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A BILL TO BE ENTITLED
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AN ACT
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relating to qualified nonprofit corporations acting for and on |
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behalf of two or more cities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 53B, Education Code, is |
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amended by adding Section 53B.48 to read as follows: |
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Sec. 53B.48. QUALIFIED NONPROFIT CORPORATION ACTING FOR OR |
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ON BEHALF OF TWO OR MORE CITIES. (a) A qualified nonprofit |
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corporation described by Section 53B.47(e) that has agreed to |
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exercise the powers enumerated under Section 53B.47 for and on |
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behalf of two or more cities may withdraw from acting for and on |
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behalf of any of those cities if the governing body of the |
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applicable city consents to the withdrawal and rescinds its earlier |
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request that the nonprofit corporation act for and on behalf of the |
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city. A nonprofit corporation that completes a withdrawal |
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described by this subsection continues to act under the authority |
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of Section 53B.47(e) for and on behalf of the remaining city or |
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cities. |
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(b) Following the qualified nonprofit corporation's |
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withdrawal under this section from acting for and on behalf of a |
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city: |
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(1) the applicable city is no longer: |
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(A) entitled to participate in the appointment or |
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removal of a member of the board of directors of the nonprofit |
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corporation under Section 53B.47(e); or |
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(B) authorized or required to participate in the |
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approval of the issuance of revenue bonds or other borrowings by the |
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nonprofit corporation under Section 53B.47(a); and |
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(2) members of the board of directors of the nonprofit |
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corporation who were appointed by that city are no longer |
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considered to be qualified directors of the nonprofit corporation. |
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(c) A qualified nonprofit corporation that withdraws from |
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acting for and on behalf of a city may change the size of its board |
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of directors to reflect the withdrawal, provided that its bylaws at |
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all times require at least three directors. The governing body or |
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bodies of the city or cities for and on behalf of which the |
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nonprofit corporation continues to act retain the power to: |
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(1) appoint and remove the directors of the nonprofit |
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corporation as provided by Section 53B.47(e); and |
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(2) approve the issuance of revenue bonds or other |
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borrowings by the nonprofit corporation as provided by Section |
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53B.47(a). |
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SECTION 2. 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, 2015. |