H.B. No. 1263
AN ACT
relating to the powers, duties, and financing of certain facilities
finance corporations.
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;
(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) [(5)] 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; [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 3. Section 4, Cultural Education Facilities Finance
Corporation Act (Article 1528m, Vernon's Texas Civil Statutes), is
amended by amending Subsections (b) and (c) 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.
(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; 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.
(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 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, 2011.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 1263 was passed by the House on April
14, 2011, by the following vote: Yeas 141, Nays 1, 1 present, not
voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 1263 was passed by the Senate on May
17, 2011, by the following vote: Yeas 31, Nays 0
.
______________________________
Secretary of the Senate
APPROVED: _____________________
Date
_____________________
Governor