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)
 
   
 
 
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.
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