By: Crownover (Senate Sponsor - Hancock) H.B. No. 3245
(In the Senate - Received from the House April 20, 2015;
May 4, 2015, read first time and referred to Committee on Higher
Education; May 13, 2015, reported favorably by the following vote:
Yeas 7, Nays 0; May 13, 2015, sent to printer.)
Click here to see the committee vote
A BILL TO BE ENTITLED
AN ACT
relating to qualified nonprofit corporations acting for and on
behalf of two or more cities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 53B, Education Code, is
amended by adding Section 53B.48 to read as follows:
Sec. 53B.48. QUALIFIED NONPROFIT CORPORATION ACTING FOR OR
ON BEHALF OF TWO OR MORE CITIES. (a) A qualified nonprofit
corporation described by Section 53B.47(e) that has agreed to
exercise the powers enumerated under Section 53B.47 for and on
behalf of two or more cities may withdraw from acting for and on
behalf of any of those cities if the governing body of the
applicable city consents to the withdrawal and rescinds its earlier
request that the nonprofit corporation act for and on behalf of the
city. A nonprofit corporation that completes a withdrawal
described by this subsection continues to act under the authority
of Section 53B.47(e) for and on behalf of the remaining city or
cities.
(b) Following the qualified nonprofit corporation's
withdrawal under this section from acting for and on behalf of a
city:
(1) the applicable city is no longer:
(A) entitled to participate in the appointment or
removal of a member of the board of directors of the nonprofit
corporation under Section 53B.47(e); or
(B) authorized or required to participate in the
approval of the issuance of revenue bonds or other borrowings by the
nonprofit corporation under Section 53B.47(a); and
(2) members of the board of directors of the nonprofit
corporation who were appointed by that city are no longer
considered to be qualified directors of the nonprofit corporation.
(c) A qualified nonprofit corporation that withdraws from
acting for and on behalf of a city may change the size of its board
of directors to reflect the withdrawal, provided that its bylaws at
all times require at least three directors. The governing body or
bodies of the city or cities for and on behalf of which the
nonprofit corporation continues to act retain the power to:
(1) appoint and remove the directors of the nonprofit
corporation as provided by Section 53B.47(e); and
(2) approve the issuance of revenue bonds or other
borrowings by the nonprofit corporation as provided by Section
53B.47(a).
SECTION 2. 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.
* * * * *