Bill Text: TX HB4317 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to the creation and use of public facilities corporations.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-03-25 - Referred to Pensions, Investments & Financial Services [HB4317 Detail]
Download: Texas-2019-HB4317-Introduced.html
| By: Flynn | H.B. No. 4317 | |
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| 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. | ||
