By: Flynn (Senate Sponsor - Estes) H.B. No. 2679
         (In the Senate - Received from the House April 27, 2015;
  April 27, 2015, read first time and referred to Committee on
  Intergovernmental Relations; May 5, 2015, reported favorably by
  the following vote:  Yeas 5, Nays 0; May 5, 2015, sent to printer.)
Click here to see the committee vote
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to the powers of a public facility corporation.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 303.003(4), Local Government Code, is
  amended to read as follows:
               (4)  "Credit agreement" means a loan agreement,
  revolving credit agreement, agreement establishing a line of
  credit, letter of credit, reimbursement agreement, insurance
  contract, commitment to purchase bonds or sponsor obligations,
  purchase or sale agreement, interest rate or commodities price swap
  agreement, cap or collar agreement, protection or management
  agreement, or commitment or other contract or agreement authorized
  and approved by the board of directors of a corporation in
  anticipation of, related to, or in connection with the
  authorization, issuance, incurrence, sale, security, exchange,
  payment, purchase, remarketing, or redemption of bonds or interest
  on bonds.
         SECTION 2.  Section 303.021(a), Local Government Code, is
  amended to read as follows:
         (a)  A sponsor may create one or more nonmember, nonstock,
  nonprofit public facility corporations to:
               (1)  issue bonds under this chapter, including bonds to
  purchase sponsor obligations;
               (2)  finance public facilities on behalf of its
  sponsor; or
               (3)  loan the proceeds of the obligations to other
  entities to accomplish the purposes of the sponsor.
         SECTION 3.  Section 303.041, Local Government Code, is
  amended by amending Subsection (a) and adding Subsection (d) to
  read as follows:
         (a)  Subject to Section 303.045, a corporation has the rights
  and powers necessary or convenient to accomplish the corporation's
  purposes, including the power to:
               (1)  acquire title to a public facility in order to
  lease, convey, or dispose of the public facility to the
  corporation's sponsor or, on direction of the sponsor and in
  furtherance of the sponsor's purposes, to another entity;
               (2)  accept or grant a mortgage or pledge of a public
  facility financed, refinanced, or provided by the corporation or by 
  sponsor obligations purchased by the corporation and, as security
  for the payment of any connected bonds or credit agreements that the
  corporation issues or incurs:
                     (A)  assign the mortgage or pledge and the revenue
  and receipts from the mortgage or pledge or [and] from the
  corporation or sponsor obligations; or
                     (B)  grant other security;
               (3)  sell, convey, mortgage, pledge, lease, exchange,
  transfer, and otherwise dispose of all or any part of the
  corporation's property and other assets, including sponsor
  obligations;
               (4)  make a contract, including a credit agreement,
  incur a liability, and borrow money at interest;
               (5)  lend money for its corporate purposes, invest its
  money, and take and hold security for the payment of money loaned or
  invested;
               (6)  sue and be sued in its corporate name;
               (7)  appoint agents of the corporation and determine
  their duties; [and]
               (8)  have a corporate seal and use the seal by having it
  or a facsimile of it impressed on, affixed to, or reproduced on an
  instrument required or authorized to be executed by the
  corporation's proper officers; and
               (9)  exercise any powers that a nonprofit corporation
  may exercise, to the extent necessary or convenient to accomplish
  the purpose of the corporation.
         (d)  The authority granted under Subsection (a)(3) includes
  the authority to grant a leasehold or other possessory interest in a
  public facility owned by 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, 2015.
 
  * * * * *