Relating to the authority of a development corporation created by the Gulf Coast Authority to finance certain projects.

89(R) HB 3255 - Engrossed version - Bill Text

89R21776 MP-F

By: Paul, Bumgarner

H.B. No. 3255

A BILL TO BE ENTITLED

AN ACT

relating to the authority of a development corporation created by

the Gulf Coast Authority to finance certain projects.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 3.01, Chapter 409, Acts of the 61st

Legislature, Regular Session, 1969, is amended by amending

Subsection (g) and adding Subsections (h), (i), (j), (k), and (l) to

read as follows:

(g) A development corporation created by the authority

under Chapter 501, Local Government Code, may finance:

(1) projects described by Subchapter C, Chapter 501,

Local Government Code, located inside or outside this state; [
and
]

(2) qualified improvements as defined by Section

399.002, Local Government Code, located inside or outside this

state in the same manner and to the same extent as a municipality or

county may do so under Chapter 399 of that code
; and

(3)

projects located inside or outside this state that

acquire, construct, equip, renovate, improve, or refinance:

(A)

educational and housing facilities in the

same manner as a higher education facility authority under Chapter

53A, Education Code;

(B)

health facilities in the same manner as a

development corporation under Chapter 221, Health and Safety Code;

(C)

the facilities or activities of an

organization that is exempt from the payment of federal income

taxes under Section 501(a), Internal Revenue Code of 1986, by being

listed as an exempt entity under Section 501(c)(3) of that code;

(D)

facilities for the production or storage of

energy, including biomass, geothermal, nuclear, or hydroelectric

energy;

(E)

telecommunications service facilities or

equipment, and any feature, function, or capability that is

provided by the facility or equipment, including subscriber

numbers, databases, signaling systems, and information sufficient

for billing and collection or used in the transmission, routing, or

other provision of telecommunications services; and

(F)

the periodic acquisition of natural gas or

electricity for a user, as described by Section 501.003, Local

Government Code
.

(h)

Notwithstanding Section 501.160, Local Government Code,

a development corporation created by the authority has all of the

powers of a public facility corporation under Chapter 303, Local

Government Code, for the purpose of acquiring natural gas or

electricity as provided by Subsection (g)(3)(F) of this section.

(i)

Notwithstanding any other law, a development

corporation created by the authority may finance, acquire,

construct, improve, lease, operate, or otherwise support a

facility, activity, or undertaking that a local government, as

defined by Section 271.081, Local Government Code, or an entity

created on behalf of a local government is authorized to finance,

acquire, construct, improve, lease, operate, or otherwise support,

regardless of whether the facility, activity, or undertaking is an

authorized project under Subchapter C, Chapter 501, Local

Government Code.

The legislative findings contained in Section

501.004, Local Government Code, apply to this subsection and to any

facility, activity, or undertaking authorized by this subsection to

the same extent as if expressly made in this subsection.

(j)

If a development corporation created by the authority

issues a public security for an out-of-state project under

Subsection (g) of this section, the development corporation shall

submit to the attorney general:

(1) a resolution approving the public security; and

(2)

a detailed description of the proposed project and

financing for the project.

(k)

Notwithstanding any other law, a public security issued

under Subsection (g) of this section for a project located outside

this state or a contract supporting the public security is not

subject to the review and approval of the attorney general if the

attorney general does not request in writing the submission of the

record of proceedings relating to the authorization of the public

security within 12 business days from the date of receipt by the

attorney general of the information under Subsection (j) of this

section.

(l) Notwithstanding Sections 501.251, 501.252, 501.255, and

501.256, Local Government Code, if a development corporation

created by the authority finds that a project:

(1)

described by Subsection (g) of this section that

is located outside of this state is required or suitable for the

development or promotion of new or expanded business enterprises,

the project meets the public purpose of Chapter 501, Local

Government Code; and

(2)

is suitable for the development or promotion of

new or expanded business enterprises, the project fully satisfies

and is considered sufficient for purposes of any project approval

standards adopted by the Texas Economic Development and Tourism

Office.

SECTION 2. This Act takes effect immediately if it receives

a vote of two-thirds of all the members elected to each house, as

provided by Section 39, Article III, Texas Constitution. If this

Act does not receive the vote necessary for immediate effect, this

Act takes effect September 1, 2025.