Bill Text: TX SB1689 | 2019-2020 | 86th Legislature | Comm Sub
Bill Title: Relating to the creation and use of public facilities corporations.
Spectrum: Bipartisan Bill
Status: (Engrossed - Dead) 2019-05-19 - Comm. report sent to Local & Consent Calendar [SB1689 Detail]
Download: Texas-2019-SB1689-Comm_Sub.html
By: West | S.B. No. 1689 | |
(Flynn) | ||
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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. This Act takes effect September 1, 2019. |