| 1 | 1 | | By: Flynn H.B. No. 4317 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the creation and use of public facilities corporations. |
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| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 8 | 8 | | SECTION 1. Subchapter B, Chapter 303, Local Government |
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| 9 | 9 | | Code, is amended by adding Section 303.0225 to read as follows: |
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| 10 | 10 | | Sec. 303.0225. CREATION BY MULTIPLE SPONSORS. (a) Two or |
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| 11 | 11 | | more sponsors may create a corporation under this chapter to |
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| 12 | 12 | | accomplish the corporation's purposes with respect to each of the |
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| 13 | 13 | | sponsors. |
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| 14 | 14 | | (b) The governing body of each sponsor must follow the |
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| 15 | 15 | | procedures described by Section 303.023 to create the corporation. |
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| 16 | 16 | | (c) The articles of incorporation or the bylaws of the |
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| 17 | 17 | | corporation may provide any terms that are mutually acceptable to |
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| 18 | 18 | | the corporation's sponsors, including terms allowing: |
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| 19 | 19 | | (1) sponsors to be added or removed from the |
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| 20 | 20 | | corporation; or |
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| 21 | 21 | | (2) one or more sponsors to be delegated the authority |
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| 22 | 22 | | or duty to take actions under this chapter. |
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| 23 | 23 | | (d) Subject to the terms of the corporation's articles of |
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| 24 | 24 | | incorporation and bylaws, if a corporation is created under this |
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| 25 | 25 | | section: |
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| 26 | 26 | | (1) each sponsor may use the corporation in any manner |
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| 27 | 27 | | in which a sponsor may use a corporation under this chapter; |
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| 28 | 28 | | (2) each sponsor is treated for purposes of this |
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| 29 | 29 | | chapter as a sponsor of the corporation; |
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| 30 | 30 | | (3) the corporation may issue bonds or refunding bonds |
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| 31 | 31 | | or incur other obligations to finance, refinance, or provide one or |
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| 32 | 32 | | more public facilities on behalf of one or more of the corporation's |
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| 33 | 33 | | sponsors; and |
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| 34 | 34 | | (4) the corporation may loan the proceeds of an |
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| 35 | 35 | | obligation to any entity to accomplish the purposes of one or more |
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| 36 | 36 | | of the corporation's sponsors. |
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| 37 | 37 | | SECTION 2. Subchapter B, Chapter 303, Local Government |
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| 38 | 38 | | Code, is amended by adding Section 303.048 to read as follows: |
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| 39 | 39 | | Sec. 303.048. USE OF CORPORATION BY NON-SPONSORING |
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| 40 | 40 | | ENTITIES. (a) In this section, "non-sponsoring entity" means a |
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| 41 | 41 | | municipality, county, school district, housing authority, or |
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| 42 | 42 | | special district that is not a sponsor of the corporation being used |
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| 43 | 43 | | by the municipality, county, school district, housing authority, or |
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| 44 | 44 | | special district. |
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| 45 | 45 | | (b) With the consent of a corporation's sponsor, a |
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| 46 | 46 | | corporation may agree to be used by one or more non-sponsoring |
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| 47 | 47 | | entities in any manner in which a sponsor may use a corporation. |
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| 48 | 48 | | The agreement may contain any terms mutually acceptable to the |
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| 49 | 49 | | corporation and the non-sponsoring entity. The sponsor of the |
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| 50 | 50 | | corporation used in accordance with this section may be a party to |
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| 51 | 51 | | the agreement. |
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| 52 | 52 | | (c) A corporation used by a non-sponsoring entity under this |
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| 53 | 53 | | section may exercise the corporation's powers in the same manner |
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| 54 | 54 | | that the corporation may with respect to the corporation's sponsor, |
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| 55 | 55 | | including: |
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| 56 | 56 | | (1) issuing bonds or refunding bonds or incurring |
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| 57 | 57 | | other obligations to finance, refinance, or provide one or more |
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| 58 | 58 | | public facilities on behalf of the non-sponsoring entity, the |
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| 59 | 59 | | corporation's sponsor, or both; and |
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| 60 | 60 | | (2) loaning the proceeds of the obligations to any |
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| 61 | 61 | | entity to accomplish the purposes of the non-sponsoring entity, the |
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| 62 | 62 | | corporation's sponsor, or both. |
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| 63 | 63 | | SECTION 3. This Act takes effect September 1, 2019. |
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