By: Shapiro S.B. No. 500
A BILL TO BE ENTITLED
AN ACT
relating to the powers, duties, and financing of cultural education
facilities finance corporations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subdivision (5), Section 3, 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; [and]
(B) 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
(C) facilities incidental, subordinate, or
related to or appropriate in connection with property described by
Paragraph (A) or (B) of this subdivision, [located within the
state,] regardless of the date of construction or acquisition.
SECTION 2. Section 4, Cultural Education Facilities Finance
Corporation Act (Article 1528m, Vernon's Texas Civil Statutes), is
amended by amending Subsection (b) and adding Subsection (e) to
read as follows:
(b) The corporation shall be created and organized in the
same manner as a health facilities development corporation under
Chapter 221, Health and Safety Code, and has the same powers,
authority, and rights:
(1) with respect to cultural facilities and health
facilities that a health facilities development corporation has
with respect to health facilities under Chapter 221, Health and
Safety Code; and
(2) with respect to educational facilities, housing
facilities, and other facilities incidental, subordinate, or
related to those facilities that a nonprofit corporation created
under Section 53.35(b), Education Code, or an authority created
under Section 53.11, Education Code, has under Chapter 53,
Education Code.
(e) Regardless of any other provision in Chapter 221, Health
and Safety Code, or Chapter 53, Education Code, the corporation may
exercise its powers on behalf of a user outside of this state if the
user also conducts lawful activities in this state.
SECTION 3. 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, 2009.