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. This Act takes effect September 1, 2019.