86R13276 NC-F
 
  By: West S.B. No. 1689
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the creation and use of public facilities corporations.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter B, Chapter 303, Local Government
  Code, is amended by adding Section 303.0225 to read as follows:
         Sec. 303.0225.  CREATION BY MULTIPLE SPONSORS. (a) Two or
  more sponsors may create a corporation under this chapter to
  accomplish the corporation's purposes with respect to each of the
  sponsors.
         (b)  The governing body of each sponsor must follow the
  procedures described by Section 303.023 to create the corporation.
         (c)  The articles of incorporation or the bylaws of the
  corporation may provide any terms that are mutually acceptable to
  the corporation's sponsors, including terms allowing:
               (1)  sponsors to be added or removed from the
  corporation; or
               (2)  one or more sponsors to be delegated the authority
  or duty to take actions under this chapter.
         (d)  Subject to the terms of the corporation's articles of
  incorporation and bylaws, if a corporation is created under this
  section:
               (1)  each sponsor may use the corporation in any manner
  in which a sponsor may use a corporation under this chapter;
               (2)  each sponsor is treated for purposes of this
  chapter as a sponsor of the corporation;
               (3)  the corporation may issue bonds or refunding bonds
  or incur other obligations to finance, refinance, or provide one or
  more public facilities on behalf of one or more of the corporation's
  sponsors; and
               (4)  the corporation may loan the proceeds of an
  obligation to any entity to accomplish the purposes of one or more
  of the corporation's sponsors.
         SECTION 2.  Subchapter B, Chapter 303, Local Government
  Code, is amended by adding Section 303.048 to read as follows:
         Sec. 303.048.  USE OF CORPORATION BY NON-SPONSORING
  ENTITIES. (a) In this section, "non-sponsoring entity" means a
  municipality, county, school district, housing authority, or
  special district that is not a sponsor of the corporation being used
  by the municipality, county, school district, housing authority, or
  special district.
         (b)  With the consent of a corporation's sponsor, a
  corporation may agree to be used by one or more non-sponsoring
  entities in any manner in which a sponsor may use a corporation.
  The agreement may contain any terms mutually acceptable to the
  corporation and the non-sponsoring entity. The sponsor of the
  corporation used in accordance with this section may be a party to
  the agreement.
         (c)  A corporation used by a non-sponsoring entity under this
  section may exercise the corporation's powers in the same manner
  that the corporation may with respect to the corporation's sponsor,
  including:
               (1)  issuing bonds or refunding bonds or incurring
  other obligations to finance, refinance, or provide one or more
  public facilities on behalf of the non-sponsoring entity, the
  corporation's sponsor, or both; and
               (2)  loaning the proceeds of the obligations to any
  entity to accomplish the purposes of the non-sponsoring entity, the
  corporation's sponsor, or both.
         SECTION 3.  This Act takes effect September 1, 2019.