas Civil |
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Statutes), is amended to read as follows: |
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(5) "Cultural facility" means any capital expenditure |
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by a user. The term includes: |
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(A) real property or an interest in real |
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property, including buildings and improvements, or equipment, |
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furnishings, or other personal property that: |
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(i) is found by the board to be necessary or |
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convenient to finance, refinance, acquire, construct, enlarge, |
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remodel, renovate, improve, furnish, or equip for cultural |
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education or community benefit; |
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(ii) is made available for use by the |
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general public, the user, or community groups; and |
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(iii) is used for a purpose described by |
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Section 2(a)(1) of this Act; [and] |
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(B) a facility in which any of the following |
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entities engage in any activity in which the entity is permitted to |
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engage: |
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(i) a nonprofit corporation exempt from the |
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state franchise tax under Section 171.063, Tax Code; |
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(ii) an organization described in Section |
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11.18, Tax Code; or |
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(iii) an organization described in Section |
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501(c)(3), Internal Revenue Code of 1986; and |
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(C) facilities incidental, subordinate, or |
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related to or appropriate in connection with property described by |
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Paragraph (A) or (B) of this subdivision, [located within the
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state,] regardless of the date of construction or acquisition. |
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SECTION 3. Section 4, Cultural Education Facilities Finance |
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Corporation Act (Article 1528m, Vernon's Texas Civil Statutes), is |
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amended by amending Subsections (b) and (c) and adding Subsection |
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(e) to read as follows: |
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(b) The corporation shall be created and organized in the |
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same manner as a health facilities development corporation under |
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Chapter 221, Health and Safety Code, and has the same powers, |
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authority, and rights: |
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(1) with respect to cultural facilities and health |
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facilities that a health facilities development corporation has |
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with respect to health facilities under Chapter 221, Health and |
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Safety Code; and |
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(2) with respect to educational facilities, housing |
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facilities, and other facilities incidental, subordinate, or |
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related to those facilities that a nonprofit corporation created |
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under Section 53.35(b), Education Code, or an authority created |
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under Section 53.11, Education Code, has under Chapter 53, |
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Education Code. |
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(c) The powers of a corporation under Subsection (b) include |
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the power to acquire, purchase, lease, mortgage, and convey |
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property with respect to a facility; borrow money by issuing bonds, |
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notes, and other obligations; lend money for its corporate |
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purposes; invest and reinvest its funds; and secure its bonds, |
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notes, and obligations by mortgaging, pledging, assigning, or |
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otherwise encumbering its property or assets. Except as otherwise |
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provided by this Act, any bonds, notes, or other obligations |
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authorized under this subsection must be issued in accordance with |
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Chapter 1201, Government Code. |
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(e) Regardless of any other provision in Chapter 221, Health |
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and Safety Code, or Chapter 53, Education Code, the corporation may |
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exercise its powers on behalf of a user outside of this state if the |
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user also conducts lawful activities in this state. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2011. |