Gulf Coast Bond Bill Deems Out-Of-State Projects A Public Purpose

The text as introduced · 526 words

89R957 MP-F

By: Paul
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), and (k) 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) hotels, including convention center

facilities or convention center complexes primarily used to host

conventions and meetings; and

(E) storage infrastructure and related

facilities for energy and alternative energy production or carbon

capture .

(h) A project financed under Subsection (g) of this section

is an authorized project under Subtitle C1, Title 12, Local

Government Code, including Chapter 501 of that code.

(i) 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.

(j) 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 (i) of this

section.

(k) Sections 501.203, 501.205, 501.251, 501.252, 501.253,

501.254, 501.255(a) and (b), 501.256, and 501.257, Local Government

Code, do not apply to a development corporation created by the

authority.

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.