86R13276 NC-F
By: West S.B. No. 1689
A BILL TO BE ENTITLED
AN ACT
relating to the creation and use of public facilities corporations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 303, Local Government
Code, is amended by adding Section 303.0225 to read as follows:
Sec. 303.0225. CREATION BY MULTIPLE SPONSORS. (a) Two or
more sponsors may create a corporation under this chapter to
accomplish the corporation's purposes with respect to each of the
sponsors.
(b) The governing body of each sponsor must follow the
procedures described by Section 303.023 to create the corporation.
(c) The articles of incorporation or the bylaws of the
corporation may provide any terms that are mutually acceptable to
the corporation's sponsors, including terms allowing:
(1) sponsors to be added or removed from the
corporation; or
(2) one or more sponsors to be delegated the authority
or duty to take actions under this chapter.
(d) Subject to the terms of the corporation's articles of
incorporation and bylaws, if a corporation is created under this
section:
(1) each sponsor may use the corporation in any manner
in which a sponsor may use a corporation under this chapter;
(2) each sponsor is treated for purposes of this
chapter as a sponsor of the corporation;
(3) the corporation may issue bonds or refunding bonds
or incur other obligations to finance, refinance, or provide one or
more public facilities on behalf of one or more of the corporation's
sponsors; and
(4) the corporation may loan the proceeds of an
obligation to any entity to accomplish the purposes of one or more
of the corporation's sponsors.
SECTION 2. Subchapter B, Chapter 303, Local Government
Code, is amended by adding Section 303.048 to read as follows:
Sec. 303.048. USE OF CORPORATION BY NON-SPONSORING
ENTITIES. (a) In this section, "non-sponsoring entity" means a
municipality, county, school district, housing authority, or
special district that is not a sponsor of the corporation being used
by the municipality, county, school district, housing authority, or
special district.
(b) With the consent of a corporation's sponsor, a
corporation may agree to be used by one or more non-sponsoring
entities in any manner in which a sponsor may use a corporation.
The agreement may contain any terms mutually acceptable to the
corporation and the non-sponsoring entity. The sponsor of the
corporation used in accordance with this section may be a party to
the agreement.
(c) A corporation used by a non-sponsoring entity under this
section may exercise the corporation's powers in the same manner
that the corporation may with respect to the corporation's sponsor,
including:
(1) issuing bonds or refunding bonds or incurring
other obligations to finance, refinance, or provide one or more
public facilities on behalf of the non-sponsoring entity, the
corporation's sponsor, or both; and
(2) loaning the proceeds of the obligations to any
entity to accomplish the purposes of the non-sponsoring entity, the
corporation's sponsor, or both.
SECTION 3. This Act takes effect September 1, 2019.