| 1 | 1 | | 84R10063 ATP-F |
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| 2 | 2 | | By: Estes S.B. No. 1266 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the powers of a public facility corporation. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Section 303.003(4), Local Government Code, is |
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| 10 | 10 | | amended to read as follows: |
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| 11 | 11 | | (4) "Credit agreement" means a loan agreement, |
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| 12 | 12 | | revolving credit agreement, agreement establishing a line of |
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| 13 | 13 | | credit, letter of credit, reimbursement agreement, insurance |
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| 14 | 14 | | contract, commitment to purchase bonds or sponsor obligations, |
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| 15 | 15 | | purchase or sale agreement, interest rate or commodities price swap |
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| 16 | 16 | | agreement, cap or collar agreement, protection or management |
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| 17 | 17 | | agreement, or commitment or other contract or agreement authorized |
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| 18 | 18 | | and approved by the board of directors of a corporation in |
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| 19 | 19 | | anticipation of, related to, or in connection with the |
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| 20 | 20 | | authorization, issuance, incurrence, sale, security, exchange, |
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| 21 | 21 | | payment, purchase, remarketing, or redemption of bonds or interest |
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| 22 | 22 | | on bonds. |
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| 23 | 23 | | SECTION 2. Section 303.021(a), Local Government Code, is |
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| 24 | 24 | | amended to read as follows: |
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| 25 | 25 | | (a) A sponsor may create one or more nonmember, nonstock, |
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| 26 | 26 | | nonprofit public facility corporations to: |
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| 27 | 27 | | (1) issue bonds under this chapter, including bonds to |
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| 28 | 28 | | purchase sponsor obligations; |
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| 29 | 29 | | (2) finance public facilities on behalf of its |
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| 30 | 30 | | sponsor; or |
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| 31 | 31 | | (3) loan the proceeds of the obligations to other |
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| 32 | 32 | | entities to accomplish the purposes of the sponsor. |
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| 33 | 33 | | SECTION 3. Section 303.041, Local Government Code, is |
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| 34 | 34 | | amended by amending Subsection (a) and adding Subsection (d) to |
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| 35 | 35 | | read as follows: |
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| 36 | 36 | | (a) Subject to Section 303.045, a corporation has the rights |
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| 37 | 37 | | and powers necessary or convenient to accomplish the corporation's |
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| 38 | 38 | | purposes, including the power to: |
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| 39 | 39 | | (1) acquire title to a public facility in order to |
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| 40 | 40 | | lease, convey, or dispose of the public facility to the |
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| 41 | 41 | | corporation's sponsor or, on direction of the sponsor and in |
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| 42 | 42 | | furtherance of the sponsor's purposes, to another entity; |
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| 43 | 43 | | (2) accept or grant a mortgage or pledge of a public |
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| 44 | 44 | | facility financed, refinanced, or provided by the corporation or by |
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| 45 | 45 | | sponsor obligations purchased by the corporation and, as security |
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| 46 | 46 | | for the payment of any connected bonds or credit agreements that the |
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| 47 | 47 | | corporation issues or incurs: |
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| 48 | 48 | | (A) assign the mortgage or pledge and the revenue |
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| 49 | 49 | | and receipts from the mortgage or pledge or [and] from the |
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| 50 | 50 | | corporation or sponsor obligations; or |
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| 51 | 51 | | (B) grant other security; |
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| 52 | 52 | | (3) sell, convey, mortgage, pledge, lease, exchange, |
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| 53 | 53 | | transfer, and otherwise dispose of all or any part of the |
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| 54 | 54 | | corporation's property and other assets, including sponsor |
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| 55 | 55 | | obligations; |
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| 56 | 56 | | (4) make a contract, including a credit agreement, |
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| 57 | 57 | | incur a liability, and borrow money at interest; |
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| 58 | 58 | | (5) lend money for its corporate purposes, invest its |
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| 59 | 59 | | money, and take and hold security for the payment of money loaned or |
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| 60 | 60 | | invested; |
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| 61 | 61 | | (6) sue and be sued in its corporate name; |
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| 62 | 62 | | (7) appoint agents of the corporation and determine |
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| 63 | 63 | | their duties; [and] |
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| 64 | 64 | | (8) have a corporate seal and use the seal by having it |
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| 65 | 65 | | or a facsimile of it impressed on, affixed to, or reproduced on an |
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| 66 | 66 | | instrument required or authorized to be executed by the |
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| 67 | 67 | | corporation's proper officers; and |
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| 68 | 68 | | (9) exercise any powers that a nonprofit corporation |
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| 69 | 69 | | may exercise, to the extent necessary or convenient to accomplish |
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| 70 | 70 | | the purpose of the corporation. |
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| 71 | 71 | | (d) The authority granted under Subsection (a)(3) includes |
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| 72 | 72 | | the authority to grant a leasehold or other possessory interest in a |
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| 73 | 73 | | public facility owned by the corporation. |
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| 74 | 74 | | SECTION 4. This Act takes effect immediately if it receives |
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| 75 | 75 | | a vote of two-thirds of all the members elected to each house, as |
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| 76 | 76 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 77 | 77 | | Act does not receive the vote necessary for immediate effect, this |
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| 78 | 78 | | Act takes effect September 1, 2015. |
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