83R8655 ATP-D
 
  By: Lucio III H.B. No. 1809
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the authority of a cultural education facilities
  finance corporation to acquire and finance certain public property
  projects.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 2(a), Cultural Education Facilities
  Finance Corporation Act (Article 1528m, Vernon's Texas Civil
  Statutes), is amended to read as follows:
         (a)  The legislature finds that:
               (1)  the health, education, and general welfare of the
  people of this state require the development of new and expanded
  cultural and community facilities for the purpose of:
                     (A)  exhibition and promotion of and education
  about the performing, dramatic, visual, and literary arts; the
  culture and history of races, ethnic groups, and national heritage
  groups; and history, natural history, and science;
                     (B)  promotion of and education about health and
  physical fitness, public health and safety, conservation and
  preservation of the environment or natural resources, child care,
  adoption, children's services, substance abuse counseling, family
  counseling, and care of persons who are elderly or disabled;
                     (C)  administering the provision and granting of
  charitable services and grants in accomplishment of the purposes
  described by Paragraph (B) of this subdivision;
                     (D)  promotion of and education about activities
  devoted to general cultural improvement, including scouting
  programs and programs by which agencies seek to provide facilities
  for retreats in urban or rural settings;
                     (E)  support of agencies devoted to the
  eradication, elimination, or amelioration of one or more diseases
  or afflictions affecting health or improving the condition of
  individuals or groups within a community; [and]
                     (F)  provision of public health and safety and
  charitable services to communities in times of catastrophe or
  disaster; and
                     (G)  the acquisition or improvement of real
  property, including buildings, or personal property, including
  equipment, for use by this state or counties, cities, or other
  governmental entities for authorized needs and purposes;
               (2)  the existence, development, and expansion of
  cultural facilities are essential to the continuing education,
  health, general welfare, and comfort of the citizens of this state;
               (3)  the means and measures authorized and the
  assistance provided by this Act are in the public interest and serve
  a public purpose in promoting the health, education, and general
  welfare of the people of this state by securing and maintaining
  cultural facilities and the resulting advancement of culture and
  civilization;
               (4)  qualified cultural organizations in this state
  have invested substantial funds in useful and beneficial cultural
  facilities and have experienced difficulty in undertaking
  additional projects because of the partial inadequacy of their own
  funds or of funds potentially available from local subscription
  sources and because of limitations of local financial institutions
  in providing necessary financing for these facilities;
               (5)  qualified nonprofit corporations in this state
  have invested substantial funds in useful and beneficial cultural
  facilities and have experienced difficulty in undertaking
  additional projects because of the inadequacy of their own funds or
  of funds potentially available from local subscription sources and
  because of limitations of local financial institutions in providing
  necessary financing for these facilities; [and]
               (6)  the lease, purchase, or other acquisition or
  improvement or use of real or personal property by this state or
  counties, cities, or other governmental entities and the financing
  of that lease, purchase, or other acquisition or improvement or use
  of real or personal property are necessary to the efficient and
  economic operation of government; and
               (7)  the enactment of this Act will:
                     (A)  secure for present and future generations the
  benefits and nurturance derived from these cultural facilities; and
                     (B)  enhance the public health and welfare of
  communities receiving the benefit of the cultural facilities.
         SECTION 2.  Section 3(5), 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;
                     (B)  real property, including buildings and
  improvements, or equipment, furnishings, or other personal
  property to be used by the state or a county, city, or other
  governmental entity;
                     (C)  a facility in which any of the following
  entities engage in any activity in which the entity is permitted to
  engage:
                           (i)  a nonprofit corporation exempt from the
  state franchise tax under Section 171.063, Tax Code;
                           (ii)  an organization described in Section
  11.18, Tax Code; or
                           (iii)  an organization described in Section
  501(c)(3), Internal Revenue Code of 1986; and
                     (D) [(C)]  facilities incidental, subordinate, or
  related to or appropriate in connection with property described by
  Paragraph (A), [or] (B), or (C) of this subdivision, regardless of
  the date of construction or acquisition.
         SECTION 3.  Sections 4(c) and (d), Cultural Education
  Facilities Finance Corporation Act (Article 1528m, Vernon's Texas
  Civil Statutes), are amended to read as follows:
         (c)  The powers of a corporation under Subsection (b) include
  the power to acquire, purchase, lease, mortgage, and convey
  property with respect to a facility; finance the acquisition of
  property with respect to a facility, including by lease-purchase;
  borrow money by issuing bonds, notes, and other obligations; lend
  money for its corporate purposes; invest and reinvest its funds;
  and secure its bonds, notes, and obligations by mortgaging,
  pledging, assigning, or otherwise encumbering its property or
  assets. Except as otherwise provided by this Act, any bonds, notes,
  or other obligations authorized under this subsection must be
  issued in accordance with Chapter 1201, Government Code.
         (d)  Regardless of any provision in Chapter 221, Health and
  Safety Code, or Chapter 53, Education Code, the authority of the
  corporation may be exercised inside or outside the limits of the
  city that created the corporation [if the city is located in a
  county with a population of more than 300,000] or inside or outside
  the limits of the county that created the corporation [if the county
  has a population of more than 300,000].  The authority may be
  exercised without the consent or other action of any person that
  would otherwise be required under Chapter 221, Health and Safety
  Code, or Chapter 53, Education Code, unless the articles of
  incorporation or bylaws of the corporation provide differently.  
  The authority of a corporation under this section shall not preempt
  the police powers of any sponsoring entity or any other laws
  regulating or empowering sponsoring entities to regulate the
  activities of the corporation.
         SECTION 4.  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, 2013.